The Perfect Real Estate 2.0 Company

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[photopress:timeYOU_big.jpg,thumb,alignright]If I had millions of dollars like Jim and Shirley Wilson now have (254M Powerball this week) I would create what I feel is a void in market today. I would take a Zillow like property evaluation tool and add a social networking back end to it. This was actually some of the conversations Dustin, Robbie and I had over a year ago when I was first introduced to RCG.

Anyway, what the market needs now is a valuation tool like Zillow that is enhanced by taking in to account neighborhoods, the particular street the house is on, the property’s zoning, the neighbors to your left and right and many many more. Zillow has added features to allow home owners to update their statistics for a closer estimate, but there is nothing out there that allows the brainchild behind Web 2.0’s success… YOU! (also a reason I feel the Web 2.0 bubble is far from bursting).

This would allow owners, neighbors and most importantly realtors to add comments to their communities, neighboring houses and their own house. I can only imagine how valuable this content would be to future home owners. Matter of a face, this would add some type of accountability to neighbors and home owners to be ‘good neighbors’. I guess this would be like a Better Business Bureau for home owners. I am sure all of the tenured agents out there have heard horror stories of their clients having troubles with a new home where the Form 17 disclosures could not provide any protection. This would be especially valuable in multi family communities.

[photopress:my_currency.jpg,thumb,alignleft]San Francisco’s my-currency launched today looking to tap in to this resource. John Cook’s blog talks about it as My Currency takes on Zillow which I understand, but I feel the underlying message here is putting the power in the people’s hand. It is easy for a site to put together stats that combines total square footage by numbers of beds/bath times a special area by area multiplier (I assume this is similar to the formula most of these sites use), but the does that mean someone will actually pay that price? If this were true, I would sell my house today for 200k more than I think it is worth because Zillow says so 🙂

2006 Statistical Review and Highlights

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Straight out of the horses mouth. I noticed these stats posted by the NWMLS today. I found a smilar post on their public site, nwrealestate.com. You can see the detailed story here

During 2006, members of NWMLS. . .

  • Reported more than 96,000 closed sales with a combined value of more than $35 billion
  • Experienced a 6.7% drop in number of units sold compared to 2005, but an increase of about 5% in the dollar volume of the closed transaction
  • Reported 1,951 sales of single family homes priced at $1 million or more (up from 1521 during 2005) and 859 sales of condominiums priced at $500,000 or more (up from 623 during 2005).
  • The MLS area covering Bellevue/West of 405 had the highest number of million dollar-plus sales with 219, followed by Central Seattle/Madison Park with 165. For high-end condos ($500,000-plus), west Bellevue had the largest number (183), followed by Belltown/downtown Seattle (130) and Kirkland (117); 145 condos sold for more than $1 million
  • Among the 19 counties in the MLS service area, San Juan claimed the highest median price ($539,500) for single family homes that sold last year; King County followed at $425,000
  • Maintained a high ratio of cross-sales: more than three of every four transactions were listed by one office and sold by a different office
  • Added 139,814 new listings of SFH and condos to inventory, with the highest volume (14,541 added during June
  • Represented more than 30,000 home sellers, on average, each month
  • Reported double-digit price gains for SFH compared to 2005 in all but one county
  • In the four-county Puget Sound region (King, Snohomish, Pierce and Kitsap), only about 6% of single family homes sold for under $200,000
  • Sold more than 15,000 condominiums, about the same as during 2005; approximately 63% of all condos that sold system-wide were in King County.
  • Found wide variation in prices of 3-bedroom homes. For pre-owned homes (built 2004 or earlier), the median sales price ranged from $124,900 in Grant Co. to $508,000 in San Juan Co.
  • In King County, the average price of a single family home that sold in 2006 was about 2.9 times higher than the price in 1990 (up from $178,187 to $518,108).

NWMLS at a Glance

December 2006
Member Brokerages
2,075
Sales Associates
26,183
Counties included in Summary Report
17

Appalling Statistics

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Recentlyk Reba Haas wrote a post about theft of copper from new construction sites.

Today the NWMLS reports that this theft is still on the rise. Here are the appalling statistics.

The thefts since January 1st have occurred in the following areas:

  • Area 54 – Tacoma area – 1 theft reported
  • Area 72 – Edgewood area – 1 theft reported
  • Area 100 – Auburn area – 1 theft reported
  • Area 140 – West Seattle area – 1 theft reported
  • Area 500 – Newcastle and Newport Hills area – 7 thefts reported
  • Area 550 – Union Hill area – 1 theft reported
  • Area 760 – Darrington area – 1 theft reported
  • Area 730 – Meadowdale area – 1 theft reported

[photopress:snarling_dog.jpg,full,alignright]Appliances, staging furniture, copper are being stolen, by apparently opening the nwmls keybox without a keypad, since the use of a keypad would be recorded.

What do we do next? Iron gates and patrol dogs?

Amazing Access

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My husband was helping our son remodel in Portland this weekend. I had alot of work to do, keeping up with new classwork and working on business. I was going to stay home but decided it was lovely weather and I’d travel along with him so I could see my kids, too. 

