Made it over 11,000!!! Can it sustain the level by the end of the week? Keep watching!
Happy Valentine's Day
I’m feeling a little guilty that I have not participated in the “Romancing the Home” theme as requested by Dustin.
My Valentine is Kim Harris. I do not need to ask him to be my Valentine as I know every minute of every day that he loves me with all of his heart. For those of you who think he looks familiar, prior to being in Real Estate, he was the founder and long time owner of Easy Street Records, a Seattle mainstay. The two remaining stores in West Seattle and Queen Anne currently owned by his stepson, Matt. He also “founded” Queensryche from some Redmond High School kids who hung out at this store on Bel-Red Road and managed bands for many years including Econoline Crush popular in Canada.
My “home” is in his heart.
Real Estate Photography — Camera Choice
(Editor’s note: In striving to mix things up a bit here on Rain City Guide, I’m excited to introduce Mark Reibman as the newest contributor. Mark is a Seattle-based real estate photographer who has agreed to post advice directed at improving the state of real estate photography. His first post is geared toward real estate agents, but the advice he gives could be useful for anyone interested in taking better photographs (and who isn’t?). To see more of Mark’s photos, check out his website at Blue Light Imaging or email mark@bluelightimaging.com
How important to you are great photographic images for marketing your listings? Are ‘okay’, somewhat blurred or dark images acceptable to you? Would you like to take better images of your real estate listing? Over the past few years we have seen the dramatic changes the digital age has brought to the Real Estate industry. With this recent technology, a real estate listing can be photographed, images transferred to a web page on the internet, and flyers printed all within hours. Today’s listings are almost immediately available to other real estate agents and buyers anywhere in the world who have access to a computer. With the increasing use of high speed internet connections, the internet is fast becoming a critical marketing media. The value of great looking images as a marketing tool should not be underestimated. Whether it’s a low end ‘fixer’ or a multi-million dollar luxury home, great images are important and are going to help sell your listings.
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The intended purpose of this article and future articles is to provide advice and general interior/exterior photography tips for the realtor who would like to take better pictures and improve their marketing presentation. The topics to be covered will include: Camera choice, required and optional accessories, photographic techniques and tips for taking good images and post processing of images with image editing software.
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A good quality digital point and shoot camera with a hot shoe attachment will do the job, but most important, it must be wide angle or accept a wide angle teleconvertor. A camera with a 24mm lens is minimum for photographing interiors. There are a few cameras like the Nikon Coolpix 8400 that have lenses that are sufficiently wide angle (24mm). But most point and shoot cameras are too narrow for real estate interiors so the alternative is to choose a camera that can offer the wide angle option with the purchase of a separate wide angle tele-convertor. Converters adapt to the camera lens to extend it’s wide angle range to at least 24mm or less. In addition to having the capacity to accept a wide angle convertor, a hot shoe attachment is a must in your camera choice. This feature will allow you to use an external flash attachment because the camera’s on board flash is going to be too weak to be a any value when the use of a flash is desired.
And although shooting with available light is an option, in many cases an external flash will be very helpful to deal with the tricky lighting situations you will encounter. The cameras that I prefer are principally the Canon powershots (G series, Pro 1) or the Nikon Coolpix line. You can inquire at a camera store about these cameras or shop for them online. Another option would be to go the ebay route and pick up a used camera. As an example, an ancient (two year old) model Canon Powershot G3 with a wide angle teleconvertor is going to be much more reasonably priced than the current Powershots. Going the eBay route can produce some great deals but requires a certain knowledge and time to play the game. A new Powershot G6 or Pro 1 would be a great choice as well. I’m not as familiar with the Nikon line of cameras but there are some excellent cameras among the higher end NIkon Coolpix cameras. These are my suggestions for cameras but a knowledgeable salesperson at a camera store such as Glazer’s Camera, Kenmore Camera or any one of the Ritz camera stores, can offer you a lot more advice and guidance than I can in this article. Also ask about the availability and price of the tele-convertor and an external flash when shopping for a good camera. There are certainly other excellent choices from other camera makers, Sony, Kodak, Konica, and either you can research these yourself via the internet or at your local camera store. I should add that although I’m suggesting digital cameras, film cameras with the wide angle capability and external flash attachments will work just fine if the film is scanned to a CD when it is developed. It’s simply not as convenient as a digital camera and also lacks the option of on-site review which is a huge advantage of the digital cameras.
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A decent tripod is next on the list of necessary tools. Because the camera shutters speeds are much slower when shooting interior photography, your images will be blurred without the use of a tripod. It should be reasonably sturdy and come up to your eye level. If your camera does not include a remote, buy one. This would be an item to inquire about before a camera purchase. Does it accept a remote? I use one that attaches via a wire and there are also wireless remotes. You can do without a remote and use the time delay on the the shutter but a remote is so much more convenient.
And as mentioned above, an external flash is going to be necessary in many situations where there is simply not enough light and/or high contrast lighting, so finding the proper external flash for your camera should be part of your research.
