Winners Win without Keeping Score

How can you not be happy for Zach Johnson - this virtual no-name kid from Iowa who won golf's most prestigious event? He shows us all why humility is such a wonderful quality. In the post-match interview he seemed delightful and well-liked by all. He thanked his caddy, he thanked the fans, he thanked - on this blustery Easter Sunday - Jesus for helping him follow his dreams.

Honored to be wearing the green jacket, proud of the accomplishment, and thankful to all, Zach continued to teach us how the heart of a champion is often found in unlikely packages. He said something very peculiar - claiming that he didn't even know he was atop the leader board until walking down the 17th fairway. To him and his caddy, it was more important to "play their own game", to focus on the task at hand, and not worry about points. He knew he needed to execute - and execution requires blocking out the shouts from the gallery, the heavy gusts, the chilly temperatures - and just go out there and do what you do best.

It's the love of the game - the love of perfection. And it's no wonder that when you come across winners, it turns out that they love the game just that much more than your average player - and that's what gives them that competitive edge.

I love technology. I love real estate. I love playing the game. I'm proud of our accomplishments at XoomPad.com and UrbanTango.com. Not to sound cliche, but it's truly loving what you do that makes you successful in your endeavors. I was driving around yesterday and noticed these beautiful properties for sale, came back to look them over again today, thought about how much I would love to lead a team of investors in playing the real estate game again. Playing and winning.

It's not as difficult as it may sound - some smarts, some strategy, a touch of humility, and most of all, the love of the game, and you can be a champion too.

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Northwest Housing Prices Heading North

After a two month slow-down, it seems that Seattle area housing prices have once again begun to climb. The trend has its upsides and downsides, depending on who you ask, but the reason for the shift is undoubtedly clear.

For prospective buyers, the rise this month means an end to what many hoped was an opportune time to find a deal. The past few months saw a cooling process for infamously expensive neighborhoods in King and Snohomish counties - inviting many prospective buyers to shop the buyer-friendly market.

Apparently the cooling spell churn up some hot bidding action. The Northwest MLS release numbers today showing the median price for a home in King County rising 6% to nearly $445,000 and Snohomish homes rising 7.4% to $382,000.

For sellers, this bidding fury is a welcome sign. Many homeowners have reported bidding wars that ended up raising their selling prices far above the original list price. Many builders have been reaping similar benefits by flooding the market with new properties during this hot spell.

But can increased consumer interest fueled by cooling rates really be the catalyst for such a dramatic price increase? Not likely. Once again we have to point again to those three usual suspects: employment rate, population growth, and interest rates.

An announcement this week that Microsoft would be leasing over a million square feet of office space in Bellevue to house 4,000 employees lit a fire under the housing pot. This extra muscle to the job market - and the inevitible population growth that will come with it - have put a premium on already hot-selling properties in the area.

On top of this all, interest rates in Seattle have remained stagnant at the relatively low 6.22% for a 30-year mortgage, inducing prospective buyers to snatch up whatever finds they come across.

Condo sales are showing even greater increases - proving that the trend is not only limited to high end properties or suburban areas.

Despite the perception of the national housing market as the economic whipping boy du jour, the spicy trends in the Northwest continue to be hot, hot, hot.

As always, find the best real estate IDX solutions at XoomPad.com and stay up to date on the state of the Seattle real estate market at UrbanTango.com.

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Easy as a Marathon

Success in life is as easy as running a Marathon.

"What?" you ask. "Running a Marathon is easy?"

Yes. It is. All it takes is patience. A slow but steady training schedule, gradually increasing workouts, a commitment to the correct diet. You will gain muscle, lose weight, become like a human machine. It takes patience and consistent work, but on the morning of race day, when you wake up and hit the pavement, you'll find that not only is this remarkable achievement EASY, but it's also FUN.

Success in life & success in real estate, is the same way. What matters most is that you stay in the race - 'staying power'. Remember the wise old turtle. You cannot sprint the distance and come out ahead. There is no such thing as truly quick money in real estate - overnight successes tend to not end up as successes at all. The experts, investors, agents will tell you - hold onto your properties as long as possible, have patience, and watch them develop. You'll make money in the end - now that's fun.

