Frankly Real Estate

Quick video for first time home buyers.

2012-08-31T16:14:00.002-07:00

With interest rates at near record lows, home prices still very reasonable we are seeing more and more first time buyers enter the market. Yes, the pendulum is swinging back toward the middle allowing and easier path to finance your first home.

This video gives a quick overview of the role your real estate broker plays in helping you find, negotiate for, inspect and close on a home. There are a lot of steps and usually 18 to 22 people involved in a normal real estate transaction.

Picking your licensed real estate broker is the first step in making your transaction go as smoothly as possible.

2012-07-10T15:20:00.001-07:00

Health Care Tax....It Is Not a Real Estate Transfer Tax As Many Have Suggested.

3.8% Tax Will go into Effect in 2013

Now that the Supreme Court has upheld the health care legislation, all of its major provisions remain in effect, including the new tax that was designed to affect upper income taxpayers. The 3.8% tax is imposed ONLY on those with more than $200,000 of Adjusted Gross Income (AGI) ($250,000 on a joint return). The tax applies to investment income, defined as interest, dividends, capital gains and net rents. These items are all included in an individual's AGI. A formula will determine what portion, if any, of these types of investment income would be subject to the tax.
The tax is NOT a transfer tax on real estate sales and similar transactions . Not long after the tax was enacted, erroneous and misleading documents went viral on the Internet and created a great deal of misunderstanding and made the tax into something far more draconian than the actual provisions.
The new tax does NOT eliminate the benefits of the $250,000/$500,000 exclusion on the sale of a principal residence. Thus, ONLY that portion of a gain above those thresholds is included in AGI and could be subject to the tax.
REALTORS® should familiarize themselves with the tax, but should not advise their clients about the application of the tax. The amount of tax will vary from individual to individual because the elements that comprise AGI differ from taxpayer to taxpayer.

Q-1: Is there a 3.8% real estate “sales tax” or a transfer tax created in health care bill?

A: No. There is neither a real estate “sales tax” nor a real estate transfer tax under any federal law. The Internet has generated several viral items describing such a tax. Those Internet postings are totally false. The 2010 health care legislation did create a new 3.8% tax, but it applies only to a limited group of taxpayers.

Q-2: So who will be subject to the new tax? When is it effective?

A: The new 3.8% tax will apply to the “unearned” income of “High Income” taxpayers. The new Medicare tax on unearned income will take effect January 1, 2013. Proceeds from the tax will be allocated to shoring up the Medicare fund.

Q-3: Who is a “High Income” Taxpayer?

A: Those whose tax filing status is “single” will be subject to the new unearned income taxes if they have Adjusted Gross Income (AGI) of more than $200,000. Married couples filing a joint return with AGI of more than $250,000 will also be subject to the new tax. (The AGI threshold for married filing separate returns is $125,000.)

Q-4: Are the $200,000 and $250,000 thresholds indexed for inflation?

A: No.Thus, over time, more individuals may become subject to this tax.

Q-5: What is “unearned” net investment income?

A. Unearned income is the income that an individual derives from investing his/her capital. It includes capital gains, rents, dividends and interest income. It also comes from some investments in active businesses if the investor is not an active participant in the business. The portion of unearned income that is subject both to income tax and the new Medicare tax is the amount of income derived from these sources, reduced by any expenses associated with earning that income. (Hence the term “net” investment income.)

Q-6: So the new tax will apply to rents from investment properties that I own?

A: Maybe. Remember that net investment income includes only net rental income. Thus, gross rents would not be subject to the tax. Rather, gross rents would be reduced (as they are under the income tax) by all allowable expenses, including depreciation, cost of repairs, property taxes and interest expense associated with debt service. AGI includes net income from rent, so if your AGI is above the $200,000/$250,000 thresholds, then the rental income might be subject to the tax.

For many investment real estate owners, the net rents will be the same as or similar to the amounts reported on their Schedule E, filed with their Form 1040 Income Tax Return. (For calculations, see Q-7, below. See also Q-8 through Q-12 related to capital gain from sale of principal residence, losses on sale and to vacation homes, below.)

Q-7: Does the tax apply to the yearly appreciation of an asset?

No. Capital gains are subject to this new tax only in the year when the asset is sold. The amount of the gain will be measured in the same way that it is for income tax purposes. This rule applies to real estate and all other appreciating capital assets. Net capital gains are taxable only in the year of sale.

Q-8: How is the new 3.8% Medicare tax calculated?

A: The new 3.8% Medicare tax is assessed only when Adjusted Gross Income (AGI) is more than $200,000/$250,000. (See Q-2 above.) AGI includes net income from interest, dividends, rents and capital gains, as well as earned compensation and several additional forms of income presented on a Form 1040 Income Tax Return.

The tax is NOT imposed on the total AGI, nor is it imposed solely on the investment income. Rather, the taxable amount will depend on the operation of a formula. The taxpayer will determine the LESSER of (1) net investment income OR (2) the excess of AGI over the $200,000/$250,000 AGI thresholds. Thus, if net investment income is the smaller amount, then the 3.8% tax is applied onlyto the net investment income amount. If the excess over the thresholds is the smaller amount, then the 3.8% tax would apply only to the excess amount.

Q-9: Give me an example.

If AGI for a single individual is $275,000, then the excess over $200,000 would be $75,000 ($275,000 minus $200,000). Assume that this individual’s net investment income is $60,000. The new 3.8% tax applies to the smaller amount. In this example, $60,000 of net investment income is less than the $75,000 excess over the threshold. Thus, in this example, the 3.8% tax is applied to the $60,000.

If this single individual had AGI if $275,000 and net investment income of $90,000, then the new tax would be imposed on the smaller amount: the $75,000 of excess over $200,000.

Rules of thumb for predicting the application of this tax year to year are not readily determinable, largely because the proportion of net investment income compared to AGI will vary from year to year and from individual to individual.

Q-10: Will the $250,000/$500,000 exclusion on the sale of a principal residence continue to apply?

A: Yes. Any gain from the sale of a principal residence that is less than $250,000 (individual) or $500,000 (joint return) will continue to be excluded from the income tax. The new 3.8% tax will NOT apply to this excluded amount of the gain.

Q-11: Will the 3.8% tax apply to any part of the gain on the sale of a principal residence?

A: Maybe. The new Medicare tax would apply only to any gain realized that is more than the $250K/$500K existing primary home exclusion (known as the “taxable gain”), and only if the seller has AGI above the $200K/$250K AGI thresholds.

So, for example, if the taxable gain was $30,000 and a married couple had AGI (which would include the taxable gain) of $180,000, the 3.8% tax would not apply because AGI is less than $250,000. If that same couple had AGI of $290,000, then the application of the 3.8% tax would be subject to the same formula described above. The $30,000 taxable gain on the sale would be less than the $40,000 excess above $250,000 AGI, so the $30,000 gain would be subject to the new 3.8% tax.

Q-12: Is rent from a vacation home subject to the 3.8% tax? And what about the gain on sale of a vacation or rental property?

