Blogging in luxury & style with Word 2007

Well, I’ve had my own blog for a couple weeks now. So far, I am loving Subtext. Comparing Subtext to WordPress is like comparing a Cadillac CTS-V to a BMW M3. The standard is the still the one to beat, although the race is much closer than you might think it should be. Although it doesn’t have the refinement of the BMW, it does have a close working relationship with the Corvette parts bin and has the potential to be a world beater.

However, during that time, I’ve discovered something even cooler than a V-series Cadillac sitting in my blogging garage and that’s the new Microsoft Word 2007. Think of it as the Lexus LS-460 of blogging sedans.

Anyway creating a blog post with pictures is as easy as using Word (and it creates clean HTML markup too). If you don’t believe me, the View Source command is just a mouse click away. That’s OK, I’ll wait…

Now that I have your attention, here’s a guided tour of how I created this blog post with Word 2007. First, you need put your keys in the ignition and start your engines (or just start winword.exe using your favorite command shell). After your hard drive is done doing its 0 – 60 MB sprint, you’ll see an empty document window.

Now you need to click on the “pearl” (aka the Office button), and select Publish – Blog from the menu. Now that you’ve created an empty blog post document, you need to configure Word 2007, so it’ll be able to post to your blog. If it’s your first time, Word 2007 will prompt you for a Blog Account, otherwise you’ll to click on the manage accounts button in the ribbon (aka where the toolbar used to be) to add your blog. For my demo, I’ll add my Rain City Guide account settings.

From the Blog Accounts dialog, click New and you’ll then see the New Blog Account dialog. Word 2007 has support for Windows Live Spaces, Blogger, SharePoint, Community Server, TypePad, WordPress, and other blogs that support the Atom or MetaWebLog APIs. Since RCG proudly uses WordPress, I selected that and proceeded to the next dialog. (FYI – Subtext uses MetaWebLog)

Then on the new WordPress Account dialog, you enter the blog post url and your account info, click OK and your ready to burn some rubber. Since I’m behind on my quota for my blog, I plan on writing a comprehensive review of what Word 2007 can do for your blog on my Caffeinated Blog this weekend.

Anyway, if you’re a blogging enthusiast, I highly recommend you take Word 2007 out for a test drive. I usually don’t impress easily, but Ecto and Blogjet has some formidable competition now.

Two offers to refi in one day…just how lucky can a gal be?

In our mail today, we received two very attractive offers to refinance our current mortgage.   Wow, how [photopress:MPj03876060000_1_.jpg,thumb,alignright]exciting!  Here are the details:

Offer One–This is your “Final Notice”

Reducing our current mortgage rate to 1.75% for 5 years.   A Senior Rate Reduction Consultant is waiting to assist you.   The APR on this offer is 6.308%.

This offer will expire on May 14, 2007.  Here’s my favorite part:  No other notices will be issued and no representatives will call you.    (Darn…the clock is ticking!)

Offer Two…Takes the Cake! (It’s even printed on pink paper)

“Your Mortgage Master loan in the amount of $375,000 can be restructured to a (you better sit down for this one) a 10 year payment at only $79.  This is not a typographacial error.   Your payment rate is only 1/4% and is fixed for 10 years….

Call us today and have no house payments until June 2008“.

Of course I had to call them!  The gentleman was very friendly (much nicer than the chaps I dealt with trying to help Jillayne uncover the Vacation Mortgage).    First you must meet their guidelines.   “Slick” tells me that one of their biggest “catches” to get around is loan to value…lucky for me,  we meet the 70% or less LTV requirement.   You also must have credit scores of 680 or better and not plan on moving for 3 years or you’ll have the opportunity to pay a prepayment penalty.

Me:  What is the rate based on?

Slick:  0.25% interest only

Me:  I mean, what is the base rate?  How much is the deferred interest?

Slick:  Wow, you seem to know a lot!  6.750%

Me: At what point does the mortgage recast?

Slick: 150% (yep…that’s what he said….150%).   I can’t believe it either!

This means that every month you make the 0.25% interest only payment of $79; the difference between that and the fully amortized payment is tacked on to the back of your loan.   This difference is $2,322.17.

