New Law To Regulate Mortgage Professionals

On March 9th Washington State’s Governor Christine Gregoire signed House Bill 2340 which will regulate all Loan Originators in the brokering of residential real estate loans. According to Washington Association of Mortgage Brokers the new legislation requires the following:

  1. All Loan Originators will need to pass a basic compliance skills examination prior to January 1, 2007;
  2. Continuing Education will be required on an annual basis;
  3. Background checks will be required prior to licensing, removing felons’ and person with criminal histories that do not warrant the public’s trust.

Washington Association of Mortgage Brokers (WAMB) also states:

(The licensing) creates new consumer protections by raising the bar for practitioners in our industry by achieving two key objectives: 1) it will help weed out those in the industry who do no have the consumer’s best interest in mind and creates a revocable license for those that employ unethical and illegal practices; and 2) it will strengthen our industry by exposing educational opportunities needed for brokers that care about doing things right, but may be lacking the knowledge to remain compliant in accordance with State and national regulations.

WAMB provided some interesting facts about other states that have implemented a licensing requirement:

  • In Ohio 10% of loan originators were removed due to felony convictions.
  • In Utah 25% of loan originators never passed a basic compliance skills examination.
  • Many “out of state

East Lake Sammamish Trail to open tomorrow

I’m excited to see this latest addition to our regional trails system. We will now have trails that extend from Ballard to Issaquah. For anyone who’s run or biked on East Lake Sammamish, this will be a welcome relief from contenting with the very fast and very heavy auto traffic on that road.

This is also a good example about understanding Title Reports when you purchase real estate — particularly when it comes to existing easements. For those of you not familiar with the history, the Seattle Times has a good story about the events leading up to the opening. The abridged version is:

  • Lakeside homeowners purchased property with existing Burlington Northern Sante Fe railroad easement — even though it was no longer active the easement remained
  • Under the federal Rails to Trails act, King County purchased the easement for purposes of a recreational trial
  • Homeowners sue to try and block the trail
  • A federal judge rules that the former rail bed is appropriate for trail use

So ask yourself — should you ignore that easement that shows up in title just because it’s not in active use?

The property rights issue aside, I’m looking forward to trying out the trail tomorrow. One cocession they did provide for the homeowners was to add heavy fencing along the path. For others using the trails, I plead for you to remember that the adjoining homes are private property so please respect thier rights and stay on the trail.  Happy trails to all.

Robert

10 Things You Should Know Before Moving to Seattle

Where do you find inspiration?

Out of all the places to find inspiration for a blog post, my current favorite is deep within the RCG stats where I can find the search terms that people use to reach this site. Today, someone came to RCG looking for: [things+you+should+know+before+moving+to+Seattle], and while we likely disappointed that particular visitor, I would like to make amends by offering up this list of ten things you should know before moving to Seattle:

rain in Seattle1) It rains.

2) No really, it rains a lot here. Despite what they say about it raining more in Atlanta, Boston, or D.C., the rain in Seattle can be like a slow trickle that never turns off. But the rain is okay… really… because one day… some day… it stops. And on those first few warm, sunny spring days, all of life is good in a way that Californians will never understand (unless they move to Seattle).

3) Seattle isn’t always comfortable being a high-tech town. Sure we design operating systems, sell stuff online, try to appraise every home in America and stream lots of music and movies, but a substantial portion of the population relates much more to the art of building airplanes.

4) Consensus Rules. Just agree with me on this one or I’ll never be able to get to #5.

5) Traffic Rules. People in Seattle talk a lot more about traffic than the weather. Depending on where you are moving from, traffic will either be horrible or a non-issue. Most blue-state people will laugh at Seattle traffic because you can normally get between any two points in the City in under a half-hour at all times of the day. Red-state people see the parking lot known as SR 520 and wonder why we haven’t build another bridge yet (see #4 for a hint at the answer).

6) Seattle is not that big. We have all the stuff associated with life in a major city: Theaters, traffic, ballets, sports teams, traffic, skyscrapers, music, etc., but you really don’t have to travel far to feel like you are in rural America.

