This post is probably a little late, but with June 12th just around the corner, buyers probably need to be worried today about House Bill 2791 going into effect on that date. As mentioned in the other threads on the topic, if a buyer buys a house within 20 days of a foreclosure date, they are deemed a fiduciary of the seller, and have to put the seller's interest above all others, including their own. Violations of the act are deemed violations of the Consumer Protection Act and can subject the buyer to claims for treble damages up to $100,000 and attorney fees. Presumably a sale within 20 days of foreclosure means the date that the transaction closes, not the date of the offer, but that is not clear.

Personally I think that it would require a pretty special house for a buyer to take that risk, especially when there are so many other houses out there. But at the very least, a buyer should consult an attorney regarding the risk they face prior to taking the risk.

Also, in my opinion, agents on the other hand should consider including a clause on every offer written which allows the buyer to void the transaction if the closing date will be within 20 days of a foreclosure. The NWMLS apparently will have an addendum soon that does that, but it's a bit late since transactions written today can be affected. Personally I think that clause should be added to the purchase and sale form, rather than being a separate addendum.

Moving can be incredibly stressful. Sometimes what may seem like a little thing, becomes a big thing to one party or the other. Here's a true story about a sale I was involved with in the past:

The home sale closed, the seller jetted off to a new home in new lands, and the buyer happily received the key to move in. The day after closing, I received a call from the buyer's agent telling me the seller had taken the bathroom mirror. The mirror had been hanging on a hook, just like any picture, decorative mirror or painting. The buyer wanted the bathroom mirror.

Whenever I sell a home I always have my clients look carefully at the language in the included items paragraph from NWMLS Form 21:

Included Items. Any of the following items located in or on the Property are included in the sale: built-in appliances; wall-to-wall carpeting; curtains, drapes and all other window treatments; window and door screens; awnings; storm doors and windows; installed television antennas; ventilating, air conditioning and heating fixtures; trash compactor; fireplace doors, gas logs and gas log lighters; irrigation fixtures; electric garage door openers and remotes; water heaters; installed electrical fixtures; lighting fixtures; shrubs, plants and trees planted in the ground; and all bathroom and other fixtures. However, items identified in Specific Term No. 5 are included only if the corresponding box is checked. If any of the above Included Items are leased or encumbered, Seller agrees to acquire and clear title at or before closing.

The sellers had reviewed included the items language in the contract. Generally, items affixed to the home are considered part of the property and included in the sale. In reading the paragraph, it states bathroom fixtures stay, but is a mirror on a hook a bathroom fixture or just a mirror? We contended it was just a mirror, since it was not attached to the wall. The buyers disagreed and said the bathroom mirror was a fixture.

Agents went back and forth, brokers went back and forth on this issue, and, at the end of the day, there was no consensus. The buyers' camp felt the mirror was a fixture and the sellers' camp said it was just a mirror. Since the seller was literally gone and out of the country, the discussion ended there.

There are two issues to consider with this story. One issue is the importance of a buyer walk through of a home just before closing. The agent representing the buyer should have had a walk through of the property just before closing. If she had taken the buyer through the property, the buyer would have noticed the mirror was gone and the issue could have been handled prior to closing.

Moving is stressful, emotional, scary, wonderful, exciting, and a lot of hard work all at the same time. Little things can become big things, so make sure you have that walk through to help eliminate the small things from becoming big things.

The second point of this article: Is a mirror just a mirror? Questions like this make our job interesting, and sometimes challenging, because it becomes important to the buyer and seller. Will there be discussions now about toilet paper holders, since they are not always attached? There are free standing metal gadgets designed just for this purpose.

Does this mean these are now fixtures that must stay because there's no toilet paper holder in the wall? What do you think? What's your take on the mirror? Was it just a mirror or a fixture? What about toilet paper holders? What about free-standing stoves? With the changing styles and finish work in construction, is there anything else you can think of that could be a potential issue between buyer and seller?

