The Dustin Luther factor: Where it all began, sprinkled with blogging surprises

First, I don’t know about other’s experiences in blogging, but stumbling upon Rain City Guide over a year ago or so and Dustin’s introduction to me of the world of moving away from a static glorified business card (called a website) to that of the dynamic and interactive world of Blogging has had a tremendous impact on me and as a small business owner (like everyone here).

For example, I’ve been able to make contacts with people whom I would never have had the chance to without the platform of blogging, both personal contacts and business contacts. Today, I got a chance to head back to my old stomping grounds in Seattle due to a courtesy signing with a client who teaches at Seattle University. After finding a parking spot, I headed over to the campus and walked to the School of Engineering to meet for our appointment. After about 30 seconds, I realized I was talking to an old neighborhood acquaintance whom I have not seen for over 30 yrs!

Inspired, after the appointment, I drove up Madison St. towards 19th and headed North towards St. Joe’s School on 19th and Aloha where I went to school as a kid. On the Northwest corner of 19th & Aloha is a small building where I was given my first job as a skinny, messy 70’s style haired bloke. The impact of that first job is really what set the stage for the foundation of work ethic and character building.

My first job was given to me by the late George and Evelyn Benson of Benson’s Mission Pharmacy on Capitol Hill. For those unfamiliar, George Benson was a long time pillar of the Capitol Hill community and a respected Seattle City Councilman. You want to talk about customer service? I distinctly remember George pulling up in his car to hand deliver a prespcription for my mom or dad at our front door a few blocks away. Those were the days of intensely personalized service. Mission Pharmacy and the Benson’s are no longer, but the windows I washed and the sidewalk I swept are still there as they were 30 years ago.

I headed over to my old house where I grew up, drove around the front of the home, got out of my car and headed over to the steps and walkway that wind up to the front door, but I stopped short of that trek—memories just racing through my head. Walking back to my car, I then drove around to the alley, which really was “our” front door entrance. Peering through my passenger door window I stared up into my old bedroom window and into the back yard. I was too embarrassed to walk up and knock on the door. Perhaps another day.

Part of the motivation for telling you this is about finding out who you really work with and the idea of “trust.” Does it matter to you? Trust in real estate is the glue that keeps customers coming back to you. Trust to do the right thing. Trust to work in the best interest of our mutual client.

When you strip away all the marketing persona and fluff in our industry and get to know potential new clients in a transparent and personal way, giving a glimpse into what makes you tick, warts ‘n all, it is remarkable how quickly you forge trust in the person standing across from you. Finding a common denominator and building trust with a potential client on a level that has nothing to do with business has been exceptionally fruitful.

Since the beginning of this year, just days ago, through blogging, I have reunioned with two old childhood friends and received fruitful clients. When you strip it all away I’m not terribly different than any other agent or loan officer trying to make a living. On Thursday, I headed out to brokers opens to meet some new people in the business who work in our area and I bumped into an old “acquaintance” whom I met at college in 1985. I haven’t seen her for 21 yrs. The funny thing about the meeting was that she (the agent) mentioned to me “ya know, I just speak my mind, and I wanted to you to know that I had a crush on you way back when we were freshman.” What a Brokers open and what a week.

Dustin, although I’ve never met your family personally, thanks for introducing me to a way that a small fry can compete with the Goliath’s.

CNN Money.com: Appraiser sues WaMu

The intersection of ethics and real estate meet again

As if WaMu didn’t have enough on its public relations plate, CNN Money reports:

Jeniffer Wertz, who is seeking unspecified damages, says WaMu stopped accepting her appraisals in mid-2007 a month after she reported that her local housing market in California was “declining.”

Evidently, Wertz claims that Washington Mutual wanted her to change her forecast to “stable.”

And on the other side of the coin

Bloomberg reporting that inflated appraisals causing significant losses to lenders.

`You started to see more and more loan products that would keep payments low, and I see that as correlating with appraisal pressure because those products only work in a rising market.”

(and, which loan products might those be I wonder tongue in cheek?)

Former guest at Inman Connect, Jonathon Miller, a sought-after New York appraisal and real estate consultant remarked:

“Lenders and mortgage brokers routinely pressured appraisers to boost values, said Jonathan Miller, a New York property appraiser for more than two decades who writes a blog about the problem.”

And more from the Bloomberg article….First American and WaMu working together?

“In New York, Attorney General Andrew Cuomo subpoenaed Fannie Mae and Freddie Mac, the two biggest buyers of U.S. mortgages. He also sued First American Corp.’s eAppraiseIT LLC for allegedly caving to pressure from Washington Mutual Inc., its biggest customer and the largest U.S. thrift, to inflate values.”

