Make a Good Life

Building Earth Farm

 

I forget about this great farm that is spitting distance to where I live. Building Earth Farm in conjunction with Madrona Grove Fruit stand sells CSAs (subscriptions for fruit and veggie orders seasonally), organic chicken, pork and turkey, eggs etc.

I have not yet tried them out, but I will. Since it is not looking good for me to have chickens this year I am always on the hunt for a resource. Check out their site.

What Does a Short Sale or Foreclosure do to your FICO Score (Credit Report)?

Sent around our office today was an interesting article (from bankinganalyticsblog.com) about the impact a short sale or foreclosure can have on someone's credit score and their ability to purchase in the future. Remember when a foreclosure was the kiss of death....resulting in seven to ten years of inability to buy because of the scorch left on the credit report? No more...Today, depending upon the credit score before the hardship, consumers can recover and buy again in as few as THREE years.

 

See the article here. Taking away a message, the better your FICO score to begin with, the worse shape you will be in after a short sale or foreclosure. Just as high-priced home values are down as much as 60%; the bigger they are, the harder they fall. Taken from the article:

-The magnitude of FICO® Score impact is highly dependent on the starting score.

-There's no significant difference in score impact between short sale/deed-in-lieu/settlement and foreclosure.

-While a score may begin to improve sooner, it could take up to 7-10 years to fully recover, assuming all other obligations are paid as agreed.

-In general, the higher starting score, the longer it takes for the score to fully recover.

-Even if there’s minimal difference in score impact between moderate and severe delinquencies, there may be significant difference in time required for the score to fully recover.

 

Presentation on Shoreline Master Program and Planning

What is it? What’s going on now?

I have attended several public meetings and hearings on the upcoming revisionss to the Shoreline Master Plan. According to Karen Valenzuela, County Commissioner, we are six or so months away from its completion. This meeting may be a good opportunity for you to learn what it could mean for you. Especially important information for waterfront property owners to know will be the new bluff setback numbers.

 

Wed., Feb. 8th

7:00 - 8:30 p.m.

Tradition’s Café

300 5th Ave. SW, Downtown Olympia

 

Have you heard something about Shoreline Master Program in the news, but not sure what it is? Then this presentation is for YOU! Across Washington, many local governments are in the process of updating their Shoreline Master Programs, which are local policies and regulations designed to manage human use of marine, stream, and lake shorelines. Learn the background and current information at this free public presentation given by Department of Ecology Staff. This is basic information for people who are wondering what this planning process is and why it is occurring.

 

For more information contact Patricia Pyle at ppyle@ci.olympia.wa.us or 360-570-5841.

 

Griffin Neighbors Annual Meeting a Success

The annual meeting of the Griffin/Steamboat community was a great success last night.  We couldn't stop talking amongst ourselves and therefore did not leave the fire station until well after 10pm!

The speakers were terrific, as were the board members of the Griffin Neighborhood Association (GNA).  It was great to hear updates from Thurston County Commissioner Karen Valenzuela, Thurston County Prosecutor Jon Tunheim,  Griffin Fire Department chief John Wood, St. Christopher's Pastor Andy Willis, and Greg Woods, the superintendant of Griffin School.

It was also nice to meet Jeff Davis, a current Port of Olympia commissioner who is running for a Representative position for the 35th District. 

Greg Woods of Griffin School spoke on the importance of our upcoming levy vote for Programs and Operations.  I encourage those of you living in our community to strongly consider passing this levy.  Cast a more expansive view of the future implications of failed school levies:  Property values and desirability of area.

Because I work in real estate I can attest to the continued desirability of the Steamboat Peninsula.  People moving here from all over the county have done their homework online and agree, Steamboat is a neat place to live.  That is, in large part, directly attributed to the continued success of the Griffin School.  Stop passing levies and we may see the services, employees and programs at Griffin diminish.  If Griffin is no longer able to draw newcomers with stellar scores, special ed. programs, nicely maintained facilites, after school programs, etc we may see fewer people willing to make the drive to our beautiful peninsula to live.