A: The application of the tax will depend on whether the vacation home has been rented out, the period for which it has been rented and whether the property is solely for the enjoyment of the owner. If the owner has rented the home out to others, then the 14-day rent exclusion will continue to apply. Thus, if the owner rents the property to others (including family members) for 14 or fewer days, there would be no net investment tax. (Note that no deductions for expenses would be available, as under current law.)

If the home has been rented to others (including family members) for more than 14 days, then the rents (minus related expenses) would be considered as part of net investment income and could, depending on AGI and the calculations described above, be subject to the new tax.

If the vacation home has been used solely for personal enjoyment (i.e., there is no rental income and no associated expenses), then a gain on sale would be treated as net investment income and could be subject to the tax, depending on AGI. Similarly, if the property had generated rents, any net gain on sale could also be included in net investment income. The amount of the tax (if any) would depend on the calculation formula, above in Q-8 and Q-9.

Q-13: My rental property generates a net loss each year. How will those losses be factored into the new tax? And what if I have net capital losses when I sell?

A: Net losses from rents and net capital losses reduce AGI. Thus, the losses themselves would not be subject to the tax. If, after losses, AGI still exceeds the High Income thresholds, the 3.8% tax would still apply to any net rental, interest or dividends income.

Q-14: I earn all of my income from real estate investments that I own and operate myself. Will my rents and gains be subject to the new tax?

A: No.If the ownership and operation of real estate you own is your sole occupation, then those activities are what’s called your “trade or business.” Income derived from a trade or business is not subject to the new 3.8% tax. If the owner of rental properties has a “day job,” however, real estate investments are not considered as a trade or business, but are rather considered as investments, even if they are a major source of income.

Many Realtors engage in business activities are that are the “typical” selling, leasing and brokerage endeavors usually associated with the term “Realtor.” If they also own rental real estate assets as part of their own personal investment portfolio, the net rents from that portfolio could become subject to the new 3.8% tax on net investment income, depending on AGI.

Q-15: Will “High Income Filers” lose any portion of the Mortgage Interest Deduction?

A: No. The mortgage interest deduction is unchanged. No cap was imposed on any itemized deductions.

Q-16: Why is this new tax called a “Medicare tax?”

A: The revenues generated from this tax will be allocated to the Medicare Trust Fund that is part of the Social Security System. That fund is currently on shaky financial footing. These additional revenues are intended to shore up the Medicare Trust Fund.

Q-17: How will this new tax affect marginal (the highest) tax rates when it is combined with existing law and with the possible expiration of the Bush tax cuts enacted in 2001?

A: Marginal tax rates are the tax rates assessed on the “last” dollars included in taxable income. If the Bush tax cuts are allowed to expire, then the marginal rates for upper income individuals will increase, particularly for capital gains income. The chart below reflects the impact of those changes, presented based on implementation of current law effective dates.

Build up to our spring housing market in Kitsap County

2012-02-06T15:09:00.000-08:00

Spring is on the horizon and the super bowl is over so now it is time to try to get a sense as to what our spring home market will be like.

Here are some of the pieces that I believe will fuel a healthy market this year:
1) Seattle market has low inventory. Their home values will begin to escalate before ours. They will reach a point that will encourage buyers to look west for more value for their dollar.
2) Kitsap prices though still falling in many categories are beginning to stabilize; waterfront - still settling, $200,000 to $325,000 - stabilizing and beginning to go up due to low inventory.
3) Interest rates continue to remain lower than we have seen in 50+ years. (this equates to buying power)
4) It appears more government programs are on the horizon to encourage banks to work out mortgage modification with financially challenged home owners....this may help to keep some of the REO properties off the market, which will help remove low sale price offsets and reduce inventory.

All in all, if you are going to be owning your next home for 4 or more years....now is a good time to buy.

Home insurance for your new home

2012-01-23T15:11:00.000-08:00

The cost of owning a home is not just the monthly payment, it also includes the principle, interest, taxes, insurance and maintenance. Insurance is often overlooked to left to the end of a transaction to figure out. When thinking about buying a home insurance should be one of the things you think about up front and include in your team; Real Estate Broker, Loan Officer, Insurance Broker and CPA or Attorney.

Real Estate Market Update, Northwest Multiple Listing Service

2011-12-06T16:18:00.000-08:00

Home sales outpace number of new listings for first time in five years

KIRKLAND, Wash. (Dec. 5, 2011) – Northwest Multiple Listing Service members reported 6,103 pending sales during November, marking the seventh straight month of double-digit year-over-year increases.

Last month’s total number of mutually accepted offers was 22.4 percent higher than the same month a year ago. It also marked the first month since December 2006 that the number of pending sales surpassed the number of new listings (6,043), prompting discussions of possible inventory shortages.

“As we head toward the end of the year, it’s certainly good to see a healthy number of buyers relative to the available inventory for sale,” said Mike Grady, president and chief operating officer of Coldwell Banker Bain. “In fact,” he noted, “there are some desirable neighborhoods in urban core areas where the case could be made there are too few homes currently for sale.”

At month end, there were 30,650 residential listings in the MLS inventory across 21 counties, down nearly 17 percent from a year ago. For the listing service map areas covering Seattle, the database shows a year-over-year drop of about 32 percent.

“Entering the New Year, the Seattle metro area will start off with a shortage of inventory in both the more affordable and mid-priced ranges,” suggested J. Lennox Scott, CEO and chairman of John L. Scott Real Estate. He noted a high percentage of sellers are receiving offers within the first month or two of listing their homes.

Despite the smaller selection, the listings in the MLS database covering all counties span a wide price range: 400 homes are priced at $50,000 or less and 65 residences are listed at $5 million-plus.

For homes and condominiums that sold last month, the median selling price was $225,000, down 10 percent from the year-ago median price of $250,000. Single family home prices were off 8 percent from a year ago ($234,612 versus $255,000), while condo prices slipped more than 17 percent ($169,000 versus $204,500).

Brokers point to distressed properties, which tend to be deeply discounted, as a primary cause of lower prices.

Bank-owned homes continue to put downward pressure on pricing, reported Northwest MLS director Matt Deasy, general manager of Windermere Real Estate/East, Inc.

For the four-county Puget Sound region, a check of the Northwest MLS database shows more than one-fourth (26.8 percent) of the single-family homes that sold last month were classified as distressed, up from the year-ago figure of 21.9 percent.

SFH only	Nov. 2011			Nov. 2010
	Total	Bank owned	% bank owned/REO	Total	Bank owned	% bank owned/REO
King	1538	327	21.26%	1092	163	14.93%
Snoh	680	201	29.56%	499	138	27.66%
Pierce	710	268	37.75%	591	172	29.10%
Kitsap	191	41	21.47%	178	43	24.16%
4-co ttl	3119	837	26.84%	2360	516	21.86%

(*REO is a class of property owned by a lender - typically a bank, government agency, or government loan insurer - after an unsuccessful sale at a foreclosure auction. – Wikipedia)

For the MLS market overall (21 counties), the number of closed sales jumped 36.2 percent, rising from 3,583 completed transactions during November 2010 to last month’s total of 4,879.

