GreenCityStyle TV Episode 1

 

 

 

For our first episode, we toured Redmond’s Sixty-01 village, a condo and townhouse community just steps away from Microsoft, Starbucks, hiking trails and more.

I had no idea until I listed Maryna’s townhouse and started chatting with residents here what this amazing community had to offer! Sure, it’s a little dated at first glance, but the people and activities that make up this community, and its proximity to just about everything at such an affordable price make it an incredible find.

Enjoy!

 

Neighborhood profile – The inaugural edition

Ok, so maybe we’re all sick of inauguration-themed anything, but it seemed an appropriate title for the first in my series on Seattle area neighborhoods. periodically, I will talk to an actual resident (sometimes even more than one of them!), in an actual Seattle area neighborhood, and find out what the scoop is. What do they love, what do they hate. Obviously not a scientific sampling, but it may prove interesting, nonetheless.

This first feature is about fabulous Federal Way, Washington - home of Kevin Henry, just about the coolest Cultural and Communications Program Coordinator the City of Bellevue could ever hope to have. I asked him a few questions about life in his neck of the woods, and below is what he had to share with me.

I asked Kevin a variety of questions about his neighborhood, and here is a bit of what he had to say about Federal Way. When I asked him what his favorite things are about the neighborhood, he mentioned the fact that they neighborhood is quite, conveniently located and has good shopping.  On the downside, it looks like some folks need to put a little more work into curb appeal if they want to bring values up a bit. Read on to see Kevin’s full answers. 

What are your favorite things about living in Federal Way?

Favorites: the neighborhood is quiet, no noise really, but near shopping, restaurants, the Commons Mall. It’s a nice happy medium.

What made you choose your neighborhood when you first moved there?

We liked the quiet, but also being near everything we need. We are also just 10 miles from the airport, which is nice because we have friends and family members coming through quite a bit.

What are your favorite things to do right in your neighborhood?

Go out eating, go the movies, and enjoys the parks. There is a nice, diverse selection of eateries here. The parks are nice and well kept. The Commons is a decent mall.

How long do you see yourself living in the neighborhood?

I think we could see staying here at least 5-10 more years.

As someone who has lived in the neighborhood, what advice would you give to someone thinking of moving there?

Try to talk to neighbors and get a sense of how long people have lived there and what they think of the area. Our neighbors have lived here for 23 years which must mean they like it.

What would you change about the neighborhood if you could?

Get some people on certain blocks to clean up their front lawns. Certain blocks are a bit ghetto-ish. (Not ours though).

Please share any other thoughts you’d like to about your neighborhood.

I like the feel of suburbia without feeling detached from the urbanish city feel found just 5 miles away. It’s a happy medium.

 

My Ticket to Inman Connect

Many have asked about the “Roadmap to Recovery” project I participated in that won me a pass to Inman Connect last week in New York (so much twittering about it makes it hard to spell that out instead of simply saying #icny…). It was a great conference full of interesting information and some amazing real estate folks. You know who you are – keep it up!

For those interested, below are my rather inflammatory (to some) opinions about where real estate is/should be headed. It’s rather wordy, but if you like that sort of thing, read on:

 

1.  Imagine how the real estate industry will be different when we recover from the current downturn.

I think that when we recover, and in fact as we recover, we’ll see a return to quality after years of mediocrity being rewarded simply because of the sheer volume of transactions.  This will happen primarily because a more educated consumer base will demand better service from the industry and real estate agents in particular.  Advances in technology and sites such as Zillow have driven traditional real estate brokerages to share more and more information via the internet. For many years, a part of the real estate agent’s perceived value was the possession and dissemination of raw data to the consumer.  That same consumer now has the opportunity to find an abundance of information online before ever contacting an agent.  This movement towards more information being available and more use of the internet will gain a great deal of momentum during the downturn, as people are more and more likely to research online before making any type of decision regarding real estate purchases or sales.  They’re also more likely to research their agents online, meaning that the industry will become more and more dependent on the internet to thrive.  These changes in consumer attitudes and behavior put in place during the downturn will likely remain after the recovery, leaving us with higher quality standards for the industry in the long term.

 

One thing that I don’t anticipate that we’ll see, at least during the downturn, is a large difference in transaction costs, primarily because as we’ve seen already, people are more willing to pay a commission when they see the value in what they are receiving.  Buying or selling a home is a complex process involving the coordination of multiple parties and careful negotiations. While some people are well-suited to the FSBO task, many still find that it makes more sense to pay the transaction fees and reap the rewards in higher sales price and peace of mind.  Many of the newer brokerages with more of a DIY model are already experiencing harder times than they anticipated as the sellers who need to sell and buyers still able to buy are turning to more experienced, full-service agents to meet their needs.

