Sale Pending

Open Houses...a couple of tips

2010-11-06T21:15:00.000-07:00

You know...it's not everyday that everyone gets to sell their home. I know that's an obvious truth, however, the experience when it does happen can be surprising at the very least...like jumping to a cold pool of water. Maybe it is the conditioning of past experiences and present pressure that teaches us that an open house is a vital necessity to a successful sale. We think that if we don't have an open house we'll miss out on an opportunity to sell to potential purchasers... Not so. Although open houses attract more than 40% of all home buyers, only less than five percent purchase as a result of open houses. Open houses rarely sell houses. However, folks who do choose to have open houses as a part of marketing should expect honest feedback and become more security conscious.

Some feedback have teeth...

Why do we need feedback from home buyers or their agents? Some may feel a second opinion reassures us and quiets our fear of the unknown...but are they reeeally necessary? Sales are all about the consumers, it is a way to get an immediate response from what consumers and their agents are looking for. A buyer's agent may view things differently from that of a listing agent (the agent who represents the seller), so getting feedback is a way to get a different perspective. It's a way to measure the pulse of the market. However, I am surprised when I hear of sellers who are offended by feedback. If you plan to sell your house, understandably sometimes feedback isn't always pleasant but they are a good sounding board...especially if you have doubts.

The presence of a real estate broker should ward off thieves...

Unfortunately, it's misleading to assume the presence of anyone person can ward off potential theft or that the person present is an expert of profiling incoming visitors.

Open Houses are great for buyers who maybe just "checking" out properties or just checking out what they want. Hey, lets not get paranoid...it's only an interjection of common sense to keep you careful. When you have your house opened to the public, keep your prescription drugs, your valuables or expensive wares out of sight, locked away, or removed.

In the end, selling should be a positive and safe experience, do try to keep it light and fun and remember, open houses aren't absolutely necessary but when you do have them, keep your valuables away and out of sight.

Mushrooms in the Greens

2010-09-20T16:49:00.000-07:00

I've been on this mushroom hunting kick, empty of meaningful break from the ongoing stress-o-life and work, I'd thought it would be great to get back to basics, back to what I once remembered enjoying, "hunting" for mushrooms. It started out as a class course requirement and lead to a whole lot of cheese consumption. I've never been overly neurotic about mushrooms…however, if you happen to be in my circle of friends…I might come off as one… But before you run into your little cuddly corner of familiar comfort, consider this, can mushrooms help safe guard what you presently enjoy? Yes they can! Mushrooms are scarcely on common grounds as gardening discussions at a dinner table unless it’s your obsession, so just say that if we understood them more, we may delightfully muse about them. Okay for some that's asking much.

However, put aside your misconception and superstitions of them and accept that they...these fungi have a vital role in helping us with our gardening and growing food. They help our plants access otherwise inaccessible or difficult to access nutrients. In time, you will come to appreciate the beauties of these decomposers. Here in lies not an advocate for harmful mushrooms but their benefits in good stewardship.

Helpful Websites:

Mycelium running: how mushrooms can help save the world

Fungi Perfecti, LLC. - mushroom resources

Be-Qweeding Your Lawn & Garden with Love

2010-05-07T15:26:00.000-07:00

I had a soil science class in college during my years as a Botanist. The professor was a kid at heart when it came to dirt. He loved dirt...in fact we couldn't call it dirt it was "soil" to him. Dirt was anything that didn't belong where you wanted it, he would often remind us, as we dusted our soiled tables and swept out the dusty floors of the lab.

So, we shall extrapolate it to the general weed pollution...the "unwanted" in the garden of our Eden. The bane of our existence in home ownership. I was looking online for something to post for my future online Facebook business postings...Oh, did you know I had a Facebook account...you must visit...lots of helpful tid-bits...little doses of help. LOL!

Anyway, I was thinking about how to get rid of dandelions because I remembered some time ago someone told me the best way to kill your weeds was to overfeed them with fertilizer, the good stuff, to smother them with love without harming your "lawn". Well, to some extent this is true, what goes for one will also go for another...in other words don't over fertilize your ornamental, you'll can kill them in the same manner.

Here's an excerpt of how to get rid of your dandelions and other weeds:
1. Mow often to prevent blossoms from seeding.
2. Root them out manually or find some critters to pluck them for you, i.e. rabbits, chickens
3. Poach them by pouring boiled water over the plants.
4. Smother them with mulch, plastic, cardboard, or spray paint them whatever is more aesthetically pleasing to you or applicable with your neighborhood regulation(s).
5. Spray their foliage's with household vinegar.
6. Apply corn gluten meal to prevent roots from forming during seed germination (Garden Alive!)
7. Burn them, as a last resort w/caution in drier climate.
8. And last, inject your soil with love by improving it, creating an environment where weeds are less likely to take root and the soil is made more "fluffy" for easy pulling of weeds.

Full article: Seven ways to get rid of dandelions...Organically! by Marion Owen

Preping Yourself and Your Home for the Market

2010-03-09T14:22:00.000-08:00

How many have recently attended an open house? Was it enjoyable?...almost like taking a trip to a home show eh..although less grand, way less crowded and less commercialized. When it comes time for you to sell your home, will you be mentally prepared? Many of you will default or defer to your real estate agent to conduct such matters...which is fine but what happens when reality sets in? Here are a few ways to prepare yourself :

Expect a flood of visitors
Expect high traffic for the first two weeks: phone calls, showings, agent previewing, last minute showings
Expect that you'll have strangers in your home, invading your privacy
Expect to understand that your security can become compromised
Expect honest and frank feedback, it's business...don't take it personally, you were once buyers and possibly will be again
Expect to be emotionally detach from your house...so you can see the big picture and avoid regrets.

For those who value privacy and personal space the experience of having strangers come in your home can be rather shocking but it is obvious why you placed your house on the market, right?...To get it sold. If your house isn't easily accessible, i.e. restrictive showing hours, it will not reach its potential dollar value and if you choose not have interior photos, you can guarantee you'll have less showing and potentially less profit.

Sometimes, especially when the property is new on the market, open houses can invite a crowd of visitors...where one sales agent alone isn't able to supervise everyone and security measures can become difficult. You, as homeowners, can do a few things to help secure your homes for open houses and while it is on the market:

1. Secure your home

put away personal items: photos
put away valuables: collectibles, jewelry, money
if you have an alarm, use it
secure your beloved pets in a safe location or remove them to a safe location
put away confidential documents, i.e. credit cards, checks, bank statements, etc.
put away your prescription drugs

2. Remove undesirable or fowl smells: i.e. strong cooking smells

3. Open the curtains, let in natural lighting and provide ample lighting

4. De-clutter: i.e. halls ways, rooms, closets, etc.

5. Soothing background music

6. Stage your home yourself or hire a professional stager

Staging Tips

Deodorizing Tips

Got the Tax Credit, What now?

2010-03-09T12:06:00.000-08:00

Mind you, obviously, I am not a tax accountant or a lawyer...a relatively frequently asked question among first time homebuyers is: Now that I've gotten my homebuyer tax credit when can I file it, for what year, with what forms,and with what proof of purchase?

Well, as I am not an accountant I certainly will defer you to some helpful site to shed some light...costing you nothing except for a few clicks and ask that you strive to perform your due diligence to become well informed and take accountability for those decisions....Annnd ask that you would defer to the experts for further clarification, i.e. lawyers, accountants and the works.

Extended tax credit beneficiaries are those who close between November 7, 2009 and April 30, 2010 or have mutual agreement agreed offer by April 30, 2010 and closed by June 1, 2010. You need to determine to which tax year you would like to take advantage of the said tax credit on or before April 15, 2010 or 2009 tax return or file tax credit on or before April 15, 2011 for 2010 tax return. You can claim 2009 buyer tax credit even when the purchase was completed/closed after December 31, 2009 OR file an amended return after April 15, 2010.

What documents do you need? Hmm...you need a proof of purchase, YOUR proof of purchase. Well, this becomes unclear as to what particular purchase and sale documents are necessary to provide proof. But in short the following are a necessity:

Tax Form 5405 - to help determine the amount you qualify for
Apply the tax credit when you file your 2009 or 2010 tax return, which ever you choose
And attach documentation of purchase, the details of which have not been released. You may wish to consult with a trustworthy and qualified tax accountant.

Homebuyer Tax Credit - Summary Chart (slow load...so have patience)
Frequently Asked Homebuyer Tax Credit Questions
Tax Credit towards FHA downpayment - Limited States

A Presale Buyer's Guide, Avoid the Heartache by Knowing What to Expect

2010-03-05T17:08:00.000-08:00

How many of you know what a presale is? A presale is an empty lot, with the intent to have a house built on it, usually with a pre-determined floor plan; however, if the builder has not pre-determined a floor plan, the buyer is given the option to pick among a select few, limited by the size the lot can accommodate. In summary this is what typically happens after both parties have come to an agreement in price and terms:

1) Buyer picks lot location
     a) which sometimes may or may not include an option to reserve, usually $5,000-$10,000 to reserve. This amount is usually counted towards the buyer’s home purchase if they were to follow through. However, if they did not, in the past...most recent past, some builders required buyers to forfeit their “reserve” deposit if they chose not to follow through. Don’t confuse this with the earnest money deposit.

