RE/MAX RED, WHITE & BLUE GOES GREEN

RE/MAX in Top 4% Nationally for Energy Efficiency

The Environmental Protection Agency has presented RE/MAX International Inc. with an “Energy Star” designation, an honor given only to companies and businesses that have made a significant commitment to energy conservation. (For more information on Energy Star – http://www.energystar.gov/ )

The RE/MAX International Inc. headquarters building, located in Denver’s Tech Center, has been appraised among the top 4% in the nation in energy efficiency.  The “Energy Star” award is the first element of a RE/MAX nationwide effort to conserve resources, and educate its employees and Associates on “earth friendly” living.

Beginning with headquarters, the RE/MAX program will include RE/MAX offices across the country, and will encourage and reward participants who lower their energy consumption. “Even just one person can have a positive effect,” says Margaret Kelly, RE/MAX CEO.  “Just imagine what can happen when thousands of our U.S. Associates take part.”

RE/MAX is also joining with the National Association of Realtors®, in developing a professional designation that will provide real estate agents with the knowledge they need to become advocates in spreading the “green” philosophy and to incorporate “green” practices into their business.  NAR’s Green Resource Council is designed to help agents help those buyers and sellers who rate energy efficiency as one of the most important aspects of their new home.  NAR projects that “green” building could soon make up 25% of all new construction nationwide.

As part of its commitment to the “green” initiative, RE/MAX University, the real estate industry’s premier educational institution, will be developing training materials for RE/MAX Associates for use with the NAR Green Designation Program.  RE/MAX University includes 24/7 on-demand Internet courses, nationwide classroom instruction, an extensive library of training materials and the RE/MAX Satellite Network (RSN).

“We want to put the full extent of our resources behind this,” says Kelly.  “We believe that going “green” is not only good for business, but good for the communities we serve.”

Market Analysis – An Update From Two Local Mortgage Brokers

By now you have heard, the House rejected the $700 billion emergency relief bill.  We have been living with fewer lending programs since the demise of the secondary mortgage market and that conservative lending is still in play.  Here are a few excepts from market updates received today from a couple of my trusted lenders.

Chris Jordan, Loan Officer with The NASSAR Group
News that the bailout plan did not pass continues to bring uncertainty to the markets. Amidst the uncertainly, I wanted to reassure you and alleviate any concerns that you might have regarding the availability of loan products for you and your clients. I have had many clients call and ask if they are still going to be able to obtain the loan they are pre-approved for considering the turmoil taking place in the financial markets. The answer is yes. The primary loan products that are available right now are the same as have been available for many months. These are FHA and VA loans and loans that qualify to be purchased by the now government controlled agencies Fannie Mae and Freddie Mac. These programs are either funded or backed by the government, and the availability of these products is not affected by the current situation of the financial institutions. 

The proposed bailout would allow many large banks to clear out the log jam of unsellable mortgages on their books. This would free up greatly needed capital in the financial system and thus would very likely allow new loan programs to eventually come back into the mortgage markets. However, this bill’s failure does not directly affect the availability of the previously mentioned existing mortgage products.

Bob Chiodo, Senior Loan Consultant with Equity Home Mortgage

Investors around the globe showed their displeasure by dropping stock prices in a very dramatic fashion. Hopefully, many of those who opposed the legislation will now understand what’s involved if this bill – or one similar to it – is not passed. And it needs to be sooner and not later.

I have been asked a number of times today whether we can lend money. As I mentioned last week, there is still money out there to lend and we are finding it. The recent turmoil hasn’t made it easier but we – and many other lenders – are still at it. Rest assured, if the buyer/borrower is qualified, we can get them financing.

For those who want to understand the how’s and why’s of the recent turmoil more than the local news can give you, here’s an article to read stabilization-plan. It comes from a gentleman who has an excellent grasp of the situation. It can be a little difficult at times, but it does a great job of covering how we got here and where we are going. It’s from John Mauldin, Best-Selling author and recognized financial expert, who is also editor of the free Thoughts From the Frontline that goes to over 1 million readers each week. For more information on John or his FREE weekly economic letter go to: http://www.frontlinethoughts.com/learnmore

Of course, his isn’t the only opinion of where we go from here….especially since the bill didn’t pass the House. I am currently reading another analyst’s opinion that states that it could be good that the bill didn’t pass. Here is a quote from his letter : “Congress would be much better advised to take the extra few days or week it would take to structure a plan that the world is going to have to live with for a very long time” (1) Personally, I hope that Congress passes the bill and then allow the necessary regulation of Wall Street to follow.

