The Creel Deal

It never ceases to amaze me when I read of the shenanigans our fellow agents pull, then get fined for. This month's batch has some real winners in it (no names mentioned of course). 

1. Rules Violated: NWMLS Rule 2 (Required Turn-in), Rule 11(b)(ii) (Restrictions on Showing and Sale),    Rule 25 (Cooperation in Showing and Submitting Offers and Disclosing Information to Other Members), and Rule 20 (Notice of Sale)
Summary of Complaint: Agent took a listing and failed to deliver it to NWMLS for input or input it by 5:00 p.m. the next day, failed to timely present a buyer's offer to seller, and failed to report status change in a timely manner. Agent listed own telephone number in the owner's phone field.
Penalty: $5,000. Agent altered listing information on many listings before they expired.

2. Rules Violated: NWMLS Rule 1 (Listing Input) and Rule 10 (Incomplete, Inaccurate, and/or Inappropriate Exclusives)
Summary of Complaint: Agent altered listing information on many listings before they expired.
Penalty: $5,000 fine with $2,000 suspended on the condition that the member not be found guilty of any further Rules violations within 12 months. Agent must take Rules and Regulations class within 1 year.

3. Rules Violated: NWMLS Rule 2 (Required Turn-in), Rule 22 (Duplicate Listings), and Rule 122 (Notification Sale Closed)
Summary of Complaint: Agent input duplicate listing without submitting it to NWMLS for input and payment of fee, and failed to report notice of sale in a timely manner.
Penalty: $3,000 fine with $1,500 suspended on the condition that the member not be found guilty of any further Rules violations within 12 months.

4. Rules Violated: NWMLS Rule 17 (Solicitation of Listings)
Summary of Complaint: Agent solicited another member's active listing.
Penalty: $5,000 fine.

5. Rules Violated: NWMLS Rule 17 (Solicitation of Listings) and Rule 62 (Limited Forms Usage)
Summary of Complaint: Agent solicited another member's active listing, including preparing a Form 19 to cancel the listing.
Penalty: $1,000 fine.

6. Rules Violated: NWMLS Rule 1 (Listing Input), Rule 2 (Required Turn-In), Rule 10 (Incomplete, Inaccurate, and/or Inappropriate Exclusives), Rule 101 (Division of Commissions), and Rule 120 (Notice of Sale)
Summary of Complaint: Agent failed to disclose a Short Sale, listed inaccurate information, pressured the selling agent to lower the selling office commission, and failed to report status change in a timely manner.
Penalty: $500 fine with $250 suspended on the condition that the member not be found guilty of any further Rules violations within 12 months.

7. Rules Violated: NWMLS Subscription Agreement (Sections 1, 12, and 13)
Summary of Complaint: Agent removed the key from the keybox and left it outside so the home inspector could access another member's listing.
Penalty: Subscriber fined $5,000 with $2,500 suspended on the condition that the subscriber not be found guilty of any further Rules violations within 12 months. Member and agent must take Rules and Regulations Class within 60 days

8. Rules Violated: NWMLS Rule 17(a) (Solicitation of Listings)
Summary of Complaint: Agent sent another member's listing client an email alerting them to errors in the current listing and suggesting the client change listing agents.
Penalty: $5,000 fine with $4,000 suspended on the condition that the member not be found guilty of any further Rules violations within 24 months

9. Rules Violated: NWMLS Rule 50(b) (Electronic Keys), Rule 86 (Billing Verification Report), and Subscription Agreement
Summary of Complaint: Agent used his Supra Key to access another member's listing after his real estate license had expired. Office failed to notify NWMLS that agent's license had expired.
Penalty: $2,500 fine with $2,000 suspended on the condition that the member not be found guilty of any further Rules violations within 24 months.

Since writing a post on Scams Operating on craigslist.com last year, I've received dozens of emails and phone calls thanking me for the post and asking many questions.

The most interesting call I received was from a homeowner in Florida that called after being approached by a man expressing interest in a home she had for rent. She knew something smelled fishy and felt it to be a scam, but couldn't quite figure out what was up since it didn't involve cashiers checks or Western Union as the standard scam does.

