The Renton Wa Realtor Blog !: December 2008

I’m in sentimental mood today. It’s probably just that time of the year. I’m snowed in working from home. My mind is wandering. I catch myself thinking of holidays past, bygone family,friends, kids’ grownup, lost loves, and through my window watch the snow falling. It’s year end. I get to decompress for a couple of weeks.

Back in Grad School, I studied Chaos Theory for a time as a premise for a computer music composition. As I reflect over this past year it strikes my funny bone, “Talk about chaos! What an amazing epic marathon of unforeseen change we all shared this year!” As the company tech evangelist, I had no idea where this years adventure might take me. In hindsight, I’m fortunate. It was awesome. I have never had a single year of growth like this one. We were all tested.

I traveled around a lot this year and had the opportunity to talk with many of you about adopting internet technologies and strategies into your way of doing business. I am thankful for all of those conversations. I learned a lot from you and it changed my life. I’m officially in the beginning of a new age.

In a philosophical mood I don’t have many answers today, or questions for that matter. More like random thoughts just passing through. They kind of stop by and say, “There’s really nothing to do with me right now, but don’t forget me, okay.”

I think about the myths the internet often comes wrapped in and wonder why some embrace and others flee. I ask myself, “Why do we play and work with it, in it and on it most every day?” Because of it we spend time together or alone. Sometimes we stress over it fearing we know nothing or little about it. Sometimes we seem to run towards it and away from it at the same time. Yet, as a society we appear to embrace it like, “Oh boy, a new toy!” Or was that the media speaking? Wait a minute, we are the media.

Who would have thought?

The internet in technical terms is now over a bazillion electronic thing-a-ma-jiggies connected to at least as many wired or wireless which-a-ma-call-its woven together in such a way that we are now one great big interconnected global community. Like it or not, that’s our world.

Okay, with that explained…

Once upon a long time ago, predating the dawn of the www, back in 62, the internet timeline was just beginning. The U.S. government was busy working on Arpanet (precursor to the internet) and even back then the Computer History Museum states big corporations like AT&T were vying to dominate its future.

I was at Century 21 in 1962, the Seattle Worlds Fair. One really cool thing I remember, beside spending all my change on Space Needles and such from coin operated vacuum molded plastic vending machines, was having my horoscope created on a UNIVAC computer that kicked out a sorted stack of punch cards to illuminate the meaning of my life. “Now that’s technology!” I still have the punch cards.

What was awesome about the fair was the very premise itself. Century 21, the future through science and technology… “What 12 year old boy wouldn’t love that?”

Sleek modern buildings like the Space Needle, cool science, hover cars, a bubbleator, and the monorail. We looked and dreamed of technologies to come including space travel. We had four years to go before the first episode of Star Trek. (That’s another story.)

Did you know that President Kennedy pressed a telegraph key while on Easter Holiday in Florida to start a radio telescope in Maine that captured impulses from a star 10,000 light years away and directed them to Seattle, WA, April 21, 1962 at 11:00 AM to officially open Century 21?

“The future was here!”

The most significant technology created in 1962 (as it turns out) was probably Steve Russell’s “SpaceWar!” One of the very first games intended for computers. Who could have known back then that video games in North America would generate $18.5 billion in 2007?

Meanwhile, back in Renton we were busy being The Jet Capital of the World building Boeing 707’s.

We were watching shows like the Beverly Hillbillies, Lucy, The Ed Sullivan Show, Gunsmoke, and The Twilight Zone on black & white television. We were listening to Elvis, Doing the Twist at the Peppermint Lounge, and Surfin’ with a new band called the Beach Boys.

The Northwest also had a host of great local bands getting air time and playing the dancehall circuit. We went to the movies to see Spartacus, West Side Story, Hatari, and The Flower Drum Song.

