Category Archives: Seattle-Employers

Are you ready for BuzzRE???

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Next week, I’m helping to organize an internet marketing educational event and I encourage everyone interested to set aside next Thursday to join us!  For the BuzzRE event, we’ve lined up some of my favorite educators in real estate marketing including:

edgefieldIn addition to the great lineup of speakers, there’s going to be ample opportunities to learn from and network with hundreds of agents from the Pacific Northwest, many of whom are leaders in internet marketing.

It doesn’t matter if you’re want to learn about SEO, SEM, blogging, conversations, tools, or any other online marketing topic, the experts will be there and you just need to join us to take part!

Details for location and much more are on the BuzzRE website, but here’s a few key stats:

Cost: $25

When: June 2nd: 6pm – kickoff party
June 3rd: 9am – 5pm (with after party till 11pm)

Where: McMenamin’s Edgefield
2126 S.W. Halsey St.  Troutdale, OR 97060
(Just 10 minutes east of PDX)

More info: http://buzzre.com/

Registration: http://ticketsoregon.com/event.php?event_id=537/

We ran another BuzzRE event in Orange County a few weeks ago and it was so much fun. So many great people and so much great feedback, which has really helped guide this event in Portland!

Are you going to be there???  Let us know!

Let us know if you’re going to be there!  Either here or on Twitter!  (The hashtag to connect on twitter is: #BuzzRE).  And just a few of the Seattle folks I’ve noticed mention they’re going to be there include: Linda Aaron, Galen Ward, Darin Persinger and Scott Thomas…

So much fun and let me know if I can add your twitter handle to the list!

[For those interested in a trip down memory lane… I had conversations with another real estate old-timer not too long ago, and we look back at the Las Vegas NAR event in ’07 as the kick-off point for real estate conversations on Twitter…  Back then, we were all trying to figure out if there was anything behind the hype of Twitter, and it seemed to me that the best place to figure out if it made sense was at a conference where we could use the tool to better connect.  With that in mind, I posted a list of real estate folks with Twitter accounts who would be attending NAR so others could follow along and connect with us. While the list started off small (I published the list with only 5 twitter profiles: Jeff, Joel, Jessica, Keith and Myself), I remember that by the end of the week, I was connected to over 50 people on Twitter who I’d met at the conference…  and I like to think that the background real estate conversation on Twitter that was sparked at NAR ’07 has never really died down!

Anyway, I was reminded of this story as I posted this list of a few folks from Seattle joining us at BuzzRE and realizing how these small lists of people sometimes blossom into unpredictable and amazing conversations!]

I hope to see you in Portland next week!

Don’t blame the Agent…if you are impatient.

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There are a million articles written on the Top 10 Mistakes that Home Buyers make. Today…the biggest mistake one can make is to set a rigid time frame as to WHEN you WANT to buy. Let me re-phrase that in light of the email I just received below from someone who is not my client.

“Ardell, I am seeing many sellers hanging on to those 2007 prices. I mean wouldn’t being 12% below a 2007 purchase price be considered a little high? Properties are closer than ever now to late 2004 pricing aren’t they? Many houses we look at have asking prices higher than what sellers purchased them for in 2005 or later. I’m really getting tired of this.”

First let’s review the data again.
graph (43)

King County median home price is/was at $375,000 a week or so ago, up from $362,700 as of the end of March 2009, and WELL above “late 2004 pricing” of $337,500.