After speaking with her at length and helping her reach a conclusion, it was apparent to me it was worthy of a post. These challenging times are making many property owners anxious to find renters to cover those mortgages, and often many are inclined to bend common sense rules and take big chances when it comes to renting their home out. 

The homeowner described the following: She was offered cash for the rental by a fellow claiming to be rather wealthy, he said he was getting a divorce and wanted the rental to be a secret. He wanted a lease, but would offer no identification whatsoever (refused). He wanted to pay several months in cash, which he had a lot of, yet he drove an old beat-up car. He said he owned many luxury cars (even two Hummers), but they were all currently loaned out (but of course, he explained, she would see them at the home periodically in the future).

The owner was actually contemplating renting the home to the man due to her need for cash, she had even taken a deposit. After bouncing the info around in my thick skull, I felt it sounded like someone acting as a "front-man" to rent the home for illegal purposes. It could be a safe house for illegal aliens, or drugs, and it could be to run a drug dealing or manufacturing operation. One thing was for sure, he was up to no good.

After discussing my thoughts with her, and pointing out that anyone would be foolish to rent to a person that refuses to offer proof of identity (to say the least), she decided to return the cash deposit and not enter into the lease with him. As I told her, I know the money would be nice to have, but imagine what it will cost you if they set-up a meth lab in there. Many vacant homes are even being used without the owners knowledge for illegal purposes (People seem to believe walking away from a home ends their responsibility).

As the market becomes flooded with rental properties, many owners will feel inclined to rent to anyone with cash in hand. If you do so, you may be making a mistake so enormous that the consequences' will make your current financial issues seem trivial.

Facts About Meth Lab Clean-Up

I've recently had the great displeasure of debating (on AR) with a CA homeowner that essentially blames everyone in the world for their situation but themselves. I've never dealt with a person so full of self-pity and hate. I'm amazed how some people simply are unwilling to accept an iota of blame for their own actions.

Now certainly it can be said that there are people out there that were mislead by unscrupulous lenders, and I'm not denying that. However, there seems to be a breed of homeowner that simply takes the attitude "If the homes depreciated, why I should make the payments?"  That just blows me away.

I don't think it was kept a secret that the market faced the possibility of collapsing or reversing. Seems I read about it everyday for years before it happened. What really surprised me was that this person blames REALTORS, claiming we were pushing homes off on people knowing that they were over priced, and telling buyers that they would appreciate by 25% in value every year, forever!

At one point the person only identified as CA Homeowner decided I was a CountryWide loan officer and said this:

"You are probably a Countrywide Loan Officer which is why you have the position you do.  Things were good when you could lend to a dog, much less a person, and doop them in to a Payoption loan where you would make 400 bps now you and your company profits are paying the price for your own crummy lending practices.  Don't blame the consumer, blame yourself and your institution for you're the problems we are in.  As they say, don't hate the player, hate the game."

Then when I pointed out I was not a lender but a Realtor, it was Realtors that caused the problem:

"You being the real estate agent and all are very much part of the problem that is this market and b/c now you do not get paid like you used to you blame the guy you sold the house down the street to for an inflated price to fatten up your wallet.  Blame yourself for the problem pal.  Keep finding and sending those pictures from the internet b/c god knows as a RE agent you have nothing else better to do. 

Its so interesting and pathetic how you advertise on these sites, feeling desperate are we?  Funny how things change in a year huh bud! 

Mike you really have a lot of time on your hands these days don't you bud.  I mean when the RE market is distressed and you have nothing to do it really allows for a lot of play time on the internet".

The day you look in the mirror and start to blame yourself for being part of the problem the RE market is in the more latitude we will give you to spout your worthless financial bable.  

Lets ask the "I didn't do it" RE agent (thats you) w/ the halo over his head a few questions shall we?  Ok, lets start...Did you push houses in the market you work in to the highest possible price knowing full well that they were overpriced (I mean, it is so typical to have mammoth appreciation every year)?  Did you work w/ clients w/ not as much knowledge as you in the RE market? 