“Home prices continue to get dragged down by foreclosures and short sales, which is disappointing given how strong home sales are,” said OB Jacobi, president of Windermere Real Estate. “We probably won’t see drastic changes in prices until the banks work through the distressed inventory,” he noted, adding, “but we expect the pace of this process to pick up over the next several months, so hopefully by this time next year we’ll be singing a different tune.”

Kitsap County was one of the few areas to register a price gain. The median sales price edged up slightly more than 1 percent, from $230,000 to $232,500. “One month does not make a trend,” acknowledged MLS director Frank Wilson, while noting the change in direction to a positive number is encouraging.

Wilson, the branch managing broker at John L. Scott’s Poulsbo office, expects Kitsap County will benefit from last week’s surprise announcement of a contract extension between Boeing and the Machinists Union, since Kitsap often feels an echo effect of what happens on “the other side.” If ratified, he said the contract “will definitely help our area (particularly the northern part) in the long run as buyers will continue to see a significant price difference between Seattle-side real estate and what they can buy in Kitsap.” (According to Northwest MLS data, the median asking price on current listings of single family homes in Kitsap County is $289,000, while in King County it is $370,000, about 28 percent more.)

The “fantastic, recent news coming out of Boeing is going to secure thousands of jobs in the area,” said J. Lennox Scott. With that news, combined with momentum from other major area employers, “we are seeing solid, renewed demand for local housing,” he remarked. Job growth, historic low interest rates and an elevated number of residential investors taking advantage of favorable market conditions are contributing to “a healthy level of sales activity, one of the best in the nation.”

One of the sub-markets with vigorous activity is North Seattle, reported Mike Grady. The number of homes currently in escrow nearly matches the number still available for sale, a condition not seen since the boom years of 2005 and 2006, according to his analysis. He is also encouraged by the small ratio of distressed properties. Grady said fewer than 6 percent of North Seattle properties waiting to close escrow are ‘short sale’ transactions, which he said is “a positive trend our brokers will be keeping a close eye on in the weeks and months ahead.”

Northwest MLS director Wilson cautioned some of the statistics for November and December should be viewed “with a grain a salt.” Buyers and sellers tend to think more about family time and the holidays, and sellers may choose to postpone listing their home until the New Year, or take them off the market during the holiday season, he explained.

Although some sellers, buyers and brokers “check out” during the holidays, Wilson said there is an interesting dynamic that takes place. Houses that are on the market are being looked at by more motivated buyers, buyers who are very focused, he noted. “This is an interesting dynamic that happens every year,” he added.

Wilson’s observation is bolstered by findings from a Realtor.com survey, which found the vast majority of respondents, 79 percent, said more serious buyers were one of the biggest benefits of listing during the holidays. Less competition was an advantage cited by 61 percent of the survey respondents. The majority of respondents, 74 percent, said pricing a home to sell is even more important during the holidays, while an even higher number, 80 percent, said online listing photos were particularly crucial since buyers visit fewer open houses and sellers are less inclined to schedule them during the busy holiday season.

Northwest Multiple Listing Service, owned by its member real estate firms, is the largest full-service MLS in the Northwest. Its membership includes more than 22,000 real estate brokers. The organization, based in Kirkland, Wash., currently serves 21 counties in Washington state.

###

Sources quoted (Deasy, Jacobi, and Wilson are members of the Northwest MLS Board of Directors)

Matt Deasy, general manager of Windermere Real Estate/East, Inc. .......................... (425) 643-5500

Mike Grady, president and COO, Coldwell Banker Bain........................................... (425) 456-9570

OB Jacobi, president, Windermere Real Estate........................... (c/o Shelley Rossi) (425) 269-7132

J. Lennox Scott, chairman and CEO of John L. Scott Real Estate (c/o David Warren, (425) 394-0947

Frank Wilson, branch managing broker, John L. Scott, Poulsbo................................ (360) 731-1801

_________

See next page for statistical summary by counties

Statistical Summary by Counties: Market Activity Summary – Nov. 2011

Single Fam. Homes + Condos	LISTINGS		PENDING SALES	CLOSED SALES
Single Fam. Homes + Condos	New Listings	Total Active	# Pending Sales	# Closings	Avg. Price	Median Price
King	2,236	8,790	2,486	1,944	$360,515	$290,000
Snohomish	947	3,817	1,041	806	$254,126	$229,950
Pierce	977	4,777	1,048	758	$198,562	$184,848
Kitsap	304	1,595	239	203	$277,251	$232,500
Mason	94	729	49	45	$181,448	$147,500
Skagit	130	958	112	96	$270,768	$192,500
Grays Harbor	83	771	68	57	$144,545	$115,000
Lewis	78	696	61	48	$157,580	$144,950
Cowlitz	93	506	81	62	$154,155	$131,495
Grant	67	514	59	46	$147,861	$135,220
Thurston	279	1,513	274	223	$226,563	$215,000
San Juan	17	421	14	11	$481,636	$366,000
Island	110	853	87	80	$281,137	$239,500
Kittitas	36	469	37	44	$240,545	$196,175
Jefferson	32	520	39	27	$248,544	$225,000
Okanogan	36	379	21	15	$197,456	$220,000
Whatcom	214	1,494	214	176	$234,439	$208,000
Clark	43	208	42	93	$224,098	$197,000
Pacific	39	385	24	20	$128,022	$118,250
Ferry	3	60	5	3	$171,333	$165,000
Clallam	56	421	28	35	$220,809	$185,000
Others	169	774	74	87	$191,788	$175,000
MLS TOTAL	6,043	30,650	6,103	4,879	$280,168	$225,000

4-county Puget Sound Region Pending Sales (SFH + Condo combined)

(totals include King, Snohomish, Pierce & Kitsap counties)

	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
2000	3706	4778	5903	5116	5490	5079	4928	5432	4569	4675	4126	3166
2001	4334	5056	5722	5399	5631	5568	5434	5544	4040	4387	4155	3430
2002	4293	4735	5569	5436	6131	5212	5525	6215	5394	5777	4966	4153
2003	4746	5290	6889	6837	7148	7202	7673	7135	6698	6552	4904	4454
2004	4521	6284	8073	7910	7888	8186	7583	7464	6984	6761	6228	5195
2005	5426	6833	8801	8420	8610	8896	8207	8784	7561	7157	6188	4837
2006	5275	6032	8174	7651	8411	8094	7121	7692	6216	6403	5292	4346
2007	4869	6239	7192	6974	7311	6876	6371	5580	4153	4447	3896	2975
2008	3291	4167	4520	4624	4526	4765	4580	4584	4445	3346	2841	2432
2009	3250	3407	4262	5372	5498	5963	5551	5764	5825	5702	3829	3440
2010	4381	5211	6821	7368	4058	4239	4306	4520	4350	4376	3938	3474
2011	4272	4,767	6049	5732	5963	5868	5657	5944	5299	5384	4814

Short Sales...when the only tool you have is a hammer, everything looks like a nail.