Ballard Manning's by Anne Forestieri

When the Preservation Board was trying to decide whether or not the old Manning's/Denny's restaurant in Ballard was architecturally significant, the Ballard News-Tribune went to the source, an expert in Googie architecture and author of "Googie Redux: Ultramodern Roadside Architecture" and "Googie: Fifties Coffee Shop Architecture", Alan Hess.

Said Hess of the Ballard Denny's:

"Manning's was just an ordinary restaurant for the average person in a typical neighborhood, but more and more, it is being recognized that the buildings which tell us about how the average person lived are just as important as the buildings where rich, famous and powerful people lived. It's all a part of telling who we are as a people."

Alan will speak this evening at the Swedish Cultural Center (1920 Dexter Ave. N., Seattle), and begins at 6:30 pm. For those who wish to tour the Swedish Cultural Center beforehand, be in the lobby at 5:45 pm. Cost is $10 and sponsored by DocoMomo.

Many people believe Googie architecture exists only in Southern California, but I began photographing the Googie style several years ago and hope that I'll be able to document the preservation and restoration of the Ballard Manning's/Denny's over the years to come.

Knute Berger at Crosscut has done a remarkable job in documenting the ongoing controversy surrounding the Ballard Manning's/Denny's.

Last night I was with a friend at his dad's house and saw this old floor buffer outside on the deck.

My family had the exact same one, even the same pink color! As kids, we used to argue about who got to use it to buff the hardwood floors. We never argued over who got to vacumn, but this particular appliance was popular in our household ... was it in yours?

As we got older and less enchanted with actual housework, this tool became something we kids dreaded. Today's kids really missed out on all the fun of floor buffing :-)! Our modern hardwoods are so easy, they don't need to be waxed or polished, just clean with a bit of vinegar and water.

I hope this little photo jogs you down memory lane, buffing and polishing, and sliding down the hall in your stocking feet.

By the way, his dad uses his floor buffer to clean his exterior deck, instead of a pressure washer. The deck looked great, so it must work pretty well.

Dugald has done two pieces on the new distressed property law. This piece will focus on the biggest problem with the distressed property law; that it's poorly drafted. Poorly drafted legislation results in a lot of uncertainty, and a lot of unnecessary litigation.

To know this act is poorly drafted, you need look no further than the definition of "Distressed home," which means either:
(a) A dwelling that is in danger of foreclosure or at risk of loss due to nonpayment of taxes; or
(b) A dwelling that is in danger of foreclosure or that is in the process of being foreclosed due to a default under the terms of a mortgage.

The first thing to note is that both (a) and (b) include a "dwelling that is in danger of foreclosure. . .." This unnecessary duplication at the very least shows the language was not well thought out. (Edit 5/21/08: What makes it unnecessary duplication is that "in danger of foreclosure" is a defined term, so it's not "at danger of foreclosure or risk of loss due to.") Even worse, although being "in danger of foreclosure" is a defined term, "at risk of loss due to nonpayment of taxes" is not a defined term. What does that mean? I'm current on my state and federal taxes, but if I don't pay my real estate taxes for three years I'll lose my home. Accordingly, under the definition, my house would be a distressed home. Or what about someone with an IRS tax lien? The IRS policy limits greatly the times when the IRS will actually foreclose a home. But does the existence of a filed IRS lien make the home a distressed home? That will someday need to be answered by our state's supreme court.

The second thing to note is the definition of "in danger of foreclosure." That means any of the following: (1) The homeowner is in default under the note and deed of trust; (2) The homeowner is 30 days delinquent on the deed of trust; or (3) The homeowner has a good faith belief they will default within the next four months and they've reported that belief to certain people. Note that there is no requirement that any other party to the transaction know that the homeowner has this belief.

So, a distressed home includes not only what would be reasonable--homes actually in foreclosure--but also the unreasonable--homes where the owner thinks they might make a payment late within the next four months. And arguably, under the strict interpretation of the statute, it includes every home, because every home has real estate taxes assessed against it every year, and non-payment of those taxes will result in the loss of the property. To say this is poorly drafted would be an understatement.

