Boe's Blog

What is your fear?

Ashlar Realty Lynnwood — Thu, 19 Feb 2009 17:11:51 -0600

"Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our light, not our darkness, that most frightens us. We ask ourselves, who am I to be brilliant, gorgeous, talented, and fabulous? Actually, who are you not to be? You are a child of God. Your playing small doesn't serve the world. There is nothing enlightened about shrinking so that other people won't feel insecure around you." Nelson Mandela

$3,700,000 home on Talbot Road, Edmonds, WA USA

Ashlar Realty Lynnwood — Sat, 14 Feb 2009 00:11:10 -0600

Boe Lindgren's Solution to the Economy

Ashlar Realty Lynnwood — Sat, 14 Feb 2009 00:01:51 -0600

Boe Lindgren's solution to the economy

Here is the solution to:

•· Saving the United States Banking system

•· Keeping the American homeowner in their home

•· Boosting the U.S. economy

•· Establishing better neighborhoods

•· Keeping rents down

•· Fixing the housing market

I know that is a lot of stuff to solve, but here you go. Instead of the U.S. government bailing out banks by giving them cash, the government should give it to the people. The homeowners in America would be able to refinance their mortgage loan with the government, regardless of their situation.

How would this work?

The government would let anyone who owns a home (or many homes) refinance at 1%, 40 year fixed. It is strictly rate and term (no cash out). Whatever is owed on the property gets paid off with this new mortgage (late fees, penalties, etc...). Now there is one lien on the property, and the owner cannot get a second behind it (or use the home for any type of collateral). The interest paid on this loan is NOT tax deductible. This is a onetime deal. Rental properties are fine too, let's keep the rents down.

Who wins?

•1) Banks - they get all their bad debt off the books and are solvent (government refinanced them out of it, instead of handing over cash).

•2) Homeowners - they get a lower payment and can stay in their home.

•3) Government - they make tax dollars by getting rid of the single largest deduction & they make 0.5% margin on the money (borrow from the fed at .5%). Oh yea, they also get paid back over the next 40 years.

•4) The economy - there will be an increase in consumer confidence and people will begin to buy things again. Homeowners will also have more disposable income (lower house payment).

•5) Renters - the rents can stay lower because landlords have a smaller mortgage payment.

•6) The housing market - less people will want to sell their home and give up the 1% mortgage. There will then be less supply. Prices will then stabilize.

•7) Neighborhoods - with more homeownership and less population mobility (no one wants to give up their 1% mortgage) neighborhoods will get established and people will begin to know their neighbors and take more pride in where they live since they will plan on being there longer.

This could all be implemented by the hundreds of loan officers that are struggling. With no underwriting & no appraisal, just title, escrow, and record. This could be accomplished for under $1,500 a home.

By Boe Lindgren, Owner / Broker Ashlar Realty & Licensed Loan Originator, Seattle, WA

boe@lindgren.com www.boeanddebbie.com

Attention Real Estate Professionals, Botext is here!

Ashlar Realty Lynnwood — Sat, 19 Jul 2008 18:14:08 -0500

Signed up for a text message listing response system, nice...

Ashlar Realty Lynnwood — Mon, 23 Jun 2008 12:37:56 -0500

There is a company known as botext. They give you an extension for your listings that a prospective buyer can text to and then get a response with details about the house. Me (the agent) then gets the prospective buyers cell phone number to follow up.

Give it a try... text 1024 to 425-344-3873, it takes about 15 seconds to get a response. I think it is great and has a lot of possibilities. We are all looking for buyers and it works anywhere in the USA.

Enjoy,

Boe Lindgren

Broker - Ashlar Realty

P.S. I am the founder of botext

Quote of the day from Jax

Ashlar Realty Lynnwood — Wed, 04 Jun 2008 12:59:50 -0500

"...sometimes when you go live with God in heaven you can still talk to people down here.."

"...but you have to yell really loud, I mean, think about it..."

Words of wisdom from a 5 year old

King county median home price is in recovery and looking up.

Ashlar Realty Lynnwood — Tue, 13 May 2008 17:18:08 -0500

Things are looking up for King County. The average median price is looking better. With interest rates low and inventory up, there has never been a better time to buy a home since the early 1970's. As some in the industy are saying, "it is the opportuinty of this generation".

active rain or active snow?

Ashlar Realty Lynnwood — Fri, 18 Apr 2008 23:01:59 -0500

The weather north of Seattle was strange today. Just 6 days ago it was 73 degrees and the tulips were bloomng. Today the snow fell (and still is). The first shot is the Ashlar Realty office at 5pm, the second is my backyard at 7pm. I guess we'll be getting the sleds back out for tomorrow. My oldest son asked when Santa is coming?

Some here in Seattle can't wait for a little global warming... OK Northwest warming

Have a great weekend!