I’m not saying prices won’t get to late 2004 levels. In fact I think they will get there or pretty darned close in some, though not all, areas. But to go out EVERY weekend…looking at homes and hoping they would now be at 2004 pricing when they are not, will result in your “getting tired of this”. It would be like my getting tired of my diet for not having lost 20 lbs this week. I know that’s going to take some time, and getting “tired of this” is NOT an option if I am to achieve my goal by my daughter Tina’s wedding date in October 🙂

Now let’s see how the numbers fall in different areas vs. “King County” median prices:

98052
Late 2004 median home price = $409,995 – April 2010 = $610,000

98006
Late 2004 median home price = $507,000 – April 2010 = $591,500

98033
Late 2004 median home price = $469,000 – April 2010 = $479,000

98103
Late 2004 median home price = $400,500 – April 2010 = $435,000

98038
Late 2004 median home price = $281,950 – April 2010 = $299,950

98023
Late 2004 median home price = $244,975 – April 2010 = $249,225

98109
Late 2004 median home price = $598,500 – April 2010 = $460,500

98125
Late 2004 median home price = $319,750 – April 2010 = $360,000

Some surprising results there, and in many cases those numbers come up VERY differently than what I have been seeing touted in recent news articles as to which neighborhoods are “stronger” than others these days.

There are different reasons for these results in the different zip codes. For example, if you are hoping for 2004 pricing, but are buying a house that did not EXIST in 2004…well, in some areas new construction is not likely to fall into the level of a home built prior to 2004.

One thing “the comps” don’t tell you, is how FAR the MAJORITY of home buyers has shifted from 2004 to present. How many are buying more reasonably priced homes where they can afford to put 20% down and get a 30 year fixed mortgage based on conservation ratios, as example.

It’s not ALL about “the market”…nor is it ALL about “this house”. First step is to know exactly where the area you are looking in falls…and if NO SELLER “wants” to price there…you may just have to stop looking for awhile. Looking for “best price” in May of any year, is not particularly realistic. It is what I call “The Season of Hope” and “Hope Springs Eternal”. Best prices often don’t happen until around October 15th in any given year.

Start with a realistic objective and DO NOT WEAR YOURSELF OUT looking and looking. Take your time. Pace yourself. If lowest possible price is your objective…”Spring Bump” period may not be the time you want to choose for being in your new home. Buying in August – September – October may be a better bet if you want “better pricing”, especially if no new housing stimulus packages are forthcoming.

Remember…”Patience is a Virtue” and one often has to fight their initial gut instincts, in order to become “virtuous”.

(required disclosure – Stats in this Post are not compiled, posted or verified by The Northwest Multiple Listing Service) They are hand calculated by me, and April medians may include the first few days of May before we switched to a new mls system. I used 4/1/10 as the start point…but no end date, since the system stopped updating data around May 4th and converted to the new system that does not provide similar statistic gathering capabilities.

The End of The World…as I know it.

New Construction – Settlement Cracks and such

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nail popHome Warranty: I just sent a text message to one of my clients who bought a new construction home almost a year ago regarding their “Builder Warranty”.

A new home will have its fair share of minor settlement cracks and “nail pops” and many quality builders will come back at the end of the 1st year to fix these. Some will have a limit as to how many times they will come back to the home to fix them, so I generally advise my clients to read their warranty very carefully so as not to use up their total return visits in the first week.

Many, many times I have gone to someone’s home to list it for sale finding these settlement issues, and the owner never bothered to call the builder in the warranty time frame to have them corrected. Trying to fix them 5 years later is not only more costly, since the builder would have done it for free if that is provided in the warranty, but also more difficult to fix. Finding the exact paint color five years later can be difficult. The 5 year old paint on the wall or ceiling may not match even if you have the exact paint color.

One of the most important issues with these fixes is not the paint color, but the paint “sheen”. Often I will go to someone’s house and see everything “fixed” by the owner vs the builder, and even though they used the exact same paint color, the fixes have a shine, and the rest of the wall does not.

If you bought new construction about a year ago, take out your builder warranty and examine your home very carefully. Look around door frames, windows, drywall tape joints. Pull your furniture away from walls and look for “bows” in the wall from green wood having dried incorrectly. Often you can see this by examining the baseboard for gaps, and remember to look at both sides of the wall if you find this type of abnormality.

Maybe you can have your friends over for an “Almost One Year Anniversary – Find a Crack” party 🙂

There is usually a “drop dead date” in your warranty for these types of minor repairs, so be sure to PUT IT IN WRITING. Don’t just call the builder a week before your time frame expires. It’s too easy for someone to say you never called, or that is not what you called about.