Did you know of lenders offering 100% finaning w/ payoption loan programs w/ 1mth teaser rates, claiming that it is a good deal to your clients and that there will always be 25% appreciation per year?  I could go on w/ the Q&A but I know, you know, and everyone knows what the answer is to these questions are and if you say anything but yes, you are a LIAR!!!!! 

If you didn't, how could you afford that mortgage payment you claim to pay every month for the posh house you live in, the slick black mercedes you drive to show those clients the house they are going to buy, along w/ your wife's spending habits, kids private school, etc.  At least w/ my job I can go to bed at night knowing I didn't doop people in to getting my possessions and knowing when I pay my mortgage, it is not from making people bankrupt in the process. 

So there it is there, all summed up with a bow on it, we did it! We tricked clients into paying to much for their homes. Who knew?

No one loves animals more than me, but I can assure you, that's not a sentiment shared by all. There have been many times when touring homes with clients that the cute little Chihuahua, Pekinese, or other miniature dog has cost the seller a sale.

Tiny dogs can be aggressive, and love to bark; I once had a showing whereas the little dog that was chained to a table in the kitchen never stopped yapping, and then tried to bite the buyers little boy. He of course starting crying and that was the end of that tour. Not surprisingly, that home never did sell, and was eventually taken off the Market.

Then there was the pit bull in the garage day (sounded like he was going to rip through the door), and the giant iguana on the sofa day, the stinky squawking parrot day, and just yesterday, a gigantic old fat Doberman in the back yard (friendly but huge). Fortunately, I went outside and entertained the former beast while my clients looked around the property. I assure you, not all agents will do that, because many are more terrified of dogs than their clients.

As sellers, you must keep in mind that although you know and love your pet, and you know it "wouldn't hurt a flea", others have no way of knowing that. At the very least, the animals are distracting. The obviously friendly ones want attention, they've been locked in the house alone all day and here comes people walking in the door; to the pet, it's party time! Also, buyers don't want your dog's hair all over their nice clothes, and many are allergic.

Keep in mind, the items left in the kitchen for such pets can be troublesome as well, and in some case, downright disgusting. Last week my client accidentally kicked over a gigantic water bowl in the kitchen, so I got to spend the next ten minutes sopping up water with paper towels while my clients toured the home alone. That home is still for sale. I'll spare you the Poo stories, I'm sure you get the picture.

Many homes of course have cats, and for the most part they're little to no trouble. Of course, many people are allergic to cats, so you pretty much rule out a sale to those buyers.

So sellers, keep in mind, it's challenging enough selling your home for a good price these days. You don't help the situation if you leave Cujo in the yard (or garage), or Tinker Bell in the house to distract, annoy, or scare the potential buyers. You don't want to take your pets with you because they will drive you crazy, so don't leave them behind to drive your potential buyer crazy, and quite likely, away. Don't let you pet, be our pest.

I can't help but to notice that builders have gotten much kinder towards RE agents lately. Wasn't so long ago they did all they could to keep us off their developments, and discouraged buyers from using an independent agent. Now that people aren't flocking out there on weekends for hot-dogs and soda's , and lining up to sign on the dotted line, builders want to be our best buds.

I see listings now that actually say "Agent Friendly", and many offering higher than usual commissions. Last week a client came to me and asked me to find them a new home because the builder they had pre-purchased with, had filed bankruptcy. I was also asked to make sure homes we view are owned by a builder thats financially sound.

When a homebuilder goes bankrupt, the company's creditors aren't the only ones who suffer. Often, so do those who have paid hefty deposits for houses that remain unbuilt and new homeowners living in a development with half-built homes and incomplete amenities.

When these builders file for bankruptcy, subcontractors stop working, unfinished homes in various stages dot the communities, crippling liens are placed on occupied homes, clubhouses are incomplete and swimming pools and parks are never built.

People who have placed deposits on homes either never get their money back or face delays of months or years before it is returned. The houses sit until someone comes in and decides to complete them; buyers can't move in, get their deposit back, or get out of the contract."

As for the houses partly under construction, what most likely happens is that the lenders or another entity steps in and hire the trades to finish those houses, the home buyer will then get the house he or she contracted for. In the meantime, the home buyer is "stuck" and can't get out of the legally binding contract.

