Perrin's North Central Washington Real Estate Blog

Remember when?

Perrin Cornell, ABR (Windermere RE/NCW) — Fri, 27 Nov 2009 10:50:03 -0600

I enjoy writing an occasional piece for the local paper. It is a change of pace and tests skills I don't always use. This particular one is about growing up in Wenatchee and the role radio played... much better than TV...lol!

Anyway for those of you that might be interested or that want to take a short step back in time and remember how we grew up you might find this link of interest http://tr.im/FWXo

It was another day and time and we do all grow up (ok, Peter Pan excepted) but it is fun to stop and remember... thanks for dropping by! Happy Thanksgiving!

"Suicide is painless... it brings on many changes"

Perrin Cornell, ABR (Windermere RE/NCW) — Tue, 17 Nov 2009 09:15:02 -0600

If you are old enough you may remember the song from the movie MASH. The dentist had some issues so they were going to give him a little pill to solve everything.

I think as REALTORS we often look for the magic bullet or pill (as a society we do too) There has to be another solution, a better quicker, "painless" way. A few years ago it was rapidly appreciating property and selling as an investment, then low rates (I remember when we said "if rates would just get down to 12% we could really do some business") now government tax credits. Tomorrow a better faster and quicker web site (or was that yesterday?).

Truth be told, like Dorothy in the Wizard of Oz... we all have and have always had the solution within us.

Not very exciting and certainly not very controversial but the solution is best summed up in a single word...WORK! Actually two words 'HARD WORK". Plus, experience tells me the easier it is the harder you probably worked.

You see it really makes no difference what is going on. There will be people needing to buy or sell or move out or move up. And those are my (and your) clients. All the other stuff...incentives, foreclosure, market conditions are just peripheral circumstances and they will change tomorrow and the day after. So the solution is to just keep you head down... slogg through each day in a pattern and consistency and the rest really doesn't matter, as you will succeed.

The old tortoise and hair analogy comes to mind... life isn't a race it is just day to day. Sure you need to adapt... but don't confuse adaptation with the answer to success.. the answer is in you and it always has been... just "work" on it!

Wenatchee and the Columbia River in Fall

Perrin Cornell, ABR (Windermere RE/NCW) — Sun, 08 Nov 2009 11:18:21 -0600

Last week was a beautiful fall week weather wise. Great, spectacular weather is something we experience in Central Washington (entirely different from the West side i.e.Seattle). Sky was blue, air was clear and foliage was in full color. Just time for a quick walk along the Banks of the Columbia River.

One of the special features of our town is the development, in the last few year, of a river walk/trail system. Initially the loop was about 11.5 miles in length. Today there are several additional extensions. But it is a great place to be, relax and exercise.

I started near Porters Pond (see above). There were a lot of Mallards on the river

There were also lots of critters but the most impressive was my partner Maggie... a long haired Dachshund that thinks the world is her oyster... which is not a bad attitude and in fact it probably is

Market Pricing - Now there is a novel idea!

Perrin Cornell, ABR (Windermere RE/NCW) — Sun, 01 Nov 2009 11:33:23 -0600

This morning I read the following post and I agree! (See below). In fact I had to chime in with more thoughts.

We have all seen them... overpriced and out of the market but still in MLS. Before going on I have to subscribe to full disclosure and that is I have had a few too... but some of the ones I see I would be embarrassed to have listed at that price. So whats the deal?

First from "04 to now, even with recent attrition there are a lot of comparatively new agents that just have not really dealt in a flat or declining market. Throw in lack of training (that is another topic) and they know how to sell based on price only. Next there are unreal expectations on the part of sellers. This can be charterized as "sure the market is down but my house is better than average and nicer than the one across the street that sold for $600K two and a half years ago". Then there is the people that are buried in their home loan and need to sell and perhaps the agent is trying to accommodate them but in the end as it moves to a foreclosure did they really help them?

I work with a partner. We ALWAYS do listing appointments together. We also do our own pricing independently and then we speak openly and frankly with the seller. Or as my partner puts it "many times we need to back the hearse up and let them smell the flowers".

We take the view that we are the professionals. We are not just called in to sell the house but to advise the sellers. Advise as to price, marketing, pitfalls and whether or not they just want to sell or need to sell! In fact we tell our prospective sellers up front that if they only think they would like to sell, in our market, today, is not something they should consider. I want to point out this is not done in negative terms but frank and unvarnished advice from what we hope will be regarded as trusted advisers. Yes we talk all the benefits and the pluses... but do not get carried away. Neither the sellers nor the agents set the market... the market is the market and it can be pretty tough at times. It is also important that we as agents do not "own" the problem. We have to keep an open and unbiased attitude.