Many of us have watched over the past 15 years as other school districts have suffered the fate of continued failed levies...even in stronger economic times.  Schools increase class-sizes, programs go away, enrollment declines as the reputation spreads.  Fewer people move to the area as they hear the rumors....and thus property values are dimished.  I am not making this up....

So, even if you don't have a Griffin student and you don't think the levy issue affects you....think again and consider the decision carefully.

You can read more about what this levy would fund by clicking here.  For a couple of dollars on each dollar of tax assessed value of your property(ies) you CAN make a difference in your community by supporting the school that binds us together and continues to protect our biggest investments; our homes and property.

Merry Christmas Eve!

Another Chris Craft Commander owner showing his Christmas spirit!

It is absolutely beautiful today in Olympia!  Almost 60 degrees and FULL sun!  Makes me wish that I had Almalu ready for a ride.....though winter boating is not my favorite.

We went to see "We Bought a Zoo" today.  I cried for two solid hours basically....it is a much more emotionally charged than the commercials for it portray.  But it was a good movie....and now I want a zoo.

A full day off from real estate tomorrow.  Today I fielded a phone call from a disgruntled neighbor to a new home build, and several emails from peoples who are buyers having a hard time finding what they want.  Tomorrow, Christmas day, almost always finds my phone silent.  I have actually shown homes on Christmas Eve one year...I think that was 2008. Guaranteed phone silence makes me happy and nervous at the same time...

The Glamorous Life of a Real Estate Agent

Photo borrowed from Trulia.com

Its funny how many people think that being a real estate agent is glamorous and sexy.  We must all just drive fancy cars around to look at cool houses all day and wrap it up with cocktails at the latest hip bar, right?  Well, no.  Renee, my business partner and I comment at LEAST once a week that we have to write a book.  We could write a book about The Reserve at Cooper Point alone!  Really it is amazing to look at the things that happen in a week, the people we meet and the stories we hear....The Things We See!  Naked people, bugs, trashed out houses, drunk people, fighting between spouses....the list goes on and ON.  And that is just showing property...we are not even talking transactions yet!

Industry blogs abound with stories of the ridiculous, extreme and dangerous in the real estate world.  I stumbled upon a funny blog tonight and because it is on a site not locked up just for real estate professionals I can share it with you.  Check it out! 

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I just returned from my yearly sojourn to the desert of Palm Desert, CA. And...I discovered a store called BevMo!.  Have you heard of it?  It is a nirvana of alcohol and liquor, wine and spirits, accessories and even cigars.  It makes our liquor stores in Washington look like an eastern block country's stores....limited, scarce and sad.  I want to have this kind of choice.  I want to be able to choose from 200 wines, lots of liquors, discount prices.  I don't want this type of commerce controlled by state government.  Didn't we already vote on this?  I am in favor of privatization.....here and in other places.   Click here to read more.

Orcas!

 

Download IMG_0090.MOV

You will not believe how close these Orcas got to my boat on Saturday!  Let me repeat....the Orcas came to us.  I am well aware of the current (revised in the past year) rules and restrictions regarding the Orcas.  You are required to stay a minimum of 200 yards away from the animals and are NOT allowed to cut in front of them or block their paths.  Several people, after seeing this video, have asked me if we were breaking the law by being too close.  We did not go into their paths purposefully and we maintained a respectful, and more than 200 yard, distance while we were cruising along with them for a while.

We were moored on a buoy off Hope Island on Friday night, August the 26th when I heard a snorting sound off the bow.  I was having a glass of wine and my friend Pam and my children were down below in the cabin playing cards.  I called them up and after they dismissed my snorting observation as something wine-related, they too heard the sound.  We looked in the dark and forward of the bow by about 100 feet and saw several Orcas breach and blow water into the air.  In the moonlight we could just see the water shoot into the air and their glistening backs. It was absolutely magical to be in the dark with them in such a quiet, intimate setting.  We felt like we were the only people in the world to know that they were there.  And with my propensity to never follow the news, I had not read or heard about their arrival in the Sound.