In a new twist on the housing crisis, homeowners are being sued by landscapers and contractors after the property builders go bankrupt. If features like fountains and concrete foundations have not been paid for, the contractors are increasingly going after the homeowners for the balance. The landscapers, the people that put in windows, the deck, the doorways, and the concrete guys, are just a few of the workers seeking payment from homeowners.

So for those of you that are waiting on your builder to finish, or even start construction of your new home, do your homework and make sure the company is on solid financial ground. Any potential new construction buyer would be prudent to bring their own Realtor with them to view homes in a new development. This is no time to go it alone, the dollar you think your saving now, may cost you a fortune later.

As our housing crises worsens, we may need to look beyond our own solar system for the answer.

A Space Ship home in Chattanooga Tennessee (right) went on the auction block on EBay recently, and can apparently be purchased for a mere 100k! The home was built in 1970 on Signal Mountain, shortly after the cancellation of Star Trek (of course).

Built by the late Curtis W. King in 1970 the circular house has three bedrooms, two bathrooms and an entrance staircase that lowers and retracts with the push of a button.

Many such homes have been built around the U.S. over the years, but none churned out like those by the Finnish architect Matti Suuronen. Suuronen designed and built a series of oval, flying-saucer-like houses (below left & right) the late 1960s. He called them "Futuro". Suuronen's houses were comfortably large but light enough to be carried to remote sites by helicopter.

The Futuro is approx. 11 feet high and 26 feet across. A hatch door in its lower half opened down to reveal steps, like the door of a small airplane, and led into a room outfitted with six plastic bed-chair combinations and a central fireplace slab, as well as a kitchenette, a bathroom and one small bedroom. The Futuro house was completely furnished and can accommodate 8 people.

Many say the demise of the Futuro was due to the high prices oil reached in the early 1970s', which sent the price of plastic skyrocketing. The Futuro, which was made of polyester plastic and fiberglass and which sold in the United States for between $12,000 and $14,000, was one of many experimental plastic houses at the time. It came in 16 pieces that could easily be moved by truck or helicopter and set up in a couple of days.

Others think it was the lack of closet space which really turned off most women, and of course the men could not convince them that this was a wise purchase. There are about 96 Futuro's out there somewhere and hopefully they can all be accounted for one way or another; although I've not personally seen one in my life.

So perhaps Futuro's the answer, no more McMansions with skyrocketing mortgages and property taxes out the yin yang. We can go back to simpler times, a time when a cozy little spacecraft home one could move from place to place was good enough.

Maybe then, we could finally "Live long, and Prosper".

As summer approaches I prepare for the sound of music! My home is fairly close to Lake Boren Park, and each year I get to sit in the back yard and enjoy the sound of live music. Every summer is interesting here in Newcastle's Olympus neighborhood; from the community garage sale, moonlight movie nights, to the Arts & Crafts show.

The 23-acre Lake Boren Park at the base of Olympus is a major asset to the neighborhood and a gathering place for many Newcastle residents. With a large play area, sand volleyball court, tennis courts, walking trails and a fishing dock, it's a very popular destination. The homeowners association, which meets monthly, hosts an annual neighborhood garage sale and Easter egg hunt.

"The upscale Olympus neighborhood in Newcastle lives up to the grandeur its name implies, with sweeping views of the Olympic Mountains, Lake Washington and Mount Rainier, along with well-kept yards and homes," writes Jolene Gensheimer in a special to The Seattle Times Real Estate section on Sunday, October 14th, 2007.

Olympus is served by two school districts: Issaquah and Renton. Both elementary schools have new buildings, with Issaquah's Newcastle Elementary, which opened in 2004, and Renton's Hazelwood Elementary, which opened in 2005. The neighborhood also has wide streets, making it a good place for walkers and bicyclists, as well as walking trails and a large greenbelt.

The well-maintained yards and homes are a trademark of Olympus and are enforced by neighborhood covenants. For example, residents need to submit a paint sample before painting their home, and there are codes requiring residents to keep their yards maintained (believe me, I've been warned before)!