(1) Michael Lewitt of Hegemony Capital Management. Article titled “Haste Makes Waste” as printed in John Mauldin’s Outside the Box. Vol 4, Issue 48, September 29,2008.

I believe Chris said it the best in the closing of his email, “we are in historic times.”  Remember, we’ve survived in the past and we will survive today’s turbulant times.  Bob also reminded us to keep our focus on what really matters: “Don’t let the financial issues of today take any more control of your life than necessary. Maintaining good personal health, keeping family relations strong, and doing the right thing for your clients is where our focus should be.”

The Oregon Property Team is Going Green

Today’s Topic: What’s Your Ecological Footprint?

This week I’m attending the two-day Earth Advantage Sustainability Training course for my S.T.A.R. certification (Sustainability Training for Accredited Realtors).  As the week progresses, I’ll be taking you on my journey as I learn how to live a more green lifestyle and promote sustainability.  Our first homework assignment, calculate our Ecological Footprint. 

Now, I consider myself to be fairly environmentally minded – we recycle weekly, our blue bin is always more full than our garbage can; we turn off lights and unplug small appliances when not in use; if you’ve seen our yard, you’ll know we don’t water much (just the plants but our grass is non-existent); yet, my results were… well, disappointing (see the chart below)!

Here’s the facts:
The average person in the U.S. uses about 24 acres (acres = the use of the earth’s resources in terms of water and land) to support his or her lifestyle, one of the largest Ecological Footprints in the world.  Germans have an Ecological Footprint of 11 acres, while in countries like India the average Ecological Footprint is 2 acres. 

What does that mean?
The current combined humanity footprint is more than the Earth’s total capacity.  If everyone on earth had the same Ecological Footprint as North Americans, we would need more than 4 planets! 
- Stats provided by Earth Advantage Inc. 

Curious to see how your Ecological Footprint compares?  Click on my results in the chart below or visit www.myfootprint.org.

First Time Home Buyer Programs in Portland, OR

We shared with you information about the federal First-Time Home Buyer Credit on September 4 but did you also know, there are a number of local programs available from the Portland Development Commission Neighborhood Housing Program?

Many of the programs require the purchase of a home in the urban development “target area“; however there are programs available to homes that are simply within the Portland city limits. 

Check out the Portland Development Commission website to learn more about each program including the mortgage credit certificate an annual tax credit for first time home buyers, community renovation loan available to home buyers who would like to purchase and renovate homes in Portland, the lead hazard control progam which provides a grant up to $10,000 to owners of older homes to identify and reduce lead paint hazards and many other programs. 

There are a number of programs out there so do your research.  Make sure you’re working with a local mortgage broker who understands not only the federal programs available but the specialized programs in your area.  Like searching for college scholarships, if you do a little leg work you’re likely to find a program that suits your needs and criteria but you’ll never know if you don’t investigate.

It’s a great time to buy and there’s still money out there to help you become a home owner!

Politicians… The Front Fell Off

Thought I’d share a little non-partisan Friday Funny, hope you enjoy!

Need to Sell in a Buyers Market? Tips For Updating Your Kitchen

There are a million reasons why you might feel you need to sell in a buyers market but regardless of your reasons you still need to appeal to the same pool of buyers as your neighbors or closest “competition” (other homes on the market).

You may have heard this before but it’s true… we’re in a beauty contest and price war!  What do we mean?  You need to be the best looking and the most competitively priced in order to bring in the buyers, and most importantly the offers, on your home.