This would be allowed to continue until my original mortgage balance of $375,000 reaches $562,500!   I estimate this would take 80 months (or just shy of 7 years).  Although the rate is fixed for 10 years, the loan will recast into a fully amortized mortgage when it reaches the 150% cap.

If we assume that my house is worth $550,000 today and has a mortgage balance of $375,000.   In 7 years, we know that if I did this refinance with Slick, my mortgage balance would be $562,500.   We really have no guarantees on what my $550,000 home will be worth in 7 years.    Not to mention what would happen to my credit scores having a mortgage balance that was increasing over the original loan balance.

Last but not least…we’ve finally uncovered the “vacation mortgage” mystery!  With this program, they also offer to give you 12 months off of your mortgage payment as a “credit”.  It’s very easy for this type of lender to do.   At $79 a month, 12 months of mortgage payments would be $948.   It’s simply priced into the loan by rebate, margins or the prepayment penalty.  

Pretty slick….huh?

The (legal) importance of a home inspection

(This post is not legal advice.  For legal advice, consult a lawyer about your particular situation.)

First, my apologies to the RCG community.  I recently took a lengthy vacation and have been quite busy since my return.  Moreover, I now need to hire additional staff and thus move to a larger office space.  So, please forgive my less-than-frequent contributions until things return to “normal.”

Recently, Russ authored a post discussing the recent Supreme Court case of Alejandre v. Bull (beating me to the punch, in the process).  This is indeed an important case for several reasons, one of which Russ and the subsequent comments touch upon: the importance of a thorough home inspection.

Initially, the home inspection (if performed competently) provides the buyer with information regarding the condition of the house.  Obviously, the buyer is best served having full knowledge of any existing defects and able to make an informed decision about whether to complete the purchase. 

In light of the Bull case, however, the inspection also has legal significance.  In that case, the Court (in paragraphs 32 and 33) noted that a buyer of real property may still have a claim of fraudulent concealment and/or fraud where the seller fails to disclose a known defect (notwithstanding the fact that the buyer does not have a claim for negligent misrepresentation due to the economic loss rule, as discussed by Russ).  To prevail on a claim of fraudulent concealment, the buyer must show that the defect at issue “would not be disclosed by a careful, reasonable inspection by the purchaser.”  To prevail on a fraud claim, the buyer must show that he had a right to rely on the alleged misrepresentation of the defect at issue.  This “right to rely” is “intrinsically linked” (using the Court’s words) to a buyer’s duty to exercise diligence with regard to the representations at issue.  

Accordingly, an inspection is critical to retaining the ability to make a claim of fraud or fraudulent concealment against a seller.  If a buyer skips the inspection, the buyer will have great difficulty showing that the defect would not have been revealed by an inspection.  The reverse is true as well: by getting an inspection that fails to uncover the defect, the buyer will have a very good argument that the defect would not be (and indeed was not) revealed by an inspection.  Similarly, absent an inspection, the buyer will almost certainly have failed to exercise the necessary diligence to identify the defect, regardless of seller’s representation.

An inspection has an immediate, practical benefit.  However, it also has a legal benefit.  If you forego the inspection, you essentially waive any claim against the seller for failing to disclose a known defect.

What I admire about real estate

I was thinking about what my technology & business development plan is going to be for the next version of Zearch, and it reminded me what I really admire about real estate professionals.

You see, it’s occurred to me that people in this industry are self-employed entrepreneurs, free agents, and independent consultants. It doesn’t matter if they own a RE/MAX franchise, an independent brokerage, or is just an agent starting out. They don’t have a safety net of a 9-to-5 job. They also don’t have to deal with the inane responsibilities that life in a cube farm curses you with. But most importantly, they bare all the responsibilities and they reap the ultimate rewards of their eventual success or failure. For the most part, they only answer to themselves and their clients.

As somebody who shares the dream of becoming self-employed, I certainly admire the difficulties of obtaining that objective. Which brings me to asking the following questions of my entrepreneurial mentors?