Having been in college when learning programming meant using keypunch cards, (A key punch is a device for entering data into punch cards by precisely punching holes at a designated locations :)).I have to constantly remind myself to remember how mobile my work now is.  There was nothing that I had to do at the office that I couldn’t do sitting in the car with my computer on my lap, including this post!

I remember the first time I left the office with my cell phone and talked to a customer in Nordstrom.  I pretended I was in the office and that I had time to talk. I remember the feeling that I could really do almost anything as long as I had my cell phone with me and no one would even know I wasn’t at work.

The craziest was when I got an offer on a listing about 10 minutes before pulling out of Miami on a cruise. The deal came together, the seller never did know I was not in town and I handled the whole thing from the ship’s computers.  I don’t turn my business over to an associate unless I have to, and I don’t tell my clients where I am unless it’s necessary. So for a work-a-holic like me, It’s amazing how much free time I have now with mobile phones and now, the mobile office.

[photopress:Copy_of_P1010174.JPG,thumb,alignleft]So, Randy is waiting for me to get back on the road where I can get back to listening to my lecture series online and typing a blog on my laptop plugged in to the battery with my really slick sprint card.  I’ve already answered several emails, searched for a handyman in Vaughn for a client, done a CMA for another client and emailed all the results, while driving up I-5!

It may be that I never really get away from the office, but at least by bringing the office along with me, I can now even enjoy the hours I put in on the job.

BTW, my son is moving from his 1910 bungalow 2100 sq ft home in NE Portland worth $600,000 to a 3600 sf ft new home in Vancouver on 1/2 acre with more bells and whistles than I knew exsisted for $650,000. And it’s only 20 minutes away. Location, location, location.

To Catch a Predator

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Syndicated Columnist Kenneth Harney will report in his column tomorrow morning that the new chairman of the House Financial Services Committee, U.S. Representative Barney Frank, a Democrat from Massachusetts, has made it clear that his top priority will be enacting nationwide mortgage lending standards to protect consumers from predatory lending.

I was recently asked by a national housing coalition to sign an endorsement letter for the purpose of showing Congress that there is broad support for federal anti-predatory lending standards which do not preempt state laws. These ideas will be included and give to Rep. Barney Frank:

As Congress begins a new session, we respectfully ask that any new anti-predatory lending legislation be based on the following principles:

  • Considering a borrower’s ability to repay in lending
  • Eliminating the incentives for steering borrowers into predatory loans
  • Ensuring that loans are serviced fairly
  • Protecting the right to go after predatory lenders
  • Preserving states’ rights to protect against predatory lending
  • Preventing foreclosures

[photopress:bankersbrokers_1.jpg,thumb,alignleft]Let the wild debate between banks/mortgage brokers and consumer advocate groups begin! This is one area where the banks and brokers will more than likely combine their lobbying dollars together.

The biggest concern I have for any new federal law is: How are we going to regulate this?  Is the money going to come out of my tax dollars?  I don’t think so. IMHO the money can come from the profits of bank, credit unions, lenders, and brokers. If you don’t want to self-regulate your own industry, then please don’t make the rest of us pay for it. 

[photopress:predator_1_2.jpg,thumb,alignright]We can always ask Chris Hansen from Dateline NBC for help. “You’re naked, holding a container of cool whip and you’re trying to sell an adjustable rate, interest only, pay option ARM to the cute 18 year old mortgage lending prospect in the next room. Is that accurate?

Phinney Neighborhood annual home fair, Sunday, Jan 28th

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Phinney Neighborhood Center is hosting their annual home fair this weekend. This is a wonderful event with a lot of great information about home upkeep, upgrading, and overall design concepts. Several builders and architects attend this event and provide their expertise in a comfortable environment. One of my clients, Kirk Jolley, of Kirk Redo is usually in attendance as an exhibitor. He’s got great woodworking and finishing skills as I’ve seen his personal residence that he rebuilt after a former owner’s long neglect and I’ve seen many of his client projects, including the floor of my own home office – and he’s a great guy too! I’ve also volunteered in the past to help at the event as a member of the Phinney Neighborhood Association but sadly can’t make it to this year’s event. However, I do believe it is a great opportunity for people that are considering making changes to their home in the coming year to start getting educated about the process and to get some wonderful design ideas.

HOME DESIGN AND REMODEL FAIR : Imagine, Explore, Build
Sunday, Jan. 28, 2007, 10 a.m. – 4 p.m.
Phinney Neighborhood Center, 6532 Phinney Ave N.
Admission: $5 for PNA members, $8 for the general public, children under 12 Free

The 10th annual Home Design and Remodel Fair will offer local homeowners a chance to meet with trained professionals and get advice on remodeling and home improvement projects.

More than 75 exhibitors ranging from general and specialty contractors to landscape professionals to architects and designers will be on hand to offer advice and resources needed to complete any home improvement project. Many of the exhibitors have a “green” emphasis.

Presentations will also be featured throughout the day. Topics include everything from choosing a contractor to stocking your toolbox.