Next we discuss a rather well thought out and documentsd CMA. Being sure to try and keep numbers within a six month time frame and having prices both over and below our subjects recommended price. If you don't you will rue the day the apprasier shows up... in fact in our MLS data we can generate FNMA 1004MC statistics and we make that part of the presentation.

Then we discuss the house itself. If it isn't ready to show and I mean ready to show we do not list it until it is, or we do not list it. Again we help the seller to understand that in their price range being third best will not sell the property... first MAY but third will not.

We look at the market as we set the price and realize we are looking at historical data... i.e. old. If the market is in decline then the data is not current as of today. Add to that the fact it may be another month before the property is truly on the market and being actively shown, we may (and usually do) lobby for a price lower than the comps will indicate. To that end we always have a sales proceeds sheet with us. We include in the proceeds (or lack of) possible points to the buyer, an allowance for repairs and 90 days carrying costs. This way the seller gets a good idea of what they are up against. If they know the worst after that things look pretty rosy (the old under promise and over perform).

It is not an art and at best a swag (scientific wild assed guess). But it is not a pie in the sky let's price it here.

There is a lot more to cover but for now Ill stop except for one additional item. I really feel that brokers have an obligation here too. If an agent is consistently overpricing you should step in with advice and guidance... I just saw a house in our market priced at 1.9MM for over 800 days and they just now dropped the price 150K. Wonder what the broker, agent and seller all think. Agents need to be the professional and lead the seller... brokers need to be sure it happens. Then if all your work results in a price of 250 on what should be 210... just get up say thank you very much and call it a day... you don't need the problems!

PS here is the other post I mentioned http://activerain.com/blogsview/1314270/agents-help-price-homes-out-of-the-market-or-priced-to-expire

Things Keep Moving

Perrin Cornell, ABR (Windermere RE/NCW) — Thu, 22 Oct 2009 09:00:14 -0500

It has been several months since I last dropped into Active Rain. Partly on purpose, partly just other business.

In that length of time it is amazing how things change and yet how they remain the same. But in all I am pretty optimistic about the future. I tend to think most of it has to do with ourselves than with outside forces. If we choose to rely on the outside forces we will be sitting idly by until ... well as my daughter likes to say "whenever".

But by doing it ourselves we find...hey there is business out there...EVERY DAY! The rules keep changing... so what adapt... keep posted and bend a little. Watch for speed bumps and learn to be pro-active. If appraisals are a toughie in your area...look for active comps on both sides of your suggested price... if your market is still declining (ours is though slowly) recognize the price that works today may not be right even 30 days from now so get ahead of the curve...your clients really will understand honest and straight talk (they will appreciate it too).

So far this year it looks like my business will be up about 42% over last year! But it is a combination of number of sides and commission. With declining prices I have been able to work both sides...that is get the listings and sales and at the same time expand my gross commissions as a percentage... that way even with a decline in price I have been able to increase my income... work smarter AND harder... it is a good life and thank you Buffini and all the Buffini friends out there... now to look into my crystal ball for next year...

American Independence

Perrin Cornell, ABR (Windermere RE/NCW) — Mon, 22 Jun 2009 09:25:31 -0500

Him...hard to believe that the 4th is just around the corner... 1776 to 2009 long time and a lot has happened.

As we creep up on the 4th and all the political Bs I decided to post to a blog an true story about some of the people that helped make the 4th possible. John Weimer...a distant relative. But you have to ask yourself why ...why did he do what he did? I sincerely doubt if most of us today would have the drive and fortitude to carry on the way he and thousands others did.

So if you are interested in a look back and seeing the people of the Revolution the way they really were drop by my blog at http://tr.im/pht5

Thanks!

English the language of Real Estate

Perrin Cornell, ABR (Windermere RE/NCW) — Sun, 07 Jun 2009 09:55:16 -0500

Well actually i just posted a blog on the local paper about our language and the use thereof. While not directly about real estate we as agents can take a tip in writing addendum's to be clear and concise in our writing. Something, unfortunately, the legal community do not always believe in (IMHO). We often say things we don't mean or confuse statements with unnecessary qualifications and adjectives. Just say it... or my old Army maxim KISS (Keep It Simple Stupid)! So if you are interested here is the address of the post

http://blogs.wenatcheeworld.com/author/pcornell/

TWITTER IN NORTH CENTRAL WASHINGTON

Perrin Cornell, ABR (Windermere RE/NCW) — Thu, 04 Jun 2009 09:55:56 -0500

You see and hear lots of people pushing Twitter as a sales tool. Is it really? Is it just a sales tool or do you need to use it in other ways too and gain sales through the back door? Lots to consider and there are many approaches an none are 100% correct. If you live in North Central Washington and can easily get to Wenatchee you might want to consider the following:

" TWITTER TECH EVENT At the Wenatchee performing Arts center. Sponsored by the PAC and Wenatchee Chamber. Free! From 5-6:30 on June 17th. Time to network after..."