Boe Lindgren

Broker / Owner Ashlar Realty

Thank for the invite

Ashlar Realty Lynnwood — Wed, 16 Apr 2008 13:02:37 -0500

Them them, how great is this. I live a life of favor and here is a place to post. I'll be in touch.

Boe Lindgren

Broker / Owner

Ashlar Realty

Lynnwood, Washington

Cross product marketing with an industry team. In search of your opinion.

Ashlar Realty Lynnwood — Wed, 16 Apr 2008 12:34:52 -0500

Here is the team. We have a team that cross markets our services. What is the consumers perception and do other agents like working with a team of complimentary services?

We have had great success. From the lending approval (we know it is real) to getting the insurance binder. We can see if there have been any claims on a house before we list it (make sure it is insurable) and have the lenders give us thier opinion of value.

We are also updated with changes in the market, and with daily changes in lending Hometown Lending provides great value.

I think the key it good people. David Haley with Hometown lending and Sean Riley with Farmers insurance are both upstanding and credible people. They are also experts in their field.

How is your in-house lender and do you use them? Also, do you have an in-house insurance agency?

One last note... see the sun does shine in Seattle once in awhile;)

Boe Lindgren

Ashlar Realty

Lynnwood, Washington

What do the large companies have to offer? (the agent)

Ashlar Realty Lynnwood — Mon, 14 Apr 2008 12:43:47 -0500

I have always "hung my license" with a small independent broker (until I opened my own shop). I thought the idea of paying between $200 - $300 a month and getting 100% commission was a great deal. Over the years I paid for my own advertising and branded me. I could change companies and my clients didn't care, they are my clients, they work with Boe and they refer their friends to Boe (not some huge real estate company).

As I build Ashlar Realty, I meet with agents that are with the big companies. Those agents don't mind a split and house money. They don't mind paying $25,000 a year plus a percentage of their commission. I am sure there are some advantages to being with a large recognized company. But is it worth it?

If I did 12 sides in a year and the average commission was $9,000 gross, then the 100% shop would get me $108,000 in Gross commissions. Subtract out a processing fee and E&O (say $100 each) and also take out the monthly desk fee of $300 a month, which would net me $102,000 (before taxes). In a traditional $25,000 to the house and 70/30, that would get me $58,100. Does the large company spend $44,000 a year on me that helps my business? Or is it better for me to spend the $3,500 a month on marketing?

I suppose there are a lot of factors to consider. Does the large company spend the marketing money locally or nationally? Do I get leads from the company? What is a lead worth? If you spend $3,500 a month and get a deal out of it, that's not bad.

I am really curious since I have never been associated with a large firm, what do large companies offer? What are the splits like? If you could change one thing at your current brokerage what would it be?

Another thought, are small 100% shops on the rise due to the internet? Meaning that with large real estate broker website statistics falling (peaked in spring 2006, go to www.alexa.com), the consumer is trending toward having a personal relationship with an agent or "google-ing" agents by name to find them. If I was a consumer, I would search the net, blogs, etc... to find an agent, not a company.

I look forward to your response, here is your chance to brag about your company...

Boe Lindgren,

Broker / Owner

Ashlar Realty, Lynnwood Washington

Eat at Dave's

Ashlar Realty Lynnwood — Fri, 11 Apr 2008 19:44:23 -0500

Part of being a great real estate broker is knowing about the hole in the wall places to bring clients that lets them know that you know the neighborhood. A great little place is Barney's Pastrami. It is located at:

Barney's Pastrami
5130 Evergreen Way # 103, Everett, WA 98203

Dave the owner will hook you up with the best sandwich in the northwest. Enjoy!

Dear expired listing, (is this too aggressive or too honest?)

Ashlar Realty Lynnwood — Fri, 11 Apr 2008 19:20:37 -0500

Dear "expired listing"

I noticed that the listing on your home recently expired. If you are re-listing with the same broker, please quit reading this and throw it away. I never want this to imply that I am soliciting an active listing. If you are thinking about your options, keep going...

"Insanity: doing the same thing over and over again and expecting different results." - Albert Einstein

Here is the question to ask yourself, "Do you really want to sell your house?" Be honest, because if you do, I will do it. There are some people that want to: see how it goes, list high and let it slide down in price, give the listing to the agent that says the highest sales price. Well, you can keep playing that game. That is what you have been doing the last few months. Or you can decide to sell your house.

Here is some free information (realizing you might never call me or even thank me) that will help you. Lenders right now will lower the loan amounts on homes that are on the market for more than six months. In Pierce County it is every home, because Peirce County is considered a "declining market". In Snohomish and King it is based on market time. So, if a buyer can get 95% financing on the house down the street (comparable) and can only get 90% financing on your house, where are they most likely to buy?