It should also be noted that there's no requirement that the owner actually reside in the home. The definition above refers to a "distressed home" being a "dwelling." A "dwelling" is a defined term, and means any 1-4 unit residential building. (Edit 5/21/08: Note that this seemingly leaves most condo owners unprotected, which is almost certainly unintended.) Seemingly the term "distressed homeowner" would include only the resident of a home, but a "distressed homeowner" simply means the owner of a distressed home. The term "homeowner" is defined as the person owning and residing in the home, but that does not carry over to the definition of "distressed homeowner." The point? People covered by this act include not only what we would consider to be homeowners, but also investors. Someone could own 10 rental houses, and any or all of those houses could be a "distressed home." I really doubt that's what was intended, but that's what was enacted.

Just as bad is the definition of "distressed home consultant." Dugald previously pointed out that the consultant can include the purchaser, if they purchase a home within 20 days of it being foreclosed. And as Dugald also pointed out, the "distressed home consultant" has a fiduciary relationship to the seller. Completely absurd. You could easily have a situation where a property is listed on the NWMLS, an offer made 60 days prior to foreclosure, the buyer does not know of the foreclosure, and the sale close within 20 days of the foreclosure. The result would be the buyer is a fiduciary to the seller. Why? (Edit 5/21/08: Apparently the NWMLS is working on an addendum that will allow the buyer to back out in this situation. I'd argue that should be part of the revised purchase and sale agreement, so than any buyer could back out if they discovered a foreclosure after the time they made an offer.)

That is by no means the only bad part of the definition of "distressed home consultant." It also includes any person who contacts a "distressed homeowner" offering to obtain a waiver of an acceleration clause in a deed of trust. I'm not certain of this, but I think that would include anyone who offered to assume a loan as part of a purchase where the loan had a due on sale clause. If so, that would again make such a purchaser a fiduciary of the seller.

Believe it or not, I'm saving one of the worst for last! A "Distressed home purchaser" is a person to acquires a "distressed home" in a "distressed home conveyance." A Distressed home conveyance" is where a "distressed homeowner:" (1) Conveys to a "distressed home purchaser;" and (2) The "distressed homeowner" is allowed to occupy the land; and (3) The "distressed homeowner" is promised something in the future or given an option to purchase. All fine and dandy, except that the definition is circular. You don't know who a "distressed home purchaser" is until you know whether the transaction is a "distressed home conveyance," but determining whether you have a "distressed home conveyance" requires that you have the home purchased by a "distressed home purchaser." This really makes much of the act fall apart since so many sections only apply to "distressed home conveyances."

On a positive note, I've almost come to the conclusion that the only criminal exposure under the act is if you repeatedly purchase property and certain other things occur in the future (such as your being unable to make every payment for the next two years). Why is this good? It means that I don't think there's any criminal exposure for real estate agents representing buyers and sellers. (Edit 5/21/08: I believe you also need the owner retaining some sort of an interest in the property, but I'm backing off from the claim that there's no criminal exposure for agents. I'm not familiar enough with criminal law to know whether you'd be subject to criminal prosecution for being involved with a transaction where the buyer was involved in a criminal activity.) Unfortunately, this act is so poorly drawn, I don't have great certainty in my belief, but that does appear to be the case. But the Consumer Protection Act portions do apply to everyone covered by the act, so clearly it's best not to be a "distressed home consultant" or a "distressed home purchaser." Guess where that leaves the "Distressed homeowner?" They've become parties no one in their right mind would want to have a transaction with. That leaves them in foreclosure.

I could say a lot more about this act being unreasonably complex. In many areas it's not really clear what you need to do, or what the remedies are if you don't do them. But the bottom line is this act is just a mess, and should be repealed ASAP.

OK, so for those of you who keep track of this stuff, and who might remember the post I put out there mid-April, you'll remember our discussion about investors and the new stemming from
HB2791 that will be effective on 6/12.

The Washington Realtors put out an email on the matter (copy posted here on my web site) that, frankly, frightens me. Even more information is at the WAR website at www.warealtor.org/distressed_properties.asp  (note: the classes listed are for designated and managing brokers only.)

Active Rain has a blogger who disagrees and the attorney general has apparently issued a statement saying that the law wasn't his intended consequence.