7) Seattle is closer to Asia than Mexico. If one of the staples of your diet consists of cheap and tasty Mexican food, then you will eventually replace that staple with Pho. The sooner you accept this (and the sooner you stop saying “The Mexican food is so much better in California”), the sooner Seattleites will let you know about the good Asian restaurants. (And by the way, since we’re talking about good food, I feel obliged to mention that the Mexican food I remember growing up with in California was so much better than anything you can find in Seattle…)

8) The intersection of NE 50th St and 40th Ave NE is about a mile away from 50th Ave NE and NE 40th St. In the Seattle area, all the street names are numbered and given one of nine directions (NW, N, NE, SW, S, SE, E, W or blank). The numbers begin at 1 in downtown Seattle and radiate out wards. The directions also radiate out, but are city specific, unless, of course, they aren’t… Like at the intersection of 244th St SW, 100th Ave W, N 205th St and 8th Ave NW. There is logic to the entire street system and if you live here long enough, you will understand. Until then, you will be confused and miss appointments, meetings, birthdays, etc.. On a related real estate note, if you are new to Seattle, do not attempt to search for a home without a real estate agent. The street system was designed by a committee of real estate agents who wanted to ensure that you need their help to locate a home. 😉 Also on a related note, Redfin has proposed new street names (featuring real names) for all streets in a effort to ensure the viability of their business model, but at this point, they are still very far from getting consensus on their proposed naming convention.

9) Paul Allen.

10) Despite what you might have read in Wired, Fremont is the Center of the Universe.

Have I covered everything?

How cool is our home search? Ice Cold!

In case you haven’t dropped by our home search tool recently, we’ve made some improvementsicecube. Changes include…

Market Analysis Tool Improvements
We thought it would be helpful, if you could get a second opinion when you get an estimate. So, we’ve made arrangements with Zillow to use their Zestimate web services on our Market Analysis page. That way, when you type in a property address, we’ll give you our estimate, get your property’s Zestimate (and the link to it’s page on Zillow), and save you some typing.

Radius Search
Want to find the all houses, within 2 miles of your house or office? Now you can here! And yes, the search results pages are Bookmark-able, RSS-able, and Google Earth-able. (I wouldn’t have it any other way).

Improved Location Search
The list boxes on the location search page are multi-selectable. Big whoop, I hear you say? Well, ours doesn’t refresh the entire page when you change the city or download a big city / community list when you first navigate to the page. Yes, you are seeing AJAX in action. It’s not something most people are going notice, until they wonder “Gee how come your page is so much faster than all the other ones”?

As always, the results from the improved location search are Bookmark-able, RSS-able, and Google Earth-able.

What’s next
Well, it’s a given that at some point I’m going have to have Virtual Earth or Google Maps integration, instead of static Yahoo Maps. If I’m going to compete with the big boys of real estate search, I gotta do maps. I’m probably going to have to create profiles, so you can save your searches, favorite properties, favorite places and other stuff that requires server side persistence.

What features would consumers and realtors like to see next? I’m more interested in hearing what realtors would like to see next because they are the ones who’ll be writing the check, when I eventually decide to release this. I have a billion ideas for what I’m going to do, but I’d get to some more feedback to find out what features I should implement next. Otherwise, I’ll continue to make it up as I go along…

Robbie

The Lame List – Real Estate Web Sites that Suck

evccliftIn a recent post, Galen said “And no, it’s not what Windermere or ZipRealty already do: their sites s-u-c-k compared to true consumer-oriented sites like Amazon.com and Google.”.

Now, comparing nearly any web site to Amazon or Google isn’t a fair comparission. Google & Amazon have 1) many of the best software engineers on the planet working for them and 2) they have thousands of them working on their web site. Microsoft (which is in the same league as Google & Amazon) is said to spend over $100 million/year on it’s corporate web site (I’m sure they spend even more on MSN)!

The only real estate company that I can think of that could afford that level of R&D is Cendant (they own Century 21, Coldwell Banker, and ERA). Ironically enough they also own Orbitz & CheapTickets.com (who are Expedia competitors). The vast majority of brokers are probably smallish companies that under-invest in technology (and Cendant is probably happy enough with the status quo that they aren’t going to rock the boat until the waves of change force it upon them).