"Patience is a virtue," goes the old Greek mantra. If just staying put and patient is so easy, why do we make it out to be so hard? Could it be that everyone is looking for that get-rich scheme, that golden egg, that Northwest Passage? Success cannot be rushed. There is only one short cut to success: be patient, take it EASY, and have FUN.

One example of letting patient reign: We made a decision last week to shift attention back to a project that has been developing over the past year or so. We had lost track of it, opting instead to pursue more immediate, fly-by-night opportunities. Only by relying on patience and timing, did we finally realize we had to come back to it - that in it's maturity is where success lies. We will soon unleash this killer a**. Hint: It's not what you think, but it sure is FUN!

As always, discover the latest in IDX tools from XoomPad.com and keep up with Seattle real estate news at UrbanTango.com.

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The Fed and Interest Rates - Part 2

After a two day summit by the Federal Reserve's policy-making committee, a definitive answer to whether US interest rates will change was given:

No... at least, not yet.

The FMOC made the decision to let rates remain unchanged (at 5.25%) for the sixth session in a row. The disbursed fear from Wall Street that rates may increase led investors to buy heavily, raising the Dow Jones by nearly 160 points. However, the decision disheartened those in the real estate industry, who were hoping that a cut in rates would improve the current housing slump.

Although the Fed chose not to drop rates, the issue of the weak housing market was a top concern. Many see the lame real estate industry as a leading contributor to the current overall economic state. Fourth quarter numbers of 2006 show a 19.1% drop in home building and renovation. How much of an impact did this have on the quarter's mere 2.2% overall economic gain? No one can be sure, but it certainly did not help.

Obviously, the home market may be the leading culprit for Fed policy-makers, as they noted that a future rate "adjustment" may be in order. As for now, mortgage rates appear to be stagnant, although default rates are steadily rising.

As for home buyers, sellers, and real estate agents, the only thing to do is hope for next time.

As always, discover the latest in IDX tools from XoomPad.com and keep up with Seattle real estate news at UrbanTango.com.

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Federal Reserve Discusses Interest Rates, Mortgage Defaults

Policy-makers in the Federal Reserve sat down this afternoon to begin a two-day summit to discuss a possible change in US interest rates, among other financial trends.

One subject that looks to be high on the list is the radically rising rate of mortgage defaults among American homeowners. Rising mortgage rates coupled with falling homeprices have meant that many homeowners that otherwise could have avoided default by refinancing, could not. These disturbing trends will surely weigh heavy on the minds of members of the Federal Open Market Committee as the weigh the Fed's options.

Most leading economists predict that a shift in the interest rate is unlikely - which would make it the sixth session in a row that the rate remained at 5.25%. However, the rising default rate, on top of a slower economy, could raise discussion of cutting rates in the future.

The Fed will announce its decision mid-afternoon tomorrow.

As always, discover the latest in IDX tools from XoomPad.com and keep up with Seattle real estate news at UrbanTango.com.

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Oh, those Ups and Downs

Inevitably, the big story of the week was the largest drop in the stock market in nearly six years, when the Dow plunged a teeth-grinding 416 points in a single day. Shocking? Yes. Unexpected. No.

Most of the time the numbers don’t lie – but it’s always healthy to look at the big picture before jumping out a window. For instance, this huge drop has to be viewed as a single shockwave from huge mood swings in the Asian market, as opposed to the beginnings of a recession. Not to mention, the overall trend of the past five years has been one of confident, positive climbs. One bad day a depression does not make.

But that is the nature of markets – of all kinds. Highs, lows, sudden drops, huge gains. Until this week, the real estate market has been the economic whipping boy du jour. With so many analysts adopting the doom-and-gloom outlook on the housing crash, more than one investor (or homeowner) has begged the question, “Did we hit bottom yet?”

My answer: yes.