Best to get your request to the builder, in writing, before the time frame lapses. Happy One Year Anniversary in your new home, often includes a visit from the builder to fix those things that tend to settle in the first year of a new construction home.

If you bought resale, with a one year “home warranty”, same story. If you have been “ignoring” a small problem that may be covered by that warranty, be sure to get a written request in before that warranty expires. You will be looking for different things if it is resale vs new construction, so read your warranty carefully. You might even want to have a full home inspection done, to make sure you don’t miss something.

Coming Soon: Pacific Northwest Housing Summit and Seattle RE Barcamp

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I’m very excited about two events that will be taking place next month at the Seattle Center on March 18 and 19, 2010 for the real estate community.   Full disclosure:  I’m actually involved on the planning committees for both.  🙂

The Pacific Northwest Housing Summit is on Thursday, March 18th and consists of panelist from across the country reprensenting all aspects of the real estate industry and various levels of government.

panelist
At this time, the featured panelist include (in no particular order):

  • Lieutenant Governor Brad Owen
  • David Horn with the Federal Trade Commission
  • Ohan Antebian with Realtors Property Resource (RPR)
  • Bret Bertolin with the Washington State Economic and Revenue Forecast Council
  • Spencer Rascoff, COO of Zillow
  • Stan Sidor Chairman of the Appraisal Coalition of Washington
  • Brenda Rawlins, President of the Washington Land Title Association
  • Frank Garay and Brian Stevens from Think Big Work Small
  • Marc Savitt of the National Association of Independent Housing Professionals
  • Ken Reid of Genworth Mortgage Insurance

We are still adding panelist to the event–I’m pretty amazed at how its all coming together!   It will be interesting to hear from these folks what they see for the near future of our housing market.   The Pacific NW Housing Summit has been approved for clock hours (some pending approval).    If you pre-register, you can save ten bucks (that’s 2 or three lattes!) vs. signing up at the door on the day of the event.    Registration includes a gourmet boxed lunch from Gretchens on Thursday.

This event is brought to you by Washington Realtors and the Washington Association of Mortgage Professionals.

barcamp-logosmallRE Barcampis no stranger to Seattle.   This will be the third Seattle REBC (not counting Bellevue’s mini-REBC last year) and what I appreciate about RE Barcamps is that each one is unique and has their own personality.  I think this happens because the volunteers vary and even more so because the event is planned based on the attendees.    I’m betting that since this RE Barcamp is taking place the day after the Pacific NW Housing Summit, that we’re going to see more sessions on issues far beyond social media.   This won’t be your “typical” REBC…at least that’s not what I’m expecting.   No lunch is included on Friday–but with all the great restaurants located near by, you won’t have to travel far.   Even though REBC Seattle is free–your rsvp is greatly appreciated.

The venue for both days is going to be great.   It’s located at the Northwest Rooms at the Seattle Center with tons of parking.   The rooms are designed for conferences and will easily handle both days formats…and there will be free wi-fi!    

I look forward to seeing everyone next month!

IRS and Homebuyer Tax Credit: obtaining a”signed” Final Settlement Statement

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This is tax time.

Sometimes escrow offices wonder if we are CPA firms during tax time.   Our office has received numerous phone calls from clients that are in need of their “signed” Final Settlement Statements.   Lynlee wrote a quick post on our blog with an IRS link addressing what the IRS may need from borrowers to claim the tax credit.

As always, please contact your CPA or tax professional for specific details regarding claiming the homebuyer tax credit.

We contacted a CPA and they responded:

“we generally have found that the Final Settlement Statement (with NO signatures) are acceptable.”

Why?  Because in Washington State (and other escrow states) Final Settlement Statements do not have signatures from borrowers.   Final Settlement Statements are mailed to clients after a transaction is closed.  Estimated Settlement Statements are signed at escrow prior to your transactions being closed.