 

2.  How will the business model or business practices of the title, brokerage or lending industries change in the future?

I think the lending industry in particular will see some drastic changes in the level of professionalism and experience required for loan officers.  We’ve already seen movement towards higher qualifications, and I think that will continue as we move forward so that when the market recovers, there will be much more stringent qualifications to be a loan officer and the consumer will hopefully have a better idea of who they can go to for a reasonable, appropriate loan at a reasonable rate.

 

3. Will the industry be regulated differently in the future? If so, how?

I think as we’ve seen already, we will continue to see more strict educational guidelines, both in lending and real estate agency.  This is obviously of great benefit to the consumer and helps to further “weed out” unqualified professionals who have been doing business to the detriment of the consumer.  In Washington State, regulations have been changed to require more education and qualifications for loan officers, which resulted in a large percentage of presumably unqualified individuals leaving the business.  The same will soon be true in the real estate agency sector in Washington, as agents will be required to complete substantially more training and held under more scrutiny by their brokers as of 2010.

 

It is not unlikely to expect that we will see this trend continue on a national level as a protection for the consumer as we move towards more regulation, particularly in the lending sector. 

4. What must the industry do now to prepare for this new direction?

I don’t think I can overstate the importance of continuing education throughout the real estate industry. As technologies change, as the economy changes, and as the consumer’s habits and desires change, we as an industry need to be constantly on top of new information, trends, and technologies if we are to retain our value to the consumer and our success in business.  The greatest preparation for the challenges that lie ahead is information, so those agents who want to be successful will be constantly working to expand their knowledge and therefore their value to the consumer.

 

5. What technology trends will change the industry in the future?

I think the industry will see substantial change due to Web 2.0 technologies. Blogging and social networking sites are changing the way we get and do business, and I think we’ll see an even larger impact because of these technologies in the years to come.  More information available to the consumer and increased efficiency in creating and maintaining relationships with larger numbers of people means that the agents doing the bulk of the business will be the ones with extensive presences online.  

 

If we look at what social media technology does to communication, we get a better idea of how the industry has changed and will continue to change in the future.  Social media does two things: increase communication and increase transparency, both of which are drastic changes to the real estate agency business model of the past and hold the agent to a higher standard of quality than ever before.

 

Blogs disseminating information, social networking sites where buyers and sellers can talk to each other as well as agents, and technologies like twitter and facebook that instantly update large numbers of people are all departures from the traditional offline business model.  With consumers able to better connect with each other and share reviews, advice, and specific information about their neighborhoods, they have more access to information and are likely to hold the agent to a higher standard than ever before.  

 

Social media also gives agents better tools to communicate with the consumer through information-rich blogs, status updates via twitter, and networking using sites like facebook.  Agents can connect directly with the consumer and showcase their knowledge, allowing the consumer to make an educated decision about who is the best agent for them, holding agents to a higher quality standard as more and more agents and consumers embrace the technology.  Web 2.0 allows our instant-gratification culture an opportunity to find and select professionals to work with who give them the information and services they want 24/7 – a stark departure from the restricted lines of information and communication of the past

 

6. What skills will the real estate agent of the future require?

There are two skills in particular that agents will have to acquire in order to be successful in the future; one being marketing and the other being the strategic use of the internet and social media in particular to build business.

 

Any agent who wants to survive must have a deep understanding of fundamental marketing principles and understand how to apply them in today’s market.  Innovative marketing is the key to success in tough times.  In fact, study after study has confirmed that those who strategically increase marketing efforts during economic declines reap noticeable gains in market share over their competition.  In the real estate business, that means understanding the concepts and allocating capitol towards more professional means of marketing – professional staging, professional photography, and promotional videos for listings are examples.  Agents who don’t understand this aren’t likely to thrive in this market long enough to see the recovery. 

 

Second, agents will need to have an understanding of social media and its applications to their businesses.  With so many tools out there, opportunity abounds for each agent to find what works for them; whether it’s blogging, online networking on sites like facebook, or the combination of online networking with the more traditional face-to-face on sites like Biznik.com.  The point is to grow your sphere, and the most cost-effective, environmentally friendly, and impactful way to do that today is online.  Direct mail is seeing less and less effectiveness (and is in fact a turnoff to many people because of the large amount of waste it produces), and it doesn’t create the type or strength of relationship necessary to build a strong and thriving business in tough times.  Agents need to learn how the different sites function and how to make them work as a business application so that they can develop a social media marketing system that works for them.  Agents who hold fast to the traditional models such as geographic farming will find their costs rising and their return diminishing over time – not a recipe for success in a contracting market.