  1. How did you get involved in real estate? Was it your first career choice or your second (or third, etc.)? Did you have any mentors or role models when you started?
  2. Why did you get involved? Was it the freedom that working for yourself brings? Was it the possibility of having a larger income (with a lot of effort, of course – there is no easy way)? Did you enter the industry because you enjoy helping people attain the American dream of home ownership?
  3. How long did it take you to “make it”? When did you know that you’ve “made it”? Did you try to work a day job when you got started or did you jump in with both feet with no safety net?
  4. If you haven’t made it yet or didn’t make it, what have you learned from experience?
  5. Knowing what you know now, what would’ve done differently when you started out?
  6. Any other insights you’ve gained on the road to being your own CEO? Has the journey been all that you hoped it would be?

Are Real Estate Agents Facing Extinction?

[I’m very happy to introduce the newest addition to the Rain City Guide team. Joe Beitey is a real estate lawyer out of the South King & Pierce County areas who runs the EZLawCoach blog and is also the Corporate Counsel for the MLS4Owners website. Joe has been quite active in the RCG community lately and I look forward to reading his legal perspective as a contributor!]

(This article is NOT legal advice. Consult an attorney for any specific legal issues you may have.)

Oh my goodness, what’s with these trends!! Global warming, sub-prime lending putting banks at risk, a slow down in the national housing market (bursting bubble???), and Sweet Mother Mary & Joseph, what’s with this “Zillow thing

Living Room is to Parlor as Den is to Study

This morning, Dustin asked for the difference between a Living Room and a Family Room.  Before The Great Depression, and long before homes had attached garages, “grand” homes were often built with a “center hall”.  To one side of the center hall, in the front of the home, was the “Parlor” or “Formal Living Room”.  Directly opposite on the other side of the center hall was the Dining Room.  In the Northeast of this Country, that was a typical “Center Hall Colonial”.  The Grand Staircase was in the center hall, the Kitchen was behind the Dining Room and often separated by a “Butler’s Pantry” where the butler would stand between the Kitchen and Dining Room (hidden from view) and step out to fill water glasses and wine glasses,etc. 

See the first floor plan below, which while modern, emulates the Tradtional Center Hall Colonial with the Kitchen taking up 2/3rds of the rear of the home, the dining room and center hall in front of the Kitchen.  The entire left side of the hall in this floorplan is the Living Room, but that huge space usually had french doors or pocket doors.  If only one set of doors, then the front portion was “the parlor” and the rear portion was “the study”.  With two sets of doors dividing that left space, you could have a “Formal Living Room” or “parlor” at the front, a library in the center, and a “den/study” at the rear. 

This modern floorplan has access from the rear of the living room into the kitchen, but original floorplans would have had a solid wall there, with NO ACCESS to the rest of the home from the right portion in the rear, making it quiet enough for a den or study.  Hence the Butler’s phrase, “Master, will you be retiring to the study?” where “master” might be in the parlor, grab a book from the library and retire to the far rear end, usually dark recessess, to read it in “the study”.  

So now to Dustin’s question regarding Family Rooms.  Often the Family Room, if all on one floor as in the floorplan below, is “where the TV goes” and is the “Informal Living Room”.  Of particular note is that often the rest of the first floor is built over a basement or at least a crawl space, but the family room is more often built on “a slab”.  So if there is a crack in the slab, it is right under your rug, which is glued to the slab.  Family rooms on the main level (vs. in basement) came in by the eighties, along with the “master bath”, which at that time was just a sink toilet and shower accessed from inside the bedroom and separate from “the hall tub bath” for the kids who “bathed” rather than “showered”.

In opening, I talked about The Great Depression.  Homes built before that time when money was aplenty and homes were getting grand and grander.  After the depression and up through the war, there were not as many homes built.  At the end of the war and through the fifities, boxy cheap houses were built for the “men returning from the war” and the homes were mostly three bedrooms, one bath, kitchen, living room and dining room ONLY.  Today we call them “small ramblers” here, large ramblers generally being built into the sixties.

Most notably in this Country, built for men returning from the war, were huge sections of these “little boxes” in neighborhoods in NY, NJ and PA known as “Levittowns” and the homes referred to as “Levittowners”.  [photopress:mslevitteen1955_03.jpg,thumb,alignright]

There was even a “Miss Levittown” of 1955.  You see many such 50s ramblers all over the Puget Sound, and Bellevue has tons of the larger, grander rambler with daylight basements built as income grew, long after the war and into the early and late sixties.