2) Buyer picks floor plan option, if the choice is available

3) Buyer picks upgrade options, some options must be prepaid in advance whether it is due to permit requirements, ordering parts, or construction stage requirements; builder wants advance payment.
     a) Some upgrade options may require buyer to make payment to a third party like a flooring company
     b) The true customize home builders provide limitless buyer upgrade options

4) Buyer to wait patiently while builder shuffle paperwork, deal with the city and county, their contractor, their subcontractors, their field experts, their ordered parts and while waiting eagerly…watching for their home to rise from the ground up.
     a) Buyers are not encouraged to be at the building site while work is being done: avoids liability, interference and miscommunication. However they are allow to see it from a distance.

5) Schedule final walk through with builder/managing supervisor/attending supervisor to glean over any mistakes, mishaps and to have them corrected; the list of items to correct is called a “punch list”. I call it the blue tape list because they use blue tape to note areas the buyer sees as concerns. A copy of the walk through list should also be provided.

6) Schedule a home inspector to come the same time or earlier that day to thoroughly inspect the house so it can be part of this “punch list”. Schedule for a re-inspection of the work done, it would be a good idea to address this request somewhere in the presale purchase and sale. Important to note, it is always best to have as much of the punch list completed, as some builders are known to not follow through after the house closes, even when promised. Can you force them to complete it? Yes, it requires your time, attentiveness and follow through with third parties who could help:
     a) City/county inspectors (i.e. where applicable)
     b) The listing broker’s office
     c) Write and petition the builder under the one year builder’s warranty. It is important that you address your concerns within that one year period and it is important that you keep good and thorough documentation in all communications sent (if in letter form have it certified). Keep tract who you’ve spoken with, details of the conversations, date and time. If the builder has offered another warranty on top of their one year builder’s warranty, like a 6yr warranty or a 2-10 Warranty, the buyer can, after due diligence in seeking recompense from their builder and have gotten no response, they can file a claim against the additional warranty to have those problems resolved. How they (the additional warranty folks) will take care of it will be a matter between them and the builder who has membership with them.
     d) File a complaint with the Department of Licensing, under Labor and Industry department
     e) File a complaint with the real estate licensing department if they have a real estate license
     f) File a complaint with the contractor licensing department
     g) The buyer can stop escrow from closing after signing, to force the builder to compete the project. However, seek the advice of your real estate professional as it will depend on the outline of the contract and how it may or may not jeopardize your earnest money deposit.

Oh yes, one more thing...especially if you are new to the area request utility contact information from the builder and/or escrow before closing and confirm with those companies that all the utility billing information has been updated to reflect your correct billing address. So, to end in a more positive note, presale is fantasticaly economical with customizable options even to meet the most finicky buyers with limitless imagination, eager to watch their dream home come to life.

Closing Costs, What you should expect.

2010-03-01T16:06:00.000-08:00

Closing Costs seems like this big enourmous intangible bottomless pit that no one seems to know until near the very end of a transaction or at the least one can feel its looming shadow....

What can you expect from your closings costs?

Buyer's Typical Closing Costs, these fees (subject to any contractural agreement between the parties involved) are independent of loan downpayment(s).

One half of escrow fee
Lender's ALTA Extended Title Insurance Premium
Document preparation
Pro-rated fees: real estate tax, Homeowners Due (HOA), some utilities
Reconveyance & recording fees
Homeowners/Hazard Insurance premium for the first year
Inspection Fees
Loan charges
Other miscellaneous fee: courier,

Seller's Typical Closing Costs
(subject to any contractural agreement between the parties involved)

Work orders, if applicable
One half of Escrow Fee
Title Insurance Premium
Homeowners Due (HOA)
Real Estate Fee
Home Warranty
Assessment, or bonds
Loan payoff amount and fees, i.e. prepayment penalty if any
Liens, if any
Recording charges
Excise Tax (King & Pierce County is 1.78%) plus applicable sales tax

Bank Owned Vs Short Sale

2010-01-25T21:54:00.000-08:00

What are the difference between a bank owned property and a short sale property? Does it matter after all I am getting a good deal? Right?

Well, the good deal is relative. Good deals sometime requires lots of patience and that is what it takes when buying short sale properties. But before we dive into what the differences are, lets cover bank owned properties first, because the explanation is more pleasant and I can end this article sooner without petering out on all the downside of dealing with short sales.

Bank Owned Property - What you should expect.

1. Most bank owned properties are sold "AS IS", buy like it is, as you see it or not see it, you get what you pay for, etc. Will the bank fix it? Well, NO...most of the time; might depend on price and/or health and safety.

2. Financing requirements or restriction. Buyer's lender may require some repairs, i.e. roof, siding, things that may jeopardize their investment, before they loan the money.

3. Seller Disclosures are limited. Although banks are required to provide a seller disclosure of the property, it will be of little use to buyers as the banks, may require the buyers to waive their right to a full disclosure.

4. Length of Time to Negotiate. Banks are businesses, not like your typical homeowner opened at more hours, so they work at their pace not at the home buyers bequest. However, from experience, you will run into some who will respond rather quickly, under a month. Seems rather length? Typical respond time can range from 3 months to 9 months.

5. Terms and Conditions. Banks will provide their own addendum that will give them the advantage in terms and conditions of a contract. This may require the buyer to pay for loan negotiation fees and/or hiring a lawyer to review paper work.

6. Inspections. Because there is insufficient information on the property's health, buyers may be pressed to hire more than one experts at buyers' expense.

7. Earnest Money deposit. Banks may require large deposit amounts and sometimes they may want it upfront before an offer is accepted. This creates more risks for the home buyer, i.e. tied up funds, unable to retrieve funds.

Short Sales - A lesson in patience.

1. Can anyone sell short? In today's market, anything is possible. Can anyone qualify to sell short? NO. The seller must provide proof of hardship, lack of ability or capacity to fulfill their debt obligation, to the lender.

2. Naive Lenders? There's an over whelming sense that home buyers think these lenders impatient and they want to get rid of these short sales. Not so. In fact, they are more patient than most For Sale By Owners. They are wiser, they paid for a broker's price opinion (BPO) before agreeing to a sale price. The BPO helps lender determine where they get the best profit: to foreclosure, to sell short for a higher price or not to allow a short sale.

3. Repairs. Most sellers will not be able to make repairs due to a lack of funds and they would prefer to sell their property "AS IS".

4. The Stretch to a Close. Many banks are backlogged and overwhelmed. It could be a guesswork of clogs, buyers need to be patient and understand that it may take months to get a single response to a buyer's offer. If there are more than one lien holder involved, it could take up a few months. Why? Negotiation period to satisfy all lien holders' vested interests, in other words they want their money and they don't want to be left empty handed.

5. Control, or lack thereof. Typical purchasing transaction requires seller to respond in a given amount of time but when dealing with a lender in a short sale, it isn't going to happen. The buyer leashed onto the lender's time line.

6. Fickle Lenders, last minute changes. Some lenders will choose to make last minute changes to negotiation terms which can cause the buyer's purchase to fail, i.e. loan qualification, patience.

7. Unmotivated Sellers. Most sellers will not receive money at closing and because of this they may lack the motivation to communicate, cooperative, or drive to close a sale.

In short, from the field perspective, I find it more pleasant to know that I am dealing with a bank owned property than a short sale whether or not the property is qualified as a short sale. Bank owned properties are easier to deal with because the response is much quicker and there is only one party to deal with, the bank. While in a short sale, the seller can be unreasonable about pricing, there are often too many people involved, communication is difficult, everything drags on and on only to find out in three months that you didn't get the deal.

Good hunting to the bargainer.

Best Top Washington High Schools

2010-01-14T18:33:00.000-08:00

Washington State is ranked top ten, coming in on number 8, nation wide for best public high schools (US News & World Report, ranking based on Advanced Placement (AP) exams). Top 100 best public high schools in the state of Washington are ranked as follows:

High Schools City Ranking Enrollment College Readiness

International Schools Bellevue #10 509 100%

International Kirkland #29 381 89.3%

Community

Newport High Bellevue #72 1626 70.2%

Bellevue High Bellevue #78 1361 68.2%

Steering Clear of Surprises

2010-01-14T15:16:00.000-08:00

Having a smooth purchasing experience for anyone involved is utmost important to an already stressful process. Knowing the events which can influence a housing purchase can eliminate unnecessary headaches, drama, and unexpected surprises. So, plan ahead by taking assessment of important family events, holidays, time differences, business hours, transport, and closures.

Check county court house closure dates as they may differ from county to county. Why is it necessary to know court house closure dates you may ask? When a transaction or a sale “closes” it is recorded at the county court house. If it is not recorded, the sale cannot close, property ownership cannot be transferred, and the new to be owner cannot move in.