Now, I do think ZipRealty’s site is medicore and Windermere’s site is average. But suck is way too strong a word. Could their sites be better? Yeah. But given they aren’t billion dollar internet/software companies with multi-million dollar R&D budgets, I think the sites are OK. I could do better, but don’t mistake a medicore site for one that sucks.

What I want you to do is tell me about the WORST agent & broker web sites out there. I only want to hear about the truly awful. Let me give you an example of how bad it can be.

Teri Herrera, is a very successful agent at John L. Scott with whom I purchased my first house with. However her web site makes me cringe in horror. Fortunately, she’s a much better agent than her web site would suggest, but her site is nothing but a flash link farm. Nothing of value other than links to other places and it’s wrapped up as an obnoxious flash app. At least ZipRealty & Windermere have branded MLS searches, instead of being just a link farm or framing somebody else content.

See, ZipRealty & Windermere look pretty good now, don’t they.

Robbie

Feeling "at home" on the web

There have been some interesting conversation around the web on Zillow’s business model…

But I’d argue that it is way too early to know their business model. In an interesting interview with Inman News (The link is dead) Rich Barton stated that the purpose of building a home estimation service up front was to get people comfortable using the web to find the value of their home.

Rich also mentioned that when he started Expedia he was frequently advised that he needed to “lock-in” potential ticket buyers before giving them flight information because many people (myself included) would to go the site to find good deals, but go to their travel agent to actually purchase tickets. (Marlow, doesn’t that remind you of something that is going on in real estate right now?). However, Rich stuck to his guns in giving the information up free because he recognized how important it was to get people comfortable with finding travel information on the web. In due time, people became comfortable enough with finding travel information on the web that they did away with the travel agent altogether.

I don’t think Rich’s intentions are the same with real estate agents, but I think he’s looking down the road a few years and seeing that agents are going to be more and more marginalized as home-buying and -selling consumers do the bulk of their purchasing research using web technologies. (I’d also bet that Zillow’s business plan is closer to a sketch than a detailed drawing as he likely recognizes the importance of making things up as he goes along.)

Giving away (for free!) great tools like Zillow’s Zestimator is simply a means to getting people comfortable using the internet to set a value on a home. Nothing more, nothing less. And recognizing that Zillow is a long-term project, I don’t think it is a stretch to say that Rich is developing a bunch more tools that will be a more obvious threat to the status quo of the real estate agent commission structure.

Without a doubt, it is a much softer play than with Expedia where he went head-to-head with travel agents. But then again, the stakes are even higher in the real estate industry.

RCG may have completed the real estate blogging trifecta, but which horse is going to win?

About a week ago I noted that the Zillow Blog added Rain City Guide to its sidepanel and that I hadn’t found out about both the Redfin Blog or the HouseValues blog because they hadn’t spread any link love. As Rain City Guide hasn’t done much to deserve traffic from either site, I didn’t really expect my comments to make much impact, so I was pleasantly surprised to find that both blogs added Rain City Guide to their sidepanel in less than a few days, thus completing my Seattle-real-estate-search trifecta!

I start with this story because it highlights two timely points I want to make: (1) all real estate is local and (2) business blogs can be shockingly responsive in ways that simply is not possible with a standard business website.

And just as all real estate is local, I’m happy to say that all interesting real estate search technology appears to be local as well. I’ve seen some fun tools come out of New York and California (or should we say CaliYork), but I don’t think it can be argued that the future of real estate is being developed right here in Seattle.

So who is going to win the real estate technology race? Will it be:

I don’t pretend to have the answer, but I sure enjoying keeping score. 😉

The second (and only tangentially related) point I want to make is that business blogs are now the norm for tech companies. When done right these blogs are much more than just a place to put press releases and instead give some great insight into the corporate personality behind the company. Go ahead and read the first few blog entries from each of the big three real estate search sites:

(I’m waiting…)

Here’s is what I read… The Zillow people are a zany, tech bunch who really believe that they can crack the real estate nut through increased data crunching and processing power. The Redfin people have figured out a better business model and now only need to expand so that they can demonstrate efficiencies of scale. The HouseValues people have a laser-like focus on present marketing opportunities, so they really don’t spend much time thinking about the future. Had any of these three companies been blogging a year ago, I’m sure their blogs would read the same! And more interestingly, I’m fairly confident that if I read the “latest” three or four entries from those same three blogs one year from now, those will also read the same because the culture that created those blogs is the same culture that created those companies. There is a real honesty in blogging that is hard to mask. Both a company’s strengths and weaknesses show through in their blogs!