The Beatles and the British Invasion were still two years away. The Beatles played Seattle on August 21, 1964. I saw them at there second Coliseum concert when they returned on August 25, 1966. I say ‘saw’ because the screaming girls were so loud we never heard the music. My ticket for the 3:00 PM show was $6.00. It was another life changer event.

I digress…

Anyway, all these years later a better life through science and technology is still a little elusive it seems. It grows and redefines itself exponentially. It needs continuous examination I think. Today however, I find myself with no big need to know how the innards of the internet work. Yet, I am evermore fascinated about the possibilities. Like Lego’s, if you snap the right parts together in a certain way you can make some really cool stuff happen and instantly share it with the world.

Oh great tech spirit in cyberspace…

May we embrace technology from where we are and grow.

May we remain the 12 year old and play.

Like light bulbs, cars, and indoor plumbing;

Like cell phones, iPods, email, and the big screen TV.

Bless the internet, our indispensable thing-a-ma-jiggy which-a-ma-call-it appliance.

Wishing you... Happy Holidays, and a Merry Christmas…

I have ‘demystifying’ on the calendar for 2009!

René

PS… Did I tell you I just got a 500 gigabyte hard drive for $63.00?

Note: Some scholars have argued that the access to massive amounts of information, together with the widespread ability to communicate, has altered the way that human beings perceive reality.

is is one of those things passed from friend to firend and from family member to family member....and now, from Rainer to Rainer.

1. Avoid carrot sticks. Anyone who puts carrots on a holiday buffet table
knows nothing of the Christmas spirit. In fact, if you see carrots, leave
immediately. Go next door, where they're serving rum balls.

2. Drink as much eggnog as you can. And quickly. It's rare...You cannot
find it any other time of year but now. So drink up! Who cares that it has
10,000 calories in every sip? It's not as if you're going to turn into an
eggnog-alcoholic or something. It's a treat. Enjoy it. Have one for me.
Have two. It's Christmas!

3. If something comes with gravy, use it. That's the whole point of gravy.
Gravy does not stand alone. Pour it on. Make a volcano out of your mashed
potatoes. Fill it with gravy. Eat the volcano. Repeat.

4. As for mashed potatoes, always ask if they're made with skim milk or
whole milk. If it's skim, pass. Why bother? It's like buying a sports car
with an automatic transmission.

5. Do not have a snack before going to a party in an effort to control your
eating. The whole point of going to a Christmas party is to eat other
people's food for free. Lots of it. Hello?

6. Under no circumstances should you exercise between now and New Year's.
You can do that in January when you have nothing else to do. This is the
time for long naps, which you'll need after circling the buffet table while
carrying a 10-pound plate of food and that vat of eggnog.

7. If you come across something really good at a buffet table, like frosted
Christmas cookies in the shape and size of Santa, position yourself near
them and don't budge. Have as many as you can before becoming the center of
attention. They're like a beautiful pair of shoes. If you leave them behind,
you're never going to see them again.

8. Same for pies. Apple, Pumpkin, Mincemeat. Have a slice of each. Or if you
don't like mincemeat, have two apples and one pumpkin. Always have three.
When else do you get to have more than one dessert? Labor Day?

9. Did someone mention fruitcake? Granted, it's loaded with the mandatory
celebratory calories, but avoid it at all cost. I mean, have some standards.

10. One final tip: If you don't feel terrible when you leave the party or
get up from the table, you haven't been paying attention. Re-read tips;
start over, but hurry, January is just around the corner. Remember this
motto to live by:

"Life should NOT be a journey to the grave with the intention of arriving
safely in an attractive and well preserved body, but rather to skid in
sideways, chocolate in one hand, wine in the other, body thoroughly used up,
totally worn out and screaming "WOO HOO what a ride!"

 

Short Sales and Foreclosures seem to be everywhere right now and finding success with them can be quite a challenge. When considering your financial situation and the possibility of missing payments, it is best to get help early. The longer you wait the more difficult it is to find a solution.