This is a good opportunity to learn, network and perhaps find the elusive deal...lol

See you there!

Life in Wenatchee WA - THEN

Perrin Cornell, ABR (Windermere RE/NCW) — Tue, 26 May 2009 16:47:14 -0500

I blog on the Wenatchee World about events in the past in Wenatchee. Some are current but many are historical. My intent is to give a flavor about the community, our roots and help us understand where we are going. There is some humor, some tears and a few just stories. Perhaps it si something that all of us in a small way may relate to. So if you are interested, I invite you to check out the blog and my newest post at http://blogs.wenatcheeworld.com/author/pcornell/

Wenatchee, WA

Perrin Cornell, ABR (Windermere RE/NCW) — Thu, 12 Mar 2009 08:41:07 -0500

For a bit of perspective on what it is like (was?) to live in Wenatchee and to get a feel for the people and places you may want to check out my blog (and others at the same place) on Living in Wenatchee

http://blogs.wenatcheeworld.com/author/pcornell/

Nothing fancy but it is fun and it does provide a bit of insight if not to the Wenatchee area then at least to the authors background. Always open for constructive comments too.

It is not all that unique nor is it a Saturday Evening Post Cover but it is a glimps of americana... enjoy!

Wenatchee Should Be Proud - Again

Perrin Cornell, ABR (Windermere RE/NCW) — Sat, 28 Feb 2009 08:35:46 -0600

In January of '09 I wrote about an event that was put together by the community for budding musicians. An opportunity for professionals and students to meet and work together (http://activerain.com/blogsview/887356/Wenatchee-Should-be-Proud).

Last week a similar event happened but this was not exactly planned. Chanticleer (sp?) a 12 man vocal group from SF was at the Wenatchee Performing Arts Center. They were, in a word, FANTASTIC! I had never heard a male soprano (not falsetto). It was an opportunity that the roughly 500 people on hand really enjoyed.

After the performance the music teacher for Wenatchee High School, smuggled his acapella choir members back stage and had about a 20 minute impromptu music lesson for his charges from the group members...one on one and no interruptions.

Chanticleer should be commended and the teacher too. It was a great evening!

Wenatchee Should be Proud

Perrin Cornell, ABR (Windermere RE/NCW) — Sun, 18 Jan 2009 09:01:57 -0600

Last night I attended a Jazz Concert at the Performing Arts Center. There were six musicians from the LA area. All were friends and soon going on a tour. All seemed to have, Doc S, The Tonight Show and NBC in common, judging from the Bios. And they were excellent. Their performance was in conjunction with our own "Big Band" whihc is also pretty good.

Here is the important part, and why I am writing this post. Because of the activities of several local residents these musicians came here not just for the concert but to spend a full week with the local schools, middle school through High School, teaching technique and in general helping our kids develop and grow on the musical scene. The concert was just the culmination of the week. In fact on Friday Night they put on a concert with the students too...

Everyone grew... the musicians, community and the kids...win win all around!

This is the ninth year we have had this program and everyone in it deserves a round of applause...

Making 2009 A Year To Remember...Starts NOW!

Perrin Cornell, ABR (Windermere RE/NCW) — Tue, 30 Dec 2008 08:17:57 -0600

If 2008 wasn't the money maker you expected then perhaps we can kick 2009 up a notch or two!

Over the last few years, face it we have been spoiled. Easy business and inflated markets and commissions allowed us to get sloppy. It seemed business was everywhere and everyone wanted a piece of the action. Now many agents are dropping out and others are worried about the future. Business appears to have dried up. But I can guarantee you this... REAL ESTATE SELLS IN YOUR MARKET ALMOST EVERY DAY! At 12/31/08 there will be some agents with sales and some without. All you need to do is quit worrying and complaining (if you do) and be sure you are at the payout window!

Here are a few ideas to push your sales up a notch or two but first lets review what got us where we are... take a quick look in the mirror... no one else... you are the one. Conditions changed but you are the motivator, action person and sales person (sales person...hmmm where did sales come from).

GET ORGANIZED!

Start by time blocking every single week in your planner. Suggested entries... Sunday evening an hour for planning, Thursday time to take spouse or significant other out for dinner or a movie or??, one day a week for you, three days map out time for showing homes (an hour each day) sure you don't have the business now but you will. EVERY day map out at least two hours out of the office (time for calling on clients, customers, other businesses)

Next resolve to be in the office two days a week by 7:30AM, and the other days you should be working by no later than 9.

Resolve that you will not open Email until after 10am every day... it is the worlds greatest time waster. Once on line other junk happens and you waste literally hours.