 

These shifts in the real estate business model will raise the bar for professionals in the industry, meaning that once we recover we will have a vastly improved industry.  The industry and the consumer will emerge from this period of economic contraction stronger, more knowledgeable, and more capable of taking advantage of the wide array of technologies available to further their needs.

 

7.  How will real estate advertising dollars be spent in the future? How will real estate marketing be different?

I think in the future we’ll see the shift continue from advertising dollars being spent on print to dollars being spent on advertising listings via the internet.  I think we’ll see more agents purchasing paid subscriptions to sites like Trulia that include increased exposure for their listings, but more importantly I think we’ll see more dollars being spent on the services that help showcase those listings on the internet, namely professional staging, photography and videography.  Internet advertising for listings comes at a very low cost when compared to traditional print advertising like classifieds and magazines, leaving the agent more money to spend where it counts: showcasing the listing.  

 

Real estate marketing will – and must – change to a more professional model than it has had in the past.  A listing agent will need to spend more of their money on professional photography and promotional videos if they want to stay competitive in an internet world.  With buyers finding homes more and more on the internet, it is imperative for listing agents to do everything possible to showcase their listings, and that means more than digital pictures from their point-and-shoot camera and brief descriptions of the property.  Agents who lack an understanding of key marketing concepts are already seeing a reduction in their income, and that reduction will only continue for those not embracing technology nor understanding that something valued at hundreds of thousands of dollars can’t and shouldn’t be marketed poorly if it is to sell in a highly competitive market.  

 

Once the consumer receives a higher level of marketing and representation, this will become the norm upon market recovery.  Agents would be wise to begin the transition now so as to enjoy an increased market share and profitability when the recovery does arrive.

 

Home Décor Volume 1 – Special Holiday Edition

Even though my blog’s main topic is Seattle Real Estate, I’d like to venture away from home sales, marketing information, and my own opinions for a moment to share with you my newest feature. Each month, I’m going to be posting at least one article about a local home, sharing with you ideas for design and décor from some of the Seattle area’s most interesting (at least to me!) homes. To kick things off, I decided to begin with some amazing holiday decorations from the Bothell home of Vickie and Jim Kahlke.

Each year, Vickie starts early and fills her home with creative and wonderful decorations for all of her guests to see at her legendary Christmas Eve feast. This year her home was filled with beautifully decorated trees and she turned her dining room into a snowflake-filled winter wonderland. Many of the decorations are handmade, and she puts it all together into such a beautiful package that I thought it would be a wonderful day-after-Christmas start to my newest blog series.

Let’s start with the trees. Yes, I said trees. By my count, there were at least 4, but I may have missed one somewhere… The main tree is in the living room, set back in front of a set of bay windows. It’s decorated with holiday bears, cute little holiday signs, and tied all over with bows. And of course, the presents under the tree all match the theme.

Because the Kahlkes are wine aficionados, there are two more trees – decorated in wine theme. One for white wine, one for red, placed on either side of the living room. The lights are grapes on the vine, and ornaments are all themed to red or white wine.

The living room decorations create a warm and festive environment, but it’s the dining room and especially the table centerpiece that really caught my attention. Because we’ve had record snowfall in the past week leading up to Christmas, she decided to add some very snowy decorations. With two feet of snow outside, she said “I’m not going anywhere, and it’s a winter wonderland outside, so I may as well make on inside, too!” Based on some garlands she’d seen decorating a store, she took fishing line and white pom-poms and made beautiful snowy garlands to hang from the chandelier. She took more, smaller pom-poms and threaded wire through them to make some very clever napkin rings. Placemats were made with sparkly white felt and cut in the shape of snowflakes. Other snowflakes were scattered around the center of the table, making the table festive and fun.

I hope you’ve enjoyed this first in the series, and that each and every one of you have had a wonderful holiday. Have a safe and wonderful 2009!

Next month’s featured home: a custom condo with modern finishes in Seattle’s Queen Anne neighborhood.

 

Running a Business While Your Kids Run Around

This post is a bit of a departure from my usual real estate topics, but I wanted to share an article I wrote recently for a group of real estate moms about how to cope with running a business while your kids are running around underfoot. I thought many of my readers who are likewise entrepreneurs might find it useful. Enjoy!