New vs Old Good Faith Estimate Continued…

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NOTE:  This is just my interpretation of the new GFE and I am only a mortgage originator and blogger. This post is just based on my opinion.   Please check with your compliance department at your mortgage company to learn about the GFE requirements.

Previously, I reviewed page 1 of the 3 page good faith estimate which will be required for all residential mortgages effective with applications as of January 1, 2010.   We’re moving on to page 2 of the new good faith estimate and comparing it to the old Good Faith Estimate that I (and many) have used.

The current good faith estimate, which is to be retired at the end of this year, provides a line itemization of closing costs.  
ECC

Section 800 of the dear old good faith estimate for the most part contains what the new good faith estimate is now on page 2 of the HUD’s Good Faith Estimate.

What used to be line itemed in Section 800 of the old GFE is now for the most part, lumped together under “Your Adjusted Originated Charges” less third party fees. When you look at the current (soon to be retired GFE); I’m basing this on lines 801, plus lines 811 – 814 even if the seller is paying the fees…by the way, there is no place on the new Good Faith Estimate that shows the seller credit…but if you don’t disclose the funds for closing, I guess HUD feels that point is moot!

Block one of the Good Faith Estimate cannot change–once a GFE is issued, unless it qualifies for a “changed circumstance” or the GFE “expires”, the Mortgage Originator is bound.   A “changed circumstance” is not as easy as it sounds…and warrants a post of it’s own.   They must be documented on only the fee impacted by the changed circumstance is allowed to be modified.  Mortgage originators should be prepared for banks/lenders to balk at your explanation of the changed circumstance–expect to have to “eat the cost” difference if the bank doesn’t “buy it”.

Quick reminder, this post is just to compare a specific FHA scenario based on a current and the new GFE–so if a LO has discount points or YSP, this would look different and it will take a follow up post to review it.

The next section on the new GFE is “Your Charges for All Other Settlement Services“.

YourChargesforAllOtherSettlementServices

Block 3 of this section are items the lender selects and that the borrower cannot. Since this scenario is an FHA loan, it includes the FHA upfront mortgage insurance. This section is subject to the 10% tolerance in aggregate “bucket”. On my old GFE, comparing estimate to estimate, these specific fees would be found on lines 803, 809 and 902.

Block 4 is for the lenders title insurance policy and the escrow fee/settlement services. They’re now lumped together. It doesn’t matter if it’s the same company or not. If the borrower selects a provider from the list provided by the lender, it’s subject to the 10% tolerance. If the borrower deviates from the list, there is no limit to how much the fees can adjust. If the lender does not provide a list, there is zero tolerance from the good faith estimate to the HUD-1 Settlement Statement. I suspect that some big banks will use this to try to capture title or escrow business. On my old GFE, these fees were shown on lines 1101 and 1108.

Block 5 is a doozie. HUD does a great job contradicting themselves with whether or not the owners title insurance policy fee needs to be disclcosed here. In Washington State, this is typically a fee charged to the seller. Yet it really appears as though HUD wants this cost disclosed to the buyer EVEN IF THEY’RE NOT PAYING IT. This fee is not on the old GFE.

Block 7 are the recording fees and is shown in section 1200 of my GFE. Even recording fees that the seller typically pays may be disclosed here. This is shown in section 1200 of my old GFE.

Block 8 is for “excise tax” and it’s my understanding that the only county in our area where the buyer actually pays a portion of excise tax is San Juan County. If I’m wrong–please correct me!

Old/existing Good Faith Estimate below shows the items the lender requires to be paid in advance (prorated interest, 1 years home owners insurance for a purchase and the upfront FHA mortgage insurance) and the left and what is required to start the reserve account.  NOTE:  this is my personal GFE (generated from Encompass).

Reserves_Prepaids

Block 9 discloses what is charged to start your escrow reserve account (line 1001 and 1004 on my old GFE).

Block 10 is the prorated interest based on the day the loan is closing (line 901 of my old GFE).