You see, one part of my business (not a large part) is dealing with distressed sellers as a listing agent. I broker home and property purchases between sellers and investors or retail buyers to purchase these homes out of the clutches of the banks and allows the sellers to maintain some control over their destiny in the process.  We all might be there some day as the definition of a "distressed seller" includes every single homeowner who lives paycheck-to-paycheck.

Look, I support sensible consumer protection. I know - first hand - from my business that a person in foreclosure is not in a great frame of mind. They are easy targets to persuasive people who will promise them anything to get the deed to the house. It's not always fun working with distressed sellers.  It can be rewarding.

However, regardless of the sorrow involved, there is a need for an outlet for homes in the process of being foreclosed upon.

A secondary tier of commerce involving distressed properties is good for the economy. It puts contractors to work and it puts profits back into the state. This investor market generates excise and sales taxes, fuel taxes, permit fees and other government revenue. It's good for the economy.

What's happened is that the legislature put forward a law that may require every single listing contract in the state to be re-written and will require the re-examination our relationship with out clients - and the services that are a "must have" for distressed sellers: assistance with the bank's loss mitigation folks, assistance gathering paperwork for a short sale, assistance with moving out and potentially finding a new place to live, etc. etc.

The legislature says that the consumer advocates are saying that more homes going to auction is a good thing: "let the system do its thing" they say.

They miss out the fact that an open market $200,000 home sale generates... $3,560 in excise tax. A $400,000 home generates $7,120. All of this goes away at a foreclosure auction sale. All of it. No excise tax due at auction. Not a penny.

They also miss out on the fact that, while investors have methods of financing auction purchases (I'll bet some of you didn't know that, did you?) retail buyers do not have the same outlets for funds.  So if a home is destined for auction, there is little opportunity for most retail buyers to purchase that old home and make it into their dream.

OK, so while median and average pricing is up across the board in King County, NWMLS volumes are down 33%. Unless I am mistaken, that means that Real Estate Excise tax is down... well, 33%, right?

What a coup: putting roadblocks to home ownership and reducing the ability to collect excise tax when excise tax revenue is down by a third!

I sometimes just shake my head...

Driving around, I noticed a lot of real estate signs in one neighborhood. Not just signs posted in front of homes for sale, but "arrow" or directional signs on the corner of streets to direct people to these homes. Within a few blocks, I counted 12 arrow signs. Not only were there these 12 arrow signs, but there were 12 signs posted in front of homes for sale with various and sundry other signs such as open house times, view or "price reduced" posted with these 12 "for sale" signs. It looked like there's a fire sale in the neighborhood, not homes for sale.

Around the corner from these four arrow signs are two listings, one with a "price reduced" sign and the other a huge red sign, "NEW PRICE".

I, too, have been guilty of posting arrow signs to my listings in an attempt to advertise the homes and "drive" traffic to them. However, seeing all these signs has caused me to pause and think about what's in the best interests of the seller, the buyer, and the neighborhood.

What do you think?

Does this damage the individual seller?

Does it damage the neighborhood?

Does this motivate buyers or turn them off?

FYI, there are many cities which do not allow arrow signs, only "for sale" signs in front of homes. Both Redmond and Bellevue have strict rules about signage.

Is this a good policy?

The Carnival travels to different blog sites each week. The blog host decides the criteria and recognition. It is interesting to both read the entries selected and the themes they come up with.

I decided to go with a 5 star maximum rating theme. I published those rated from 3 to stars. They are only my opinions, but I am the Judge for today.

I gave a star for each of the following criteria:

1- A star for an article on a topic I thought our Seattle P I Real Estate Professional blog writers and readers would have enjoyed. There is a diverse set of opinions here, but I did star those my experience felt would be appreciated.

2- A star for a headline that grabs. After all, most that are on line are very quick to pass on an article. A good headline is important.

3- A star for a destination website that is friendly. Certainly making money is a worthy goal but to overdo it with tons of advertising causes many viewers to leave.

4- One or two stars for the content. I looked for well written, pertinent, original information.