Check banking hours and closure dates. During the lending process some funds may require documentation (i.e. uncommon deposits or withdraws over $1,000) and some others lack documentation may need to be "seasoned" (a given length of time where funds of $1,000 or more stay put until they no longer appear as a deposit or a withdrawal).

Check any and all business office hours and closures affiliated with your purchases.

Holidays & Closures

Martin Luther King Jr., Birthday......Monday Jan 18, 2010

President's Day....................................Monday Feb 15, 2010

Memorial Day.....................................Monday May 31, 2010

Independence Day...............................Monday Jul 05, 2010

Labor Day...............................................Monday Sep 6, 2010

Columbus Day.......................................Monday Oct 11, 2010

Veteran's Day....................................Thursday Nov 11, 2010

Thanksgiving...............................Thu-Fri Nov 25 & 26, 2010

Christmas.......................................Fri-Sat Dec 24 & 25, 2010

New Year's Eve........................................Friday Dec 31, 2010

New Year's Day........................................Saturday Jan 1, 2011

Redmond Washington Condo Sales

2009-12-24T03:04:00.000-08:00

Available Redmond Condominiums

Summary Price:

Minimum: $103,000

Maximum: $635,000

Average: $283,220

Median: $259,990

Click graph to enlarge

Pending Redmond Condos, under contract within the past 6 months

Summary Price:
Minimum: $150,000
Maximum: $504,990
Average: $278,110
Median: $256,900

Click graph to enlarge

Sold Redmond Condominiums within the past 6 months

Summary Price:
Minimum: $96,000
Maximum: $540,000
Average: $301,377
Median: $318,000

Click graph to enlarge

Bellevue Washington Home Sales Stats

2009-12-24T02:37:00.000-08:00

Bellevue Single Family Homes (SFR) Sales for the past 6 months

Summary Price:

Minimum: $235,000

Maximum: $4,735,598

Average: $672,071

Median: $568,900

Click on graph to enlarge

Bellevue Condominium Sales for the past 6 months

Summary Price:
Minimum: $126,000
Maximum: $2,349,000
Average: $370,986
Median: $315,000

Click on graph to enlarge

Redmond Washington Real Estate Report

2009-12-24T00:28:00.000-08:00

Redmond Home Inventory

Summary Price:
Minimum: $135,000
Maximum: $4,280,000
Average: $729,282
Median: $601,957

Click on graph to enlarge

Redmond Homes gone Pending, in contract, in the past 6 month

Summary Price:
Minimum: $265,290
Maximum: $4,450,000
Average: $572,036
Median: $522,500

Click on graph to enlarge

Redmond Homes Sold in the past 6 months

Summary Price:
Minimum: $122,990
Maximum: $2,000,000
Average: $535,177
Median: $500,000

Click on graph to enlarge

A Grasshopper or an Ant?

2009-12-23T22:52:00.000-08:00

When it comes to emergency preparation how many of us resort to Aesop's grasshopper's attitude about last minute preparation hoping to escape unexpected emergencies? We are continually bombarded with the hype of global warming that some of us are thinking this warming will negate the cold front which seemingly is creeping our way. We say to ourselves, we'll get by and if we can't our city leaders will find a way...hmmm.

I believe if we haven't learnt from pervious disasters how common place the lack of "immediate" responsiveness from our governing leaders, road crews, power companies, and even telephone companies can be, we need to re-assess our priorities and take upon ourselves a attitude of self-reliance. Pointing figures aren't going to resolve our immediate needs in an emergency, it will only create an inversion of harden feelings and render our power of choice limited.

It seems like a dream since we had our last snow dump here in Redmond Washington. Was it a surprise? Well, no. I think the weather report warned us of its coming but inconsistent weather reporting tend to fall on belabored ears that have gone deaf. Like most of the residence here, I was caught unprepared. The store ran out of snow shovels! But fortunately we had power.

If you aren’t ready for winter, it would be a great time to start soon. Here are some ideas to help you get started:

1. Have water enough to last you more than two weeks, ideally 3 months would be best.

2. Foods
a. have canned and/or dry foods storage as in some cases power outage will spoil fresh foods.
b. store foods you'll likely eat or enjoy eating, you may want to consider some snacks. I find myself wanting to snack when I'm worried or not really hungry but have nothing better to do.
c. candies

3. Light supplies
a. extra supplies of batteries
b. candles
c. matches or fuel lighters
d. oil lamps, use with caution and wisdom as they give off gaseous fumes and often times ventilation is necessary.
e. wood, if you have wood burning fireplaces

4. Service of Utilities
a. diligently clean your furnace filters, monthly is ideal
b. service your roof, water heater, and insulate your pipes

5. First Aid Kit

6. Games Anyone?
During a black out incident, I found time was my companion and boredom wasn't far behind. In winter, day light is short which leave some of us more time to sleep, read or play games. It is a good idea to have some playing cards readily accessible and any other games that help pass the time away; a good time to build relationships also.

7. Traveling?
a. have water to last you for three days in case you get stuck.
b. warm blanket, non-cotton preferable
c. emergency kits, of course
d. car cell phone charger
e. non-perishable foods and snacks
f. portable games, if any to keep you sane and occupied
g. emergency numbers

Toys for Tots

2009-12-03T17:55:00.000-08:00

Make a Difference!

Bring new unwrapped toys to the Marines & have your pictures taken with them & their Humvee!

Date: Saturday, December 12th, 2009
Time: 11:00 am to 2:00 pm

Where: Bella Bottega Shopping Center

8862 161st Ave NE, Suite 103

Redmond, WA 98052

View Larger Map

Homebuyer Tax Credit Brief

2009-11-07T13:08:00.000-08:00

NAR Issue Brief of Homebuyer Tax Credit

Homebuyer Tax Credit Aiming for the End Zone!

2009-11-05T12:59:00.000-08:00

Not only is the homebuyer tax credit extended until April 30, 2010 but there is also an expansion to include the following: increase income cap and number of homeownership years with a stipulation.

"More than 1.4 million Americans have claimed the homebuyer credit at a cost so far of about $10 billion, according to the Treasury Department. The legislation approved today would allow the credit for couples earning up to $225,000 a year and individuals earning up to $125,000. That’s up from the current $75,000 limit for individuals and $150,000 for couples.
"It would allow homebuyers who have owned their residence for at least five years to receive a $6,500 credit. Those who sell their new home or no longer use it as their main residence within three years would have to repay the credit. Homes worth more than $800,000 wouldn’t be eligible...

"Extending the credit to those who already own homes won’t reduce the excess inventory of housing blamed for the slump because “every buyer taking advantage of the move-up credit would necessarily be a seller,” Goldman Sachs said. It said the plan may increase housing prices by 1 percent because “sellers are likely to incorporate a fraction of the credit amount in their sale prices.” See Full Article by Brian Faler with Bloomberg.com

I like to say that this extension is a good change, however, it has very serious and dire consequences, at the end of the tunnel, whether we choose to acknowledge it or not. Who will pay for the cost of the extension and expansion? I'm all for selling more houses because that is my business but at what cost and to what end?

"We", seemingly the majority, claim that we are fed up with the avalanche of mortgage fraud, money sucking CEOs, and dishonest political dealings that has entrenched us in an insurmountable deficient and yet we the people are not up in arms about the homebuyer tax credit extension and expansion. Don't mind the extension, what about the expansion?

I think that most of us feel a disconnect with events far away or events that we do not feel a part of, to some respect, and don't fully comprehend their tidal affect until it hits our shore, i.e. our pocket book, our retirement account, more taxes, increased food prices. Should we not act now to secure our future by putting aside our desire for immediate gratifications by investing in our nation's financial future, so we and our future generations may reap of its benefits and rewards, later?

Smart Market Report (SMR) October End 2009

2009-11-04T12:48:00.000-08:00

(Double click on image to enlarge)

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

SMR 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 may exceed more than a few thousand, it may require several thousand, or tens of thousands.

Eastside Market Statistics

(Double click on image to enlarge)

Eastside and Mercer Island Market Trends Jan 2007-Sept 2009Graph courtesy of Alan L. Pope & Associate appraisal

Jumbo FHA and Buyers Tax Credit to extend & HVCC will be ousted

2009-11-03T17:52:00.000-08:00

FHA Conforming Loan Limits

House and Senate have extended the high-cost loan limit, $729,750, until the end of 2010, December 31; and thereafter it may fall back to $625,000. DS News

Buyer Tax Credit extension

"Under the new language in the Senate, homeowners who have lived in their home for five of the past eight years would be eligible to receive a $6,500 tax credit, while first-time buyers would still be eligible for an $8,000 credit, [expansion proposal].

"The proposal would also increase the income limits of those eligible for the program, to $125,000 per year for individuals and $225,000 for couples...

"[The] expansion would cost about $10.2 billion over 10 years and would be paid for with offsetting cuts elsewhere in the budget. Simply extending the current tax credit is estimated to cost $1 billion a month...