The presentation schedule includes:

10:30 Choosing & Hiring a Contractor
11:10 Remodeling for Resale Value
11:50 Financing Your Remodeling Project
12:30 Working with an Architect

12:45-1:15 in the Blue Room
Q&A with Around the Home & More KOL Radio hosts Kevin Liger & John Kappler

1:20 DIY Mini Home Inspection
2:00 Making the Most of What You’ve Got
2:40 Tools for the Homeowner
3:20 Design/Build: What is it?

Guilty of Slandering Seattle

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Irony only goes so far and apparently, my list of things you should know before moving to Seattle was only the tip of the iceberg in terms of the way I’ve been known to slander Seattle…

The story behind the story… Apparently, the powers that be on wikipedia agree that “Rain City” is not an appropriate nickname for Seattle! (It’s not listed at the time of publishing!)

I changed the nickname. As a Seattle native, I have never, ever heard it called “Rainy City.” It is not, nor ever has been a common nickname of Seattle. For one, we get less rain than most cities East of the Mississippi River. Seattle is most commonly called “The Emerald City” followed by “Jet City.” If you folks want to continue this nonsense, of re-posting a lsanderous nickname, please provide some documentation.

[photopress:starbucks_logo_with_RCG.jpg,thumb,alignright] This got me thinking of other ways I’ve slandered Seattle in the past and this photoshop of one of our prized institutions feels so wrong…

In all seriousness, does the name of a website really matter? Would you be a regular reader/contributor of a site that was named Emerald City Guide or Jet City Guide? How about if it were AnnaLuther.com as originally planned?

End of Month Fireworks: LOE's and YSP's

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(LOE) Letter of Explanation:

Can a loan officer draft their own letter of explanation (typically to explain issues on a credit report or some other circumstance) on behalf of the borrower? Is this ok, ethical or worse, fraudulent. If they can draft the letter and the borrower signs it, is it acceptable at that point? If underwriting became aware of this, even though the borrower signed the form indicating that it is a true statement, would that fly? My wife and I are arguing over this, but we don’t know the answer.

YSP (Yield Spread Premium):

There may be some agents that do not understand this, so I’ll let the loan officers explain its meaning and various uses.

Recently, a borrower at a signing was given a brutally clear disclosure/explanation of the YSP as part of their loan package. It disclosed how the YSP could be used to assist the borrower in paying for closing costs, or buying down the interest rate or used as additional compensation to the loan officer for INCREASING (this “increasing” verbage was on the disclosure and not used here for effect) the interest rate over what the borrower could have received. This disclosure actually stated the interest rate on the note and the specific amount of the compensation going to the broker over and above the 1% loan origination. I’ve never seen such a clearly explained YSP disclosure. Many lenders do not have a YSP explanation disclosure as part of the loan documents.

Did the disclosure or the loan officer (LO) kill the transaction (with borrowers who had sterling credit, pushing the envelope with a 3 yr. pre-pay penalty AND the YSP)? I really would like comments because my guess is that the LO will blame the lender. In this case, the borrower was highly concerned (there is a better word for it , but concerned will do) and promptly called the LO to discuss the situation and I’m speculating that the conversation also touched on why this disclosure was not given when they made loan application or on the GFE. The borrowers promptly signed the rescission and left. Although I am somewhat aware of up-front disclosures on the lending side, perhaps someone in the business could shed light on this. Obviously, you cannot know loan fees until the lender, loan program and interest rate is chosen.

Lastly, should any escrow firm be entitled to a full escrow fee for fulfilling their job and recovering any third party fees incurred during the escrow period? Any escrow/title/attorney folks want to comment on that?

Townhome concerns…

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A prior post talks about shared driveways in old Seattle neighborhoods and another post within the post talks about parking issues with townhomes. I’m waiting for the first lawsuits and haggling to start over these townhomes in the Seattle area that are “zero-lot line”. While I show them to clients as house and condo alternatives I do point out the issues with not having a home owner’s association with reserves. What happens in several years when the whole building needs painting or a new roof and only you have saved money for a rainy day and your other neighbor spends like there’s no tomorrow so he/she has no savings to help pay?

Who’s responsible if a leak starts on your neighbor’s section of the roof but the water travels and penetrates into the structure on your side?

What are the appropriate measures to take to handle complaints such as the parking issue? If there is an easement for each property owner to all the other owners and the easement states that blocking the shared space is not allowed to whom does the aggrieved party complain and what is the possible restitution to that person if the offending party doesn’t quit blocking the shared space?

Another scenario: What if your neighbor decides to paint their part of the building bright purple? Or perhaps they never paint at all and bring down the resale value of your home when you try to sell?

While these types of housing have been decent middle ground options for home buyers that can’t afford some of the single family homes, particularly new construction in the city, and provide an alternative to condo living there are some serious questions and concerns that most buyers haven’t considered. I’m just waiting for the rash of lawsuits that will likely happen when these properties are around their 10th and 20th years of age and they’re in need of major upkeep. My guess is that aggrieved neighbor will sue offending neighbor but maybe there will be a different kind of backlash. Anyone out there in RCG-land got any ideas or thoughts on the subject?