So lets walk down the carnival runway together and enjoy some serious real estate information:

Judged as 5 Star:

1- Financial Analysis of the Deal: A Real Estate Investor's Most Important Skill? Scott Roemermann

Rather than just give you my analysis spreadsheets, my objective with this article is to show you how to develop your own.

2- Amy Bohutinsky, Zillow "Not My House"
As you saw from Stan's earlier post, home values continued to slide downward in the first quarter, falling more significantly than any quarter we've ever reported – down nearly 8% from a year ago.

3- Searchlight Crusade, Dan Melson: Buyers, Asking Price and Days on Market
This article is for sellers who want to put their property on the market priced too high "just to see if we can get it."

4- Home Owners Want To Be Lied To by Jennifer Kirby
...at least this is what I am finding out, and I don't understand why.

5- Scott Fisek: Minnesota Investment Real Estate.. What I Would Like to Say to Wannabe Real Estate Investors, but Shouldn't

Judged as 4 Star:

1- Myth Busted: Relationship Between ARM and Fixed-Rate Mortgages by Dan Green.
that adjustable-rate mortgages always carry lower rates than fixed-rate mortgages.

As the chart shows us, that's false.

2- I Want My, I Want My, I Want My … Traffic by Sherry Chris
Who should reap the benefits of traffic, advertising, and customer engagement derived from broker-supplied listings?

3- Jonathan Kinard: Buying A House For $100 A Month
In many areas of the country, housing prices have been driven down to levels not seen since the early 2000s. This has created many buying opportunities for potential first time homebuyers and investors.

Judged as 3 Star

1- The Home Sale: Digging Deeper for Buyers by Sandy Howard
More than you ever wanted to know on utilities, but in the words of one well known RE blog, a post of enduring interest?

2- Craig Schiller, The A-B-C's and 1-2-3's of Home Staging
I often now receive inquires about home staging, from home sellers all over the country, that typically start by asking a question such as, "Can you give me a little information on how staging works

Thanks to all who entered this week. Larry Cragun

This from mortgage broker Rick Robertson of Choice Lending:

Big Change in Jumbo Market!
Fannie Mae Offering Better Jumbo Pricing

Fixed rates have drastically been reduced for the temporary Conforming Jumbo loan amounts!

As you may know, the temporary Conforming Jumbo loan amount limit has been raised in the Seattle-Bellevue-Tacoma-Everett markets to $567,500. Effective immediately, Fannie Mae has re-priced these to be much closer to the Conforming loan amount rates. Today they are actually priced the same.

Back story: Effective immediately, Fannie Mae is going to offer its lenders better pricing on jumbo mortgages to help jump-start the Jumbo market, according to chief executive Daniel Mudd. Fannie will price jumbos as if they were securitized in the TBA (to-be-announced) market, he said, but acquire the high-balance loans for Fannie's investment portfolio through the end of the year. Congress has authorized Fannie Mae and Freddie Mac to purchase mortgages above the $417,000 conforming loan limit until Dec. 31, 2008. Mr. Mudd told investors and analysts on a conference call that Fannie Mae will be giving up the "liquidity premium" with the new pricing strategy. But he views it as an opportunity cost to get a "foothold" in the Jumbo market.

In a previous life I ran an escrow office in Spokane and subsequently opened a law practice just closing real estate transactions. That was 23 years ago. In that time the escrow process has matured dramatically.

My first closings were completed on a typewriter. Remember those? I got basic loan documents from the lending bank, and I typed the rest of the loan package, all the closing documents and the closing statements for the buyer and seller.

It was a lot of work, and a typo meant using whiteout or retyping the document. I still remember what I got paid for doing a HUD closing--$150. Wow!

Then came computers, and several years later Al Gore invented the Internet. The escrow process went into warp speed, and everything is now neatly typed into software designed to create all of the closing documents, letter perfect, and print them all with the touch of a pinkie on the keyboard. Banks create their own loan package on the computer now and email it to escrow.