Today, we thought we’d talk about the kitchen.  It’s important to evaluate your home one room at a time – remember, these are strangers walking through and they’re brutally honest so be honest with yourself as well.  Here are a few thrifty solutions for an outdated kitchen:

1. Add space and light by removing or opening a wall.  Instead of shelling our thousands of dollars for an addition – think about replacing a partition wall with a single supporting beam or opening up the wall to install a breakfast bar in a smaller kitchen with limited space for an informal dining area.
2. Don’t move the plumbing.  If this is your dream home, go for it, but remember or topic, selling in a buyers market – you’re selling!  Try to make things work where they are - maybe update the appliances with something that fits better or if you can, remove them all together and let the new buyer visualize what would work best (an over-sized fridge in a small bungalow kitchen just doesn’t work).
3. Unclutter the countertops with special hardware.  If counter space is a commodity in your kitchen, get rid of the gadgets - how often do you really need to use the Kitchen Aid mixer or food processor?  Even stash the toaster and coffee maker, it’s not that difficult to pull them out in the morning but if you absolutely cannot live with your small appliances in a cupboard or stashed in a drawer, there are a number of nifty hardware applications – check out “Rev-a-Shelf” - that can be purchased that will lift your alliances off the countertops but still make them accessible.   
4. Freshen up paint and pulls.  Don’t under estimate the power of paint or some groovy pulls for your drawers and cupboards; however, WARNING, remember, you’re trying to create a fresh, yet semi generic appeal to your home.  Don’t go crazy with big, bold colors (you don’t have to be white and beige either) just think neutral – same with the pulls.  Find something that suits the style and design of your home without breaking the bank.  Another great way to stretch your “get it ready for market dollar” – find a couple “cool” knobs or pulls and then use a more generic, yet coordinated, style knob for the rest of the space.  A couple high-end touches go a long way.
5. Declutter the Frig!  We know, the frig is the perfect canvas for your personal pictures, your kid’s masterpieces, your favorite recipe but really, you’re buyers do not need to know “these are a few of your favorite things.”  Clean it off and wipe it down with some Windex – oh, and for those of you with the white handles that are now a dirty shade of grey (even after you’ve scrubbed) – get the Mr. Clean Magic Eraser it really works!
6. Clean, clean, clean… and when you’re done, clean some more!  Kitchens and bathrooms are the worst, especially if you’re still living in your home while trying to sell.  These rooms get used but the object is to make them appear unused.  I’m not saying eat out every meal, every day… just clean up.  Use the Simple Green on the back-splash after you make dinner, squirt some Windex on the faucet to make it really shine after you do the dishes and for goodness sakes – remove the stinky stuff daily which includes the garbage, run the dishwasher (or at least rinse your dishes before you put them in), run the garbage disposal, get rid of the cat box, ash trays, anything that has the potential to stink – including overly pungent air fresheners.  We want to smell clean not the kitchen version of a cologne shower. 

Buyers are buying – rates are great and there are incentives (see First-Time Home Buyer Credit).  It’s important to get people into your house, that’s the first step, the next is to get them to write that offer!

This article was inspired by a piece in REALTOR Magazine, Thirfty Solutions for an Outdated Kitchen with my own commentary (if you couldn’t tell).

What is happening in the financial market?

Who knows????

I am reproducing some comments below from one of my favorite lenders, Bob Chiodo, Equity Home Mortgage. 

Bob has been in the business for 20 years and was one of the first people I ever heard predicting problems on the horizon.

“I held off doing my weekly update in the hopes that some stability would return to the markets. Since that hasn’t happened, I still wanted everyone to see what the rates were doing and to assure our market participants that we are still lending money and real estate transactions are still closing. Although underwriting is tougher, it’s business as usual as far as I am concerned.

By now everyone is aware of the bill that is trying to get through Congress. I’ll leave the analysis of the bill to those far more qualified. There is no question that something has to happen and it has to be big. I have read many different points of view on it. Right now, there are more questions than answers. That said,  it’s going to happen and it will be big. Congress knows it too. The hope is that it will free up our capital markets – without which there would be a standstill in business. The consequences of it not happening are far worse for all of us. And, there is a good chance that the total costs won’t be anywhere near the $700 billion. Remember, the design is to buy assets (loans) that are tough, if not impossible, to sell. The government will buy them at discounted prices and, the hope is, will be able to sell these loans later at the same or higher prices. It actually makes sense, and if done correctly, it shouldn’t cost us taxpayers that much money. It will allow the banks and investors to get rid of these loans which should allow them to start lending money again. The banks and investors will take their losses but that should be it. Business back to usual, right? Don’t count on it – count on much more regulation, less profits for the banks and investors, less risk taking, etc. Out of this mess will come new ideas on capitalism, government involvement in the markets, and risk management – to name just a few. Interesting times!