2010-11-16T18:31:00.000-08:00

Lets face it...if you've purchased your home over the past few years or refinanced to withdraw equity, the current real estate market has not been kind to you. Add to this the downturn of our economy and you may be feeling financially stressed with a home that is underwater with your lender. Finances are tight, options are low what next??

Often this is where you decide to talk with a real estate agent or broker. One of the first discussions may well be a short sale. A short sale is used when a homeowner owes more to their lender or lenders than the home is worth in today's market.

What most real estate professionals are not equipped to talk about are all of your possible solutions. Granted, short sale may be the solution you chose in the end, but you owe it to yourself to consider all of your options.

By assembling a team which would include your tax preparer or CPA, a real estate attorney and your real estate broker you are now ready to review all of your options. Each has pros and cons so consider carefully.

Your general options include:

1) Loan Modification

2) Foreclosure

3) Bankruptcy

4) Short Sale

Each of these have off shoots depending on your situation. Typically this whole discussion should start with a counseling session with a real estate attorney. Be prepared to discuss your current finances, any hardship you might be having, your income, expenses and investments.

The choice you make now will have lasting affects on your credit and may affect your ability to purchase a home in the future, so take your time, ask lots of questions and do not be afraid to invest a little money to pay for this consultation. A common scenario has a homeowner who sells their home via short sale and only later learns that they are still on the hook for the deficiency from the lender.

Stay tuned to www.Franklyrealestate.blogspot.com for more information about distressed properties and other real estate topics concerning Kitsap County, WA.

Search for homes at http://www.FranklyRealEstate.com

If you have ever considered a career in real estate check out http://www.myrealestatecareerblog.com

Don't build a website without looking at the bigger "Marketing" picture

2009-03-30T17:11:00.000-07:00

Now that I'm with GraphicalData I am having more focused discussions with real estate agents and their brokers about websites. One of the things I've quickly learned is that you can not have a "website" discussion without having a "marketing" discussion.

Too often agents want to jump in and order up a website so they can check that task off some list they have in hand. Later, when the going gets rough financially they jettison the website because it is not meeting their needs.

Before getting the website ask yourself some questions, this may require a bit of introspection:
1) What kind of business do I want to do. Am I focusing on residential resale, commercial, new construction, condos.......etc

2) Write a paragraph describing your perfect buyer

3) Write a paragraph describing your perfect seller(in both cases be specific to type of home, geographic location, qualifications of the buyer or seller)

4) What are your goals for the website?Be realistic here. Come up with a number that you can logically work toward.

5) How much am I willing to spend?This has to be a realistic number that will not change with the market. Too often agents and companies spend lots of money when the market is good and pull it all back when things get tough. The key word here has to be "consistency". Granted, you may invest more as you have more to invest...but you should always have a core marketing effort going on. Note...I use the word "invest" on purpose. Dollars you spend are either to improve your business, have a goal and measurement attached or it is a charity. Too often business people mistake the two.

6) How am I going to track my success?

With this information you will be able to tailor your site to meet the needs of the people you are trying to attract and keep as customers. Don't try to make one site do too much. If you do residential sales and property management you may want to consider two separate websites, otherwise you dilute your message and will make it harder for your site to show up on the first page or two of search engine rankings.

Now that you are sitting down to actually start planning the website looks are important but only go skin deep as the old saying goes. Content is king. I'm running across good, hard working agents who have invested a lot of money into a website that looks good but has no real content. Make sure your website developer can and does provide the IDX feed for your site. Without it you will not be able to provide interactive home searches for your clients, nor will you be able to use many of the tools that make a great site like flyer makers, CMA tools or automatic e-mail notification services.

Real Estate Loan, Interest Rate Chart for 13 months

2008-09-09T21:40:00.001-07:00

As a buyer you just have to ask yourself...how much better can it get. Buyers and Sellers for that matter have been asking my agents if we are at the bottom of the market.

I think we are "within" the bottom. Don't know if that is going into or out of the bottom (won't know that until we look back after six months) but we are certainly within the bottom. Buyers who wait are faced with the likely hood that they will miss the bottom and loose because a jump in .5% will offset any further price drop. Chances are in 6 months that rates will be higher than they are today.

Bottom line, if you want to gamble, go to Las Vegas. This is not gambling. If you are going to own your home for the next 5 years or so this is an investment. Remember....I'm a big believer in flipping houses.....the slow flip.....buy, hold for 4 to 6 years then sell.

Trying to do too much with one website

2008-08-29T14:06:00.000-07:00

Over two years ago I developed a website www.FranklyRealEstate.com which led to this blog. Even then Ozzie, the guy at Graphical Data who helps me with all things web, cautioned me that the site was too broad. I was trying to make it be all things to all people.

Last week I met with Ozzie and we developed a new plan. Essentially I'm breaking down my one website into two which in turn will roll out a second blog as well. The goal is to focus the information and tools to a smaller group.

www.FranklyRealEstate.com will focus on home buyers and sellers. It will address questions and concerns a typical home buyer or seller might have in today's real estate market. Search for homes, learn about neighborhoods and schools and pick up a little education about the process along the way. This blog will be restructured to pick up the day to day conversations that goes on and refer readers to the website just as you would refer to a reference book.

The new website will be www.MyRealEstateCareerBuilder.com and the new blog will we www.MyRealEstateCareerBlog.com. These will address concerns that real estate practitioners might have. Getting started in real estate, classes to take, technology to use, interesting changes in the market and the like.

Needless to say there is a lot of work ahead to string up my new portion of the net. Fortunately I'm passionate about the topic and eager to share what is happening in our neck of the woods.

Feel free to check out these new sites and learn along with me. I'm setting up the blog first. This gave me a chance to try out a new platform....wordpress. Because I've settled on a specific template I had to have my blog hosted for me, not hosted within wordpress or like this one within Blogger. As I go I'll try to share all of the things I learn....Let me bump my shins as I work through this unfamiliar room called wordpress and hosting. I'll give links as well so you can check out the choices I've made.

Wordpress
Dreamhost (Put the word "Frankly" in the coupon code for a free domain and save $10)
Thesis (template for blog)
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Bremerton Condo Sales

2008-05-01T15:51:00.000-07:00

We recently had a new event in Bremerton, which is a city in Kitsap County Washington, an auction of a condo project called The 400. Carol Sue Rogers, the Broker of our Bremerton office wrote this article for our newsletter.

The auction of The 400 by Carol Sue Rogers

The highly publicized and much anticipated “400 Auction” took place a few Sunday’s back. There was quite a buzz in Bremerton and a lot of uncertainty of what the auction really meant.

NBC nightly news ran a story and several local newspapers covered what they perceived as more doom and gloom in the real estate market place. Buyer’s perception was that the building was in foreclosure and they could get a luxury waterfront condo for $109,000.

