Taking on KING/KONG…

Yesterday I was interviewed by a KING-5 reporter, Kim Holcomb, and which I had written about on my blog at this post.  I had jokingly referred to taking on King Kong but only because the news segment was shown on KING-5 and KONG-6 last night.

King Kong

The news story was about how the market here is changing just a bit to more of a stabilized market.  At the beginning of the report a seller talks about it being a “buyer’s market” but I wouldn’t necessarily agree with him completely.  We’ve still got room to move before that happens and if anything we’re more balanced than the past 5 years.  The segment did run on both KING and KONG stations and, from what my business partner tells me, it is one of the most viewed and forwarded links from the KING-5 website today.  Here is a link the actual news story about the Seattle real estate marketplace along with pieces of my interview.

It seems we’re (Team Reba) getting a lot of press lately.  I was interviewed in July for a story on blogging for the RE/MAX Times back in July (released in September) and just last week I was interviewed for a real estate investment magazine which will be printed in the November/December time frame.  Now, if I could just get the interviewers to pronounce my name correctly…. 🙂

How walkable is your neighborhood?

In late August a press release was sent out by Mayor Nickels office regarding plans to increase sidewalk construction in areas of the city where there are none now.  Many buyers I talk to on a regular basis tell me they want to live in neighborhoods with safe streets where they can walk to and from shops or to be able to take their kids safely to local parks, etc.  I personally love having sidewalks in my neighborhood.  An online tool that can be used to determine if your area has good “walkability” is this site: http://www.walkscore.com/

A large portion of the northern section of Seattle is without sidewalks since they were developed prior to being within the city’s borders (most areas north of 85th St).  An article in the Seattle Times highlighted this area and others recently noting how expensive it is for cities to add sidewalks, but because city inhabitants have been vocal for it Mayor Nickels is going to give them what they want.  Or is he?

Here is a link to the city’s current plan to add sidewalks, most of which is supposed to be funded by new construction: http://www.seattle.gov/DPD/Planning/Sidewalks_Improvement_Initiative/Overview/

Now, let’s compare that to a notice I received from the Master Builder’s Association as shown below.  As I read it, the MBA doesn’t want to take on the responsibility for the costs of adding the sidewalks.  If they do, they will, of course, pass it on to the consumer (buyer of their developments) and as a result the cost of the sidewalk will go up multi-fold because there will be added costs from the builder on top of the original cost to install.  I don’t know if the city can get a “bargain” compared to the MBA developers or not but I would think that it would be inefficient for the city to try and manage all of the independent developments and the sidewalk needs of those as they happen ad hoc around the city.  Perhaps if the “fee in lieu” were to go directly into a pot that could be used for ad hoc installing of sidewalks I’d feel better about it, but I’d also be concerned about whether or not that would be managed well too.

The Mayor’s Sidewalk Announcement

The long anticipated Sidewalks Initiative was announced today by Mayor Nickels and is available at: Sidewalk Press Release
Should the proposal pass, sidewalks, curb and gutter would be required for all new development in Urban Centers and Villages and along any arterial.  The threshold for the remaining portions of the city would be lowered to 3 units.  For more detail, goto:  Seattle Sidewalks.
The MBA is proposing a fee in lieu of program that would bank sidewalks and allow the city to contract with the lowest bidder to install all sidewalks—I assume the city gets a better deal than we can.  The goal is for members to avoid the long and expensive SDOT review. 

Rules for Rain City Guide Contributors

I’ve never been one for rules, but in preparing to take on a new RCG contributor, I thought it might be a good time to articulate some of the informal rules that we seem to have developed on the site in order to bring together such an interesting crew (often with competing interests!) 🙂

But first… Let’s be clear that there are no formal rules. And I definitely enjoy watching contributors “break” the unwritten rules because they almost always get immediate (and rarely pleasant) feedback from the community.

Here are the only two “rules” that come to mind:

  1. If you are going to attack something… attack ideas, not people. (i.e. “your idea sucks”… not “you suck”)
  2. Avoid obvious self-promotion.