To get where you are going you need a plan. So now is the time to sit down and draft a Business Plan:

Review your last two years and establish monthly sales goals. Number of units, average price, commission. Look at the little details... in our business too many focus on the commission... but it is not the amount that goes in at the top that counts. What counts is the amount you have at the bottom. Review where your business comes from and concentrate on those areas that provide results... what percentage of your business comes from sign calls, cold calls, floor, referral, newspaper...etc.? Just throwing money at a problem does not work. But targeting your dollars makes sense. Aggressively expand your business. Twice the number of listings (good listings at reasonable prices) will increase your cash flow.

Market You: How do you look? Really... are you dressing for success or being you. Being "you" won't get it. How about follow-up? Returning calls asap? Handwritten (as opposed to computer generated or email) notes to your clients and others throughout the community? Very powerful! Do you call your existing clients? Those you have listed at least weekly to keep them informed those you are assisting in buying as often as possible to let them know what is on the market... not just an automatic email but an actual call. Let them know you care and they are important!

There is soooo much more. But this is long enough and you still need time in the next few days to get 2009, a SUCCESSFUL 2009 laid out and planned!

Best of luck!

Wenatchee, WA and the first snow

Perrin Cornell, ABR (Windermere RE/NCW) — Sat, 13 Dec 2008 09:54:41 -0600

Not much to write about but we did finally get some snow. So far about an inch but more is forecast for the weekend as well as lower temperatures.

If you are not familiar with Wenatchee we are close to the geographic center of Washington State. IN the summer we have a couple weeks (usually late July and first of Aug) where temps get to 100 or so. Though because of our location they also cool down to the high 60's at night. In the winter we also get a few weeks of snow...usually off and on and not much more than 6-12". (though there have been times...not long ago one News Year Eve had 30" ) and usually a week of two in late December or early Jan where temps drop to single digits and occasionally sub-zero.

But I digress. So we now have some snow. For our valley and the people that live here the snow is an important commodity. It not only provides water in the summer but the blanket of snow helps insulate the fruit trees so they don't freeze when we get really cold temps. Naturally a blanket of white on the houses and homes in the valley as well as the hills and mountains makes for beautiful panoramas. I guess you could say we are thrice blessed.

Sure it gets sloppy, and messy and even dirty... but for now it is clean and brite. As a homeowner in the Valley I appreciate the four seasons and the constant change. Though the weather can effect real estate sales and keep buyers indoors. But all in all a great time to be alive!

Have a Merry Christmas!

Today is my calling day - Coaching Call that is

Perrin Cornell, ABR (Windermere RE/NCW) — Thu, 13 Nov 2008 09:22:20 -0600

I always look forward to my coaching call from Cami. It is a high point. A chance for a little pick me up and also a quick kick in the pants. I actively try to get ready for the call. What do you do?

Here is how I prepare to get the call and get the most out of it:

1. Go back and review my Buffini activities and business on line (usually every call we add a goal or two and i have to be sure I am on top of it

2. Comb my customer list to see if there aren't a few nuggets I have missed so I can start the day on a plus side

3. Review all of my clients/prospects in Buffini on line and if some need up dating or have gone past the followup date try to get them done prior to the call but certainly after.

4 At 7AM (yes that is AM) on the day of the call send my coach email outlining what has happened (good and bad) in the last two weeks since the call and what my concerns are and also what my touchdowns were too.

This works for me to maximize my call. Helps me organize my thoughts. Puts me in the right frame of mine and it is amazing how much addition I get done...stuff that has dropped through the cracks. Lean on your Coach...that is what they are there for!

Winnie the Pooh and Real Estate Too

Perrin Cornell, ABR (Windermere RE/NCW) — Sat, 28 Jun 2008 11:54:37 -0500

Other than the "100 aker wood" how does Pooh Bear relate to Real Estate?

The other day I had finished a book titled "Juggling Elephants" (which I recommend for the busy agent... or those that plan to be) and was looking for something to read. I found a very old copy of Winnie the Pooh, by A. A. Milne. Doggeared, part of the spine chewed away by Maggie (a long haired Dachshund)... the back rearranged by Sadie (a super Sheltie now gone for about 5 years). and the rest often read by my daughter now 30 something...only 20-25 years ago. So this book had been pretty much in a corner collecting dust.

I enjoyed it and finished it that night. Pooh, Piglet, Eeyore, Owl, Rabbit and of course Christopher Robin. Fun and a lot of memories!

About three days later I was getting ready to talk with my Buffini Coach (who is excellent) and I like to send her an email outlining my activities over the intervening two weeks. One of the things I discuss is what I have read and Pooh was one of the things I read. Then the parallel between Pooh and all the characters in the book hit me. It is a lesson we could all profit by. Here were my thoughts.