I want to comment on a letter that was sent to a borrower from their current lender. An agent asked me to review it and, I have to say, I was very impressed with the letter. It seems that this particular borrower had taken out a Neg Am loan that was due to recast. Without fully explaining how that works, the bottom-line was that the payment was going to go up by over 100%. There was no way that the borrower was going to be able to make that payment. Of course, due to the Neg Am, the borrower was upside down in the home -the loan was higher than the home’s value. The lender, without being asked, offered to freeze the loan payments for 3 years at an interest only (no longer Neg Am) equal to the current below market payment. That payment worked out to be less than 4% interest only. If the borrower paid more, the overage would go to principal. After the three years, the loan adjusts to the scheduled interest rate but that would require only an interest only payment for five years. After that, the loan converts to a 40 year fully amortizing loan. Overall, it’s a fantastic deal. The borrower gets a 4% rate for three years and can afford to stay in the home. No foreclosure or short sale for the bank. The neighborhood doesn’t get impacted by having the home being sold at a loss. The bank keeps getting paid. This was a win-win for everyone. And, again, the bank did this without being asked. It’s really good to see that the lender was taking the initiative and was doing the right thing. There is hope out there after all!

Have a great week…..I welcome your comments or calls.”

Bob Chiodo, Equity Home Mortgage, LLC

12550 SW 68th Parkway

Portland, OR 97223

(503)670-7393

fax: (503)670-7062

bobchiodo@equityhome.com

www.ResCommLending.com

Estimated rates for the week of September 22

30 yr conforming 5.75% – 5.875%

30 yr jumbo 6.125% up to $600k

7/1 ARM 5.625% – 5.75%

OR VA 5.50%    

OR State Bond (Conventional or FHA) 5.75%

10 Ways to Cut Energy Bills This Fall

Saw this article in this month’s Realtor® Magazine and thought you might find it useful.  As you watch your 401(k) crash and burn, every penny saved helps.

Staying warm doesn’t have to cost a fortune. Here are some ideas from the U.S. Department of Energy for conserving heat and saving money.
By Kelly Quigley | October 2008 – Kelly Quigley is online editor of REALTOR® magazine. She can be contacted at kquigley@realtors.org.

When the leaves start falling, you know that the heating bills are about to start rising. But keeping your home warm and cozy on chilly autumn nights doesn’t have to break the bank.
 
The U.S. Department of Energy offers these simple tips and relatively inexpensive home improvements that will help ensure cold gusts stay out and your furnace doesn’t have to work harder than it should.
 
The goal: Conserve energy and keep more of your hard-earned dollars in your pocket.
 
Share these ideas with customers and use them for your own house. After all, who doesn’t need to save a little money these days?
 
1. Plug air leaks with caulking, sealing, or weather stripping. Save 10 percent ($190 per year) or more on energy bills. Focus on windows, doors, outlets or switch plates on exterior walls.
 
2. Properly maintain the heating system. Heating accounts for half the average family’s energy bill (approximately $950 per year). Make sure the furnace or heat pump receives professional maintenance each year. The small cost (about $75-100 for most service calls) will pay back in better performance all year long.
 
3. Install a programmable thermostat. Programming the thermostat from 72ºF to 65ºF for eight hours a day while no one is home, or everyone is tucked in bed, will cut the heating bill up to 10 percent ($90 per year), paying for a basic unit in less than a year.
 
4. Seal and insulate heating ducts. A system can lose up to 60 percent of its warmed air before it reaches the register (wasting $570 in warmed air per year) if ducts are not properly insulated in unheated areas such as attics and crawlspaces.
 
5. Insulate, insulate, insulate. Adequate insulation in the attic, ceilings, exterior and basement walls, floors, and crawlspaces can save up to 30 percent on home energy bills ($630 per year).  Focus on the attic. (Heat rises.) Most homes should have between R-30 and R-49 insulation in the attic. Learn more at www.eere.energy.gov/consumer. 
 
6. Close fireplace dampers when not in use.  When in use, reduce heat loss by opening dampers in the bottom of the firebox (if provided) or open the nearest window about an inch, close doors to the room, and lower thermostat setting to 50-55ºF.
 