Bubble burst, dramatic slowdown, necessary economic adjustment – call it what you will. The truth is that the market trend is improving and many of us see clear skies on the horizon.

Speaking of clear skies, I told my friend and partner, Jim, as we looked out the window on a perfect Seattle day, “The suns shining, I guess people will come out and start buying houses again.” He laughed. Now the rain and snow is back again – and so will the buyers be back.

Yes, maybe weather has a slight effect on the real estate market. So do mortgage rates, macro and micro economic hiccups, inventory. But if you ask me, the two major factors that influence the market are employment and interest rates. No matter how many beautiful homes are out there, no matter how strong a buyers market, no one will feel safe buying their dream home without a solid job market.

And that’s one of the reasons I have hope. Overall the economy is strong. Jobs are growing – and in new and exciting areas. Investment in high tech innovation is growing across the country. New companies are competing in arenas never before tapped. Bright young minds are pushing US economics to new heights.

A friend of mine confided in me his worry after losing his job with a local company due to a merger. Within a week he had two solid job offers. The next time he consulted with me was to discuss which of these amazing offers he could afford to let go.

The big players are reawakening and with them the real estate market will follow suit.

So once again I am bullish on the market – especially here in Seattle. A neighbor of mine told me about multiple offers she’s received on her property in Queen Anne. New developments are popping up all across the area. Jobs are plentiful, money is ready to be made, and maybe – just maybe – we will see some sun peeking through the clouds.

As always, discover the latest in IDX tools from XoomPad.com and keep up with Seattle real estate news at UrbanTango.com.

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A Tale of Two Neighbors

An overconfident, under-informed homeowner asks, “Who needs an agent, who needs technical support, to sell a home today? In this market, they virtually sell themselves.”
“Not so,” says his less-than-savvy, but well-informed neighbor. “I used an agent who utilized online IDX Solutions, satellite mapping, interactive MLS listings, and high website traffic to get my house noticed.”
“It must of cost him a fortune. Sucker.” The first neighbor mumbles to himself.
Not even a penny, thinks the second as he pulls the “SOLD” sign out of the front lawn.

Who needs an agent, support, and technology to sell a home these days? Nearly everyone – especially those who are not as experienced in the real estate industry. As the market gets tighter, smart advertising gets more and more important.
That’s why innovative tools like XoomPad, which allows agents to offer better information to more buyers, are so important for sellers. Its ability to focus on specific neighborhoods, target different types of buyers/sellers, and successfully market this information to a broader audience makes home buying simpler for the agent and the consumer. The power of Google and one-of-a-kind SEO content coaching can’t hurt either.
See for yourself at XoomPad.com and keep up with the latest in off-the-cuff Real Estate news at UrbanTango.com.

Remember to sell smart, not stubborn.

Paul Tretter
XoomPad.com

The No Down Payment Craze

Remember the days when homebuyers – both first-time and repeat – paid a sizable down payment for a house? You may have to stretch your memory, but even two decades ago the standard home buying scenario required an average 20% down to close on a property. Some of today’s buyers pay not a penny down.

So where does this change come from and what are the consequences?

The primary reason for lower and lower down payments is obvious. Home prices have skyrocketed – even when adjusted for inflation – compared to the affordable prices of the ‘80s and early ‘90s. Swiftly rising price tags mean it’s no longer possible for young, first-time buyers with less income to pay even 10 or 5% of the home value upfront – meaning they are forced to take out close-to or the entire value the house in mortgage loans.

Okay, maybe ‘forced’ is not the right word – the second reason so many home buyers are financing the entire cost of their house is the rapid increase of no- or low-money down loans, both from public and private lenders. Often times these main mortgages cover the cost of down payments with ‘piggy back’ loans and other financing options.

Such popular loans have created a boom in home ownership in the US – currently at a record high of 69%, the NAR reports. This increase is due to the rush of first-time buyers that otherwise would not have enough ready-cash to cough up a substantial down payment.

Great news, right? Even lower-income first-time buyers can now afford to purchase high ticket-priced homes. Well, there are obviously some consequences.