The first rule is just a modified version of a rule from my mother with regards to the way I needed to treat my little sisters… (I was allowed to say to them “you did a bad thing”… but never “you are a bad person”). It’s pretty simple advice that I inevitably regret when I forget to obey.

An interesting related piece of advice from my mother is that I was never allowed to say “no” to my younger sisters, but rather I always had to say “instead”, as in “instead of playing with that, here is a toy you’ll find interesting.” Combine those two bits of advice and you get the essence of good blogging: Passionate challenging of ideas while providing interesting solutions.

The second rule is much more art than science and I can’t blame new bloggers for crossing the line on this too often. Obvious self-promotion looks bad and is an real turn-off for most consumers. I’m a huge believer in treating my readers like they are intelligent and savvy enough to know that the typical professional is blogging in order to earn business. If the consumer likes your attitude and style, they will choose you when looking for an professional without the need to constantly prompt them. One of the reasons I put all the contact information for active contributors on the sidepanel is because I think it is classier if I do the promotion for the contributors than if they try to do it for themselves… 😉

By the way, one trick I recommend for new real estate agents to help stay away from the self-promotion angle is to make sure there is always at least one link in their posts that references an idea of someone else. The link could be to a news article, but preferably it is another blog post. (A ton of credit for promoting this idea goes to Greg as I’m not sure I would have realized this advice was novel without his encouragement…)

Linking does two things: 1) It adds credibility to your post because it demonstrates that you’re knowledgeable and follow many different real estate discussions and 2) it ensures that you’re part of the larger “real estate” conversation on the web.

This seems like a great topic to turn back on the community. Are these two “rules” sufficient to run a community? Are there other “rules” I encourage/enforce without realizing it? I would definitely enjoy everyone’s feedback! (but remember to attack my ideas and not me or I’ll delete your comment! LOL!)

UPDATE
Rhonda reminded me of a third “rule” I advice to new bloggers. I also request that contributors DO NOT post the same article on their blogs. This has two purposes: 1) It helps ensure that the articles they are writing are relevant to the RCG audience and 2) the duplicate posts are extremely bad SEO for the contributor’s website (There’s a long history behind this as more than one RCG contributor has temporarily lost all Google traffic to their personal blog after republishing all their RCG articles… The search engines, and Google in particular, hate this duplicate content and end up temporarily banning the agent’s site).

FHASecure: A Helping Hand for Those Who Did Not Refinance in Time

Update January 9, 2009:  This program is no longer available effective December 31, 2008.

[photopress:piggydrown.jpg,thumb,alignright]This afternoon I received our Mortgagee Letter from HUD with the nitty gritty on FHASecure.   Since our company is a HUD Approved Mortgagee lender (we’ve been providing FHA financing since our inception back in 1976); we are also approved to help distressed home owners who have adjusting ARMs via a FHASecure refi.

FHASecure is “a temporary program designed to provide refinancing opportunities to homeowners

Quick reminder to lock in your mortgage

On the first Friday of every month, the Jobs Report comes out.   Tomorrow is the big day.    As I’ve written about this topic before, this economic indicator tends to have a huge impact on mortgage interest rates.  

It is the consumers choice to float or lock a mortgage interest rate.   My preference is generally always to lock.   Especially during these historic times in the mortgage industry.   Locking in a mortgage interest rate not only secures that rate for your loan, it may also preserve that mortgage program.     With some lenders pulling back on certain programs, a few of them are honoring the loans that are locked and underwritten.  

Please do not assume that your mortgage rate is locked.   Make sure you have a written lock confirmation (a Good Faith Estimate is not a lock confirmation).   If you have a mortgage in process, you may want to contact your Mortgage Professional to confirm it is locked and what their read is on the current situation.  

It pays to be extra cautious right now.  

Help! My Laptop is quitting on me.

I think my Toshiba Satellite laptop finally bit the dust.  I seem to have one of [photopress:iStock_000001883855XSmall.jpg,thumb,alignright] the few models that DO NOT have the battery being recalled.  Yet it’s one hot mama.   This morning it has shut down three times (before I can even read an email).   I simply cannot function in the mortgage world without my lap top.  So off the the lap-top market I go!