Here is the next tip; prices are declining at about 6% annually on the homes that can come down. This means that the homes that were purchased with 100% financing cannot be reduced in price, but the ones with equity and real sellers can come down. If you are at 100% financing and have no room to come down, don't call me, call your bank. But, if you have some equity we need to price accordingly and that is ahead of the market.

If the comparables show your home to be worth $400k, and the comparable are from four months ago, they are really showing a value of $392,000, and if we put in on the market today with a close in sixty days (contract in 30, closing in 30) that is $4k less (1/2% per month, $2k a month), that is $388,000. Now you are priced at market. In any market with surplus (a lot of homes for sale) no-one wants to pay full price, they shop for about 5% in savings.

This formula works in a hot seller market too. You just have to price your home in the 60 day future price not to the four month old comparables. When agents priced homes to old data they sold quickly and everyone thought they were doing a great job. Actually they were just six months behind the market. Those who sold quickly in years past and figure this out, will probably not call that agent back. But then again, that agent is no longer an agent anyway.

To sell your home quick, we need price, signage, and best in class. Price being 80% of the decision, pricing then should be 5% below 60 day market. The comparable $400,000 home should be priced at $368,500. Now remember, every month on the market it goes down $2,000 and you make another payment and the lenders tighten guidelines for your buyer. Signage, that's just a phone call. Best in class, I (and my stager) will come through and tell you to pick up your stuff. Buyers don't want to see your stuff (even the cool MGD neon in the garage).

Homes are selling... just not yours, because you took bad advice. If you want me to sell your home give me a call. If you want someone to list your home I have a list of agents that like overpriced listings, you see their signs all around your neighborhood. Call them and they will give you a scripted, slick, & pretty listing presentation (oh yea, you already sat through that). I'll just show up with a digital camera, a contract, a financial plan, and a smile (no tie).

Remember the goal is to sell your house.

Respectfully,

Boe Lindgren

Owner / Broker

Ashlar Realty

Declining value neighborhoods in the Seattle Area?

Ashlar Realty Lynnwood — Thu, 10 Apr 2008 18:24:06 -0500

I met with the Wells Fargo wholesale mortgage rep today and there were a few things that I thought I would (should) share with the real estate community. For those that do not know the Seattle area very well there are three main counties. Pierce County is to the south of Seattle and the big city is Tacoma. King County is where Seattle is located. Then there is Snohomish County to the North and the big city is Everett. Statistics in the Puget Sound region are usually divided up between the three counties.

Pierce county has been classified (for awhile now) as a declining market, so Wells Fargo cuts the ltv of high ltv loans my 5% automatically. So, if your buyer is qualified at 95%, well in Pierce County they are only getting 90% ltv. This is not new news, just FYI.

Now King and Snohomish County are not classified as declining markets, but some neighborhoods are and there is no black and white answer. The rep said if a house has been on the market for more than six months (which the appraiser will note) then you are in a declining market and the ltv will be cut. Or, if the area the house is located has a lot of long listings then the ltv will be cut. It is up to the bank.

What does this mean? You better price the house right the first time, because it gets more difficult to find financing the longer the home is on the market. Are you (or are you working with) the agent that actually tells the seller what the home is worth? Do you walk away from the listing if the sellers want to overprice the home? Does the listing agent carry any judiciary responsibility if he/she prices a home wrong and it gets on the Wells Fargo list and impacts the neighborhood?

I wonder where all this is going....

Boe Lindgren

Broker / Owner Ashlar Realty

Lynnwood, Washington

$5 billion then $7 billion to Washington Mutual & no more wholesale lending

Ashlar Realty Lynnwood — Tue, 08 Apr 2008 12:26:29 -0500

Washington Mutual has ended its wholesale lending. This means that the only way to get a WAMU loan is from a retail branch. Is this a good thing? The number is between 30% - 40% of loans are brokered, and brokers are held to a higher standard (at least here in Washington).

I loan originator in Washington has to take state classes, pass a state exam, and do continuing education. A loan officer at a bank does not. The bank does not disclose yield spread (arbitrage), but a loan officer for a mortgage broker does.

Pricing? Well, as a loan officer that works for a broker I can beat the banks pricing. I get their money wholesale. I compare the broker world like Costco. I have a good friend that was a branch manager for a WAMU and he we would talk and compare rates. I was better every time.

Banks also tend to sell products that are their profit center, not necessarily what is best for the consumer. They are sales people, I am a consultant. If the best money for the bank is an arm, that is what they are selling.

I have also noticed that the in-house retail bank loan officer has little knowledge of all the products they can provide, and they rarely know anything about the competition. As a loan officer for a broker we look at all the products from all the banks. We have the ability to shop for the best rates and products. It seems that wholesale loan reps know their strongest products (their leader items), so we use different banks for different products. Another friend of mine about four years ago called and let me know of a new product from WAMU, I let him know that I had been providing that product for 18 months. He was a little embarrassed.