The next day we were motoring off the northern tip of Harstine Island in Pickering Passage when we noticed a bunch of boats stopped and all pointed in the same direction.  AFter being a little annoyed that we would have to navigate around them, far to the north, we finally figured out that they must be watching something, and it must be the whales again.  We didn't see anything but we shut off the engine and pointed the boat the same way everyone else was pointed, and Pam went to sit on the bow to watch for them.  She almost fell off the boat because of rough water and so went around to the other side to go up front.  Not a nano second later the whales surfaced mere feet from the boat on the starboard side.  I could have absolutely reached out and touched one they were so close, I was so shocked to see their GIANT heads and eyeballs so close!!!  I cannot explain how close they were, and no one believes me.  And to be fair, we did not knowingly approach them, but the other boaters watching must have realized that we were arriving basically on top of them.  I feel bad about that....but we had no idea.  No one was waving their arms or trying to warn us, and at that point there were probably ten boats sitting there.  When the whales left the closest boat to us zoomed over and said, "oh my gosh we thought that they were going to jump into your boat with you!"

Later that day we were farther south in the passage off of the tip of Squaxin Island floating along.  We had followed the whates (at a respectful distance and with a wide berth) for a little while, but then moved past them toward Steamboat Island.  While underway there were several boats that were really too close to the pod, and at one point the pod split into two, maybe because of the boats crossing over their path.  We stopped to see if the whales were going to keep coming down Pickering Passage.  We could see behind us that the entourage of boats from the tip of Harstine was still following the whales and that they were joined by a Sheriff's boat.  Earlier that same sheriff had hollered at me that I should be going ten knots, I think because I was near a raft of boats off Harstine (very drunk parties rafted up five or six thick, by the way).  Little did he know that I have never gone faster than nine knots....a joke among family and friends, so Pam and I got a good giggle out of it.

We watched as the whales came toward us down the passage, eventually dove basically under our boat and resurfaced twenty or so feet off our port side.  Looking back I wondered if we had done the terrible "get ahead of them and get in their path" strategy, but it was impossible to predict where they were going to go....they were VERY close to shore and surprised several homeowners basking on their beaches...you can imagine!  They were zig-zagging across the passage and there was really no way to anticipate where they would turn up.  We wanted to get some video tape of them for my husband so we stopped and turned off the engine and watched as they traveled south down the passage toward us.  We saw them dive and knew that they had to come up on our port side at some point.  We waited and I caught the whole thing on video on my little phone.  It was amazing, and watching the video later its funny to hear me and Pam giggling like ten year olds watching these magnificent creatures. I wish that we could have controlled ourselves a little better and been more solemn about the majestic site.....but it was truly amazing how close they were.

There were quite a few boats still following the pod.  Most of the boats were giving them a wide berth in the passage.  There were a few exceptions, a couple of ladies in a skiff were getting way too close and driving over their wake.  The polilce boat was sort of escorting the pod along and he would sound his siren and let oncoming jetskis and kayaks know of their presence.  It was sad that some of the boats were too close, and possible that they don't know about the regulations.  I will give them the benefit of the doubt.  It is really amazing to see this site, and tempting to get closer than you should.  And sometimes it almost seemed like the whales were attracted to boats, as they surfaced several times in front of boats that were sitting still and were kind of out of the way, like they wanted to have a look or show off.

We are lucky to live where we do.  To think, I just came back from Alaska where I hoped to see whales.  I certainly don't think I would ever be that close to them via a cruise or whale-watching tour.  A once in a lifetime experience!

Weekend debriefing....and some personal opinion. (You were warned)

 

Ahhh....California.  Welcome sunshine and temperatures in the 70's.  But I miss my little boat!  And, of course my real estate business.  What to do with myself?  Luckily my phone keeps me busy even while on holiday.....and I do feel lucky for its constant activity, which I never take for granted.

Open houses today were very active....all three in my team had terrific traffic (over 12 people minimum) today, as did two other Greene agents I chatted with.  People are out and getting ready for spring.  I had 12 people at my open out Boston Harbor and a couple seemed very interested.  Then farther out Boston Harbor, on the water, Dan was absolutely swamped.  That house is getting an offer tomorrow....further proof that the well-priced waterfront is still a deal in Thurston County, this home is listed at $749k.  This home was absolutely killer, right around the corner from the Boston Harbor marina, walk-out bulkheaded waterfront, darling home with separate garage and guest quarters.... and it has only been on the market for a week.