Block 11 is the estimated (in this case) annual home owners insurance premium which is disclosed on line 903 of my old GFE.

If you add the “adjusted origination charges”  (Box A)  to the “your charges for all other settlement services” (Box B), you come up with a “total estimated settlement charges” (which also includes the owners title insurance policy which is not paid for by the buyer in these parts).    Again, this does not factor in any seller credit–the only credit factored into the new GFE is in the form of YSP (yield spread premium).

summarycharges

I’m going to miss you, Old Good Faith Estimate!   The two things home buyers ask most from the lender (after what’s your rate) is “how much is my payment going to be” and “how much money do we need for the down payment and closing costs”.   HUD’s new GFE answers neither.

Fannie Mae Announces Deed for Lease Program

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In a press release this morning, Fannie Mae announced a new program for homeowners who are facing foreclosure and who do not qualify for a loan modification:  Deed for Lease.  Distressed homeowners would complete a deed in lieu of foreclosure back to the lender anad then rent their home from the lender at market rate.   Leases may be up to 12 months followed with a month to month option.  

Jay Ryan, Vice President of Fannie Mae says:

“This new program helps eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities.” 

  For homeowners to qualify for the Deed for Lease Program:

  • The home must be occupied as a primary residence.  Investment properties may be eligibile as long as there is a tenant occupying the propert and willing to participate in the Deed for Lease Program.  
  • This program is not available for second homes or vacation homes.
  • Available for 1-4 unit properties where Fannie Mae owns the mortgage (not available for government guaranteed or insured loans: FHA, HUD, VA, USDA).
  • Second mortgages/liens on the property are not allowed;
  • Borrower/tenant must be able to document that the new lease payment does not exceed 31% of their gross monthly income.
  • At least three mortgage payments must have been made since the last origination/loan modification.
  • Borrower may not be more than 12 months past due on the mortgage.
  • Borrower/tenant may not be actively involved in a bankruptcy.
  • Rental insurance may be required if there are pets.  (You probably want rental insurance regardless).
  • Borrower/tenant will need to pay a lease application fee of $75 fee per unit.

I’m wondering if this will be considered a taxable sale — will there be excise tax due?   A title insurance policy will be required to prove the title is “marketable”.    The properties will be inspected to make sure the occupants have kept the home in good condition and to permit the marketing of the property for sale.  I would hope that the Deed for Lease tennant would have the first right to re-purchase their home during the 12 month period.   According to Fannie Mae’s announcement: 

“A Deed for Lease property that is subsequently sold includes an assignment of the lease to the buyer.”  

Homeowners will need to work directly with their mortgage servicer (who they make their mortgage payment to) in order to see if they qualify.  According to Fannie Mae, mortgage servicers can offer this program immediately–however, you can bet it may take a while for this program to become available.   Fannie Mae offers these instructions for homeowners who are considering this program.

I’m wondering if there is excise tax due on the sale of the property to the lender.

The intent of the program, which I applaud, is: 

“to minimize family displacement, deterioration of neighborhoods caused by vandalism and theft to vacant homes, and the effect these have on families, communities and home price stabilization”.  

I’m sure we all have abanoned homes in our neighborhoods and know families who have lost their homes.   Hopefully this will help make things a little better for all while our housing industry and our economy is trying to recover.

reblogworld, Baby!

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I can’t tell you how much I’m looking forward to participating at RE Blogworld in LasVegas this week.  I feel like I’m inrebw_final “nerd-vana”…in a good way, really!   I’m going to be on a panel with Jay Thompson, Derek  Overbey and Jeff Turner moderated by Matt Fagioli.  We’re going to be the “first track” on Thursday, October 15,  covering Using Social Media for Real Estate.    And if the bantering I’ve witnessed via emails together is any indicator of what our panel should be like…it’s going to not only be informing…it should be entertaining as well.    I’m totally honored to be included with this group and to be taking part in this event.

