Connect SF Tagging July 30, 2007
Along with much of the RE.net, I leave for Connect SF tomorrow and getting excited!
If you’re interested in following the action (from home or the event!) Joel’s created a master feed using Tumblr where you can follow blog posts, photos and more as they get posted around the web. 
For bloggers, if you want to get listed in this feed, all you need to do is “tag” your posts with the word “connectsf” and the technology will take care of itself! Dito with photos on Flickr. (If you want the details, Joel has more in this blog post)
Sphere: Related Content#1 Consumer Real Estate Blog
I recently did an interview for Todd Carpenter of Lenderama and noted Seattle Bubble as my favorite local real estate blog to read. “…I’d have to say my favorite blog to read is Seattle Bubble, …I want to learn what the consumer’s perception is, so I can address everything at that level. Seattle Bubble has some riff-raff, but there’s more info in the comments there, than anyplace else in the Blogosphere for me.”
The quote was picked up in the Seattle Bubble Forum as a knock against The Tim ”Notice how she said there’s info in the comments. I bet The Tim and other contributers are counted among the riff-raff and guys like Finance are providing the info that she learns from”. I don’t know who “Finance” is, but you can bet I’m not trying to learn about the real estate market from Finance or The Tim or anyone at Seattle Bubble. I’m in the market every day, why would I read a blog to find out about the real estate market? Makes no sense to me. I like to see how consumer’s respond to market info, and what their fears and concerns are. Tim’s views are pinned down and his views don’t seem to change with any market indcators. Prices are always too high and buying is never OK. How many times do you have to read the same story to get that message? Reading the articles is like listening to a broken record.
So what is the Best Consumer Real Estate Blog in my opinion? It’s Manhattan Beach Confidential. Whoever writes this blog, and he maintains his anonymity very well, does his homework, blogs about the kind of specifics that agents can’t, and reports fairly, honestly and represents a concerned person vs. a person with only one gloom and doom viewpoint that must be defended at all costs.
The author contacted me as the condo at 714 Manhattan Beach Blvd noted in the most recent article and one previous article, was owned by me two owners back. The site has photos! Of houses! Interesting content! Intelligent focus and commentary! It’s the best darned Consumer Real Estate Blog I have ever seen. While agents can’t blog about other broker’s listings, the private individual can, and this MBWatcher does it well. He doesn’t play Boo-Boo to Yogi day in and day out. Who would watch the Boo-Boo show with no Yogi in it?
He misses some key points, as any layman will. 710 is a front unit with full ocean view. The building is pre-ZORP, meaning it is higher than any building can ever be built again under current zoning and height restrictions. 710 is in the back strip of townhomes, I’m pretty sure it was Larry’s unit. The best unit is the front alley unit. The worst unit is the side alley unit. There are only 8 altogher. 714 has direct access to the home from the underground garage. Some have to leave their garage and walk to the communal steps to get inside their units. If 710 is Larry’s unit, some of the value is leaving with him.
Any consumer blogger is going to view property differently than agents do, so agents do not go to real estate blogs to learn about the real estate market. We go there to see the starting point. That place where consumers may be when we meet them, so that we know how to progress from there when educating and counseling our clients, especially if those clients came from our blogs. If they read our blog, they likely read other blogs. So keeping on top of what non-industry people are filling their heads with, is part of the real estate business today.
No I don’t think The Tim is riff-raff, nor do I go to Seattle Bubble to learn about Real Estate from The Tim or Finance Guy. I’m hoping that by writing this, Seattle Bubble may branch out from the same old, same old “everyone rent-anyone who buys real estate is a sucker”, and write some articles that I might read. Manhattan Beach Confidential is a good blog for a consumer to emulate. Until then, I’ll stick to reading the comments.
Sphere: Related ContentBack-to-school clothing drive is back!!!! July 28, 2007
Each year, we at Team Reba hold a clothing drive for Treehouse, a non-profit that helps to provide foster children with clothing and other supplies to help make their lives more normal. Most people don’t realize that the State of Washington only provides about $300 per year for clothing for these kids, which barely covers much of anything; perhaps maybe a couple of new outfits each year. If you’ve ever had any kids of your own, then you know that kids outgrow clothing and shoes pretty quickly.
We’re starting our clothing drive again at the beginning of August but I thought I’d get a jump start by putting a post here to alert all of you so you can start thinking about what you might be able to help provide. While it would be great if we could have a large group donation to drop off we’re also happy if we’ve alerted you to the program and you drop off your donation direction or perhaps even decide to have a clothing drive of your own.