So...I just watched 60 Minutes piece on the Mortgage Mess: Paperwork Mess, The Next Housing Shock.  I      am       furious.  Watch it on 60Minutes.com and see what you think.  Yes, there have been many mistakes made in the crazed mortgage madness of the recent fat years.  Just like there were many buyers making mistakes during these years of loose and easy money. 

The bottom line:  You promised to repay.  I know that there are extenuating circumstances for some owners, that there are reasons beyond their control that they cannot repay their mortgages that are related to the current economic downturn.  Many owners have lost jobs, had a change of family status, had an illness, or an unexpected relocation.  But, working in this profession, I can assure you that there are many owners who have evaluated their housing investment, called it a poor one, and strategically walked away.  This is the part I have an issue with....not the innocent homeowner who is lost in the drain of equity, but the strategic defaulter who leaves anyone else but them holding the bag.

Find a loophole.....someone always will.  Whether the president of the lending institution signed your mortgage paperwork, or if someone being paid $10 an hour to mass-sign paperwork did, or if they lost it in a computer somewhere, you still made the same promise:  Loan me this big sum of money with no money down to buy my dream-house-of-the-moment, and I promise to repay you, with interest, within 30 years.

During my trip I am reading "The Big Short" by Michael Lewis, which has been well-received and labeled as a layman's explanation of the fall-out.  I don't pretend to understand it all, but I am sure that pointing the finger at either the consumer or the financial institutions does not begin to get to the root of the issues at hand.  Why were consumers given access to the cheap money availed to them?  Who is manning that ship?  Should we really have oversight that broad, as to check intent of the everyday middle-class consumer before they make a move financially? 

The Far-Reaching Hurt of Negative Equity

I follow a CNBC reporter named Diana Olick every now and again.  A recent article that she wrote came up in our Greene Realty office meeting this morning.  The gist of the article is the far-reaching effects of being in a negative equity position on a residential property.

Of course, you are only in a negative equity position when you go to sell.  Plenty of people owe more on their homes than what the home is worth, but no one is writing articles about them, because until they try to sell  this home, they don't matter in terms of the numbers of households clogging up the real estate market...right?  Not exactly.

Move-up buyers are important in our market, always have been.  In the past, homeonwers could count on having a little stuffing in hand after selling their principal residence to put down on a bigger, better house.  And that was part of the American Dream, super-sized over time and with the added ease of borrowing vast sums of money with little skin in the game. Now in the wake of the fall-out we hear that Americans want smaller homes, they want to dig in, they Have to stay put.

As a result, we lost an entire segment of the market.  Who is moving up these days?  In my experience, it is that client who, through wisdom or dumb luck, played the market right.  They are the clients who own a home free and clear and can pick and choose their move-up home from many on the market at fire-sale pricing. Or they are the clients who did not use their home as an ATM for the past five years, have paid down their mortgage, are realistic about what the home should sell for today....they put it on the market at a good price, sell it pronto and pick up a killer deal on a bank-owned home twice as big as their last house, for only about $80k more than what they just sold for.  Cash buyers and wealthy investors are also picking up great deals now, either for personal homes, vacation homes, or investment pieces to add to their portfolios.

And the cash buyer is back.....Though I have taken great pains to educate my higher-end seller that the "Magic Buyer" is a thing of the past, I have to say that I have been proven wrong at least three times in as many weeks as Seattlites with cash are snapping up our waterfront at around $1 million like we are not making any more of it.  Because every seller who wants to price their home at more than what I tell them will say that there will be the one buyer, with cash, from Seattle or California, who will not dicker on the price because it will be a good deal to them, and of course no appraisal will be needed with a cash deal.  Never say never....but have a back up plan.

Here is a link to that article on CNBC.  Check out Diana's blog for interesting and up-to-the-minute real estate news.