One of them is stilted appreciation. Ten or fifteen years ago, taking out a low-money down loan was acceptable because high appreciation rates usually covered first-time buyers when they sold and upgraded housing. But today’s home appreciation rates vary wildly. Those who start out with no or little equity could face the same fate when they choose to sell their home years down the line.

So as much as these no- or low-money down loans are a godsend for low-income families trying to buy their first home, it can also be a slippery slope. As usual, your parents probably know best – earlier generations tended to put 20% or more of their home’s value down upfront, ensuring lower mortgage payments and quicker repay schedules.

Getting a great investment at little upfront cost can many times pay off in the short term, but make sure to invest wisely and make a decision that will pay off handsomely in the long term as well.

For more information about Seattle real estate visit UrbanTango.com or check out our innovative real estate IDX tools at XoomPad.com.

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Humble, Proud, and Simply the Sweetness - the Essence of Payton Lives On

'85 vs. '06 Bears.
What can you say, in '85 they had bad singing, but 'Da Bears' were big on character... and talent. But I like the attitude of these '06-'07 Monsters of the Midway, too. Humility rules in my reign today - how did this happen to the old cocky me? I don't know, I still want to be #1 in product quality in business, I still strive to be the best at all I do. But I don't want to have a huge ego and declare to the world that we are Number 1. Chicago is the city of Big Shoulders, not Big Heads. The Bears show that with their tireless work ethic and smashmouth game play. There are very few superstars on that team, but look to where they've gotten. I want our company, our people, our customers to be #1 in their business. If we get to do that, we will be successful, and I can get back to writing more. I see my people as superstars, but maybe I should think of them as more of team players. I want us to focus on winning as a team - let our own personal pride come out of that.

Go Bears of today, thanks for the leadership of humility!

If they had been nice to Walter Payton, I would probably remember love them more. Great Sweetness, thanks McMahon for remembering him on an ESPN special. Talk about a man with super human abilities, but with a heart of pure kindness. Who else in professional sports better represents what is right and noble as an athlete, as an American, as a human being. And his foundation lives on in his memory. Giving back like #34 always did - on this day let's remember him, and remember to be humble and always give to those less fortunate.

Please visit theWalter and Connie Payton Foundation and share today!

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Forewarned before Foreclosed

A somewhat disturbing trend is continuing to sweep across the national and local real estate markets. Last year, Washington State’s mortgage foreclosures increased again, claiming nearly 20,000 homes statewide.

The trend is a national epidemic, recording a 42% increase in foreclosures across the country last year. Experts blame the foreclosures on resetting loans, which increase interest rates and mortgage payments for homeowners. When big financial changes occur in the midst of a cool real estate season, it can be difficult for homeowners to cope – leaving those who cannot refinance or sell their homes to face the ultimate real estate penalty.

Fortunately, the rate increase was less dramatic in Washington’s conservative market. Foreclosure rates grew 25% here, with one in every 129 homes facing the ax statewide, but almost one in 75 specifically in Tacoma. The Seattle/Bellevue area stayed relatively stable at one in every 136.

The state that took the largest hit was Colorado, with one in every 33 homes being foreclosed – and a jaw-dropping one in 24 in Denver itself.

The warning is clear: the fluctuation of the economy and mortgage rates can often cause dire consequences among homeowners. The greatest weapon against unforeseen problems is getting the best information up front.

Visit UrbanTango.com or check out our innovative real estate IDX tools at XoomPad.com for the latest news on the Seattle housing market.

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Evergreen Point Blank

The fat cats are at it again and just maybe this time homeowners in the Seattle area are going to get a pleasant surprise.

On Friday, the Regional Transportation Investment District ‘reshuffled’ a new transportation plan that would begin construction on a modern six-lane bridge connecting Seattle to the Eastside via Route 520. The RTID voted unanimously to replace the Evergreen Point Bridge, which links the metro regions across Lake Washington. The new plan would also include expansion of the Sound Transit’s light rail system, further connecting Seattle to outlaying areas.