Even the math has gotten easier. In the beginning of escrow (that almost sounds like "in the beginning God created the heavens and the earth") I had to use a calculator and count days on a calendar hanging on the wall, and figure out how to prorate taxes and interest. Today software does all that.

Okay, while many things have been automated, closing a real estate transaction is not something you should try at home. It still takes an experienced escrow officer (or limited practice officer) to pull together all the necessary data and tell the darn computer exactly what to do.

There is one more precious lesson I learned closing real estate transactions: no two transactions are exactly alike. Every single transaction has nuances, and it takes experience to close a transaction correctly. Who is your escrow agent? (That sounded like an advertisement, didn't it?) Who you choose as your escrow company really is important. Choose carefully.

In a parallel universe during this same time period, software was developed to do something else quite extraordinary: to perfectly match up boys and girls based on 101 critical relationship parameters. While I am a bachelor, I'm still too scared to try such services, although I did take the free personality test.

No, not really, but I did just get back from an awesome trip to Japan, which was a birthday present from my wonderful husband to celebrate a major milestone birthday...and no, I'll not cop to what the number was other than to say that I'm considerably younger than the average real estate agent, and older than the average first time buyer-there are studies on both these topics and I leave it to the reader to work out the math for themselves!

Anyway, I've been through the airport at Narita on other trips to Asian countries, but this was my first time actually staying in Japan. And it was a wonderful trip. We visited Tokyo and Kyoto, rode the Shinkansen, visited lots of famous sites, ate lots of great food, went to a Japanese bath, and put about 120 miles on my shoes in the space of about 8 days. And it was fabulous.

However, all this fabulosity is not cheap. Expense was probably one of the real downers of the trip. You cannot do anything "on the cheap" in Tokyo, and even Kyoto is pretty expensive. For instance, feeling a bit poor after accompanying one of our expat friends to an excellent but very expensive dinner of Teppan-yaki in the Roppongi district (Roppongi being roughly the Tokyo equivalent of Beverley Hills or Bellevue), we decided to save money one night by picking up some noodles at a local convenience store and then having ONE drink each at the bar in our hotel, which had an excellent view. We figured that would be a way to enjoy the view and celebrate being in Tokyo without spending too much money.

Big mistake. For one thing, there is a thing in many Japanese drinking establishments called a "table fee." This is the fee you are charged for sitting down. And there is no such thing as a cheap drink in a high end Japanese bar. So, we each had one drink and ended up leaving 60,000 Yen poorer--that's about $60 Dollars US. The view was fantastic, however, and we just took it as a learning experience: Never enter any eating or drinking establishments without looking at a menu first. If you have an open mind, it's not that important to know what is being served, but it does help to have an idea of what it will cost!

Anyway, this little discussion about my experiences in one of the world's most expensive cities is really just a segue into what I wanted to talk about, which is the Japanese real estate market. To me, the Japanese market is interesting because it highlights the cost of space. In Japan, space is the one thing they don't have enough of, and as a result, it's incredibly expensive.

This is still the case, even today. I think it is probably common knowledge that the Japanese real estate market had an asset bubble in the late 80s that crashed in 1990 and didn't really recover until the early 2000s. That bubble burst in a somewhat interesting way. Rather than "crashing" in a dramatic fashion, the Japanese real estate market slowly lost a significant portion of value over a period of 13 or so years, and in some ways still has not recovered.

However, one of the things I learned is that this is not a case where 13 years of deflation has led to anything that we might conceivably refer to as "affordable housing," or at least, not in or around Tokyo. There are no bargains to be had. Nor, oddly, do the people who live there seem to expect to find a bargain. The attitude largely seems to be that if 13 million people are all competing to live within a reasonable distance of their jobs, it's no surprise that real estate values will be high--even if not as high as they once were. They say that back in the late 1980s, the land on which the Imperial Palace sits was worth more than the entire state of California. The Palace is roughly 4 square miles...that's a lot of dough for not a lot of space.

And just to give an idea of what it costs nowadays to live in Tokyo, median rent price in the central districts of Tokyo is currently about 7,000 a month. In the greater metropolitan area, the median is $5,000 a month. The higher end of the rental market can go as high as $18,000 a month, but these properties are generally marketed to Western expats and their families.