7. Let the sun shine in. Open curtains on south facing windows during the day to allow sunlight to naturally heat the home, and close them at night to reduce the chill from cold windows.
 
8. Stay out of hot water. Water heating accounts for 15 percent of household energy use. Reduce water heating costs by lowering the water heater’s thermostat setting. Each 10ºF reduction can save between 3-5 percent in energy costs. Also insulate the hot water heater and hot water pipes.
 
9. Install storm windows over single-pane windows or replace them with Energy Star qualified windows. Storm windows reduce heat loss by 25 to 50 percent, and storm windows with low-e coating that reflect heat back into the room during the winter months save even more energy.  Look for the Energy Star label to maximize savings. Energy Star qualified windows reduce heating and cooling bills by an average of $345, but could be higher in cold and hot climates, compared with uncoated, single-pane windows. Can’t afford new windows just now? Tape clear plastic sheeting to the inside of window frames if drafts, water condensation, or frost are present.
 
10. Net big savings with a little label. When replacing appliances, light bulbs, electronics, or heating and cooling systems, cut energy bills by up to 30 percent ($600 per year) with Energy Star labeled products. Use compact fluorescent light bulbs (CFLs) in place of comparable incandescent bulbs. Find retailers at www.energystar.gov.
 
These and other improvements that impact the energy efficiency of a home can save home owners money in the short term and serve as a selling point to potential buyers later. Be sure to save receipts, documentation, and manufacturer’s information.
 
Not sure where to begin? Try the Department of Energy’s online energy audit tool at www.hes.lbl.gov. In the long run, a whole-house energy audit is a fool proof way to make a plan to address wasted energy and make a home operate efficiently for years to come. Visit www.natresnet.org to find a qualified auditor in your neck of the woods.

RE/MAX Goes Green!

Red, White & Blue Goes Green!
RE/MAX in Top 4% Nationally for Energy Efficiency

The Environmental Protection Agency has presented RE/MAX International Inc. with an “Energy Star” designation, an honor given only to companies and businesses that have made a significant commitment to energy conservation.  The RE/MAX International Inc. headquarters building, located in Denver’s Tech Center, has been appraised among the top 4% in the nation in energy efficiency.  The “Energy Star” award is the first element of a RE/MAX nationwide effort to conserve resources, and educate its employees and Associates on “earth friendly” living.

Beginning with headquarters, the RE/MAX program will include RE/MAX offices across the country, and will encourage and reward participants who lower their energy consumption. “Even just one person can have a positive effect,” says Margaret Kelly, RE/MAX CEO.  “Just imagine what can happen when thousands of our U.S. Associates take part.”

RE/MAX is also joining with the National Association of Realtors®, in developing a professional designation that will provide real estate agents with the knowledge they need to become advocates in spreading the “green” philosophy and to incorporate “green” practices into their business.  NAR’s Green Resource Council is designed to help agents help those buyers and sellers who rate energy efficiency as one of the most important aspects of their new home.  NAR projects that “green” building could soon make up 25% of all new construction nationwide.

As part of its commitment to the “green” initiative, RE/MAX University, the real estate industry’s premier educational institution, will be developing training materials for RE/MAX Associates for use with the NAR Green Designation Program.  RE/MAX University includes 24/7 on-demand Internet courses, nationwide classroom instruction, an extensive library of training materials and the RE/MAX Satellite Network (RSN). 

              “We want to put the full extent of our resources behind this,” says Kelly.  “We believe that going “green” is not only good for business, but good for the communities we serve.”

Latest RMLS Market Action – August 2008 Stats

Month-over-month, new listings dropped 16%, closed sales were down 3.3% and pending sales decreased 4.7% in August 2008 vs. July 2008.  At the current rate of sales, the 17,556 active residential properties would take approximately 9.9 months to sell the current inventory (this is down slightly from last month’s 10 month average).  As a point of reference, we consider 6 months of inventory to be a balenced market.

The average sales price is also down 2.7% when compared to July 2008.  What does this mean, we are still in a buyer’s market and sellers need to be extremely competitive; however, multiple offer situations are still occurring, it’s important to know what’s happening in the market so you know when to jump on a great deal.

Click here for the latest RMLS Market Action Report.

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