Social media has done so much for me and my career.  I absolutely love writing for the consumer and being able to work for people I “attract”  (and my past clients) instead of having to use “cold” methods such as post cards to strangers, up-calls or paying for “leads”.   I’m looking forward to learning more ways to fine tune and streamline social media.

I hope to write a post while I’m at Blog World…I’ll have to see how things go.  Odds are that you may not be seeing rates from me on Friday.  Because I’ll be in Vegas, Baby!  🙂

It’s September 17, 2009 and I still originate mortgage loans…

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For those of us to whom this statement applies there are a few obvious questions that immediately come to mind:  Why am I still working in this God-forsaken wasteland of an industry?

  • A) Nobody else is hiring in this booming economy,
  • B) I wanted to move to Nome Alaska but I couldn’t trade my upside down mortgage for a thatched roof yurt and a dog sled, or
  • C) The positive image of my career as portrayed by CNN makes me feel like a rock star.

Seriously, for the love of God Why!?

2009wampconnectIn all seriousness those of us that remain are not that different than survivors of a natural disaster. The clouds dissipate; the water level recedes and her we are – the survivors of the storm.  Not unlike the analogy the first thing that a ‘survivor’ must do is identify the resources that one needs to rebuild and restore one’s life. It is with this in mind that I invite you to WAMP’s Connect event coming up in Bellevue on October 5th and 6th

The Connect event offers each of us the opportunity to come together and meet all of the other survivors face to face. We’ll be able to reflect on what ‘once was’ and still more importantly the ‘what is’. As is the case in any disaster, the landscape we live in professionally is dramatically different than where we’ve been. The resources are certainly more limited – remember the days of quoting ‘hundreds of lenders and programs’? Now it’s more like ‘five lenders and programs’ – and we’re all using the same five!

Fewer programs and tougher guidelines are the realities of the aftershock and yet another reason to learn what others are doing to be more efficient and succeed in this new landscape. The Connect Event also offers the knowledge of how to seed your landscape for tomorrow. New technologies and lead sources like the Zillow Mortgage Marketplace, social network marketing (can you tweet for dough?), and the brace of brave new lenders that have sprung up alongside the resilient and steady familiar faces; they’ll all be represented at the Connect Event. The Connect Event will be nothing short of a meeting of survivors learning how to forge their professional landscapes for tomorrow – so don’t miss out!

There are very few lifeboats in this economy. There have been far more casualties than survivors. Come and be counted among the living. Come to Connect and learn how to forge a better tomorrow for yourself and for the industry you work in. Face it – If we don’t see you at Connect we’re going to suspect that you traded the house for the dog sled and the yurt – Don’t be ‘gone missing’

Are you going? REBarCampSeattle and more…

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logoThere are a ton of great Seattle real estate events in the near future with RCG contributors playing a huge part, so last week I asked RCG contributors to let me know which events they were going to be participating in and I thought I’d give a quick summary…

REBarCamp Seattle, 9/8 (tomorrow!):

  • A gathering of passionate real estate professionals. A casual, open, and fun way to learn about cutting edge real estate marketing ideas.
  • RCG Contributors attending include: Rhonda Porter, Ardell DellaLoggia, Galen Ward, and Cortney Cooper

SCKAR Event, 9/22:

  • How how to use Social Media panel discussion with Rhona Porter, David Gibbons and Matt Heinz.  Moderated by Claudia Wicks.

Lenders Connect (WAMP), 10/5:

  • 18th Annual wholesale lenders conference
  • Rhona Porter, Jillayne Schlicke (speaker)

REbarcamp Bellevue, 10/6:

  • Rhonda Porter (organizer!), Ardell DellaLoggia

Washington State Association of Realtors Convention, 10/12 & 10/13:

  • Jillayne Schlicke (speaker)

Also, if you check out the event conversation on FB, you’ll see that there’s also a variety of courses being taught by RCG contributors in the near future!

And If you’re gonna be at any of these events, let us know to look out for you!