POOH BEAR: aware of his limitations but still will try for a friend. Knows things always go better with a song. Couldn't lie but worries about it saying the right thing.

PIGLET: Always has an idea and always gets Pooh involved, usually to get him out of trouble. unfortunately his ideas are a little short on the planning side but with good intentions and friends they still get carried off...sort of.

RABBIT: doesn't trust Kanga and Roo because they are different and from a different place.

EEYORE: Generally on a low esteem kick. But he can see the good and appreciates people (or Piglet and Pooh) trying. Has a word of caution too.

I think in our day to day lives these (and many other lessons in the book) cna be of great benefit.

If nothing else you can learn how to catch a Hefalump.

Flat Fee..pot holes or smooth sailing?

Perrin Cornell, ABR (Windermere RE/NCW) — Sat, 12 Apr 2008 09:51:48 -0500

I just read the following entry on Flat Fee broker and got to thinking about a new brokerage in our area that is listing and giving access to the MLS for $300 plus offering the selling office (in this instance) $4,500. Anyone is free to pursue their own business model. However, this is not about business model but rather the pit falls that are out there... and not just on the homeowners side. In fact lets, pretty much leave the homeowner (advertising promotion etc) out as those issues are well discussed elsewhere.

First, a general comment. We each live and work in different areas with different MLS etc. So state and local rules may differ.

This particular Broker uses a listing form that clearly establishes and agency relationship between broker/agent and homeowner. So with agency established and since under our agency laws I am an agent of my client (unless there is something in writing to the contrary). I present the offer to the homeowner. Review the salient points and that is it. When the homeowner says... "how long until I need to respond" or how about virtually any other question I have to reply..."sorry I represent the buyer and I cannot advise you on that."

So now we get past that hurdle. We have conducted an inspection. There are 10 items to be addressed. (According to local rules) I can a) deliverthe associated forms and request to the seller. When they ask all I can really say is sorry i represent the buyer and i cannot advise you. Or b) I can fax the docs to the listing brokerage and let the broker/agent deal with how to advise a client that they are getting a flat 350 fee from... not very enticing prospects for success there... especially if there are negotiations required. How well will the homeowner be represented (I am assuming here) and therefore what are the chances this will succeed.... but legally I can't do a thing. My perspective on this point is the lack of rrepresentation for the homeowner will have an impact on my client too (or could). Finally, not my problem directly, but the Broker/Agent in this sceneario has agreed in writing to be an agent and appears to not be doing what the Law of Agency says and what is their liability?

Ok here is another challenge. In our area, to be a member of the MLS you must be a member of the local Assn. To be a member of the local Assn you must be a REALTOR and subscribe to the Code of Ethics. So how do we step around not communicating with another agents client?

It seems to me the issues revolving around communicating and negotiating by themselves are enough to make a "knowledgeable" homeowner cringe. But unfortunately most homeowners are not up on minutia... so I guess we shall see.

I think the issue needs way more attention than it is getting if it is too succeed.

Mark Your Calender NOW!

Perrin Cornell, ABR (Windermere RE/NCW) — Sun, 06 Jan 2008 08:57:40 -0600

It is January and time to lay out your year! Yes you can do a lot of it now. Then after the Year is done work on the month and every Sunday evening lay out your week.

Here is what I have done to lay out a successful year today

1. I have booked one hour in the afternoon, two separate days, for showing properties. Do I have showing for October yet? Of course not but I will have and the act of booking is not only positive reinforcement but I know I will work to fill them in...plus a bunch more!

2. I have scheduled every Thursday AM to be in the Office by 7:30AM. This helps me stay on top of paperwork, but also provides some quiet time to research, read or whatever.

3. Scheduled one hour a day, three days a week to get to the gym or out walking.

4. Scheduled every Thursday evening starting at 4:30 as "date night" with my wife... movie, walk, dinner... just some time for us.

5. Scheduled at least one 24 hour block weekly (usually Sat or Sunday) to do something other than real estate.

6. Combed schedules and offerings and have scheduled three professional enrichment classes during the year. I am also reviewing the state offering of continuing education to get 30 hours of class lines out for the coming year.

7. Scheduled office sales meetings and MLS Bd meetings for a year out.

Ok, so i now have the year pretty well laid out (yes I also include personal dates... birthdays, anniversaries, etc). Now i have also scheduled some dates unique to Jan and will review that for the month of Feb on 1/25, then March on 2/23, and so forth.

Tonight at 9PM I sit down and lay out the remainder of the week based upon what i know so far. Thhis will include business lunches, office visits, marketing activities, inspections, closings, and all the other stuff we do daily.