"Analysts say the credit has helped the housing market, although critics question whether the value is worth the cost" (Full Report on Reuter ).

November 4, 2009 - Home Buyer Tax Credit extend until April 30, 2009

see Bloomberg article by Brian Faler

HVCC (Home Valuation Conduct Code)

The HVCC which was instigated to prevent appraisal coercion, appraisal fraud. During the "hot" market, some appraiser felt the banks and real estate agents pressured them to appraise more then the property was worth, thus manipulating their valuation and putting some reputable appraisers out of business because of steep competition to conform and placing the consumers at risk for default. Read more on HVCC by Dave Biggers at Appraisal Press. A highly recommended article.

Excerpts from article:

1. Under the HVCC, any lender using a professional appraiser incurs substantial
regulatory risks and additional costs, whereas AVMs, BPOs, and other valuation
alternatives are expressly and repeatedly exempted from the same regulations and
liabilities.

2. The HVCC unduly restricts the appraiser's ability to operate a business in the same

manner as the other parties already in the transaction.

3. Lenders must be prohibited from owning or controlling, in whole or in part, any sort of

valuation entity or mechanism used in the origination of a loan.

4. All valuations, regardless of method employed, must be provided to the borrower in the

same manner.

5. Any complaints regarding the valuation process should be reported solely to the IVPI,

not to the lender overseeing the origination.

"We do believe that these five areas can be addressed, and that to fail to do so would fly in the face of the original intent of the agreement which spawned the HVCC - namely, to strengthen the independence and reliability of the valuations backing what is for most Americans the single largest source of their net worth. Eliminating coercion of appraisers is essential to ensuring that we have maximum transparency and accountability in the real estate transaction and the financial markets which depend upon them. However, a regulation which damages and circumvents the very industry it seeks to protect - and which in turn harms consumers and investors - will not get us as a nation any closer to that goal."

HVCC was to implement independent appraisal valuation of properties, independent from the influence of sales agents and independent from the influences of banks thus protecting the consumers and supporting reputable appraisal practices. However, when HVCC was implemented, it created higher cost for consumers, devastated the appraisal industry by putting many companies out of business, created profitable avenues for banks by eliminating the competitions and loop holes for them to get around HVCC requirements which resulted in questionable regulatory practices. It is because of these that it is due to go away on the 1st of January 2010.

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

2009-10-31T03:11:00.000-07:00

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

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).
Snow shovel, a standard must haves
Bags of Ice melt or sand

Be Aware of Furlong Days

2009-10-30T16:05:00.000-07:00

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:

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

2009-10-21T19:22:00.000-07:00

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

2009-10-19T22:44:00.000-07:00

(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

2009-10-13T18:31:00.000-07:00

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

2009-10-13T10:57:00.000-07:00

"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

2009-10-12T20:33:00.000-07:00

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

2009-10-09T00:05:00.000-07:00

Link: JD Power Ranking of Real Estate Firms

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

2009-10-08T22:13:00.000-07:00

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

2009-10-08T21:45:00.000-07:00

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

2009-10-08T21:37:00.000-07:00

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

Marinating Relationships with Time

2009-09-21T21:05:00.000-07:00

How many of you know how to can?

I didn't until recently. While visiting some friends, I was invited and guided through the HOW TO. It wasn't as daunting as I had imagined.

I was enthused and wanted to put this new skill into action...with help from family recruits, willingly I might add. Well, we were canning peaches, who wouldn't want to participate. After the cleaning, boiling, hot-flash-peeling, more water boiling and finally the finished products, my brother asked me, "When can we eat it?" I hadn't a clue but asked the expert, who said they needed time to marinate, to give them time to get better flavoring.

It isn't much different in a business relationship; it takes time to build trust. How do we, as consumers, decide whom we choose to be committed to; how much time to give our attention to; whom we should give our loyalty to, our trust to, our business to and whom to refrain from, in a matter of minutes of hearing, seeing or meeting these sales persons, companies or their products?

We live in society where everything is saturated with the "fast food" motto or the "I want it now" quota. We can sometimes compromise the short term gratification for the now rather than for the higher quality outcome waiting for us later. This obsession for all things now have caused some of us to forfeit what we crave and need most, time tested values and quality relationships, outcomes of which can satisfy our long term needs and wants.

Majority of all real estate sales comes through referrals, existing relationships, via family members, friends and already trusted associates and sometimes through individuals who have had at one time or another positive experiences. These relationships bridge the chasm of uncertainty from doubt to trust, from strangers to trusted professionals, relying wholly on the person who referred them.

What do you do if you are starting from scratch? Who do you trust?

Get to know your neighbors: your local bankers, grocers, car dealers, retailers, civic leaders, real estate professionals, restaurant owners, etc. Give yourself time to get to know them, establish a report so when you need them or their services and expertise there isn't the feeling of awkwardness, fear, or doubt. With them, sticky situations can be unstuck and closed doors can be made to open and sometimes they can help buffer the tide of unexpected shortfalls. They will often go the extra mile where others may fall short.

Marinate these networking relationships now that in time these relationships will become your fortress for the enjoyment of life and your buttresses to stem the tide of unexpected shortfalls with kindness and mercy.

Quote:

“When the conduct of men is designed to be influenced, persuasion, kind unassuming persuasion, should ever be adopted. It is an old and true maxim that 'a drop of honey catches more flies than a gallon of gall.' So with men. If you would win a man to your cause, first convince him that you are his sincere friend. Therein is a drop of honey that catches his heart, which, say what he will, is the great highroad to his reason, and which, once gained, you will find but little trouble in convincing him of the justice of your cause, if indeed that cause is really a good one. ” Abraham Lincoln.

Getting Back What You Paid For

2009-08-23T23:42:00.000-07:00

Now, I know that this article might rub some the wrong way. It isn't meant to be, just consider it an FYI. It's a common understanding that you get what you paid for, right?

I purchased a strand of pearls from online, nothing fancy but the pictures were very seductive. Alright, yes, I should have been more careful but I didn't know any better. But the deal seemed so good that I thought to myself, it should be an easy and quick buy for a simple project. I was so ecstatic and looking forward to their arrival. So, did I get what I paid for? Well, YES! Disappointment and an inconvenience. The pearl weren't what I paid for, I felt ripped off and the seller wasn't responsive.

I am a big peach fan, especially yellow peaches. Big juicy and fresh! Mmmm.... Well, I went to a well trusted store, big name, who advertised for quality and charged big bucks. You know the kind. It wasn't the big name that I went for, just the peaches. I bought a few with hopes to cash in every juicy bit. I patiently waited for a few days to give them time to ripen. When the time came I smelt it, cleaned it, and cut into it with anticipation only to be disenchanted by pithy and mealy interiors.

You know what I mean and some of you can freshly recall what it felt like to be dissappointed, to be miss lead, to not get what you bought into. When it comes to hiring a real agent to represent our interests why be a scouge, be lead by fair promises, rely too much on the packaging, or cut a few sales person off because we wanted a great deal? The façade can harbor a rotten core and the wrong choices can lead to shady results. In the end we get what we paid for and the outcome of our choices, whatever they may be, are ours.

Where's the Shopping List?

2009-08-11T14:19:00.000-07:00

Been to the grocery store lately...without a shopping list? Your goals forgotten and your memories washed clean...a momentary lapse of purpose amidst the flashy diversion of beautifully displayed shelves, the gleaming pyramids of fruits, the neatly stack vegetables, the methodical beeping of scanned grocery items, and the subliminal beckoning of techno colors ads. It’s the casino of forgetfulness. If you’ve had the experience, you know what I'm getting at. When shopping for a house, is there a difference? Builders and real estate agents alike know how alluring and seductive a well staged home can be when it comes to getting their housing inventories to fly off the shelves. And in today’s stringent economic demand buying incentives help anesthetize the wallet and makes the buying experience dreamier.

How is that we, as buyers, when purchasing a house sometimes walk about empty handed without directions, without priorities and leave behind our dream home "grocery list", thus render our final purchases to the pretty packaging, eye candy staging, and the distracting incentives to spend impulsively, beyond our means and render ourselves to suffer buyer's remorse or disappointments? It isn't hard to do when our priority rudder hasn't been installed correctly and our impulses haven't been properly capped when we go "window shopping".

Whatever our excuses, we can straighten our rudder and curb our impulses through research, taking time to consider our needs/wants and prioritizing them. Write a list of needs...not wants...NEEDs, the "must haves" and then ask yourselves "Why" you need them. Write it out. Writing it out will help you think...this is beginning to sound like some psycho therapy for home shoppers but it's true. Writing it out helps to process and filter out what you "truly" need. Also, create a list of wants according to your priorities and also ask why you want them. Be specific. And most importantly, research and study it out way before the "window" shopping begins. There will be less confusion and clearer decisions made quicker and avoid missed opportunities. I know that some of us like the gun shot or fly-by-the-seat-of-our-pants method, well...good luck and don't be surprised if your real estate agents are seemingly um "not helping or don't understand" what you need.