My needs are quite basic.  We use Encompass for our Loan Operating System (LOS) and therefore, I believe I need Windows XP (not Vista).  Of course it needs to support my blogging efforts and I’m toying with getting a built in camera.  I really have enjoyed watching how Morgan has evolved his blog: Blown Mortgage.  Although I’m pretty sure he’s using something more sophisticated than a built in camera for his video-documentaries.   I’d like the screen to be large enough for me to read without having to pull out my glasses yet have the computer light enough for me to carry without having to wheel it around.  Last, my Toshiba had built in software that seemed to fight with everything, like my iTunes and my backup hard drive.  I think I’m leaning towards an HP brand.

What ever it is, I need it now.   Any ideas?  Do you have a Lap Top that you’re in love with? 

I’m taking my laptop to Best Buy (where I bought it about three years ago) to see if the Geek Squad can breathe some life back into it.   I was hoping to stall this purchase until Encompass (and Mortgage Master) is Vista compatable.   

I’m writing this post from our “house” desk top which I swear has gerbals running on a habi-trail inside of the CPU!  🙂

What is your Mortgage Exit Strategy?

Unless you have a long term fixed rate mortgage, you should develop an exit strategy.   An exit strategy is a well thought plan on how you’re [photopress:airplaneexit.jpg,thumb,alignright]going to leave your current mortgage.  Every time you board an airplane, the Stewardess reviews the “exit strategy”.   They’re not planning on an actual emergency landing, they are simply preparing you for a worse case scenario and informing you where the exits are and what you need to do in that event.  

You should have a plan if your current mortgage is:

Having a plan (being prepared) does not mean waiting until you receive a notice from your mortgage company that your mortgage payment is hiking because your fixed period on your ARM is over.   You need an exit strategy because once fixed period is over and your mortgage adjusts, odds are that your new mortgage payment will not be desirable or affordable.  

You need to start developing your plan well in advance.    Here’s what I recommend:

  1. Find the Note for your mortgage (deed of trust) and determine what your new rate may be using the worse case scenario.   If you have an ARM, you can figure this out by adding the first cap to your interest rate.   For example, if you currently have a 5/1 ARM with a note rate of 5% and the first adjustment rate cap is 5% (5/2/5 is a common cap structure), your new rate could be 10%.   If the first adjustment cap is 2% (2/2/6 is another possibility); your new rate could be 7%.   If your ARM has an interest only feature and will also be converting to amortized payments (some have longer interest only terms beyond the fixed rate period), you’re in for a double whammo if you’re keeping the mortgage.
  2. Determine what your worse case payment may be.  Your new payment will be amortized over the remaining term of the mortgage.   Use an amortization schedule to see what your mortgage balance will be at 60 months (using the 5/1 ARM scenario) and figure your payment based on the maximum possible rate amortized for 300 months.   This new payment does not include taxes and insurance.  In fact, anyone with an adjustable rate mortgage, regardless how long the remaining fixed term is, should contact their LO to determine what their “worse case payment

Photo Friday: Understanding Place

Continuing on my adventure of trying out different themes each day, I thought I’d try a multi-media Friday…

And zefrank leads us off with an interesting video about place and context via a tour of Vegas:

Athol continues on his quest to collect the worst of MLS photos… This photo highlighting the photographers thumb is a classic!
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Let the hype begin… Where will you be at 7pm on Sunday?

I created a RE.net photo group on Flickr. My idea with the group is that bloggers could/would post group photos from events, seminars, and/or meetups. I added all the relevant photos from my Flickr stream and would love to see some others get involved! (Just ask for an invite!). I plan to continue to add photos of the different events I attend (and host) and would love to see others… (Photos from the upcoming Sellsius duo’s cross-country trip come to mind!).


Beignets at Cafe Du Monde, originally uploaded by tyrsdomain.

(signing up for the RE.net group should be easy enough (you’ll need a free yahoo account), but this is the first time I’ve set up a Flickr group. I’d be curious to know if you’re having any issues with the process!)

A chateau in Texas?… Yours for just under $60M (via Luxist)

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