Olympus is also a short walk from the Coal Creek Park Trails; the park trails serve the city as a refuge from the urban sprawl with a trail through a narrow creek ravine leading to two waterfalls and several excellent historical sites. The trail through Coal Creek Park is one of the most fascinating hikes anywhere around Puget Sound.

It features several waterfalls, a small canyon, and an environment typical of the Cascade foothills, the park stretches the boundary between the suburbs of Bellevue and the natural areas of the Issaquah Alps, a green belt pointing from the foot of Cougar Mountain through the rows of houses along Lake Washington's eastern shore.

What makes Coal Creek Park so unique is that in the late 1800s, when forest still reached all the way to the shores of Elliot Bay and today's Eastside was mostly untracked wilderness, the park was the site of the Newcastle coal mine. As you hike the trail, you may get glimps's of remaining vestiges of the mining days, clues to the story of Newcastle coal; hence the name Coal Creek.

So anyone in need of a special place to spend a hot summer day, pack the family into the car and head to Newcastle and visit our park, our trails, and maybe even grab a round of golf at the club. The music is great each Wednesday in June through August, and the BBQ pits are going full blast. We hope to see you there, tell them Mike sent you!

Event Calendar 2008

Concerts in the Park Wednesdays, June 25 - August 20

4th of July at Lake Boren Park Friday, July 4

Moonlight Movies Fridays, August 8, 15 & 22

Newcastle Days Saturday & Sunday, September 6 & 7

Having lived in Bellevue for many years now, I've really come to love the cities vibrant atmosphere and certainly the fine foods offered downtown.  Bellevue is a rapidly growing city located in King County, Washington, just a stones throw across Lake Washington from Seattle.

In 2003 the Census Bureau estimated the city had a total population of 112,344, making it the fifth largest city in the state and the largest on the Eastside of King County. According to the Washington State Office of Financial Management's April 1, 2006 estimate, the city has a population of 117,000. Based on per capita income, Bellevue is the 15th wealthiest of 522 communities in the state of Washington.

Since I've lived here, downtown Bellevue has undergone massive change. Lincoln Square, which opened in 2005, appears to be the leading edge of a development boom, and has the only theater I've ever been in that has leather reclining seats! Recently I've noticed the addition of Lucky Strike Bowling Lanes, an ultra-modern facility with full night-life amenities, and the newest dance club to open is Vertigo, which offers live DJ music and dancing. There is also Joeys, The Twisted Cork Restaurant, Daniels Steak House (all at the Hyatt), and The Parlor Billiards in Lincoln Square for your entertainment.

A Bit of History

Bellevue was founded in 1869 by William Meydenbauer and was officially incorporated on March 21, 1953. Prior to the opening of the Lake Washington Floating Bridge in 1940, Bellevue was a rural area with little development. Following the 1963 opening of a second bridge across the lake, the Evergreen Point Floating Bridge, the city began to grow.

A testament to Bellevue's growth over the years is Bellevue Square, now one of the largest shopping centers in the region. Opened in 1946, Bellevue Square underwent a significant expansion in the 1980s. More recently, an expansion to Bellevue Square along Bellevue Way called "The Lodge" and the new One Lincoln Towerpromise to strengthen downtown Bellevue's role as the largest Seattle Eastside shopping and dining destination.

The Bravern, a large mixed-use project currently under construction, will feature a Neiman Marcus (the first in the Pacific Northwest), along with an assortment of upscale stores.

Other projects in Bellevue's future include Meydenbauer Place, a new Performing Arts Center, a second City Center office tower (which broke ground in July 2006), three more residential towers, and resumption of work on the previously abandoned Tech Tower site, now called Tower.

Bellevue is bordered by the cities of Kirkland to the north and Redmond to the northeast along the Overlake and Crossroads neighborhoods. Across the short East Channel Bridge, I-90 connects Bellevue to Mercer Island to the southwest. Issaquah is to the east, down I-90 at the south end of Lake Sammamish. The city is also bordered to the west by the affluent suburbs of Medina, Clyde Hill, Hunts Point and Yarrow Point. The south end of Bellevue is bordered by the city of Renton, and to the southeast, the relatively recently incorporated city of Newcastle.