Referral Regrets

2009-07-20T22:03:00.000-07:00

Have you ever been given a referral and been disappointed? Had any regrets that you had even asked for one? I visited with a friend who had bought a house outside of town, who had a couple of sore points from a real estate purchasing experience. One was of a poor referral experience and the other was due to poor communication. They were given a few referrals from their real estate agent of a particular professional service to choose from and from that list they selected what they thought was a trusted list of reliable, intelligent, and hardworking professionals who would protect their interest towards the purchase of their new home. Unfortunately the referral was soured by poor performance and a lack communication which appeared as a lack of due diligence. Whose fault was it?

Communication can become a problem when there is no trace of it, it becomes a "he said/she said" scenario, out of sight out of mind. If it isn't written it never existed. Our lives and our minds can become so encumbered with worries and tiredness, our brains bombarded with mass traffic of information, and our memory storage near empty, and in such circumstances it is best and sometimes necessary to have a system to help keep things clear, for us as well as for others, whose choices may affect ours. In a court of law, written communications are more reliable than verbal. Keep a communication log via email when you are purchasing real estate, verbalize it through email, confirm it through email, re-state verbal discussions and agreements through email, and consider keeping a journal. Get the idea?

Why take the chance for anything less than our very best effort. Be self reliant, avoid assumption by interviewing and researching those who have been referred to us and take upon ourselves the responsibility and consequences of our choices. Is your hard earned money important to you? If it is a resounding YES!, take the time to research and interview the professional services you plan to hire even if they are a list of referrals from trusted professionals, associates, the alluring advertisements, families, or friends; anything less than your best is left to chance, random outcomes, random quality.

Research it, document it.

Condominium Conundrum over Lunch

2009-06-15T12:14:00.000-07:00

It is confusing to most of us who do work in real estate whether they be agents or those working in lending retail front, condominium lending guidelines are somewhat ambiguous. A lending source of mine and I hashed it over lunch, it was a good way to mix the less palatable with a savory incentive, food. Anyway, the communication didn't come across clearly or at least I was told that there was a lot of gray matter, no brains mind you, but a lot of stuff left to interpretations. After all as she reminds me, it is a guideline.

Although conventional loans are less restrictive but do require a higher down payment, FHA loans are more restrictive because it is insured by the government and the asset, in this case condominiums which have higher investment risks, requires a small minimum percentage down of about 3 to 3.5%. If you take it from the stance of a tax paying citizen, it's a process we're willing to support and agree to, a necessary process even if it is an inconvenient process for a piece of the American dream of home ownership.

FHA condo loan requirements include all of the following and but does not include all:

1. At least 51% of the total units must be owner occupied or sold, not rented out.
2. At least 90% of the total units must have been sold.
3. No single entity (i.e. business ownership, or private ownership), may own more than 10% of the total units in the same project.
4. There must be no litigation or legal actions pending.
5. The common areas must be completed with no additional assessments or special assessments separate from that of the HOA (Homeowner Association) dues.
6. The HOA reserve fund, independent from operating expenses, must be at least 60% to prevent deferred maintenance (i.e. roofs, siding, plumbing, windows, etc.).
7. Proof of Insurability, or proof that the building has been and is still insured.
8. Condo projects having more than 30 units, no more than 10% of the units can become FHA approved at any given time. OR if the condo projects having less than 30 units may have no more than 20% of the total units become FHA approved at any given time.
9. There are exceptions and the guidelines can be tailored to fit each projects needs.

Some condo projects may have their building FHA ready - that just means the project has been put through the process, the ringer, to get the entire project qualified for FHA loans. The process has a cost - time. What if the condo complex doesn't have the time or want the inconvenience just to have the entire complex qualify for just one seller? That's where spot approval steps in. It means what it says, on the spot approval. What it doesn't mean is that it will be quick. No surprise there.

Here is a guideline for what a spot approval may look like. Keep in mind that this is an August 1996 exurb from hudclips.org:

SUGGESTED CHECK LIST FOR SPOT LOAN APPROVALS

_______ 1. The legal documents of the homeowners association do not contain a right of first refusal or restrictive covenant.

_______ 2. The unit is part of a condominium regime that provides for common and undivided ownership of common areas by unit owners.

_______ 3. The project, including the common elements, and those of any Master Association, are complete, and the project is not subject to additional phasing or annexation.

______ 4. (a) There are no special assessments pending.

______ (b) No legal action is pending against the condominium association, or its officers or directors.

______ 5. The common areas have been under the control of the homeowners association for at least one year.

______ 6. At least 90 percent of the total units in the project have been sold. Verified by _________________________.

______ 7. At least 51 percent of the total units in the project are owner-occupied. Verified by ______________________.

______ 8. There are no adverse environmental factors affecting the project as a whole or individual units .

______ 9. No single entity owns more than 10 percent of the total units in the project. Verified by ______________________.

______ 10. The units in the project are owned in fee simple or the units are held under a leasehold acceptable to FHA.Leasehold in file.

______ 11. The owners association has adequate common area insurance coverage. General liability, replacement coverage,etc. reflects the character, amenities and risks of the particular development. Flood and other insurances carried, when applicable.

______ 12. General maintenance level of common elements is acceptable and there is no deferred maintenance, based on the comments by the Appraiser and/or the pictures.

______ 13. The owners association has a reserve plan and are serve fund, separate from the operating account, that is adequate to prevent deferred maintenance. The amount of the fund is $_________ as of __________.

_______14. (a) For projects consisting of over 30 units, no more than 10 percent of the total units are encumbered by FHA insured mortgages. Verified by ___________________.

_______ (b) For projects consisting of 30 units or less, no more than 20 percent of the total units are encumbered by FHA insured mortgages. Verified by _______________.

Quality Concierge Service: The Icing in Condo Living

2009-06-08T16:22:00.000-07:00

How is the concierge service at your condominium?

Aside from the typical drill when purchasing a condo, i.e. location, HOA dues, occupancy rate, special assessment, etc., have you considered how important it is to have good quality concierge services when purchasing a condo? I hadn’t given it much thought until a colleague and I went to stage a condo unit in downtown Bellevue. My first impression of this supposed desirable condominium was poor. There were no warm greetings, salutations, acknowledgements, or offers for help of its incoming and outgoing residences or its visitors. This concierge was preoccupied and our visit was an intrusion rather than a welcome to this person.

Okay, I’ll admit this seems silly and petty but hear me out. A condominium building is an encased microcosmic community, a village within a metropolis. It should be an oasis from a sea of city commotion. Wouldn’t you agree? So, in such an environment, quality concierge services have a rippling effect on resident attitudes, the quality of life within, and should help resonate desirability. Good concierges can bring in a sense of community in an already increasing chasm of neighborliness. It’s a sorry excuse to create an artificial community but it has to start somewhere. It’s a hefty job and most of the time a thankless position.

Here’s a positive experience I want to end with. Julie works at the Astoria off of Old Main in downtown Bellevue. I met her while showing several units in the Astoria. My clients had made several visits to neighboring condominium complexes in the surrounding downtown area but they felt Julie’s great concierge services persuaded them to more seriously consider purchasing the units there. My clients were looking to purchase something within the interior courtyard which at that time was not on the market. Julie took time to show us the floor plans, the building design and then proceeded to jot down the units that faced the inner courtyard that in due time would become available. She discussed with us the history of the building and its management. The experience for them as well as for me was one of care, importance, community and a personal touch. Julie was very knowledgeable, she knew her residents, their needs, building activities, she knew of units for sales long before they came on the market, she offered helpful suggestions, and her persona communicated to us that she loved working there.

I believe great concierge service is the icing on the cake. They can be the hub of community interactions and the epicenter for positive influences. So if you happen to have a great concierge, please do compliment them plentifully, acknowledge their good services, and encourage them to continue their good services by showing your appreciation.

New Condo Underwriting Guidelines Effecting Condo Loans

2009-06-06T17:04:00.000-07:00

Mr. M came to my office asking for advice about whether or not he should sell his condo now or later. It is always a good time to sell if you need to sell; however, I believe his concerns were more than real estate related. He lives in a condominium complex where the homeowner association was borrowing against the HOA (Homeowner Association) funds which are collected monthly from the associated condo members. Could the HOA action affect the value of his condo, he asked. If the HOA action is questionable, i.e. illegal, shows poor management, or jeopardizes quality of life, yes it can affect the desirability and the value of the condominium. Any material facts or concerns that may affect the value of the condominium are required disclosures and they can often turn away potential buyers. But to not disclose these material facts is fraud.

With increasing scrutiny from lending underwriting guidelines, condominiums have become the forefront casualty of tightening guidelines because of its higher level of risk for the mortgage investors. Condo ownership has associated dilemma and problems that can become cancerous. A few bad rotten apples can spoil the entire lot. Fannie Mae has new guideline requirements such as no more than 15% of the condo HOA dues can become delinquent more than 30 days in new condo projects and homeowner association must have at least 10% of its budget placed in reserves for repairs and insurance deductibles. However, each condo projects are assessed on a case-by-case basis.