The auction company is a real estate company with a different method of selling real estate. It is a way to generate activity on their listing. With gorilla marketing efforts which included folks on street corners waving signs, it definitely got attention and the free advertising the media provided it is no surprise it received so much attention. This idea is new to our area and buyers lined up with hopes and dreams of buying a luxury waterfront condo for pennies on the dollar. Many left disappointed with the final outcome.

Below is an example of some of the sales information that we were able to obtain. Final results of the 28 units that were auctioned: 18 are currently sold/in escrow ~ 2 flipped at auction and 8 bids were rejected. The unsold units will be rented for the next few years through a corporate rental service.

Unit – Floor Plan	Original List Price	Starting Bid	Final Bid	Actual Cost after Buyer premium	Results

212 Enetai	209,900	109,000	175,000	183,750	Accepted/SOLD
300A Illahee	289,900	139,000	195,000	204,750	Accepted/SOLD
113 Sinclair	399,900	209,000	225,000	231,000	Accepted/SOLD
205 Manette	569,900	269,000	380,000	399,000	Accepted/SOLD
112 Veneta	459,900	249,000	350,000	367,500	Reserve Met/Sold
108 Sedgwick	897,900	409,000	610,000	645,750	Accepted/SOLD
111 Keyport	317,900	165,000	220,000	231,000	Seller Rejected
301 Illahee	327,900	159,000	217,500	228,375	Seller Rejected
114 Sinclair	399,900	199,000	215,000	225,750	Seller Rejected
400 Veneta	489,900	249,000	310,000	325,500	Seller Rejected

So what else did we learn…..

1. Over 1200 previewed the property, less than 100 attended the auction and approximately 35 were registered bidders. Only 3 of the bidders were from outside Kitsap County.

2. National media attention on your listing doesn’t guarantee a higher sales price.

3. A property that is being auctioned does not always mean it is in foreclosure.

4. Market Value was just established on New Waterfront Condos in Bremerton.

5. The auctioneers commented that this was a tough crowd. Tuxedos and all , they just couldn’t Kitsap County buyers to bid to the undisclosed reserve amount on 25 of the 28 units.

Kitsap County, WA, Real Etate Graph

2008-03-20T12:44:00.000-07:00

This is a great snap shot of what is happening in Kitsap County, WA.....From a Real Estate prospecitve:

Note the red line which indicates pending is trending up. This will lead to a more balanced market if the trend continues. As pending goes up, invenory will go down.

We currently have over 2400 homes on the market in Kitsap County. I've seen a low in the lower 700 range and this is a high. I would like to see it closer to 1500 or so. Stay tuned....the adventure continues.....................

Bullet points from changes of new RCW 18.85. Real Estate License law in Washington State

2008-03-10T12:24:00.000-07:00

For those of us who were involved in these changes a few years ago....this comes as a bit of a surprise. It appears that the revisions to WA States real estate license law has now been brought before our state legislators and is now ready for the Governors signature.

Though this was a hot topic 2 or 3 years ago many of us thought this had been stalled and set aside. It is time to start letting our agents know that this is now our future. Like many changes of this nature there will be some who are happy about the change and some....not so much. This has been a long time coming. Our industry has changed a lot since RCW 18.85 was last addressed.

Below are "Just the facts Mam" I'm sure there will be a lot of discussion about how this will affect our industry, our agents and the consumer.

Three levels of Broker:

Designated Broker
Managing Broker
Broker

New Licensees for Broker:
90 clock hours to sit for the Brokers exam
First renewal additional 90 clock hours

Managing Broker:
3 years as a Broker
90 clock hours of instruction (specialized classes)
Pass an examination

Designated Broker:
Licensed as a Managing Broker
Registered by DOL as a Designated Broker
Designated Broker may act as such for more than one firm

Renewals:
30 hours for each 2 year renewal
15 hours may be carried over from previous 2 years

Non licensed people may provide referrals to licensees provided their compensation is not contingent upon receipt of compensation of the licensee.

Licensees (all three flavors) must be fingerprinted and have a background check conducted. The Director may institute a schedule by which this information is renewed on a regular basis.

If a Broker is in a position to supervise or exercise control over other Brokers they must be licensed as a Managing Broker.

During the first two years a new Broker must have a “heightened level of supervision” provided by a Managing Broker.

Licensees must now provide a copy of singed documents to their principles “within a reasonable time after signing”. (instead of at the signing of those documents)

A salesperson will now be considered a Broker and must take a transitional course prior to their first renewal after this goes into effect.

The real estate market, much the same but at least we are used to it.

2008-02-26T14:08:00.000-08:00

Well here we are, almost through the first quarter of 2008. By now many thought we would be through the tough times. I think realization began to set in towards the end of 2007 or certainly by mid February as more and more sub-prime woes spilled out.

So...where are we now? I actually think we are better off this year than last. Even if it is a psychological factor of once you get past the shock you begin to acclimate. Sellers are becoming more realistic about their homes value. Agents are focusing more on sold data. Buyers are asking more questions about their loans and are actually much more informed than I think in the past.

Where we are is not all that bad, at least in this neck of the woods. I'll hear agents indicate it will be another year before we are done with this......do they think someone will through a switch at 12:53 pm on April 18, 2009 and the market will return to what it was 3 years ago??? What we will be seeing is a slow increase in market health. None of us want it to shoot upwards, just a nice slow improvement.

What does improvement look like? 1)Reduced inventory, we currently have 2259 listings on the market in Kitsap County. Getting below 2000 will indicate we are headed in the right direction. I've seen a low of 700 or so. 2) Slight increase in sales. Last week we had 45 homes go into a pending state. This means we currently have 50 weeks of inventory, certainly a buyers market. Both of these items will help to bring down our "days on market" which is currently 98...which is not bad compared to other parts of the country that are well into the triple digits. It will also allow homes to begin a more sustainable value growth. A 3% to 5% increase in your homes value each year is a nice place to be.

2007 Year End Real Estate Letter

2007-12-25T20:27:00.000-08:00

I hope this annual letter and calendar find you and yours doing well. Please note that your calendar starts on December 1^st so go ahead and start planning next year today.

2007 has been an interesting year in real estate. The good news is the northwest has done very well in these turbulent times (except Tacoma Pierce). Even though we have seen our value increases flatten, our inventory grow and our market times lengthen we are still far better off than many other areas.

Some Stats comparing 2007 to 2004-2006 in Kitsap County (through Nov. 1 2007)
2004 2005 2006 2007

# of New Listings: 5038 5237 5634 6007

# of transactions: 3823 3871 3406 2836

Avg. Days on Market: 65 58 63 89

Avg. Sale Price $254,809 $307,235 $336,299 $367,730

You have heard a lot of talk about our real estate market. Much of the discussion has been framed by the media in a very negative light. When you add to it new highs for the price of oil, a lot of discussion about subprime lending and a falling stock market there is some room for jittery nerves. Real estate is a very local discussion. Sweeping generalizations of the real estate market cannot do it justice, you have to talk with local Realtors to get the straight scoop about their area.