The items that get missed quite a bit by well meaning donors are the basics. True basics such as socks, shoes, belts and underwear (including bras for young ladies). Also needed are clothes that can fit into public schools but that keep in mind that many schools now have minimum dress codes. Great additional options are khakis, hoodies, simple shirts with no logos or off-color sayings. A full list of needed items can be received if you contact me directly, we’ll send you out the list we received with our clothing drive packet, or you can contact Treehouse for your own list.
Besides the annual clothing drive there are several other very worthy programs that Treehouse manages each year such as mentoring, college prep help (called Coaching to College), advocacy, and more. Your participation with this organization will be well appreciated and may make the difference in a child’s life.
I’m personally committed to this program because as an adopted person myself, if I hadn’t had a family adopt me I would have ended up in the foster system. Add to that the truth that nearly 50% of all kids that age out of the foster system end up homeless, well, I just can’t let that knowledge sit within me without wanting, and needing, to do something about it. I was blessed to have a family that took me in and cared for, raised, clothed, and loved me. Every kid should have a chance and Treehouse attempts to fill the gaps that open up in these kid’s lives. I hope you’ll join us in working to make a difference!
Seattle rents rising…. we’re in the top 10 nationally for increases
The anecdotal evidence is out there when we have relocating singles, couples and families contacting us for help in finding a short term rental to stay in as they come to the Emerald City for a new job, school, or otherwise. Some of these folks are also looking for a 1-year lease because they believe they’ll want to get to know the area for a while and then purchase. Most of the time when we ask what the maximum rent is that they’ll pay we get an amount that makes us wince a little bit and think, “you won’t get the size place you want for that much around here.” That’s mostly due to relocaters not yet having done the full research of the difference in cost of living from where they are coming from to the Seattle and surrounding market. You can find online resources such as Bankrate.com and Moving.com. There are lots more if you do a search online using search terms like “cost of living comparison for cities”.
Sure, they may have visited on vacation before, but back then they weren’t checking out housing prices for either buying or renting. You can see the article where Seattle ranks in the top 10 nationally for rent increases here.
I had a similar experience when I moved here back at the end of 1989. My boyfriend at the time and I moved from Wichita, KS to Renton where we’d lived in a nice little one-story post-war 2 bedroom, 1 bath house. Since he had an engineer’s salary at Boeing we were hoping that when we got to Seattle we would buy a place within a year or so. Sad for us though that we moved at a time when Seattle was going through a boom year in real estate that blew that idea out of the water after we started house hunting. I was just starting my career at the time and was managing a small family owned chain of children’s furniture stores (where I cut my teeth on “staging” with all the furniture merchandising we had to do). It took another 5 years before I was in a position to buy a house here and by that time I had a new boyfriend and was on a new career path that covered sales into manufacturing and technology firms.
If you’re considering relocating to our area you might start with research related to your new job. You can find data on salary ranges for various professions at Salary.com. There is also a city comparison for cost of living here as well.
You do my nails; I’ll sell your house
I’m wondering why people don’t barter for services more? I went to a couple of websites that could promote bartering for real estate services, and found little to nothing there.
You would think that with all the talk about consumers wanting more options with regard to lower real estate commissions, someone would have a barter site geared toward things agents use and need. Why not offer those things in exchange for lower real estate commissions, and where’s the tech oriented person who can set up this site?
I did the math on offering a free manicure and pedicure for a year, and it looks like someone could reduce their commission by $2,500 or so by offering this service. Likely the agent wouldn’t come every week, so there’s opportunity for more gain there. A coupon good for $2,500 that permits once a week manicures and pedicures. Seems the taxable portion would be the amount actually used, and not the full coupon value…I’m not sure how the tax aspects work. Still…seems an idea worth pursuing.
Most female agents need a manicure and pedicure. Some male agents as well.
Bartering for staging items is a big one for me. When someone is buying a smaller place and has “excess furniture”, that provides a great opportunity for bartering. Why are sellers putting price tags on the “stuff” in the house, making their home for sale look like a garage sale/home sale combo effort? Why not offer those things to the agent and barter against the commission with it?
Oil changes, tune ups, website services, photography services, staging services, manicures and pedicures, haircuts, food for Broker’s Opens, flyers, cleaning services, blogging support services :) There’s almost no end to the things a consumer could offer as barter against the real estate commission.
Why don’t we see more offers to barter?
Sphere: Related ContentThe Bus has left Ardell’s: Blog Tour USA
I’ve been waiting for Ardell to do a follow up post on Blog Tour USA’s stop in Seattle. What was I thinking? Ardell was the host and an incredible one at that. She was far too busy to be snapping photos all day long (like I was). Without further ado, I present to you Blog Tour USA, Seattle.