If you want to buy, a 350sf studio condo would probably cost in the range of $350,000 - 375,000. If you want more space, you should probably expect to pay more than $500,000 for a 3 bedroom place averaging 700 sf in size. Yes, that's 3 bedrooms in 700 square feet. Rooms are smaller than most Americans are used to. Space is at a premium, and you are paying for the location, the convenience of not having to do what the average Japanese person does, which is commute 1 or more hours to and from your job every day.

Before you start thinking, "wow, everyone in Japan must be rich to afford to spend that much on a place to live," here's the reality of life in Tokyo. Most people do not live the way we do. As my expat friend says, "no one actually lives in Tokyo." Most workers either live an hour or two out of town and use the excellent Japanese train system to get to and from their jobs, or they rent a room.

Renting a room is something that is common in the world's denser cities but which we don't see that much of here in the US. In Japan, you can rent a 120 square foot room with a sink inside and perhaps a hot plate for cooking for about $400 a month. It differs from the "room-mate" or boarding house scenario that we typically see, in that all you get is the room, and there are no common areas. You would probably also have to share a toilet with 6 or 7 other rooms, and taking a bath would require visit the local public bath.

This all illustrates an important point about real estate. Most real estate decisions require making choices between convenience, amenities, space and cost. The mix may be different in different places, but the choice always has to be made. You can get a lot of space for not very much money, as long as it's not important to you to actually be near anything important, such as jobs, or to live in a nice house. If that is something that is important to you, you will probably have to make some choices.

Time and money are the two things that there are never enough of. That which is scarce is always expensive. Living in a convenient location saves time, but costs money. Sometimes you can get more time without spending more money, but usually, it entails giving up some space and/or amenities (such as, in Tokyo, a bathroom).

The relative lack of density of cities like Seattle, means you do not have to travel far from downtown before single family homes and relatively large lots become the norm. But we pay a price too, for the way we live. Our expectations as far as quality of life, is a lot different than how people live and what people expect in Japan. We expect to have space and convenience, and we expect it not to cost very much. We are only just beginning as a society to figure out that we can't have everything and that space, in the way we are used to thinking of it, is actually a luxury.

What is the "this"? Why, gasoline prices, of course. I recently posed a question to real estate agents: How are gasoline prices affecting your business? The answers will not surprise you:

1. Changed car size from large to small. One agent actually changed to a motorcycle, and clients follow in their own car.
2. One smart agent started preparing early and cultivated a geographic farm close to home. Too bad his buyer clients may not always want to buy there....
3. Vacation homes sales seem to be hit hard. Less travel to an area means less potential converts to the concept of a second home. (Double whammy – credit difficulties for second homes).
4. Technology helps: one clever agent asks clients to preview homes on Google Street-view.
5. When buyers are very particular about neighborhood appearance, it is reasonable to ask them to drive by a property first.
6. Preview to cut down on the number of properties to show clients. This may seem like it is adding miles, but not necessarily. Combine clients needs regionally, plan routes carefully, and/or combine other errands or duties to those areas of town.

One thing in which we seemed to agree -- you cannot skimp on showing properties your client wants to see. Economize elsewhere. Help buyer refine searches. Scrutinize properties on the MLS more thoroughly. Just make sure you are providing a service comprehensive enough to truly address your buyer's needs. This could mean future business and good referrals – and that is income, not expense.

One of my first three pieces here was a piece on the security concerns of listing your house FSBO vs Discount Broker vs Full Service Broker. The main point was that FSBO is the most dangerous, because you basically have a sign up in front of your house that says you'll let anyone inside. For discount brokers I cautioned to make sure they would rent you a Supra keybox. What prompted this piece was that just recently I caught a news clip of a woman who had some stuff stolen while showing a house herself (It wasn't clear whether the house was listed or a FSBO).