Some facts about our area that make it a great place to live, buy and own a home. Our economy seems to be stable, unemployment is at 4.2%. Though subprime loans in the US accounted for upwards of 20% of the loans made in 2006, in our area only 8% of them were subprime. Money Magazine has listed Silverdale in their top 100 list of best places to live. We are close to the amenities of a large city without having to live with the drawbacks. The increase of population in Washington state for the foreseeable future will continue to outstrip construction.

As promised in last year’s letter, our market has shifted from a seller’s market to a buyer’s market. Though sellers are having to be a bit more patient than years past, and cannot afford to be as aggressive with their pricing, homes are still selling. Buyers are in the best position right now. There is plenty to choose from, sellers are being a bit more negotiable and interest rates continue to stay low.

I believe this trend will hold through the first half of 2008, we should begin to see a shift next summer or early fall. If you are thinking of investing in real estate I would recommend doing so before the end of the first quarter 2008. As this cycle works through, the fed will feel pressure to increase interest rates.

I’ve included with this year’s letter a graph showing how our inventory has grown. Should you have any questions about the graph or other market statistics let me know.

Please have a wonderful holiday season and a safe, healthy and prosperous new year. Should you know of anyone thinking about buying or selling real estate in 2008 please let me know or if you just want a market update please feel free to call or check out one of my web resources. Web Page: www.FranklyRealEstate.com or my Blog: www.FranklyRealEstate.Blogspot.com.

PS....sorry for the formating. Blogger just has never done well with cut and paste from MS Word.

Washington State Foreclosure Facts

2007-12-16T21:45:00.000-08:00

Just the word "foreclosure" can send many running or begin to make a person sweat. It carries such negative energy that I think it needs to be put into perspective in Washington state.

Current foreclosure rate in WA:
.49 %

Current foreclosure rate in the U.S.:
1.4 %

1997 foreclosure rate in WA:
.5 %

1997 foreclosure rate in the U.S.:
1.08 %

Even though there is a lot of press right now about foreclosures the nation and WA state are actrually down from highs in 2001/2002 when WA reached 1.24 % and the Nation was 1.51%.

Without perspective the media can drive our real estate market into a holding pattern. Buyers will stop buying and sellers will stop putting their homes on the market.

Bottom line.....this may be the best time that I have seen in 17 years to purchase in our area. There are a lot of homes to choose from, Sellers are much more flexible and to top it all off....interest rates continue to stay very low. To those that ask the question "will interest rates go lower" I respond maybe....but it is not worth the risk. With rates being so low, there is a better chance that they will be higher 12 months from now than they will be lower.

U.S. Housing Market Update

2007-11-29T14:16:00.000-08:00

Just reviewed a report from the Office of Federal Housing Enterprise Oversight.

This one paragraph gives a big overview:

The states with the greatest rates of appreciation between the third quarter of
2006 and the third quarter of 2007 were: Utah (12.9%), Wyoming (11.8%),
Montana (7.7%), New Mexico (7.4%), and Washington (7.0%). The states
with the largest depreciation for the same period were: Michigan (-3.7%),
California (-3.6%), Nevada (-2.4%), Massachusetts (-2.3%), and Rhode
Island (-2.2%).

The full report can be seen here....

Silverdale WA voted in top 100 of best places to live 2007.

2007-11-19T16:32:00.000-08:00

Those of us who are fortunate enough to live in the area have known it for years. Silverdale was chosen as one of Money Magazine's best 100 places to live in 2007.

See the stats here:

Silverdale top 100 best places to live.

Response to Mad Money’s, Jim Cramer’s comments about real estate on the Today Show

2007-09-28T09:43:00.000-07:00

Response to Mad Money’s, Jim Cramer’s comments about real estate on the Today Show:

Jim Cramer is as sharp as they get when it comes to stocks but missed some basic points about real estate.

Buying real estate is not like buying stock. You don’t buy houses low today and sell them high in a few days. Buying a home is a long term vision. How long term depends on your situation and the local economy.

My advice to buyers:
1) Look at your situation. If you are only going to live in the area for a year or so, buying a house may not make sense. If you are going to own this next home for 3 or more years it begins to make more sense in a normal market.

2) Talk with your local Realtor. They know the market history, they know the current inventory and they know the current influences on today’s market in their area.

Generalizing about the real estate market in the United States is as dangerous as generalizing about stock investments. I think even Jim would agree that in a bear market there are still specific companies or sectors that are doing well and would be a good investment even though a large part of the market is down.

New Fangled Fruit......or.....Tools of the Real Estate Trade

2007-06-08T09:25:00.000-07:00

New tools of the trade.....

Well I finally made the move to a smart phone. I had been lugging around a MotoRazor, a Palm T-5 and gasp....a pager. I'd been putting it off as communications is not as intense for me as a broker as it might be for an active real estate agent. What pushed me to the next level is remembering basic leadership......lead by example. If I think consistent communication is important for my agents with their clients....if I feel technology is a tool to help buyers and seller feel more involved in the transaction and if I want my agents to use more of the tools that are available to them......you've got it...I better use it as well.

Two weeks ago I picked up my BlackBerry 8703e. So far so good!! I like it a lot better than my Palm and I'm finding I can respond to e-mail questions from my agents a lot quicker.

I added a couple of software items that have made it even better:

Google Maps

Google Search

Google News

Web Messanger (allows for Instant Messaging)

One of the reasons I chose BlackBerry is because e-mail arrives so quickly. It is based on push technology instead of having a device like a Treo which has to go out on a scheduled time and pull the information.

Some drawbacks:

This device does not have a camera or an SD slot which an active agent may find helpful.

A caution:

Spending time with your family does not mean sitting at the same table or in the same room while you cruise your smart phone. It is very tempting to pull it out and respond to messages but resist the temptation. When you are at your kids next ball game, take a look around. Many of the parents that are there have their noses buried in their laptop or smart phone......are they really there??? What experiences are they missing and what messages are they sending in the most wireless of ways to their kids who are looking up to them for encouragement and support.

A new mantra...."It is just a tool.....It is just a tool"

Impassioned discussions about commissions

2007-06-01T15:25:00.000-07:00

Below is a response to a blog entry that I placed on my blog in Active Rain where we are discussing use of Realtor.com. There is a lot of passion, opinion and misinformation out there. The whole topic of agent commissions comes up every few years and seems to be quite the blaze right now fueled with discussions about limited and full service brokers, the introduction of new business models like Redfin and Zillo as well as the one sided 60 minutes show.

In my opinion where 60 minuets went wrong was in airing such a one sided view, they lost creditability. Consumers have more options available to them today than ever before. More options means a better experience for home buyer and sellers.

You can see by the below post this ladies frustration, I hope I did an adequate job responding:

THE LISTING BELONGS TO THE HOME SELLER - WHO WANTS TO KNOW WHAT YOU SPENT HIS 6% ON, IF ALL YOU WANT TO DO IS FIND A WAY WHERE YOU CAN MAKE MORE MONEY FOR YOURSELF, AND NOT FOCUS ON GETTING EXPOSURE TO MARKET HIS HOME TO THE MOST QUALIFIED SELLER IN THE SHORTEST PERIOD OF TIME FOR THE HIGHEST PRICE POOSSIBLE. STOP THINKING THESE ARE YOUR LISTINGS. YOU WERE HIRED TO DO A JOB. FOR A LOT OF MONEY. MAYBE YOU SHOULD FOCUS ON THAT.