The day began at 10:00 a.m at Zillow, at least it did for some of us. Ardell was serving Rudy and Joe her breakfast with homefries so they were a little behind schedule. Joe did let Drew and David G. of Zillow know that their arrival time “was a zestimate”. We received a full tour and afterwards (once Blog Tour USA arrived) the guys from Zillow and Sellsius had a friendly debate over ping pong with Ardell jumping in to referee when needed.
After Zillow, we hoofed it over to Redfin’s office. There was quite a contrast between Zillow and Redfin’s offices. For starters, Redfin is 
getting ready to move to a new location and they had a big party the night before (umm…and we were still running on our zestimated time…fashionably late). There is a different atmosphere between Zillow and Redfin. When we jokingly asked, “Where’s your ping pong table?” The Redfin reply was “We’re too busy to play games here”.
I had the opportunity to meet with Redfin’s mortgage department. It’s a one man show…literally. He is the sole originator and processes his own loans. He touted that the advantage to working with him is that he charges a flat fee verses other lenders who charge 1%. (Note: not all lenders charge a 1% origination).
Next, we loaded onto the Blog Tour USA bus and drove to Pike Place Market. The bus is almost like it’s own character (similar to the bus in ”Little Miss Sunshine“). When Joe and Rudy emerge fully loaded witih cameras and a microphone to interview people on the street, the star reaction is amplified. When they asked one lady what a blog was, she answered, “a dance” and of course she gave us an example…she was being filmed!
Dinner at Ardell’s was fantastic. Kim had been working on ribs since 3 in the afternoon and they were to die for. We also devoured a pasta dish and Ardell’s famous Wedding Meatball Soup. In addition to great food, it was really nice to 
meet some other fellow bloggers including Larry Cragun from Real Estate Undressed and Tim of The Seattle Bubble. I also had the opportunity to meet fellow RCG contributors for the first time. It’s always great to put the face to the blog!
I am so glad that Rudy and Joe are adventurous. I cannot imagine leaving my family and driving around the USofA to meet real estate bloggers…but I’m glad they did! Ardell was was masterful with her itinerary and homey dinner. In my opinion, the day could not have been better.
Have a safe journey, Guys! For more photos from Blog Tour USA-Seattle, click here.
Sphere: Related ContentMortgage Interest Rates July 27, 2007
Conforming Mortgage Rates (loan amounts up to $417,000 for 1-unit properties). Conforming rate quote below based on owner occupied, “full doc” with minimum credit scores of 680 with an 80% loan to value or lower and a loan amount of $400,000. Rates quoted are priced based on a 45 day lock with 1 point and there are no prepayment penalties on any of the rates quoted below.
30 Year Fixed: 6.375% (APR 6.527%). Payment per $1000 = $6.24.
30 Year Fixed with 10 Year Interest Only: 6.500% (APR 6.653%). Payment per $1000 = $5.42.
40 Year Fixed: 6.625% (APR 6.771%). Payment per $1000 = $5.94.
7/1 ARM: 6.125%% (APR 6.281%). Payment per $1000 = $6.08.
5/1 ARM: 5.875% (APR 6.013%). Payment per $1000 = $5.92.
5/1 ARM with 10 Year Interest Only: 6.00% (APR 6.139%). Payment per $1000 = $5.00.
JUMBO (Non-Conforming) Rates. Pricing is based on the same criteria above, with the exception that the loan amount is $417,001-$650,000 (20% down).
30 Year Fixed: 6.625% (APR 6.770%). Payment per $1000 = $6.40.
30 Year Fixed with interest only payments: 6.750% (APR 6.906%). Payment per $1000 = $5.63.
40 Year Fixed: 6.750% (APR 6.910 %). Payment per $1000 = $6.03.
7/1 ARM: 6.250% (APR 6.292%). Payment per $1000 = $6.16.
5/1 ARM: 6.125% (APR 6.265%). Payment per $1000 = $6.08.
5/1 ARM with 10 Year interest only payments: 6.125% (APR 6.265%). Payment per $1000 = $5.10.
This is just a small sample available of rates and products. Rates are as of 1:00 p.m. today and may change at any time. For your personal rate quote or for loan amounts over $650,000, please contact me.
Sphere: Related ContentReal Estate Commissions - Dollars and Sense
If agents use percentages to make the real estate commission seem relatively small, why don’t consumers use actual $$$ to make it look big? Instead of asking “What do you charge?” to which the agent usually answers in a percentage, why don’t consumers ask “What will it cost me?” I don’t know why it is, but “charging 3%” sounds a whole lot less than “paying $24,000″, doesn’t it?