The real challenge comes in November, when voters go to the polls to ‘yea’ or ‘nay’ the plan that would be partially funded out of taxpayers’ own pockets. The board plans to raise both vehicle license prices and institute a small increase on sales tax, as well as tolls levied on the bridge itself.

The plan’s 8.5 billion dollar price tag is daunting, but it should have property owners smiling. The improved transportation between Seattle and the Eastside would almost certainly ensure greater opportunity for jobs and provide a lift to the real estate market.

Both areas would most likely see increased demand, pushing up home prices, and strengthening a market that has taken a slight hit in the past two years. Easier access to Seattle proper would make the Eastside more attractive to downtown businessmen weary of long commutes. Seattle residents would gain far easier sojourns out of town and increased commerce between the areas.

The main key is this: transportation is the unsung hero of the real estate market. Easier mobility and faster commutes puts nothing but money straight into the property. The RTID is thinking progressively here, realizing the higher demand for housing downtown and making areas that once stood out of the way more easily accessible.

For more information about Seattle real estate visit UrbanTango.com or check out our innovative real estate IDX tools at XoomPad.com.

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A Brief History of the World… of MLS - Part 2 - IDX

Okay, back to basics for a moment.

We constantly talk about real estate website IDX solutions, IDX this, IDX this, IDX that. I’m sure there is more than one of you out there saying, “HOLD UP, what exactly is the IDX, dagnammit?!”

To put it simply, IDX (Internet Data eXchange) is the tech-savvy kid brother of the MLS. To put it bluntly, IDX is literally the hottest thing since sliced bread. It’s basically the deployment of your local MLS Listings for reciprocal real estate brokers to take advantage of the information revolution and it works something like this.

Similar to MLS, the IDX allows for real estate agents and brokers to share vast amounts of real estate listings (say for a city or region). Unlike the past, where only broker listings were presented on each brokers website. With National Association of Realtors IDX protocol MLS listings can be shared mainly all brokers and agents in an MLS, IDX takes a cue from the free-source movement and allows everyone – buyers, sellers, agents, brokers, your Auntie Josephine – to view, access, and share listings and information. Well almost, all brokers within a local real estate board of Realtors must participate in the IDX reciprocal program. Once, they do, they can help to pass real estate listings information to consumers.

How does it work? Well, it’s a two way street. Brokers and agents who use IDX submit all their listings to be viewed on the website of other brokers and agents. Conversely, all those members’ listing will also be available on your own site, as an IDX participant of a local MLS. There are strict rules and regulations that must be followed, and the data integrity is protected and all must honor the privacy of the home sellers and other brokers.

What’s the advantage for real estate brokers/agents to join MLS IDX programs? Obviously you get vastly more listings on your site. This means potential clients will spend more time with you and have more incentive to stick with one agent/broker throughout the search process. Agents can also opt out of using IDX, keep their listings to themselves, and basically shoot themselves in the foot by ensuring they get the fewest leads in the market.

What’s the advantage for buyers/sellers? Buyers get a huge wealth of information at their fingertips about every listing available. IDX is a more complete source for home buying than any retail operation. Sellers get their houses seen 10x more often (if not more) than with traditional MLSnon-IDX versions, opening up their market and hopefully improving selling price.

The best part about all this is how easy it is for everyone involved. Buyers/sellers access vital information through their agent’s site. Agents and brokers can rely on quality MLS IDX website solutions to ensure that clients continue to traffic their sites. Welcome to MLS 2.0, it’s called the IDX, well no again. The web 2.0 is where you the consumers get more information at your finger tip, and IDX solutions make it possible. We have had NWMLS IDX on our website at UrbanTango.com our Seattle Washington Real Estate website since 2003. We have worked with 2 real estate idx companies and none could do what we wanted, so we just created a better solution. Our friends at North Seattle real estate experts of Keller Williams North Seattle check out their website to see the system in action.

For more information about our real estate IDX website solutions, check out XoomPad.com,coming to a professional real estate agent near you!

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