SO THE SMARTEST THING YOU DID FOR YOUR CLIENTS TODAY IS TO NOT ADVERTISE ON THE SITE WHERE THEY ARE SPENDING ALL THIER TIME... LIGHTS ON - BUT NO ONE IS HOME.

06/01/2007

by MARY RIGGIO

Mary, Thank you for your comments. Your message in caps tells me you are very frustrated with the process and perhaps have had a bad experience. You touch on several important issues, lets see if I can address them.

1) "THE LISTING BELONGS TO THE HOME SELLER - WHO WANTS TO KNOW WHAT YOU SPENT HIS 6% ON," I think sellers are always entitled to know what they are getting for their money. Agents should be prepared to meet or talk with their sellers on a weekly basis to cover things like marketing/advertising, showings and showing follow up, homes that have sold in the past week as well as new homes that are now competing with yours.

2) "IF ALL YOU WANT TO DO IS FIND A WAY WHERE YOU CAN MAKE MORE MONEY FOR YOURSELF, AND NOT FOCUS ON GETTING EXPOSURE TO MARKET HIS HOME TO THE MOST QUALIFIED SELLER IN THE SHORTEST PERIOD OF TIME FOR THE HIGHEST PRICE POOSSIBLE." The focus of any listing agent is to help the seller accomplish the goal of selling their house in a time frame and at a price point comfortable to the seller. If the home does not get sold everyone looses. Good agents spend a tremendous amount of time and resources in marketing. Personal marketing as well as property specific marketing. This helps build traffic and momentum which leads to more people seeing more homes. Real estate is like any other business. We are in it to make a fair profit. When profit margins are cut too thin something needs to give, and that is typically service.

3) "SO THE SMARTEST THING YOU DID FOR YOUR CLIENTS TODAY IS TO NOT ADVERTISE ON THE SITE WHERE THEY ARE SPENDING ALL THIER TIME... LIGHTS ON - BUT NO ONE IS HOME." Not all listing are on Realtor.com. A consumer who thinks so is being short changed. The reason why it is important for the listing broker to own the listing data is because we need to bring our knowledge to bear when deciding where to place our listing information. Realtor.com is a case in point. How angry do you think you would be if you had just done a price reduction but it does not show up on their website for a few weeks. This is true with many "third party" websites. They do not have to answer to the department of licensing for accuracy of information. All they care about is having valuable content which will drive traffic to their site so they can charge more for banner ads.

Like any other business relationship. You should choose an agent you trust, who is knowledgeable about the prcess and who shows good judgment and offers good advice. When you choose the right person the rest will fall into place.

Attention + Sevice + Tools + Knowledge + Enthusiasm + Reputation = Value

06/01/2007

by Frank Wilson

The benefits of a home warranty when buying or selling a home.

2007-04-30T16:26:00.000-07:00

Home warranties come in as many packages as any other insurance you might have used. In this case we are discussing an insurance policy that might cover various systems in the house that you are buying or selling. Depending on the policy, this could include electrical, plumbing, appliances, furnace, hot water tank, septic, well, pool or spa.

Some policies will cover the house while it is listed and will continue to cover it for a period of time after closing. In many cases if there is a problem the home owner pays only a small fee to have the work done. The policy I use requires a $55 fee which is paid by the home owner at the time of the breakdown. The rest is covered.

A few months back I purchased as a closing gift for one of my buyers a standard policy and added the well rider. Turns out that a few months after closing the well pump burned out. My client simply called the phone number provided, paid the $55 fee and a new pump was installed.

Policies can be paid for by the buyer, the seller or the agent. If you are in a negotiating type of market as a buyer you could ask that the seller provide one. If you are an agent this might be something you offer as a "value added" item.

Regardless of who pays for it, this is something that you would want to at least consider while working through the process of buying or selling a home. Ask your agent for their opinion and recommendation. Like any other insurance policy or product make sure you read and understand all of the documents before signing them.........yes....even the fine print.

To list or not to list....listing information on Realtor.com

2007-02-26T17:40:00.000-08:00

A friend of mine by the name of Karen used to work with me here in our real estate office in Silverdale, WA. She had been both an agent and an assistant manager. Some years ago (they fly by way to fast to count) she moved to the east coast and eventually to Florida where she practices real estate.

Karen e-mailed me this morning asking for my take on this article; http://realtytimes.com/rtapages/20061130_seattlepullout.htm

Here are some of my thoughts:

This article comes from an interesting angle….”why are brokers choosing not to put their listings with Realtor.com”. I would come from the other side…why would brokers want to???

The Realtor organization is a fantastic organization for providing services to its’ members like; education, a consistent code of ethics, cost savings from third party vendors and for acting as a political watch dog regarding property rights, land use and legislation that affects our business.

They were not used for marketing or promoting our listing inventory. That has always been the broker’s job. In some areas there may be a crossover. Some Multiple Listing Services (MLS) are owned by the local Realtor organization.

So lets break this discussion into a two pieces; context and reasoning:

Context:

Some years ago, National Association of Realtors decided to start Realtor.com. They hired a third party to put this whole thing together and it is now operated solely by this third party as NAR has distanced themselves from it. The third party was Homestore, but is now known as Move Inc. and trades on the NASDAQ as Move.

The reason NAR felt there was a need for Realtor.com is because real estate firms in the midwest and on the east coast did not share their listing information in a way that the public could access it on line. The consumer would have to access each broker’s webpage, one company at a time to see what was on the market.

This is very different than those of us in the northwest. From the beginning we felt it was a benefit for the public to get their listing knowledge and market information right from the horse’s mouth. So each of us share with the other all of our listings. We would rather have the consumer go to our competitors website and get accurate up to the minuet information then to a third party vendor.

So now we have a for profit company, who looks and feels like NAR but really isn’t and they want to collect, distribute and profit from the listings that our agents have worked so hard to get.