However not everyone sees blogging from this vantage point. Recently, Daniel Gross of Slate signaled the beginning of the end of the business blog, by focusing on all the problems with blogging. But by focusing on the financial aspects of blogging (which often don’t make sense), he misses out on the overwhelmingly positive marketing opportunities associated with adding a friendly face to an otherwise impersonal website. I’m so glad that these three big real estate tech companies out of the Seattle area have all begun blogging because it gives some great insight into the soul behind the companies.

Real Estate Search is an evil hard problem

google evilOne of my pet peeves about most real estate search sites is that I can’t search on what I want. All of them, ask the same 4 or 5 questions. Where is your house located? How much can you afford? How many bedrooms? Blah, blah, blah..

Well, I’m going to attempt to change that. I want to find houses with CAT-5 wiring built in! I want to find houses with home theaters & wine cellars. I want to find a home with air conditioning (believe it or not, summer is coming). And now, I can. I proudly present our new search remarks feature.

Using the power of SQL Server‘s Full-Text Indexing features, this is now possible. Granted, our search is a long long ways away from being Google good, but it’s a start. If somebody wants to throw a lot of money at me so I can turn around and buy a copy of Endeca In Front or a Google Search Appliance, I suspect we’d get a lot better.

For example, when I looked for “cat 5” and found a house that doesn’t have a black cat. I looked for “home theater” and found a lot of homes (but not lot of homes with home theaters). Do a search for “media rooms” and you’ll find a lot rooms (but not as many media rooms). Obviously, you need to pick your words carefully to get what you want. Also, I need to start adding words like “home” & “room” to SQL’s noise word list since those words appear on nearly every listing’s remarks section. But, let’s face it, writing a search engine is hard. Eventually, I’ll tweak things so I can get Google or Microsoft to do my dirty work.

In the mean time, I hope finding your dream home got a little easier.

Robbie
Caffeinated Software

South Lake Sammamish celebrates annexation by City of Issaquah

The South Lake Sammamish Association (SLSA) has worked tirelessly to make this happen. As a part of unicorporated King County, they were frustrated with inadequate police patrols, road maintenance and similar public services. Last fall the Greenwoord Point-South Cove Annexation area voted to join the City of Issaquah and now it’s time to celebrate.

On March 1st, 6:30-9PM, the city will host an open house at Pickering Barn (just east of Costco) to welcome everyone. Issaquah’s mayor and other city officials will be there to celebrate and answer questions about city services.

In addition, SLSA will be hosting a ribbon cutting ceremony and parade on March 4th from 10AM to Noon. There will be refreshments and activities for the kids including tours of a fire truck and police car. See their website for details.

It’s great to see community involvement pay off for residenets on Lake Sammamish.

Housing assistance for the middle class on the eastside

I have a client who has been searching for a condominium for 6-months. Typical problem — what he likes, he can’t afford — what he can afford, he doesn’t like. We even looked down at Othello Station and thought we might find something there. They had several units set aside for low income families to purchase. Here the problem was he made too much to qualify for the set-aside units but not enough to buy the market rate units. What’s a person to do?

Well, we found the answer. Last week we had offer and acceptance on a really nice 2 bedroom / 2 bath unit at Frazer Court in Redmond. How did he do it? There is a great program setup between King County and several eastside cities to preserve and increase the supply of housing for low and moderate income households in East King County.

This program is called ARCH (A Regional Coalition for Housing) and has several below market rate duplexes, condominiums and town homes located in various developments in East King County. During the initial marketing period, maximum income levels are established for buyers. Typically, each development will establish a maximum income for buyers somewhere between 80% and 100% of median income. In addition, maximum income guidelines are often adjusted for both household and unit size.

Finally – a program that helps out the buyer caught in the middle income bracket. Check it out at www.archhousing.org.