Ethics in real estate: oxymoron?

When Spell Checkers Aren't Good Enough

I would appreciate any advices you may have regarding people who have come here from other countries, and for whom English is an additional language.

Often the advices of Brokers to agents from other Countries is that they should only work with people who are from their Country.  Clearly that is much too difficult to do, and sustain a reasonable lifestyle as a real estate agent, and growingly moreso.

If you receive an email from an agent with stilted language or broken English, and odd spellings created by the spellchecker (like shell instead of shall), do you overlook these things?  Or do you expect an agent to be fluent in the English Language?

Accent alone can be quite charming, but in a field where misrepresentation is quite hazardous and good communication is key, can a Broker afford the risks that come with misunderstandings created by language difficulties?  And yet it seems to be discrimination to not hire people with language issues.

Are there programs that are a big step up from spell checking, that assist people with these difficulties?  Any advices appreciated.

Congratulations to Russ Cofano

This is huge news for a local real estate company… Long-time Rain City Guide contributor, Russ Cofano, recently accepted a position as Vice President and General Counsel at John L. Scott. From an email I received from Russ:

For me, the New Year is bringing a major change. Beginning Monday, January 14, 2008, I am joining John L. Scott Real Estate as Vice President and General Counsel. The decision to leave Bullivant Houser Bailey was a difficult one as this is a truly exceptional law firm. At the same time, my new role at John L. Scott will provide unique challenges and opportunities for personal growth. John L. Scott consistently ranks in the top 10 of U.S. independent real estate brokerages and I am looking forward to helping them in their continued growth as an industry leader.

Russ was clearly instrumental in the early growth of the Rain City Guide community! And for anyone who was around for the early discussions between Russ and Ardell, it was like having a front row seat to a force of nature! I learned a ton from Russ on so many levels and am so excited to have him back “in the industry!”

By hiring Russ, John L. Scott is getting a lot more than just a superb lawyer. They are getting a thought-leader in the world of online real estate!

Sunday Night Stats – King County

An update to the Property Stats for King County from last week:

Residential – Single Family

For sale – 8376 – UP 279

In escrow – 1809 – UP 27

Closed in Janaury so far – 236 -NEW CATEGORY

Condo 

For Sale – 2,870 – UP 125

In escrow – 780 – UP 47

Closed in Jan so far – 69 – NEW CATEGORY

 

Apologies Sandy, no Bellevue Stats today.  I’ve decided to do them in map grid first, and visit some of the new on markets for commentary on how the new is comparing to old listings, and to track if the new listings are selling at a higher rate than current inventory.

Broker’s Opens are on Thursday.  I’ll report afterward.

“Statistics not compiled or published by NWMLS.

Why did YOU move to Seattle?

Seattle attracts many people to move here from other states, if you did why? 

In 1994 I moved to Seattle for lots of reasons, a job was not one of them, but many people do move here for work reasons.  I am wondering  about those of you who moved to Seattle, why did you?   I know some of Rain City Guide contributors are natives (lucky you!) and others moved here from elsewhere.  Oddly enough many people I have met or know moved to Seattle from Chicago, Karen Kirr here at Rain City Guide, moved here from Chicago and has been chronicling her experiences here on RCG.  

I’ll kick this off with a few of my reasons:  I transferred within my company from San Diego to the L.A./ Orange County area and it never felt like home to me even after 5 years.  Since my family had already moved away from San Diego to Alabama years before, I was looking for another place.  I wanted to be able to buy a home (something I would not have been able to in California) and get away from what I called “relentless sunshine”…because coffee is better savored in cooler weather!  The place had to have a metropolitan feel to it and be supportive of the arts.   Be close to mountains and water because views are important to me…they calm me and give me a sense of space and proportion.  I choose to move to Seattle because it seemed to have what I was looking for.  The decision was a leap of faith since I did not know anyone who lived here, and it has turned out to be a wonderful choice for me, I love living in Seattle! 

I am curious, why did YOU move to Seattle? 

On the flip side, what do YOU Seattle or Washington Natives find to be the best things about living in Seattle?

Improving Your Credit Score

With every point of your credit score being more crucial than ever, I thought it would be a good time to share some tips on how to improve your credit scores beyond paying your bills on time.   If you are considering obtaining a mortgage within the next 12 months, you should meet with your Mortgage Professional to help advise you on this process.   Some steps in repairing your credit may actually temporarily lower your scores (such as paying off a collection).   What steps you should take depends on how soon you plan on buying a home or refinancing.