Here is some of the information from their web page, italicized:

Stock Quote

Top of Form Bottom of Form MOVE (Common Stock)
Exchange	NASDAQ GS (US Dollar)
Price	$6.29
Change (%)	0.03 (0.48%)
Volume	1,403,481
Data as of 02/26/07 4:47 p.m. ET Minimum 20 minute delay Move, Inc. provides consumers with the real estate content, decision support tools and professional connections they need before, during and after a move. For the last ten years, MoveT, the new Homestore®, has been providing information and decision support tools for consumers looking for home and real estate-related information on the Internet. Visitors to Move's Web sites, including operates REALTOR.com®, Move.com™, (formerly Homestore.com®, RENTNET® and HomeBuilder.com®) and SeniorHousingNet™ have access to the most comprehensive selection of existing homes for sale, new homes, apartments for rent and senior housing. Consumers also have access to home plans and construction-ready floor plans through Move's Homeplans Company . This information is provided so that you may put Realtor.com in context. Realtor .com is not the “Mother ship” as the author of the referenced article would have you believe. In fact it is just like many of the marketing vehicles currently available to brokers such as newspapers, home magazines and other third party website vendors. Some reasoning: Now that we know what Realtor.com is, or isn’t, let’s talk about the reasoning behind the decision not to turn listing information loose. In an earlier blog I addressed “whose listing is it?” If you’ve taken a moment to peruse past articles you’ll see that I firmly believe that the listing is the property of the listing broker. It is their privilege to be able to help sellers sell their home but it is also the broker’s responsibility to ensure the information is true, accurate and up to date. It is also the broker’s responsibility to market the property in a way that reflects positively back on the seller and the brokerage. In its simplest form, a website is much like a flyer. If done correctly it can illuminate the high points and features of a home as well as carry an image of the broker. They can also look pretty poor if not done well. We have all seen a flyer that is a third generation copy that does not carry the image the broker or the seller would be proud of. So why turn this responsibility over to a third party web designer whose goal is to sell banner ads? In essence they increase the value of their site by publishing our listings. This drives more traffic to the site which means their electronic real estate becomes more valuable to advertisers. While I appreciate the importance of earning a profit and running a business, it is important to keep in mind our goals. A third party internet web companies goal is to attract traffic to their site so that they can sell advertising and or spin a lead off to an agent to earn a referral fee back. The goal of a real estate firm is to promote a listing, provide accurate and timely information, provide a searchable data base, allow the public to meet our agents and promote the image of the company. Lets take a moment to talk about accuracy. Currently the Department of Licensing in Washington state (I’m sure other states as well) requires a broker to promote a listing with accurate information. If we were running a listing in the paper that was already sold, or contained incorrect information we could be called to task. This same standard is carried out to the internet as well. While I’ve not heard of DOL prosecuting agencies for improper internet advertising their light will be shining in that corner soon. No one will be as responsive as the broker to make appropriate changes. Before we had our listings removed from a local home magazine website we had a lot of calls on listings that had long ago closed but had not yet been removed by this third party vendor. The same has been reported about Realtor.com. Different solutions for different companies: If you are a small company who has just surfed in on this latest real estate market then Realtor.com may be a good solution. You need to employ every tool possible to make yourself appear larger than you are. If you are a larger company who has successfully invested marketing money into a website, then there is no better tool for providing the consumer with the best experience. That is the benefit of running a business or being an independent contractor….you get to make these decisions. Don’t forget to read the fine print……”all decisions are subject to change.”

Real Estate Statistics for Kitsap County, WA 2/18/2007

2007-02-23T12:18:00.000-08:00

Watching stats like these will help you determine what kind of a market you are in.
For Kitsap County Washington as of 2/18/2007
1350 Active Listings
71 Homes went Pending last week
77 Average Days on Market

$305,601 Average List Price
$300,937 Average Sale Price

98% List price to sale price ratio

19 weeks of inventory

Learn more about Defining Your Market.

Who owns the listing data?

2007-01-18T13:42:00.000-08:00

I just finished reading and responding to a discussion in the INMAN blog

http://www.inman.com/hstory.aspx?ID=61445

The reason I think this is an important issue is because it comes down to, who is responsible for the way your home is marketed?

In my opinion that should be your real estate professional.

Many websites are building traffic to their site by using other peoples information. The challenge with this is that information becomes dated or is entered on the third party site incorrectly or incompletely. By ensuring the chain of ownership and responsibility you can be sure your property is marketed in it's best light.

Here is my response or comment in that blog:

To answer who owns the listing information you need only follow the chain of responsibility.

The real estate broker/agent enters into a contract with a seller, which allows the real estate broker/agent to offer and market the seller’s property for sale.

The real estate broker/agent is responsible for entering the information into their local MLS, print media as well as any internet marketing that is done. If the information is incorrect or incomplete the broker and agent are held responsible.

If it were not for the listing agreement the information would not be made available. The listing information provided is usually above and beyond what is public record through county records.

The photos added, the descriptions used and the pricing strategy are all services brought to bear by the real estate firm and its agents.

Since real estate agents can not practice real estate unless they are a broker or work for a brokerage firm, ownership of the listing, the data and the responsibility lands squarely at the broker’s feet.

Annual Real Estate Update for Kitsap County WA

2006-12-01T16:14:00.000-08:00

At the end of each year I send out a letter to all of my clients with a 1 page update on what is happening in Kitsap County. Below is this years letter:

I hope this annual letter and calendar find you and yours doing well. Please note that your calendar starts on December 1^st so go ahead and start planning next year today.

2006 has been a good year in real estate despite the doom and gloom you might have heard earlier in the year. The markets throughout the US that had the highest run up in value are the ones that had the biggest decline. Our area has done quite well. Though inventory and market time are up so is the value of your home. In general the value of your home has increased about 9% this year, a much more sustainable increase over the 20% increase of 2005.

Some Stats comparing 2006 to 2004 & 05 for Kitsap County (through Nov. 1 2006)

2004 2005 2006

# of New Listings: 5038 5237 5634

# of transactions: 3823 3871 3406

Avg. Days on Market: 65 58 63

Avg. Sale Price $254,809 $307,235 $336,299 (+9%)

If you were a seller in 2006 you had to be a bit more patient than you’ve had to have been over the past few years. You were not able to choose a list price as aggressive as in the past. Bottom line though is houses are still selling and sellers continue to see appreciation.

If you were a buyer in 2006 you’ve actually had the best of both worlds. Interest rates continue to stay low and you have more houses to choose from. The icing on the cake is that sellers have had to be a little more flexible in their sale price and have been more open to paying some of your closing costs.

I’ve developed two web resources to help you keep up with our market:

Website: http://www.franklyrealestate.com

Blogsite: http://franklyrealestate.blogspot.com (see what is in store for 2007)

Politics/Taxes – This last election cycle has brought in a new County Commissioner. Since there are only 3 Commissioners involved in making decisions for us at the County level the change out of 1 can have a large impact. This last change brings with it an increased risk to your property rights and increases the likely hood of increased taxes. Now, more than ever you need to be prepared to speak out if you see something going on that you disagree with. Letters to your local and state representatives as well as letters to the editor are great tools to get your point across.

Around Town – Bremerton continues to flourish, its skyline almost unrecognizable from a few years ago. We have real, on purpose condominiums being built where in the past Kitsap has seen apartment looking condos or converted condos. The Tacoma Narrows Bridge continues its construction. Stay tuned to http://www.wsdot.wa.gov/goodtogo/ to sign up for your “good to go” sticker that will allow easy passage on the bridge without having to stop and pay a toll

Please have a wonderful holiday season and a safe, healthy and prosperous new year. Should you know of anyone thinking about buying or selling real estate in 2007 please let me know or if you just want a market update please feel free to call or check out one of my web resources mentioned above.

PS Sorry for the formatting, apparantly Blogger does not like info from MS Word.