When purchasing condominiums homebuyers should be conscientious and be informed of possible liens, defects, special assessments, history of assessments, pending litigations, delinquent dues, percentage of homeownership versus rental units, quality of management and maintenance, board meeting minutes for the past two years, HOA meeting minutes for the past two years, the insurability of the condo complex, and whether or not a reserve study was done.

Having a reserve study has not been a common practice but because of poor management of condo finances, it is a practice that has become highly recommended. Although the practice of having a reserve study is strongly encouraged there is no enforcement power except when a lending underwriting guideline may require monetary reserves set aside for a rainy day and for insurance. So, if the condominium don't meet those guideline requirements, the buyer cannot obtain a loan from that lending institution for that particular condo complex. However, as lending institutions differ from each other their underwriting guidelines may also differ. It is best to do some research to find loans that best fit your needs and know well the condominium you plan to buy into.

Keep in mind that townhomes are considered condos in the State of Washington; and to be safe, double check lending requirements in all complexes that have HOA dues to determine whether or not they are subjected to any new lending requirements.

Boxing in Green

2009-05-14T22:44:00.000-07:00

How many of you know what the meaning of Green is? What about sustainability? Well, I suppose we all can deduce what "Green" might mean and even come closer to what sustaining might equate to. We hear it in the media, in advertisements, and in claims by sellers of all sorts. What makes a building Green? The Leadership in Energy and Environmental Design Green Building Rating System or LEED was developed by U.S. Green Building Council (USGBC) to establish a Green building standard to addresses six major areas:

· Sustainable sites
· Water efficiency
· Energy and atmosphere
· Materials and resources
· Indoor environmental quality
· Innovation and design process

New constructions who meet these "standard" requirement credits, can become LEED certified and make Green claims. However, despite popular LEED movement some like Glenn Murcutt, a renowned architect in Australia, strongly feels LEED requirements are short sighted, Green and sustainability are more than just pursuing and fulfilling credits, certification quotas or building to make statements. "Architecture by logic is not wrong....LEED disregards the connections between humans and nature." See and build beyond boxing quotas by aiming to incorporate into designs and construction of buildings the following:

1. Geology and Geomorphology of the area or history of landforms and its dynamics, to predict future changes

2. Maximize natural ventilation via wind pattern and/or raised platforms thus minimizing or eliminating the use of air conditioning

3. Shadow patterns

4. Drainage systems, i.e. soil types

5. Climate

6. Materials, i.e. in arid environments the use of water to insulate, cool, or for fireproofing

7. Flora, native plants

8. Natural problems in the area, i.e. reoccurring flood, seasonal changes

9. Making the most with the least, i.e. use of bolts and screws in place of nails

See article in Architectural Record or read full article in hard copy May 2009 AR magazine. Examples of his works can be found online.

In our pursuit to a more "Green" lifestyle, let us not get lost in the credits and miss the point. "Just because there's a sliver of light doesn't mean it's considered a window. The view through a window is as important as the light; it relates to mental and physical health as well as energy savings," cautions Mike Lyner, principle of RSP i-Space, a division of RSP Architects (see full online article in Architectural Record).

Super Paint Part II: Smart Paints

2009-05-07T00:19:00.000-07:00

What is so smart about smart paints? Smart technology, that's why they are so named. They are paints that can be changed or become activated by an electrical impulse, by temperature change, or by pigment diffraction. Pigment diffraction is a technical term to refer to reflected colors or colors that are not absorbed but gets reflected. We see reflected colors.

The military uses smart paints with embedded nanomachine. Sounds pretty sci-fi doesn't it? What exactly are these nanomachines? They are smart paints with designer molecules that fight against corrosion and can camouflage. This camouflaging act like e a chameleon matching its environment to become invisible. The nanomachine half of this paint can detect scratches, areas where paint protection is compromised, and prevent potential corrosion by alerting military technicians or it can mend itself (Printed Electronics World, Military & Aerospace Electronics, PopSci.com). Pigment diffraction is another camouflage alternative, some years back, there was a PBS show on military camouflage. This type of camouflage used pigment diffraction on foot soldiers, making them appear invisible.

In the automotive industry, smart paints are the eye candies to the buyers' wallet. Aside from form and function, most people are influenced by colors when they make their purchases. Purchases wouldn't be fun without colors. But how much more fun would it be if you could just, at a push of a button (through an electrical impulse), change your car paint color. Well, if you could change the color of a car at a push of a button, law enforcements could become more difficult.

What about turning your car into a mood ring (i.e. temperature change) or have colors shifts throughout the car body (i.e. pigment diffraction). ALSA Corporation has made some fantastic looking colors and is using temperature sensitive paints and pigment diffraction paints to get deep, rich and unique paint. You can look through YouTube and find examples of proud automotive owners who are parading their roadsters with their ALSA paint job.

Getting the upper hand on a great real estate deal.

2009-04-27T13:29:00.001-07:00

How do you position yourself to get the upper hand on a great find?

1. Have a mind set that there is no perfect house out there unless you are willing to pay the price for it, fix it up or build your own.

2. Know what you need, want and things you can do without. This step will help to eliminate doubt, hesitation and avoid buyer's remorse.

3. Act quickly when you find one. Waiting only creates more opportunities for competing offers.

4. Once you've found what you want, get a market report (CMA - comparable market analysis) of sold properties within the last three months or 6 months. The closer the comparables are to the current market the more accurate your offer will be.

5. Determine your financial limits - how high you are you willing to go and be comfortable with the payments.

6. Step forward with your best offer - price and terms. Avoid multiple offer situations by being the first to take the advantage and get it under contract. This isn't the time to hesitant and play guessing games.

Visit my website at www.nwabode.com.

Super Paint Part I

2009-04-24T22:58:00.000-07:00

There is something riveting about colors. The right paint on the right location sets moods, tone, and states personal tastes. What more can we ask for from our paint? What about function? Aside from looking prettily on the walls of our home, our vehicles, business buildings, bridges, décor, pavement, on signs, can it do more for us? Yes, it can!

There are paints that help insulate, create protective barriers, and even generate electrical energy. Most of us know about “eco-friendly” low vapor paint, or inorganic paints (long lasting pants often used in concrete, cement, natural stone, marbles and so forth) but not a lot of us know about how paint can work for us, aside from helping to sell our houses. There are paints that changes colors according to the season to keep a painted building insulated year round. There are paint to keep out mold and then there are paints that produce electricity.

Heard of photovoltaic paint or solar paint? Paints that can generate electricity equivalent to 50 wind farms. WOW! Dr Dave Worsley and Dr. Trystan Watson of Swansea University in the United Kingdom (UK) have been working with Corus, a steel, company in the UK to fine tune the cost effective use and increased efficiency of dye-sensitized cells.

How does it work?

“The paint will be based on dye-sensitized solar cells. Instead of absorbing sunlight using silicon like conventional solar panels, they use dye molecules attached to particles of the titanium dioxide pigment used in paints.

That gives an energy boost to electrons, which hop from the dye into a layer of electrolyte. This then transfers the extra energy into a collecting circuit, before the electrons cycle back to the dye.

While less efficient than conventional cells, dye-based cells do not require expensive silicon, and can be applied as a liquid paste” (New Scientist).

More explanation on this working principle and diagram see Polymer Centret.

Is your real esate agent driving you nuts?

2009-04-16T17:47:00.000-07:00

An older lady came to me the other day asking about an ongoing sale contract with another firm. She, like many of us, is not familiar with legal contracts because they aren't an every day thing unless you work with them. The obvious question was why she wasn't going to her agent for such matters. Her response was that there was no communication between them as he seemed always in a hurry and curt in their brief interactions. She needed help but felt she was imposing when she wanted or needed help. Now that there was a viable offer she wanted to know what her options are. At present, there wasn't much that I could do to help her as it was an ongoing contract.

What do you do when your real estate agent isn't performing up to your expectations? First and foremost, you give them the-benefit-of-the-doubt, in other words you give them the opportunity to do better or tell them what you want/need done better. I believe most us when given the opportunity will raise to the occasion and do better. In any relationship, an open and healthy communication dispels a lot of fears. And second, if after all your efforts to communicate fails, discuss with your agent's broker - their "boss". Repeat good communication etiquette. If that fails, go higher up, the owner of the company or the franchise owner of the company, etc. And last, you have the option to release or fire your agent and/or broker.

When interviewing for your real estate agents, know and discuss your expectations and know your options. Do ask questions. It helps to protect your investment by asking questions, having knowledge will help keep you safe.

Visit my website at http://www.nwabode.com/ for real estate tips and news.