A step above the moderately priced point and shoot cameras are the digital SLRs. These are cameras that allow for interchangeable lenses. This can get expensive and probably beyond the needs of most real estate agents. A basic dSLR like the Canon xt or Nikon D70 with a good quality wide angle lens and external flash and tripod will entail an outlay of close to $2000. Definitely not something everyone will run out to purchase, but it is an option for those who are so inclined. And, of course, you can spend a lot more.
In future articles I will give some advice on working with the variations in lighting, image editing software tips, composition ideas and more.
I would be happy to answer any questions related to Real Estate Photography. Keep in mind that the preceding suggestions are some general guidelines for real estate photography and there is no single best way for shooting interior images. I continue to learn and refine my own process. Practice and experiment on your own home and/or at a friends home and see what works best for you.
Romancing Ballard
Before being interrupted, the contributors of Rain City Guide were having a nice little series on Romacing Our Homes. Seeing how tomorrow is Valentine’s Day, I thought I’d sum up things and add one more article on my neighborhood! So what type of romance did rain city guide contributor’s share?
- Robbie shared his love of high speed access available to his Issaquah home!
- I shared the enjoyment I get from my living room!
- Craig added a thank you to his Pike Place Market-area home!
- Grier added some memories of his home!
On to Ballard…
Anna and I simply love living in Ballard. We’ve both lived in different parts of the country (and the world!), but we’ve never lived in a place quite like Ballard. It offers a great mix of urban features (walkable neighborhoods with lots of coffeeshops, bakeries, art houses, farmer’s markets, etc.) without feeling too urban. For a relatively young family, it offered us a wonderful opportunity to own a home with a big yard and great neighbors! Thank you Ballard!
In addition to the year-round Farmer’s market in Downtown, Ballard hosts three festivals that are a lot of fun:
If you’re looking for more on Ballard, check out the post I wrote last march on the Ballard Community as well as this post Anna put together on the history of Golden Gardens! (Interesting stuff!)
Dear Mr. Barton,
As you may or may not know, I emailed you guys a couple of weeks before you unveiled your product to suggest that you consult at least one real estate expert, before going public. I further suggested that since I have sold real estate in five states from coast to coast, that I might be able to help you tweak your product before its unveiling. I feel very badly that some are poking fun at your great real estate adventure, by coining the phrase “You’ve been ZILLOWED!”
Here are a couple of tips for you, (or for Dustin and Galen and Robbie) If you modify your application of data according to these guidelines, you will likely increase the reliability of your online Zestimate by as much as 50%.
Seattle area: Yes, you can value property fairly accurately using the tax data in the Seattle area. But the first step is to determine the appropriate factor. Many will value out at between 1.2 and 1.4 times the assessed value. Hot areas, like downtown Kirkland or parts of Queen Anne, etc will value at 1.5 to 1.6 times assessed value. Don’t take the comps out too far, keep your radius small. Stay as close to the subject property as possible and STOP when you have 5-8 comps after throwing out the High and the Low. DON’T average the sale price of the comps one to another to determine the value of the subject property. DON’T use price per square foot as a guide. Take each sale price and divide by THAT SAME PROPERTY’S assessed value to come up with the factor. If all of the properties in that neighborhood sold at 1.44 times assessed value, then your ZESTIMATE should be 1.44 times the assessed value of the subject property. You can average the factor, but not the price. Then use a range. Chuck the high and the low, the way I learned in grade school from the good Catholic sisters who taught me well.
Example: Data equals 1.8, 1.4, 1.42, 1.43, 1.44, 1.44, 1.45, 1.47, 1.1
Throw out 1.8 and 1.1. as the high is a massive remodel and the low is a fixer. Factor becomes 1.4357142. Assessed value of subject property is $313,000. Zestimate is $449,378.54 or between $438,200 and $460,110.
When inputting tax data, do not overlook the “effective year built”. Currently your program is not noticing that very important date, and reverting to the original year built, throwing the numbers way off on 80% remodels. You can use the 1.8 and 1.1 in the sample above by saying “Your home is valued at between $438,200 and $460,110. If you have just remodeled the interior, the price might be as high as $563,400 (1.8 X $313,000). If it is a fixer it may be as low as $344,300 (1.1 X $313,000).
For Seattle area, always use the assessed value of the subject property against the neighborhood factor.
Briefly, for Los Angeles beach areas: DO use price per square foot, as by and large that area does not have underground basements and the tax assessment increases to sale price every time a property sells (unlike Seattle and many other areas)
Florida: Do use price per square foot and keep the comps apples to apples. Watch the lakes. Price properties on lakes against other property on the lake and interior against interior. You are already OK in FL for the most part, so you can leave that alone.
PA, NJ and most of the Northeast of the country, keep the radius short and use price per square foot. Then find and apply the neighborhood factor and average the two answers.
Hope that helps you, Mr. Barton. Or maybe it will help Robbie and Galen come up with their own “Better than Zillow!”
Have a great sunny day in Seattle!
How do you get a bargain?
How do you get a bargain when purchasing a home in a hot market, without getting a lemon?
I have thought about the many times over the years that I have helped people purchase property at less than fair market value in all kinds of markets. Up markets, down markets, buyer’s markets and seller’s markets. I have used several different means to accomplish this goal for my clients. Today I will talk about one of the most recent transactions where a buyer achieved a true bargain price.