According to a 2006 estimate, the median income for a household in the city was $76,757, and the median income for a family was $89,020. Males had a median income of $56,456 versus $37,124 for females. The per capita income for the city was $36,905. About 3.8% of families and 5.7% of the population were below the poverty line, including 5.7% of those under age 18 and 6.3% of those age 65 or over. Bellevue was rated one of the 25 safest cities in America, based on the per-capita incidence of violent crime.

Bellevue is rapidly growing in size and diversity; nearly a third of the city's residents are foreign-born, up from a quarter five years ago. Bellevue has the highest percentage of foreign-born residents among major cities in the state. The largest communities come from China, India, Russia and Mexico.

Bellevue has the largest and most affluent Asian population in the state. As of 2005, 25% of the city's residents identify themselves as Asian, a rise from 17% in 2000. East Indian and Chinese communities have doubled in size since 2000.

Bellevue is home to Bellevue Community College (BCC) and City University. The highly rated BCC is the largest community college in Washington and the third largest institution of higher education in the state^.

The city hosts the Bellevue School District. There are four main public high schools - Bellevue High School, Interlake High School, Newport High School, and Sammamish High School, as well as two alternative high schools, International School and Robinswood High School. At the elementary level, Bellevue is home to the Eastside's only Waldorf Education, at Three Cedars School, and to several Montessori schools.

Overall, I have to say Bellevue is definitely one of the finest city's one could ever hope to live in and raise a family. Over the years I've had the great pleasure of selling many beautiful homes in this area, and making many good friends in the process. It is definitely deserving of the the title Bellevue the Beautiful.

Recently my step-son backed into the garage door, which apparently can affect it's operation. As a result of this oversight, I spent Saturday shopping for a new garage door. I really hadn't a clue as to what to expect cost-wise, and I began on the web with my search (as all things begin these days). I first learned that if you have the guts to install it yourself, you can actually get a 16x7 foot door for about five or six hundred (medium quality).

I decided against the gutsy route rather quickly, and went to Home Depot to look at their doors. Their doors aren't cheap, and for the cheapest door they had (metal, with no insulation or windows), installed, would be about $1,400 with tax. We decided to stop over at Lowe's and compare prices, which turned out to be a wise move. At Lowe's this same type of door came in at around 900 with tax (right).

I decided I didn't want the cheapest door in town, but wasn't looking to shell out over three grand for a top of the line wooden door either. I settled on the 4th (out of five rankings) best door Lowe's had in the metal variety.

This type of door offered double metal and a thin layer of insulation, and came in at $1,200 with tax and installation, which apparently takes about 3-4 weeks (left).

An extra $300 would have actually got me their best door, with the heavy insulation (lower right), but times are frugal and one must cut back here and there to survive.

The best door at Home Depot was of the same quality and would have been a little over $2,000.

Now Lowes did have a super cheap door that was around $600 installed, but only comes in white. There are so many types and styles of doors to choose from these days it's mind boggling. Just adding windows to your door is about $256.00 extra on average.

Suffice it to say, one can spend anywhere from $600 to $4,000 or more for a door, but for the average Joe, you can squeak by at about a thousand for a quality door installed with a 20 year warranty. So it wasn't as bad as I had thought; when my wife and I stood there looking at that mangled door, she asked "How much" and I could only say "I have no idea".

Now I know, as do you.

Last night I had the great pleasure of attending a dinner held at the Seven Stars Pepper Szechwan Restaurant at 1207 S, Jackson St. in Seattle's International District. The owner Ms. Li Hong, the mother of Ms. China Town winner Ni Jiang, hosted the dinner.  My wife and I have been friends with the family for many years (they were friends even in China), and I've known Ni since she was just eleven years old.

Two weeks ago in San Francisco, Ni made us all very proud when she went there representing Seattle's own Chinese community, and she walked away with the crown with ease.

Ni Jiang is currently enrolled at the University of Washington and will now be competing in the Ms. Hong Kong pageant one year from now. We're very proud of the little girl that grew into a beautiful woman, with poise, dignity, and honor.

Next time you find yourself in the international district, I can personally assure you will not find more authentic Chinese food than the Seven Stars Pepper Restaurant. You may even get to meet Ms. China Town USA.