Yes you do need to be able to make changes... things happen. But if I have everything written down I can evaluate the change, avoid missed appts and I also have a progress list so I can look back and see what I have been accomplishing. Thank you Buffini!

Weather Report and Real Estate - equal parts voodoo, information and SWAG

Perrin Cornell, ABR (Windermere RE/NCW) — Fri, 28 Dec 2007 09:35:07 -0600

About three weeks ago Gordie Romer, (a geat Windermere agent from Leavenworth...your welcome) and I plus a car full of assorted significant others, wives, kids and dogs set out on a Christmas tree hunt in the Wenatchee National Forest. Weather reports said some to 1" of snow. No big deal.

What we actually got was 24 hours of one of the biggest storms lately, which effectively curtailed our hunt. Last night weather reports for our area were 6" of snow from 10am to 10Pm with another 6" in the next 24 hours and up to 20 more inches by Sunday... so this morning we have less than 1/4 inch of the white stuff. Point is weather is an inexact science and the pundits and prognosticators are often wrong... though usually there is some truth in their forecasts... and occasionally they hit the nail on the head.

Fast forward to the Real estate market (whew that is a jump). Isn't it much the same... that is we can rely on historical data...but beyond that trends and apparent market direction are merely someone's idea of what tomorrow will look like... all with some truth, a few hit the nail on the head and most are not much else than air moving from a low pressure area to a high pressure area( or the other way around).

Fact... the market has changed. Seems pretty obvious. In fact we can measure the change just like the snow.

Fact... the change has produced a way different market from a year ago. Well a year ago on this date we did not have new snow.

Fact... tomorrow will not be the same as today

Item... market will not recover until mid 2009...oh yeah? How do we know? Let see what was that about 16" of snow... and that was a far shorter horizon and with far more accurate prognosticators.

Item... the market is already turning and will be healthy the last part of '08... hmmm ok and the sun will come out tomorrow too... what by the way is healthy?

All i know is things change and no single person, economic model nor guru has a lock on inside information that will happen 100% for certain, 100% of the time and in its entirety!

Put the markets in perspective a little. Here is some data on the Wenatchee market provided by Pacific Associates in Wenatchee. Historically it shows us when it rained or snowed but it doesn't do much for the future except assure us that last nights 1/4 inch wasn't as bad as in the past nor as good... it was just... well the days events!

Data is by year and shows the total number of homes sold... not too bad for '07 ...but there are plenty of people singing the blues;

2003 757

2004 851

2005 1010

2006 975 (nine out of ten local REALTORS would say that '06 was the big year)

2007 879 (through November '07)

Data is for SFR's in the Wenatchee area only.

I am anxious to see what '08 will be... a legitimate snow warning or a missed forecast...but one thing for sure there will be a number and I intend to have my share of the number...will you?

Christmas Traditions

Perrin Cornell, ABR (Windermere RE/NCW) — Sat, 22 Dec 2007 10:54:21 -0600

With the Christmas Holiday literally hours away i thought it might be interesting to compare some Christmas Traditions in our families. (And if you are into other Holidays at this time of year those would be great too... families are made of traditions).

Several years ago my daughter introduced me into one that I had never seen and is interesting. She was living and working in Ireland. One of the young women she was friends with invited her home for Christmas. The family had the usual decorations including a manger scene. However the scene did not include the three Wise Men (Kings). rather they were in one of the children's bedrooms. During the days leading up to Christmas they (the Wise Men) moved from room to room until, finally on Christmas Eve they finished their journey and ended up by the manger.

Anyone else have one to share?

PRICE REDUCED - who needs it?

Perrin Cornell, ABR (Windermere RE/NCW) — Sat, 10 Nov 2007 10:00:36 -0600

For some time now, we have all seen Price Reduced riders on yard signs, in advertisements and fllyers. In general these are an attempt to communicate a new price but what are we really saying.

Everywhere (almost anyway) we turn there are doom and gloomers, in the press, office, friends, investors that are bemoaning the current state of Real Estate (by the way 4.35 million sales for the year still leaves us in some of the best years in history). Many sellers are still a few months back in the cycle and buyers are often waiting for things to go lower. Many sellers are concerned if they shoud be listing now as the market is changing and won't prices go lower...

First the market is not changing...it HAS changed. I personally feel that we have over-communicated that change and one way we have done so is with price reduced riders. What does a price reduced sign really say...no really. Ahhh... we can't sell this property so we lowered the price and now a month later we still haven't sold it so even reducing the price isn't helping... is it a self fulfilling prophecy?