House selling without the emotions

2009-04-10T15:27:00.000-07:00

Max has a shared interest in property "A" with another unrelated party whom we shall call Joey. So Max and Joey have this dispute about the fate of their property. Both parties have gone to court to clarify their disputes but neither has come to an agreement about the sale entirely. Joey decides to take Max to the cleaner because he can and he's got the right lawyer to help him.

When there are disputes over property it is sometimes very difficult to clear out the smog of animosity and the heat of revenge and see the business sense behind it all. As shelter is one of our primal necessities, the emotional ordeal is more heighten when selling a home. Max and Joey’s case is an extreme example. Generally, homeowners are attached to their houses and homebuyers are emotionally persuaded by strong visual presentations. The big question is how do we separate our emotions from our investments? After all, they are our appendages, an extension of us, our "babies".

I believe we ought too, we must. In order to make clear, sound and decisive business decisions we need to see, to know, and to understand the consequences of our choices. Strong emotions will clout our judgment and impair our vision. However, it doesn't mean that we allow honest ethics to languish or to become ignored or to forget our priorities.

The Mortgage Reform and Anti-Predatory Lending Act of 2009

2009-04-06T21:06:00.000-07:00

The Mortgage Reform bill is supposedly a tougher version of the 2007 Act; it is to regulate abusive and unfair lending practices as well as predatory borrowing, borrowers who provide false information to obtain loans.

States with strong anti-predatory lending laws or with some level of predatory lending protection are as follows: Arkansas, California, Georgia, Illinois, Maine, Massachusetts, North Carolina, New York, New Jersey, New Mexico, and South Carolina, Colorado, Connecticut, Florida, Kentucky, Maine, Maryland, Nevada, Ohio, Oklahoma, Oregon, Pennsylvania, Texas, Utah, Wisconsin, and West Virginia.

* Ban all fees paid to loan officers that are tied to the interest rate of the mortgage or the type of the loan. During the headiest years of the boom, Wall Street investment banks paid mortgage brokers higher fees if they originated exotic loans such as short-term subprime adjustable-rate, interest-only, payment-option and "stated income" no-documentation loans with minimal or no down payments.

The lending industry also routinely paid brokers higher fees for originating mortgages that carried rates above prevailing levels. Loan officers frequently steered applicants with marginal credit histories into loans with excessive rates and penalties -- and were paid extra by banks and Wall Street for doing so. Studies have documented that minority and first-time borrowers disproportionately were marketed loans with unnecessarily high fees and penalties, based on their credit scores.

The new bill would prohibit any compensation -- "direct or indirect" -- that is tied to the rate or terms of the mortgage. "There should be no way you can be compensated for steering anyone to a higher rate," Frank said in an interview. The bill does permit home buyers or refinancers to opt for a slightly higher note rate to finance closing costs.

* Create mandatory minimum national quality standards for all mortgages. The rules would encourage lenders to make fully documented 30-year, fixed-rate loans with prevailing market rates, as opposed to loans with higher-risk features such as adjustable payments and negative amortization. The bill would also impose a federal "duty of care" standard requiring loan officers to offer applicants terms and rates that are "appropriate" to their income and ability to repay. Refinancing would have to pass a "net tangible benefit" test demonstrating that the replacement loan is superior to the borrower's current terms. Lenders would have to offer applicants the option to choose any loan without a prepayment penalty attached. Mandatory arbitration clauses in most mortgages would be banned.

* Allow borrowers who are put into mortgages that violate the new law to seek legal redress through cancellation of the loan contract, refund of all payments and fees and compensation for legal costs.

Borrowers who lied or committed fraud on their loan applications would have no such recourse. The bill would also extend liability for rule violations to third-party securitizes who buy loans for repackaging into mortgage bonds. Originators of all but fully documented 30-year, fixed-rate loans would be required to retain at least a 5% stake in the loan until it's finally paid off. If the loan goes into default, they would retain some economic stake in the losses.

See Full Article in the LA Times, and other related articles in Acorn, Realty Times and the Seattle Times, .

Here are some questions to consider:

1. What is the political agenda for this new Federal reform bill?

2. What is/are this bill's primary objective(s)?

3. Is this new reform bill more restrictive, more protective than State and local anti-predatory lending laws or regulations?

4. Since Federal Laws over ride State and local laws, what will happen to States with more restrictive or more protective consumer laws?

5. Have previous or prior reforms similar to this helped or have they hindered?

6. Who would profit from this reform?

Harpooning Housing Value

2009-04-03T16:26:00.000-07:00

Pricing today's properties is like harpooning a dropping target in the ocean deep. During the high of the market it was the reverse, everyone was aiming for the highest value for their property as prices were soaring, even high priced listings could wait for the market to catch up. While in today's market, pricing a house too high could mean a loss in profit as housing values continue to sink. On the upside, real estate is seasonal. Sales are up during early Spring and goes back down in Fall.

Visit www.nwabode.com for Tips and News.

3 Ways to Increase Home Buyer Traffic

2009-03-23T23:25:00.000-07:00

How many of you agree that first impressions are important? Most of us make judgment calls on first impressions.

Drawing home buyers to the property is three fold: online presence, outside presentation (i.e. curb appeal) and interior presentation.

The primary objective of the ads are to get home buyers to the property. The objective to the curb appeal is to draw them inside the property and finally the objective of the interior presentation is to draw homebuyers to make an offer.

Visit http://www.nwabode/ for full article in Tips.

From Newsstand to Net News

2009-03-21T01:32:00.000-07:00

Newspaper advertisement is out and internet is in, no new news there. However, for some of us reading news on a monitor isn't the most enjoyable mode of reading. For me, I like the feel of paper, the newspaper experience - flipping through from cover to cover, scribbling notes, highlighting and cutting out articles and then they get recycled. On the other hand, as it pertains to real estate, placing advertisement online has been more advantageous, productive and more lucrative (better advertisement dollar spent) than newspaper ads.

In the past, many of my clients have asked that their properties be advertised in the newspaper because of familiarity. From the sales side it promoted no potential buyers or with very little to no responses from these ads. There were more responses from online ads, with occasional calls from property flyers and sale posts than from newspaper ads. The face of commerce has become so integrated, our economy so interwoven internationally, travel more accessible, and jobs crossing national and international boundaries that properties without an online presence would be foolhardy.

Visit my website at www.nwabode.com for Tips and News.

Closing Dilemma

2009-03-18T16:16:00.000-07:00

In the heydays of zero down loans, the turnaround time for closing was fairly quick...even had a quote to close in eight hours with a buyer in good credit and healthy savings. In today's market we can expect closing to take longer than 30 days. Closing may depend on loan types, underwriting guidelines and changes to them, bank loans versus loan brokers, and other appendage factors, i.e. business hours, communication. Too many cooks in the kitchen can lead to a lengthy closing...too much red tape (bureaucracy), broken communication, emotional brawl, verbal tussle and just strong raw human reactions...almost sounds like an episode of the National Geographic.

Paint Squabble

2009-03-16T18:04:00.000-07:00

A long break from work does a great deal of good – helps reboot the human ambition.

I visited a friend of mine whose parents had been “discussing” paint color for over the past 20 (twenty) years...yeah you heard right…TWENTY years. Neither of them had come to an agreement until now.

This friend…we shall call her “Jane” as she prefers to remain anonymous…she and I took a trip to a nearby store. She asked some questions about what paint colors would do well to sell a house. I gave her some suggestions about bright, light, and cheerful colors (neutral colors with brighter tones). Our conversation hovered between green and yellow. Her parents had strong preferences. Her father was adamant that the paint color did not resemble anything coming out of a baby’s bottom and no yellow as it reminds him of his neighbor. Her mother on the other hand wanted something more blue.

In short, “Jane” had to use her good sales skill to sell a color that would appeal to both parents and at the same time choose a color that would help sell their house.

Here are a few questions to consider when choosing paint colors:

1. Are you painting to selling the house or are you painting to give your house a face lift?
2. Are you painting to match history or to emulate history?
3. Does your neighbors’ opinion matter? Will conforming to the neighborhood’s color palette be important?
4. Are there HOA (Homeowner Association) paint color restrictions?
5. Are you painting the interior or exterior of the house?
6. Does paint durability matter?
7. Will paint maintenance matter? Glossy, semi-glossy, or flat paint?
8. Can you live with it?

Keeping Perspective Positive

2009-02-17T15:18:00.000-08:00

In this onslaught of bad news don't get carried away with the negative media. Yes, being realistic is important but keeping a positive perspective is extremely important to carry us beyond bad times.

Bad news sells...so the media believes and thus they have become the reaper of bad news. If the media can become what they believe then a positive outlook can produce positive results. Right? Unfortunately for many, a morsel of good news has become their banquet of good news.

In Monsters, Inc. the best power generator was laughter not fear. Too adult for that? How about Napoleon Hill, A man/woman becomes what he/she allows to preoccupy his/her thoughts.