 
Things can get a little crazy around our house, with both my husband and myself being self-employed. When we first started our businesses we didn’t have much daycare, so we had to get pretty creative to get our work done. Here are a few of the strategies we’ve cooked up to try to help our kids enjoy the journey as much as we do. Hopefully other entrepreneur parents will find them helpful as well…

1. Always be on the look out for tools that will help you stay organized and save precious time. Currently, I’m working on transitioning my entire database into a fully-loaded (and real estate specific) contact management system. It’s time consuming now, but will save me big in the long run and keep me in better contact with my clients. Anything that gives you more time for yourself and your kids is a good thing. Use it.
2. Plan ahead. Personally, I hate making business calls if my kids are anywhere nearby where they might make a peep. As much as is humanly possible, I try to save all my business calls for naptime or quiet time. Since I have only so much time, I have to make sure I’m ready to hit the ground running when the kids do go down for a nap. So I keep a notebook handy to make a list of all the calls I want to make and things I need to do as soon as I get the chance. That way, I don’t spend the first ten minutes of naptime trying to figure out the best use of my time. I already know.
3. Let your kids work with you. I set up a little desk and chair for my son right next to mine. I keep it stocked with paper and crayons so he can sit and “work” while Mommy inputs a new listing.
4. Be prepared. Things rarely go as planned in business, and you need a back-up strategy to deal with kids when Mommy’s client needs something NOW! How about keeping a secret stash of extra fun (ie, guaranteed to entertain for at least a little while) toys to pull out when you need them the most? Target’s Dollar Spot had done wonders for me creating a stash of fun, cheap toys guaranteed to entertain in a pinch.
5. If you can, try to commit to some amount of time to work each night after the kids go to bed. That way, you won’t be so stressed out during the day trying to get everything done, and you’ll be more relaxed the rest of the evening because you know you’ve gotten at least the essentials covered for the day.
6. Most importantly… say it with me now… DELEGATE!!! I can’t stress this one enough. Hire a virtual assistant if you can. Better yet, hire a professional organizer to help you get everything optimized (and childproofed!) so your work is where you need it to be. Pay your neighbor’s teenager to make promo items, stuff envelopes, etc. Whatever you can give to someone else to take care of, do so. Because you’ll never say “I wish I’d spent more time stuffing envelopes,” but you might say “I wish I’d spent more time playing with my kids.”

Now go play with your kids.

 

So… Are Commissions Just a Load of Crap?

There’s a lot of talk about agent commissions lately. People love to talk about whether the market will drive them up or down because of the housing crisis, and even whether agents deserve them at all. I wrote a post about some problems I see in the industry, and Dan McComb was kind enough to post this comment:

 

So, I have a question for you: Why do real estate agents deserve to get paid the big commissions that they do?  I mean, as you point out, they don’t tend to have an extraordinary amount of education, and just because they’re hard working…well, lots of people work hard and don’t make commissions like that. Do you think that some of the resentment comes from a sense of fairness?

 

Let’s first tackle the question of whether or not real estate agents deserve their commissions.  Here’s my answer:

 

Many don’t.

 

If you read this post, you’ll see what I’m talking about, and why it needs to change. 

 

But there are agents out there who deserve every penny of the commissions they are paid. To explore why I think they deserve it, let’s explore what you’re paying for when you hire an agent:

 