When I’m speaking with agents, we often get into heated discussions about some sacred percentage. I was in a restaurant in Pike Place Market the other day using the salt and pepper shakers to represent two clients. Here’s how the discussion went:
”The salt shaker (Joe) is your very best friend in the whole world. He’s buying a house for $400,000 and you are charging him 3% or $12,000. The pepper shaker (Harry) is your other best friend in the whole world, and he’s buying a house for $800,000 and you think you are going to charge him “the same” at 3%, but that 3% at $24,000 is actually double what you are charging Joe.
Harry wants to pay you $12,000, the same as Joe is paying. You want to charge him 3%, “the same” as Joe is paying.
Obviously at that point, the other agent totally agrees that while he THOUGHT he was charging them “the same” at 3%, he was really charging Harry DOUBLE what he was charging Joe.
By putting names and faces on the facsimile clients, and making them the agent’s best friends, I can make an impact on a thought process. On the one hand the agent wants to bang on the table screaming about their right to a given percentage and how he’s charging his two best friends “the same”. I force him to ”look” into the eyes of his two best friends, and explain to Harry why he’s paying twice as much as Joe.
Then I’m done. I’m not vested in the outcome. Just the process of forcing agents to see things just a little bit differently.
Sphere: Related ContentBanker, Broker, Consumer Lender or Credit Union? Part 4 July 26, 2007
Part 4: Credit Unions
Credit Unions are structured differently than banks, mortgage companies, or consumer finance companies. A credit union is structured as a non-profit, or as a for-profit, with a purpose of returning profits to its members in the form of dividends paid on savings, or reduced interest rates on loans. Credit unions are run like a co-op; owned and controlled by their members.
Government regulations require that credit unions limit their membership to specific segments of the population, such as people who live, work, or attend school in a well-defined geographic area, employees of specific companies, trades groups, non profits, or a particular occupation such as teachers.
Credit union policies regarding interest rates are set by a volunteer board of directors elected by the membership. Only a member of a credit union may depositmoney with the credit union, or borrow money from it. Credit unions have marketed themselves as providing exceptional member service and a commitment to help members improve their financial outlook. In that regard, credit unions will not make a loan if the loan is not in the best interest of the member. Not all credit unions have a good mortgage department. Some merely refer business to another company or broker everything out. Either way, watch for a limited number of loan programs, inexperienced staff, and find out who will service the loan.
Perceived advantages
Sometimes fees can be lower Credit union members may already be familiar with credit union staff members
Interesting fact: Credit unions are exempt from the Federal Community Reinvestment Act, the law that forces banks to provide services in low-income areas because banks were caught “redlining” underserved areas in the 1970s. Credit unions are not subject to federal “community reinvestment” requirements because credit unions, due to their mission of “members helping members,” already meeting the financial needs of a broad range of people within a community.
Interesting way to utilize a credit union: If a consumer happen to find himself or herself at the low end of the credit score system, or is being told that he or she ONLY qualifies for subprime loan products, while still shopping for a lender, a consumer ought to also consider talking with a credit union. Since credit unions cannot make a loan that is not in the best interest of its members, if your credit union turns you down for the same kind of subprime loan, perhaps that could be one way of determining whether a subprime loan would not be in your best interest, since retail mortgage salespeople at other institutions do not have a duty to act in the consumer’s best interest, although some clearly do.
So how does a consumer go about selecting an individual retail mortgage salesperson at ANY of the institutions we covered in this series? Luckily, Rhonda Porter has already taken on this topic.
If you enjoyed part four of this four part series on different types of mortgage lending institutions, here are links back to the other three:
Part 1 Banks and Mortgage Banks
Part 2 Mortgage Brokers and Correspondent Lenders
Part 3 Consumer Loan Lenders
Estately True Areas: Search Beyond the Box July 25, 2007
We just released Estately True Areas which lets people search “beyond the box” and inside the neighborhood, city, or zip code they’re interested in. The area outline and listings in the area are the only results displayed on the map. You can also use it to search for homes within a mile or two from an area or address.
A few people around Seattle have told me that they think real estate search is all done. They are wrong - it’s really just beginning. With 47,000+ Western Washington homes for sale on Estately right now, consumers need great tools to find the right one. At Estately, we’re just assembling the basics for letting people figure out which neighborhood is right for them and find their kind of homes within that neighborhood. Our list of future search improvements, which could just as easily be applied to our competitors, grows longer rather than shorter with each successive release.
So where do the neighborhood boundaries come from? We took the neighborhood wisdom of tens of thousands of local real estate agents to identify where each neighborhood begins and ends. In real life, neighborhood boundaries are fuzzy and they overlap - ask the people who live in Frelard - so Estately neighborhoods follow suit with organic shapes that aren’t defined by streets or city planners. I like it - the big blob-like shape of Ballard is a real contrast to the tight and compact shape of Belltown.
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