The Good News:

1. First time home buyers tax credit of $8,000, non-repayable. Purchases must be made between January 1, 2009- November 30, 2009 and they must have lived in their previous property for at least three years to qualify as first time buyers.
2. Affordable housing prices and great deals
3. Best negotiation terms
4. Low interest rates
5. energy-related tax credits
6. Lots of housing choices

Creative Negotiation, Think Outside the Box

2009-02-04T23:38:00.000-08:00

Have you ever driven a route so often that sometimes you wonder how you got from point A to point B without much conscious effort? Sometimes the routine is so imbedded that it requires a conscious effort to make a simple deviation.

Negotiation in real estate can become a routine and very ordinary. But in a parched economy, creative negotiation is a necessity. It will require some thinking out of the norm, a strong dose of good imagination may be necessary. For example, typically, buyers often make offers to the sellers, however, sellers may consider making an offer to potential buyers who may have expressed strong interest but haven't made a move, for one reason or another. It will certainly turn their heads. Seller financing is another option that has been used in past difficult markets; it would be great for buyers who may not be able to qualify in today's stringent underwriting guidelines or who may need a second loan but aren’t able to get one. Consult with your loan experts for guidelines and requirements should you choose to take this route.

Effective negotiation strategies require some planning, require that you know the parties involved: know their interests, their fears, their needs, their wants, what motivates them, and their financial information if possible. But more importantly, be a good listener and know your options.

Some negotiation incentives are:

Buy down points
Closing cost
Personal properties
Services/Trade
Timeline
Travel

"Measure Twice, Cut Once"

2009-01-26T20:33:00.000-08:00

When I took a wood shop course, my instructor emphasized "measure twice, cut once". It is also applicable in real estate practice except that it is best to check more than twice. Make sure you know what you are asking for and their consequences before signing away. If you don't understand, ask your real estate professional.

A good example is the inspection negotiation process. When negotiating wants and needs, it is always best to prioritize, have a couple of back up plans, choices, or options for when you don’t get what you initially asked for. But always check your contract over and over to make sure you are getting what you need, what you want, correct wordings, appropriate time line and deadlines, know your consequences especially when you choose to delegate your choice(s) to another, and know your options. You don’t need to be a lawyer to get it right, just think ahead like you would when playing a game and use plain English. Double check and recheck before signing off.

Where's the Bottom?

2009-01-24T21:22:00.000-08:00

Have we reached the bottom of the housing market yet? It depends who you talk to. Some say it that it is already here, other say it will take place in 6months, 12 months, 20months, etc. I believe we haven't seen the worst of the recession yet. Large corporations like Microsoft, Boeing, Starbucks, etc. are cutting back employment; many small and modest sized businesses are going out of business. The choices of these large and influential giants have a rippling effect on the State’s housing market.

Living at the base of the tech giant, Microsoft, and knowing the company has decided to open its flood gate of layoffs and financial cut back has caused me to wonder at how much influence their choice will have on our local housing market. Will there be more housing inventory? After all, not everyone working for Microsoft owns a house.

Addendum 22L

2009-01-19T17:19:00.000-08:00

In a purchase and sale there is the main body of the purchasing and sale documents and then there are the addenda, the additions or supplements to the existing documents. As of January 19, 2009, a new requirement was set forth by King County (Board of Health Code Section 13.60.030) that all single family residential homes with on-site sewage systems (OSS) or sewer that art not connected to public or city sewers must have a licensed King County On-Site System Maintainer (OSM) to perform inspection on existing OSS prior to the transfer of title). This form is called the Northwest Multiple Listing Service (NWMLS) 22L King County Septic Addendum. In short, if you are a homeowner who want to sell your home and the property is on septic, you will need to have an OSM inspector evaluate your septic tank before you can have the property transferred to the new owner.

1. The Septic inspector must be OSM certified.
2. Have a record of a drawing of the septic or an "As-Built", this can be requested through King County public records. If none exist, the OSM inspector may be required to draw one up. Ask about cost & procedures, if they exist.
3. If the septic had a diagnostic done within the past six-months, or you are no longer on septic and are now connected to a public sewer, you can request a waiver.
4. Communicate with the septic pumper and OSM inspector if they are not of the same company, in case they may need to relay necessary information to each other.
5. Before pumping, call your OSM inspector. An OSM inspector may need a full septic tank to run a proper diagnostic and the pumper may need an empty tank to inspect the tank's internal condition.
6. Buyers are responsible for the "Operation and Maintenance Program Fee" set forth by King County.
7. Sellers are responsible for the "Operation and Maintenance Report" plus any "applicable" fee as set forth by King County.

(I'm still looking for those fee schedules. If I find them, I'll post them later on).

OSS Public Records Request
OSS Property Transfer
OSS Property Transfer Waiver
Licensed OSM Inspectors
Liquid Waster Pumper/Hauler

2009 Real Estate Trends

2009-01-10T20:16:00.000-08:00

1. Going Green: Renew, Reuse & Recycle
2. Cooking from the Home
3. Security
4. Drop Spaces
5. Downsizing, smaller homes
6. Home Office
7. Designing for small spaces
8. Do-It-Yourself & Crafts
9. Expanded Outdoor Space
10. Accent Wall Colors

For more visit my web page at www.nwabode.com.

Home Product Trends!

· Centralized Vacuum Sealer - Ex
· Between-the-studs shelves - Ex
· Smart Landscaping – Blog
· Magnetic Therapy Hot Tub – Ex
· Water filtering systems, Ex
· Space saving Toilettes - Ex
· Mirror TVs – Ex
· Heated Drive Way - Ex
· Heated Patio – Ex
· Rubber Roofing – Ex
· Thermal Detector – Ex
· Terrazzo Countertops – Ex
· Light Housesitter - Ex
· Interlocking patio tiles over existing surfaces, Ex

Disclaimer: Links for the home product trends are examples and not to be inferred as indorsements.

Moments in Real Estate

2009-01-09T21:41:00.000-08:00

I thought I would add snippets or moments in my real estate experiences to add some humor and personal touches in a career that is mostly business and seriousness, most of the time, for me. Writing articles about real estate can get too stuffy and too serious. So, these snippets will be more real and lighter, added throughout.

The Week We had The Pile of Snow

I've lived in Washington State for over twenty-five years and this 2008 winter had the most snowfall in years, well in recent history anyway. There was madness for snow shovels but a dearth in all the hardware sections of every store! What were they thinking? Who forgot to order the shovels? Didn’t they watch the weather report? Well, maybe we all decided none of the weather reporters knew how to read the weather correctly or at the least we didn’t take them too seriously because they were wrong most of the time.

I didn't think I needed a shovel, until three days into and eight inches of snow later, by then it was too late. (Note, to those who live where snow is common, three inches of snow here (Redmond, Bellevue, Kirkland, Bothell, Sammamish, etc., also known as the Eastside versus Seattle) strikes fear into the masses and gleeful hurrahs from the school kids and anyone who dreads going to work. Imagine what it was like during eight plus inches of snow for a whopping week, a brick wall or in our case sledding down hills and valleys). However, I did have a flat head garden shovel which I used. I bought it for gardening because it was easy to handle and good looking. I know, silly. Hey, when I'm digging away I like to admire a beautiful tool, it's not a crime.

Shoveling the snow with it was like trying to run a 10K race at an inch worm's pace. Okay that was a stretch but it surely felt like it. It was SLOW work. In the same week, I was adamant about having open houses. Fortunately for me, a kind neighbor at the open house site had a garden shovel for my use. Guess what? It was the exact same model; imagine that, someone else thought it was cool too.

Instead of hosting the open houses inside I did the hosting of it outside by shoveling the snow off the driveway and talking to the neighbors, who by the way did come to my open house. We do what we can to peddle real estate even if it means shoveling the driveway for the neighborhood...can't say I would do it again or at least not with a garden shovel. It took forever!

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The Uphill Climb to Living Green

2009-01-04T21:34:00.000-08:00

Going green has been like driving uphill after a snow storm, slow, difficult, and a lot of sliding. Why?! (A heavy sigh with a lot of head shaking). It is because there is a lack of leadership, a lack of determination, a lack of unified support and interest (private as well as public), not enough incentives, poor education, short of skilled professionals, and cost. Fresh ideas initially come at a higher price; minimizing cost would be a matter of supply and demand. More supplies will eventually mean less cost.

Current new construction Green builds have been minimal (in many ways more than one), however, with the "credit crunch", increases in energy cost, more emphasis in minimizing output of pollutants and wastes, conserving natural resources and greater demand for better healthy living, going Green will be extremely appealing. There will be stronger leadership commitments (some profit driven), additional skilled professionals, more inventions, enhanced innovations, better education (and more of it), improved management, supportive government incentives, and greater conscientious effort in both public and private sectors will make Green living available and possible to everyone, including Mother Nature (Urban Land Institute Community Catalyst Report).

Top Washington State High Schools

2008-12-05T13:52:00.000-08:00

Two Washington State High Schools ranked in the top 25 schools nationally! Bellevue's International School ranked 14th followed by Kirkland's International Community School ranked 25th. For the complete list read US News article Best High Schools: Gold Medal List.