For our own listings, we give our clients (or the tenant) the following (modified to fit their situation), and get on them when we find out that they are not following it (Anyone who wants to use is free to copy and/or amend it):

Your house is about to be listed on the NWMLS website, which will notify thousands of agents that your house is for sale. It will also be listed through other means, which will let consumers know your house is for sale. To allow access to agents, your house will be equipped with an electronic keybox. Consumers should not be granted access to your house--if one asks to see it politely ask them to contact their agent or the listing agent(s). This is for your own security. Placing your house on the market does not mean that you have to let anyone into your house unaccompanied by an agent.

The agent remarks will direct the agents to call your number first, giving at least 10 minutes notice that they wish to show or preview your house. They will be directed to go ahead and show or preview if there is no answer. Occasionally an agent will not follow directions and not give advance notice. If you decide to let them show or preview your house, make sure that they open the keybox so that their visit will be recorded. This again is for your own security as it will ensure that the person is actually a licensed agent. It is generally best if you leave or at least step outside during showings.

Because a showing can occur on short notice, you should try to keep your home as neat as possible at all times. Some common problems can be paperwork clutter, clutter on countertops and other surfaces, clothing not put away, etc. It is generally better to leave lights on and drapes open so that the house will appear brighter.

The electronic keybox will be programmed to not allow access after certain hours. Thus, you will not need to worry about someone trying to gain access in the middle of the night.

While your house is listed, do not keep any valuables out in open sight, and anything of extreme value (monetary or otherwise) should be locked up. Notebook computers, digital cameras and other small electronic items should be put away and not left sitting out. In addition, keep bills and other items with personal information out of sight. While issues involving things being taken are extremely rare, it is best to avoid issues by taking precautions.

During open house events we will be bringing food into your house. If you have any religious or other concerns about the type of food brought in, please let us know in advance.

Please make sure every member of your household has read and understood these materials, especially the security topics. If any issues come up during the listing of your house, do not hesitate to call.

King County Median SFR 448,500 vs. $465,00- a year ago. (Up from $439,900 in March)

King County Median Condo $282,000 vs. 295,000 a year ago. (Down from $294,000 in March)

King County Median combined $410,000 vs. $407,265 a year ago. (Up from $405,000 in March)

Residential volume 1,551, down from 2,173 a year ago. (Up from 1,503 in March)
Pending sales (SFR) are at 1,840, down from 2,548 a year ago. (Up from 1710 in March)

In my mind, volume continues to be the issue, but there are a hand full of areas that are showing higher sales volume over last year. On the other hand, the weakness in south end volumes, which seemed to disappear last month, is back. And we can't ignore the change in condos, which are (finally?) showing some weakness.

The median price (SFR) is lower than what I was expecting, but the volume (SFR) was higher. Between the two, volume is the most important. That is especially true since the median jumps around so much during the month--exactly where it ends up isn't that important. Last year April volume was below March, while this year it's higher.

The three month moving average of the SFR median is now roughly $10,500 below last year, so that gap seems to be narrowing. And finally, I'll again say it's a good thing we're below last year on median, since last year prices were rising too fast at this time of the year.

Evening Magazine video

Because of UnusualLife.com, I get frequent inquiries from television producers and magazine editors about unusual homes, and 3 of the houses I've written about were featured this week on Evening Magazine. I was glad to help them out, as I find these kind of personal expressions fascinating, and I enjoy their creation and existence.

This castle house is located in Winthrop, WA in the picturesque Methow Valley.

The custom home is designed to look like a medieval castle, complete with moat and battlements.

A labor of love on over a acre, it was modeled on a small resin castle the owner had admired.

Another interesting home is this church and art gallery in Sultan, Washington, on HY 2 on the way up to Stevens Pass.

It features an art gallery, a frame shop, a beautiful atrium, studio and shop space, plus living area. This would be a great place to have a little espresso stand too, and is a great stop on your way over the Cascades.

Several years ago, the Hunter's bought this old bank in Douglas County, in the town of Waterville. Mr. Hunter restored the bank to run his law firm and he lives there with his wife. They converted one of the vaults into their guest room.

An added plus is it's cool in the summer and very quiet!

Unusual Homes for sale in the Pacific Northwest

Unusual Life

Evening Magazine "Unusual Homes" video