I have price reductions... less than many (in terms of dollars and quantity). And I try not to use the reduced sign. IF I do I only want to use it for perhaps a week or less (hey everyone has driven by at that point). But to just leave it out for months... what are you telling the public about the market (enforcing any ideas) and also about your abilities? Why not just price it fairly the first time, get it on the market and if a reduction becomes necessary... find other more positive ways to advertise it... how about a rate buy-down, increasing the commission to the buying agent, staging, lots of other ideas. And if you still need to reduce price then an email to the mls speaking positive about the property and displaying the price and price per sq foot.

What is the effect of price reduced on buyers? Do they take it as a good sign? Or do they think..."gee if I wait how much lower will it go"?

So they have their place and are necessary... but think a little first...it is hard enough to get a reduction why make it worse?

Wenatchee - Buyers market?

Perrin Cornell, ABR (Windermere RE/NCW) — Fri, 05 Oct 2007 10:50:39 -0500

Following the numbers only it appears that we slipped (actually dove) into a buyers market during August and September. Virtually all categories and price ranges showing inventories of 7-10 months. However I think October, if we don't scare ourselves to death, will show better numbers... there were just to many events that effected the market. Very hot weather (and around here everyone goes to the Lake) mortgage news, etc. Frankly we are about where we were in 2005 which is NOT a bad thing. More parity between buyers and sellers. After-all selling is not a race...

I look forward to a reasonable Fall/ Winter. Next Spring I expect us to settle back to a 115-145 market time line. Prices will appear to keep climbing as the bottom has fallen out and that leaves just higher priced homes to pull the median up. But when your agent says you can get 200+ per sq foot for your 1800 sq foot rambler built in 1970... you might want to ask some hard questions..

PSST...WANNA HOT $$ TIP... Community Service... or Networking at its best

Perrin Cornell, ABR (Windermere RE/NCW) — Tue, 02 Oct 2007 08:47:23 -0500

Our business depends upon people. All kinds of people. All levels of socio-economic strata.

There are a trillion people out there trying to tell us how to do it better, reach the people... bigger and better farms, internet marketing, systems, relational selling, ninja selling, and the list goes on and on. There are lots of people waiting to part us from our money all in the name of helping us make more money. Most simply (ok, many) just don't produce desired results. It is either not there in the first place or the agent yawns, writes the check and promptly goes back to the old way of doing things, acknowledging that yep there were some good ideas. Today in what at best is a mixed market a key buz word(s) is "back to basics".

I submit that if you want to be successful in business, any business, not just real estate you need to look at the community around you and get involved. I am literally appalled at the number of new agents that have no idea about communityor community service. There may be all kinds of reasons but the fact is (in my experience) many if not most have no sense of community involvement especially beyond church or kids in school.

In the office the other day, someone commented that "geeze you know everyone". Well I don't, but I have put in years and years in the trenches of community service and by so doing not only did I help out and feel good about it but I learned how to navigate around the community, its leaders, shakers and just plain folks.

Note I said "years". And there in is the rub. It is NOT instant gratification in the financial arena. Not even close and if that is what you are about you will be found out and self eliminated. It is about giving back, helping and molding your community. The pay back is satisfaction. The monetary part comes later...if at all.

The opportunities are endless, service clubs (Kiwanis, Lions, Rotary, etc.), YMCA, local political parties, chamber of commerce, senior centers, schools, Red Cross, United Way, and the list goes on and on. By belonging and participating you have the opportunity of feeling good about worthwhile projects and you meet people. I can honestly say I have never done business directly because I played golf. But I met people, they came to know me and have an opinion (hopefully good) and as a result at some point someone says "say I know a guy...". And here comes a referral.

But more importantly our communities need us. Not just because we are a warm body that can help but because of our perspective. At one point in time as I went through the chairs of the CofC it became obvious how important people like REALTORS are to the organizations. That is because 1) we are not hired guns who are paid by some corporate entity to attend a meeting... rather we are there because we must feel it important otherwise we are cutting into our ability to make money (by not being there and showing property) as such our outlook is slightly different. 2) because we work with all types of people and projects we are pretty much cutting edge in knowledge, knowledge of the poor, services, city standards, housing needs, investors, money etc. We are generalists and as such are important to the agencies.

So if things are a little slow, get involved and they will pick up, if you are way too busy... get involved you need a break and time away to think of other things. If you do, you will be rewarded...more than you can imagine, your community will gain and who knows there might even be a buck in it too.

How to qualify a weak buyer

Perrin Cornell, ABR (Windermere RE/NCW) — Sat, 22 Sep 2007 19:39:36 -0500

First have a lender that knows his/her business. Recently I had a buyer that had some money but a credit score 0f 598/625/633. They had several lates last year and one this year. Also a backside ratio of 55%. There were good reason for all and even with the ratio their living style would allow the payment. So here is what we did. With 10% down and 3% for closing costs they still fell into FNMA Level II. With a little work we got them into Level I (.755% lower rate). First we increased the downpayment from 10% to 11%. Next we reduced the cash for closing costs from 3-2% and asked seller to pick up the difference. We then had more $$ in the bank... enough to demonstrate 2 mos payments in reserve. We also paid off two credit cards which had small balances but the resulting payments brought the backside ratio down a little. Buyer is very happy, seller is happy and the mortgage guy and me the Realtor are also happy.