When I hear “The Bubbleheads” call these homes POS homes, I think of the soldiers and how happy they were that the Country cared enough about them to build these modest homes that they could afford after serving their country well and proudly.  The term was so foreign to me, that Jillayne had to privately email me and tell me what POS meant.  I hope some poor old soldier isn’t reading that nonsense.

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You rarely see the above “center hall” version anymore.  The L shaped version below is more readily available all over the Country in both large and small versions.  Those that are not flat full stories on the second floor are bungalows, or cape cods, or center peak and slope down aka “Dutch Colonial”.  You don’t have to know all this in Seattle because everyone just calls them all “Craftsmen Homes” unless they are “tudors”.  Mt. Baker and Magnolia Bluff have some absolutely fabulous tradional post depression “specimens”.

Yes, I AM a housegeek!  My favorite are “the eyebrow windows” readily found in Green Lake. This is all off the top of my head, and hopefully fairly accurate.  Of course I have been in all kinds of homes, dating back through the 1500s.  So “my recollection” goes well beyond my years as an agent. 

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So what the heck is a Great Room?  First let’s take the bathrooms up to speed.  A half bath is a “powder room” and usually exists on a first floor that has no bedroom on the first floor, so guests don’t have to go upstairs.  Puget Sound says “half bath” but most of the Country says “powder room” where guests go to “powder their noses” and not to pee.  It is rude to suggest that guests do anything there except powder their noses.

If you want your children to have big bedrooms vs. your having a “huge master suite”, look for homes built in the late seventies into the eighties.  By the late eighties and through today, the master suite gets bigger and bigger, and the children’s rooms get smaller and smaller…so we give them The Bonus Room which is that big extra space at the top of the stairs with no doors. 

OK – Great Room.  There are two styles of Great Room, one is a “true” Great Room and it is two stories tall and you enter it from the main entrance hall and it is great and grand.  There is a tiny formal living room/parlor off to the right or left of the front door and a tiny “man’s study/office” off to the other side of the entrance hall, but dead center in front of you and massively two stories tall is “The Great Room”, often with a grand circular staircase and “bridge”.  You can go up the stairs from left to right, and on one side is “the master wing” and the other side “the children’s bedroom wing” and a bridge aross the center of the second floor looks down into the great room at one side and the staircase and foyer from the other.

The OTHER version of a Great Room is a small home where the Family Room and Kitchen are combined with no wall between them.  That is called “A great room concept”, and not an actual “Great Room.  Back to the Family Room.  It’s “Where the TV goes” when people didn’t want toys and TV trays all over the formal living room, they invented “The Family Room” to keep the Living Room clean.  “California Splits” have “sunken Family Rooms” and I’ve seen several of them in Kirkland and Juanita/Finn Hill.  Not a “tri-level” but a grand, side to side, “California Split”. (The only place I have not seen a “California Split” is IN California)  Grand Ramblers, like the view homes in Lochmoor on Lake Sammamish have “Daylight Basement Family Rooms” often with grand views.  Lochmoor is a very interesting neighborhood whose “time has come” with one older rambler recently selling for over a million dollars.  The Family Room is, quite simply, the INFORMAL Living Room. 

It’s painfully obvious that I am the only freaky, house-junkie.  So, I wrote this for myself, to revisit “all the homes I’ve loved before” to take a page from Willy Nelson.  Someone will have to rewrite that song for me using the lingo from this post, but you’ll have to speed up the tune if I’m going to DDR to it 😉

Living Room vs. Family Room?

Being a person always willing to highlight my real estate ignorance, this interesting article (and associated slideshow) from Slate on a town being built in a former cornfield outside of Philadelphia made me realize I don’t know the difference between a family room and a living room. Wikipedia says the difference is one of formality and highlights the fact that the differences are blurred for those of us who grew up in homes with only one such room. To confuse matters more, we always called our room the den, which (according to a wikipedia redirect) is the same thing as a study.

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