  1. Obtain a copy of your report from www.annualcreditreport.com.  You are allowed one free report from each bureau annually.  This comes out to three free reports.   I recommend pulling one report at a time rotating the three bureaus every four months.   For example, this month, you could access your Experian report to review your credit and in May, pull your report from Transunion.  In September, you could obtain your report from Equifax.   This allows you to keep tabs on your credit for free throughout the year.   NOTE:  The bureaus will charge you a fee to access your credit scores (stinky, IMHO); if you’re really interested in obtaining your scores, I suggest you contact your Mortgage Professional and request a tri-merge report.  The cost should be around $20 and the scoring modules used for lenders is different than what you receive from www.annualcreditreport.com
  2. Review your credit report for errors and contact the creditors demanding they be corrected.  The contact information should be included with your credit report.   Keep a phone log of any conversations and follow up with a certified letter.  Request a confirmation letter for your records of any corrections the creditor offers to make.  
  3. Pay past due accounts current.  Your credit score is penalized for any accounts carrying a past due balance.    
  4. Keep your balances below 50% and 30% of their credit limit.  Review your credit report to see which accounts are just over 50% or 30% of the available credit line.   For example, if you have a credit card with a $1000 credit limit, and the balance is $550 pay down the account to where it stays below 50% of the line ($500 or less).   NOTE:  If you’re trying to reduce your credit debts, you should use a different strategy than maximizing your credit scores.
  5. Don’t close your old accounts in good standing. The scoring modules favor established credit and not new debt.  Keep your old card with a zero balance and use it once a month to fill your tank with gas and then pay it off each month.   Also, closing your accounts do not make them “go away” from your credit report. 
  6. Avoid obtaining new credit.  That new car will not only dramatically impact what you qualify for, it will also zap your credit scores as a new maxed out debt.   
  7. Before paying off old collections, contact your Mortgage Professional.   Depending on your scenario, you may be better paying off the collection after closing on your new mortgage than before.   The credit scoring modules will factor paying off the collection as new activity and ding your score as if the collection is currently “active”.  I actually had a loan declined last year after a client returned a library book that showed as a collection against my advice.   He just needed to wait until after closing (this was a condo conversion and there was a large time span for closing).
  8. If you’re allowing different LOs to pull your credit while “rate shopping” for your lender, do so during a short window (30 days) of time to avoid being hit for inquiries.  

The good news about your credit score is that it is not permanent.   It’s intended to reflect your current credit behavior.  If your credit is a mess, it will take more time, effort and determination to repair it…but it can be done!  

What if Non-Profit Housing Associations Were Able to Originate Mortgage Loans?

The growth of non-profit associations within the real estate sector can be traced to 1977 and the Community Reinvestment Act (CRA).  At that time, banks began giving money to the non-profit housing sector in order to meet their CRA requirements. 

Non-profit housing agencies perform many services for the community.  First time homebuyer seminars, and then later, mortgage default counseling, preforeclosure workout assistance, help negotiating short sales, all for free or for a nominal cost.

Non-profits set up special training programs for loan originators and loan officers who want to be on the “approved

Seattle Bubble Says Seattle Markets Going UP!

As seen on Seattle Bubble:

“Seattle shows up on their forecast at #21 on their top performing markets list with an expected 3.8% increase.”

Seriously in 2005 when the housing market was positioned to go UP, Seattle Bubble started the Gloom and Doom Blog.

Now after it has DOUBLED in some places against their predictions of Bubbles Popping, and is showing signs of weakness…WHAT?  Going UP.  I couldn’t believe my eyes.  Not saying it isn’t, just couldn’t believe my eyes.  Talk about being at the wrong place at the wrong time…twice.

Sorry everyone, I just couldn’t help myself.  The Empire Strikes Back!  I knew that picture of a guy talking out his butt would come in handy one day.

Trulia wouldn't let me say "pain in the butt"

LOL.  This is a short post.

I was answering a question over at Trulia today.  (I get an email when there is a new question from the Seattle Area.)  I answered the question and it wouldn’t post.  It was a very long answer, so I thought maybe it was too long.  No, it said “No Profanity Please”.  I kept reading my answer and it took me awhile to figure out that:

Trulia thinks “pain in the butt” is profanity.  Cracked me up.

P.S.  Oh well, it was really, REALLY snowing.  That’s our excuse and we’re sticking to it.  GO SEAHAWKS!