At West Valley Home Team, we do all we can to help people stay in their home. In reality, homeowners have the following options when faced with financial difficulties involving house payments:

Option 1 - Refinance - always consider a refinance first

          Benefits: Current interest rates on a 30 year fixed rate mortgage are averaging around 5%-5.25%

          Drawbacks: Your home must appraise at a certain value and we are finding sometimes the current loan amount is greater than the home value, which will make it impossible to refinance unless you bring money to the table.

Option 2 - Loan Modification - take your current loan and adjust (modify) the terms

           Benefits: Stay in the home with little or no harm to your credit score. There are a number of ways to modify a loan, depending on your lender.

           Drawbacks: Loan Modification can be time-consuming and stressful as banks can be challenging to negotiate with. Sometimes lenders will modify the loan for a short time period, then it resets. Be wary of companies that charge a fee up-front for loan modification.

** We work with a third party to do loan modifications with NO up-front fees and do everything possible to wrap the loan modification fee into the modified loan amount so there are no out-of-pocket expenses.

 

Option 3 - Short Sale - sell the house with underlying lien holders approval to forgive a portion of what is owed.

           Benefits: Reduce the harm to your credit score. Avoid foreclosure.

          Drawbacks: You must move to a new location. Negative affect on credit.

I came across this article called Success with Short Sales at Realty Times.

** When the first two options are not available to clients, we then provide the option of a short sale.

Option 4 - Bankruptcy - file bankruptcy (talk with a bankruptcy attorney about benefits/drawbacks for you)

Option 5 - Foreclosure - bank "takes back" the home and attempts to sell at auction. If no sale at auction, it typically goes on the market as an REO (real estate owned) property. Bank owned.

 

At West Valley Home Team, we do all we can to help home owners avoid the last two options. We are finding more and more people are heading into difficulty with their mortgage payments due to ARMs resetting, job loss, medical situations, divorce, etc.

Once again the key is to get help early! Contact us for more information about how you can get help.

If you have other ideas that could help home owners, please submit your comments. The more homes we can save the better for everyone.

 

Today I HAD to do some Christmas Shopping so my friend Sherri and I started early to get jumpstart on today's crowds. 

As we braved the already crowded mall, what to my eye did appear? NO not a sleigh and 8 tiny reindeer!

BUT the MALL SANTA sitting & waiting on the next child to appear and just how was he passing the time? 

 He was busy TEXTING! 

YES that's right TEXTING! 

There he was sitting in his great big comfy chair in his bright red suit and white fluffy beard with his cell phone out and his thumbs flying across the keyboard. 

It made our day because for the rest of the day, we speculated on just who would be the recipient of the text he was sending! 

Was he updating the naughty list, sending a love note to Mrs. Claus or sending last minute instructions to the elves at the North Pole?

So just who WAS Santa texting?

As part of the annual Swanepoel TRENDS Report that is published every year during the first week of February, the research team wraps their four month study of the real estate industry by announcing the top 10 Newsmakers, Events and Trendsetters for the year.

The second list to be released is the top 10 events that during 2008 had the largest impact and influence on the real estate brokerage industry. Events are defined as those occurrences that transpired during the previous calendar year (2008) that made headlines and captured the attention of the real estate industry.  The selection of these events was based upon their potential future impact on the industry rather than only their 2008 impact.

The Top 10 Events impacting Real Estate for 2008 are:

1.     The Bailout: September 17^th

Most notably the one single event of the year was the announcement of the "Silver Bullet" designed to save the country from the subprime collapse itself and the failure/buyout of major Wall Street firms and national banks.  Depending upon how effectively the Emergency Economic Stabilization Act's $700 billion is going to be allocated and managed it may prove to be the beginning of the turning point in the current economic recession.

2.     The Presidential Election

In one of the most competitive, contentious, divisive and yet historic political campaigns the country responded with the largest voter turnout in history to remove the incumbent president and elect an African American, Barak Obama as president.  The "I have a dream" has taken a huge step toward fulfillment.  However, the new administration will have little time to reflect on victory as it faces serious economic challenges and a trillion dollar plus debt that will take years to resolve.