If Washington Mutual leaves the wholesale market, who's next? What if all the banks leave the wholesale market? Are the consumers left to the mercy of the retail branch? What about the real estate agent that is structuring a deal that needs a certain kind of loan / ltv / documentation, is he/she left to the knowledge of a bank loan officer? Does the consumer then walk down the street and walk into every retail bank and fill out application?

If you have any questions about mortgage lending I have been a loan officer is Washington for seven years and I am also a licensed real estate broker. I am the owner / broker of Ashlar Realty in Lynnwood Washington. I am a licensed loan originator for Hometown Lending #510-LO-31998 Talk soon, Boe Lindgren

Follow up to 6 billion dollar bail out to home builders

Ashlar Realty Lynnwood — Mon, 07 Apr 2008 13:35:53 -0500

I have received a lot of response to the article I wrote on Friday. Many wanted the source. Watch the video of the news article from Kramers Mad Money http://www.cnbc.com/id/15840232?video=702684766

This is about the bill S. 2636

Enjoy,

Boe Lindgren

Owner / Broker

Ashlar Realty

Lynnwood, Washington

six billion dollar bailout for builders? Just adding fuel to the fire!

Ashlar Realty Lynnwood — Fri, 04 Apr 2008 22:39:48 -0500

Six billion dollar "bail out" for builders. I was listening to Kramer today on CNBC and he was commenting on the "assistance" that is being given to builders because they are coming on hard times with the housing surplus. The irony is that they are the ones that created the surplus.

I have been a mortgage lender for seven years and a real estate agent (now owner / broker) for five years. My lending specialty was in the sub-prime market and I primarily worked with first time home buyers. They all have a plan. Buy 100% financed 2 or 3 year Arm, when the Arm is about to adjust, refinance into a fixed produce. It is a great plan; we all win (the market, the lenders, the homeowner, the real estate agents, and everyone else that gets work out of the transaction).

What happens if new home builders see the trends and then flood the market with homes? My Economics professor said never explain an economic event with Supply / Demand there is a deeper cause. But, for this article, the new home builders built too many homes too quickly, thus a huge supply of homes.

With the huge supply of housing, homes stop appreciating. With no appreciation there is no equity for the 100% person to refinance. The arm adjusts and the homeowner can't make the payment. Is it the homeowners fault? How about the lenders fault? Is the real estate agent at fault? Or is it the people who did condo conversions, zero lot line condos, and sub-divisions?

The next step is the buyer goes into foreclosure and then there is a terrible comp for the appraiser. So, the entire neighborhood is affected. The banks then tighten because of more foreclosure. The high LVT loans disappear. There are more foreclosures and everyone is putting their home up for sale.

So, the solution is to give money to the ones who got us into this mess? Do you think the builders are going to take the money and retire? Do you think they will stop? Or will they use the money to create more unwanted / unneeded supply? How about we let some builders go out of business and save some families from losing their home?

Home for sale in Allentown (Between Tukwila and Seattle)

Ashlar Realty Lynnwood — Thu, 03 Apr 2008 17:28:16 -0500

The new television Commercial

Ashlar Realty Lynnwood — Thu, 03 Apr 2008 17:26:30 -0500

This has run on KIRO Television here in Seattle. What do you think? It is located on my previous post. I couldn't figure out how to mix WYSIWYG and HTML sorry about that

Ashlar Realty Tv Commercial

Ashlar Realty Lynnwood — Thu, 03 Apr 2008 17:25:14 -0500

Seattle Nickel's proposes a $.20 a bag tax...

Ashlar Realty Lynnwood — Thu, 03 Apr 2008 17:10:31 -0500

Mayor Nickels proposed a$.20 tax on every plastic grocery bag used in Seattle. You can check out the story at http://www.kirotv.com/news/15774371/detail.html .

I think this is just another tax. I have heard that the city goes through 360,000,000 bags a year. That would be an extra $72,000,000 in revenue annually. Wow, what a sneaky tax. I can hear them in the backroom going, " Alright, we need more money. We are not sure for what yet, but more is better. We have maxed out the Sales Tax, Property tax, gas tax, license tab tax, liquor tax, etc.... What if we say that plastic bags are bad for the environment and do a study (like the monorail guys) to prove it. We know the outcome. Then we will tell the people that we need money for grocery bags to save the environment. This just might work!"

So here we are with another tax. I am not shopping anymore in Seattle. I already buy my gas outside of King county. Now no groceries in Seattle.

What about no tax on food? Isn't this tax very regressive (hurts those with the least amount of money most)? Is this really the biggest issue that Seattle currently faces?

Now if they raised the $72 million how should they spend the money? If they were business people and wanted to ‘parlay' thier winnings, they should invest in more traffic camera's. Those are huge revenue generators.