My partner, Kim, and I recently helped a buyer purchase a property so undervalued, that appraisers have called asking how we were able to acquire the property at that price. Answer was terms. A property came on the market in North Seattle at such a low cost that agents swooped on it like vultures. The seller’s agent was from out of the area, and the property was difficult to value, and so it came on market at a low price. But it would have bid up to “fair market value” or beyond, if we didn’t stop the other bidders in their tracks. We offered terms, or as we Italians like to say “I made dem an offer dey couldn’t refuse!”
One of the things agents do is “pre-negotiate” before they write an offer. I called the listing agent and let her blab on and on about anything and everything. I gleaned a few gems of significant data. The seller was buying new construction out of the area and they were scared about having to leave their current home before their new home was completed. Bingo!
We wrote an offer that did not compete as to price, but allowed them to stay up to a month after closing. This way the sellers had the comfort of knowing their property was sold, they had their equity in the bank three weeks before they needed to close on their new home.That gave them a whole lot of peace of mind.
The sellers did not consider any other offers and accepted ours hands down before several agents even had time to write an offer. Complaints from the trenches? “Why did the seller accept an offer without waiting for us to submit an offer? My buyer would have offered more!” The answer. Terms! Never presume when it comes to terms. Fast closings are not always better, if it forces the seller to pack and move before they are ready. Always base terms on what you know this particular seller wants and needs. Not on what you presume all sellers should want and need.
New trend for small Condos
3 Easy Steps to Stop Zillow from Publishing the Zestimate of your Home…
Step 1: Realize that it cannot be done and don’t bother looking for step 2 or step 3!
All the data they use is in the public record and there is currently no way to get them to stop publishing it. (I confirmed this point with them!).
Condo Conversion vs. New Construction
Given the popularity of condo conversion communities in the Seattle area, I think it is worth noting what these are, and what these are not.
I have heard both buyers and escrow companies refer to condo conversion communities as “new construction”. Please know that these are not new construction, but remodels, for the most part asthetic remodels, of older, rental communities. While you are buying the interior, and the interior is remodeled, you are also buying a fractional interest in the exterior. If there are 100 units, you are taking on a 1/100th responsibility for the new roof or exterior paint and all of the major components shown in the reserve study.
If you are buying into a condo building or community that has always been a condo community, the monthly dues for the last 15 to 20 years should have provided for an accumulation of “reserve funds” to replace the roof. If you are buying into a condo conversion, make sure the developer has “contributed” enough monies into reserves, to compensate for the fact that there were never before “unit owners” putting monies into the reserve account toward future replacement needs.
The roof may be OK today. But if it is a 20 year shingle and a 15 year old complex, there should be 15 years worth of accumulated monies set aside by the developer before he turns over the complex to the Home Owner Association. This is to insure that when the roof needs to be replaced in 3 to 8 years, there will be sufficient funds in reserve to buy the new roof. Also make sure that the monthly dues set by the developer include a sufficient amount for reserves. In five years when you need a new roof, you will need five years of owner contributions, plus the 15 years worth of reserves set aside by the developer, so that the roof can be replaced without a special assessment.
Understand that if a condo community or building functions as it should, there should never need to be a special assessment. Every owner, via their monthly dues, should be paying their fair share of future repair and replacement costs each year. It’s a simple calculation which assures that the monies will be in the reserve fund at the time the Major Component item needs to be replaced.
So I leave you with this warning. Find those things that are not new when buying into a condo conversion, and make sure the developer is contributing an amount into reserves reflecting that portion of “useful life”, used to date.
Climbing into bed with the competition
I caught an investigative bug tonight, and I feel a strong need to post this speculation…
- Fact 1 — Rob over at Your Seattle’ Neighborhood Specialist had some great commentary on Zillow in the months leading up to their beta release
- Fact 2 — Rob has been silent since the release of Zillow
- Fact 3 — Marlow Harris also noticed this, so I’m not the only one wondering what happened to Rob
- Fact 4 — A reader pointed out to me that hourlyagents.com service is no longer available.
- Fact 5 — Rob used to heavily promote the Hourly Agents site and his blog still has a link to it
- Fact 6 — The hourly agents site now says “This Domain is For Sale — Please contact info@hourlyagents.com for details. — In the meantime, please join me at Redfin”
So when Marlow asks:
Where are you? Where are all your editorials and opinions? You were writing up a storm before, but now that Zillow has revealed itself, you’re silent.
Did you get that job there, after all? Did you sign some sort of oath of silence?
WHAT DO YOU THINK???”
I think the answer is worse than an oath of silence… I don’t think he’s working for Zillow (those people have definitely woken up to the idea of communicating!), but rather, I think he must have climbed into bed with the competition!
UPDATE 1: I just found out that Redfin started blogging one day before Zillow, but… it slipped past me as they haven’t shared any link love (yet!).
Update 2: Redfin added Rain City Guide to their sidepanel! Thanks you guys! Now all I need is for the HouseValues blog to add a link to Rain City Guide and I’ll have completed a Seattle Real Estate Technology Trifecta! 😉
Update 3: The Trifecta is complete!