Nothing shoddy or shady. But also might not work for everyone... this buyer had some cash... still the buyer would have taken the higher rate... now they don't have too.

Banker, Mortgae banker, Broker... which is best?

Perrin Cornell, ABR (Windermere RE/NCW) — Mon, 03 Sep 2007 09:56:11 -0500

There seems to be a lot of incomplete or inaccurate information floating around about the role of the various principals in lending. Some generated by brokers/lenders themselves.

To qualify my statements I am a REALTOR. However, I was CEO of a bank, I also owned my own brokerage company and I also worked in several capacities with a large regional Mortgage Banker. Over the years I have run loan servicing, ran a secondary market department, ran a wholesale loan department and also spent time in the origination trenches.

The argument or discussion of who/ what is best to use for a mortgage really all comes down to level of service. Whether it is a Banker, Broker or Mortgage Banker. The real question is who can give your client the best level of service with fewer delays and less chance of fall out.

All three of the above, if they intend to originate loans over a period of time, need to deal with disintermediation. That is bringing the mortgage market from NYC to their backyard (or wherever it is). To do so requires conformity, standard documentation and standard underwriting. To simply say (as many bankers do) "we only originate loans for our portfolio and keep all our money at home therefore we can make any loans we want" is to fly in the face of reality. At some point in time, they will be faced with liquidity issues and a way to solve them is secondary market activities (buying and or selling loans... which have been standardized). So while many small to medium sized banks like to use this argument to set themselves apart, in reality, over time, they will need to conform. However, they may have a few programs tailored to special markets or supported by loan commitments with other lenders that allow them "special" programs. When available these programs are great and fit a need. But they are limited to amount of assets, commitment size and usually standard documentation and underwriting. There are a few Giants out there that have soooo much in assets that they can dominate a particular type of product in the market... WAMU, Wells Fargo and BfoA all come to mind. But they too have limits and from time to time stop originating special programs. They also run very large secondary market operations and are always on the lookout for investors for special products and ways to create demand on the sales side for products offered on the mortgage (both wholesale and originations) side.

Mortgage Brokers are at the mercy of Banks and Mortgage Bankers. A mortgage Broker typically has no commitments of their own (for mortgages) to sell against. Rather they are originating loans against a master commitment that a Bank or a Mortgage Banker has obtained. Daily these can change. Mortgage Bankers and Banks go into the Secondary Market and obtain commitments for loans . It is cheaper to work through a Mortgage Broker to fill commitments and often quicker and more flexible than to have hard established offices. The commitments come from investors and can vary day to day and minute to minute as to rate and terms (depending on the larger Financial Market). The Bank and Mortgage Bankers then make the commitments available to the Mortgage Brokers... in a sense, IF you had access to all activity going on you could always beat the terms and costs of a Mortgage Broker as they are acting as a middle man. But in truth you don't have the time and they are providing a huge service. Often your friendly Mortgage Broker (who has hundreds of sources for loans) may be selling to your friendly Banker who has just plain vanillia loans available to you locally. The commitment the Mortgage Broker is using might be several days or months old. To the frustration of Bankers they have to compete with themselves.... The local branch vs the wholesale (that works with Mortgage Brokers and Bankers) side. It is all based upon local competition, and regional/national needs of the bank for matched maturities on money coming in vs available investments vs loan sales commitments. To a very limited extent Banks and Mortgage Bankers have the ability of tailoring special loans to a certain market, much like Krogers creates loss leaders to get people in the doors.

If all this isn't confusing enough the Mortgage Banker is a hybrid. Like a Mortgage Broker they may sell loans directly to some other entity against a prior commitment . Or they have the horses to go and get their own commitments for loans and originate against it. To help fill it they may obtain loans from a Mortgage Broker and even from a Bank that in turn got loans from a Mortgage Broker. Like a bank a Mortgage Banker also has their sources of capital. These sources or pools allow the Mortgage Banker to originate loans from various sources and wharehouse them until they are sold into a commitment and even in a few instances from their own portfolio. Many Mortgage Bankers are owned by banks thus further blurring the distinction.

There are many similarities and there are a few dissimilarities. They all do the same basic thing. From one day to another any may have the "best" deal out there. What is important is consistency, ethics, ability to close and ability to obtain the commitment for your buyer. All the other aspects pale in light of these three.