3.     In Memory Of: Countrywide, IndyMac, WAMU, Wachovia And Others

Barely one year ago in 2007 these companies were not only household names but were considered financial giants.  In one short year they have become a factoid of history.  Some filed for bankruptcy while others were acquired by the likes of Bank of America, the federal government, J.P. Morgan Chase and Wells Fargo.  2008 reminded us that nothing lasts forever and everything is replaceable.  

4.     Facing Foreclosure Frenzy

As a direct fallout of the subprime collapse, the foreclosure rate in the U.S. hit staggering levels in 2008.  At the opening of the third quarter foreclosures were up 25% over the previous October with a reported one in every 452 of the country's homes in foreclosure.  RealtyTrac reported last October that there was a sharp decline in foreclosure filings but it still estimated that by the end of 2008 there would be more than one million REOs on the books.

5. Home Prices Spiral Downward

The recession devastated many real estate markets across the country with the worst-performing towns and cities in places like central California, Miami and Las Vegas posting declines of 40% in 2008. The stranglehold on financing continued to drive home prices in many other places back to 2000 - 2002 levels, with predictions of continued declines in 2009 as unemployment reaches record highs and the financial meltdown spills over to other industries.

6.     NAR - DOJ Settlement

Finally the long and protracted 2½ year legal battle between NAR and the Department of Justice (DOJ) was put to rest as Judge Kennelly issued his final judgment in November.  In the end, NAR's longstanding Internet Data Exchange (IDX) policy was validated as NAR was deemed to have not admitted any liability or wrongdoing and no payments were made in conjunction with the settlement.  In addition, NAR has been cleared to reinstate an updated version of its Virtual Office Website (VOW) and the MLS has been preserved and strengthened in the process.  Now it's back to business.

7.     Brokers Go Bust

Changing names, merging, consolidating, filing bankruptcy and closing branches was on the order of the day throughout 2008 as literally thousands of real estate brokerages companies went out of business during 2008. This included many independents as well as franchises from just about every major brand including Century 21, EXIT and RE/MAX. Also filling for bankruptcy is national franchise Help-U-Sell and Web 2.0 newcomers such as Igglo. 2009 may see even more brokers closing up shop than 2008.

8.     Keeping It Short

Founded in 2006, Twitter moved into the mainstream this year as the next evolution in the social networking and micro-blogging environment.  By using short text-based posts (affectionately named "tweets"), staying in touch has been given a whole new meaning.  

9.     ActiveRain Explodes Past 100,000 Members

As we discussed in last year's report (Trend #1 - Two Worlds; One Industry) ActiveRain has moved to the head of the social networking line in the real estate industry.  With as many as 35,000 users logged on at the same time, no one else has even come close to reaching that many Realtors^® at one time.  It goes without saying that ActiveRain has proven that social networking has made a home in real estate.

10. NAR Celebrates 100 Years

In May 1908, 120 men gathered in Chicago with the goal to "unite the real estate men of America." Today the National Association of REALTORS® (NAR) is America's largest trade association representing more than 1.2 million members. For 100 years, NAR and its members have established homeownership as a cornerstone of the American Dream and advocated private property rights as one of the fundamental principles that unite us as Americans. 2008 marked NAR's centennial birthday.

How many of these events impacted you or were/are you aware of?

Had to share this; Clearly a very important Form to have - in fact as you read this, we are filling it out;)

Gary Keller has stated, "Keller Williams is a world class training company disguised as a real estate business." Well besides the Shiftbook and the shift tour, now comes the shift comic. Because everyone learn differently, plus I will admit to learning to read on mostly comic books. Take a look and enjoy this SHIFT COMIC book.

For all your real estate needs whether buying or selling a Renton home call the Gary McNinch Team, we have fun and we have shifted ahead of the market to better serve our great clients.