• The Business Entity– Many people don’t realize that the commission check isn’t just a paycheck – that money is business revenue used to pay business expenses (did you know agents with big-name brokerages pay around $30,000 a year just to work there?) like marketing, photography, staging, professional associations and designations, to name a few.  What’s left at the end is the agent’s paycheck – and it’s a lot less than the full amount of the commission. Oh, and then the government takes their share, too.
• The expertise – way more important than the expenses the agent has to pay is the agent’s market knowledge, contract knowledge, and overall capability to represent your needs.  A great agent can put their experience and market knowledge to work for you, saving you a great deal more on purchase price than you would have saved by hiring someone for a smaller commission.
• The Legwork – A good agent doesn’t just let you into the house you select, then write up the contract you propose, fax it in and collect a commission. A good agent is previewing homes to sift through a massive inventory to find homes that are the best fit for your specific needs.  A good agent provides you with a pricing analysis of the home you want to buy to help you get the best possible price.  A good agent hires professionals to showcase your home when you go to sell. See where I’m going with this?
• The Representation – you want an agent who’s going to go to bat for you, getting you the best price? You better hope they are a skilled communicator and negotiator.  And that doesn’t mean they’re rude and pushy. It means they are able to communicate, problem solve, and find creative compromises that meet the needs of buyers and sellers so that everyone walks away from the deal having achieved their goal.  Not to mention – if they can’t negotiate with you and show you they are worth a full commission, how are they going to convince buyers your house is worth the asking price?
• The Peace of Mind – with a great agent, when things go wrong (as they are sometimes known to do in real estate…) you know you have someone working for you.  All the time, I see great agents solving problems and dealing with situations that most agents (the ones I wish would leave the business altogether) would give up on and walk away from.  When an inspection reveals problems you didn’t know existed, or a buyer has an unreasonable demand, a great agent steps in and finds a way to solve the problem. Great agents make miracles happen – they know who to call and what to do to make sure the deal closes – it’s their job. It’s what they (should) get paid for.
• The Advice – a real estate agent is also your real estate investment advisor.  Great agents do a lot more than write up the contract for the house you found on the internet. They help answer questions like:
  • Is this home a good investment?
  • What could we expect to get on resale?
  • What’s the neighborhood like?
  • Is now a good time to buy? Sell?
  • What should we do to get our home ready for the market?
  • What do I need to do to prepare to buy a home?

While it’s easy to give brief explanations and generalizations for each of these, a great agent will actually take the time to understand an individual’s specific situation and needs before helping them determine if now is the right time to buy or sell. A great agent is also an ethical agent, who will honestly tell someone if the time isn’t right for them. 

 

So, yeah, they work hard, and yeah, they do a lot for their clients. But do they deserve the big bucks? Well, the answer to that question lies in the answer to this one:

 

Would you pay someone $4,000 more if it would save you $10,000 overall?

 

All of the hard work, knowledge, and experience I mentioned above most often leads to a higher selling price if you’re hiring a listing agent, and a lower buying price if it’s a buyer’s agent you need.  So look at your bottom line, and think hard about whether or not it’s worth it to hire a great professional at full price – so you can pay less in the end. 

 

I should also point out – there are a lot of great agents out there – if you know how to look.  I touch on it in a previous post, but if you’re looking for a great agent, like the ones I talk about here, do your research. Go online, read agents’ blogs and see what their past clients have to say about them to make sure you get someone who’s worth every penny of that commission you’re paying. 

 

And to answer Dan’s question about resentment coming out of a sense of fairness, I think it does. It’s unfair to pay someone full-fee and get little to no value for your dollar.  It’s unfair that people who are ill-equipped to represent their clients have been making large sums of money for doing it.  Let’s hope this troubled housing market at least has the benefit of a more highly-skilled, consumer-focused real estate industry.
 

 

I Love My Job… But Sometimes I Hate My Industry

My name is Kirsten, and I sell real estate.

It’s time for me to make a confession.

 

I don’t actually like a lot of things about the real estate industry. 

 

Don’t get me wrong: I love my job. I love helping people find their dream home, even (especially!) when it takes a lot of searching to get there. I love, love, LOVE marketing homes.  And to top it all off, I get to constantly meet new and interesting people and be involved in a very important, very exciting time in their lives.  It’s a pretty cool gig, I shouldn’t complain.

 

And yet…

 

There are some problems in my industry I just can’t reconcile myself with.  To the point that sometimes when I’m networking, instead of saying “I sell Real Estate,” it comes out more like “I sell real estate.” Because I’m in an industry that as a whole, has done some serious things wrong, and a new generation of agents like myself are dealing with that backlash.

 

Much like the lack of regulation in the lending industry, we haven’t seen much regulation of real estate agents, and it’s hurting us.  Low education requirements, lack of supervision by brokers, lack of marketing knowledge and lack of professionalism have really tarnished what should be a highly regarded industry of professionals helping to guide people through a very complicated and emotional process. 

 

So what can we do to turn things around?  Thankfully, the state of Washington has added much more stringent educational guidelines and licensing qualifications that will take effect in 2010.  They’ll also require brokers to much more carefully supervise their newer agents (they’ll have to review every line of every contract new agents write, for one).  Stricter guidelines have already been enacted in the lending industry in Washington requiring licensing of loan officers (they had to take and pass a test – a great many declined and simply left the business). But that’s not enough.

 

Both myself and my fellow agents will have to do more. We need to educate the consumer to help make better choices. And not through marketing propaganda that really only says “choose me for your agent!” but through actual, helpful, useful sharing of some of our wisdom with nothing to gain but a more educated consumer demanding higher quality. 

 

And you as the consumer have a role in this as well.  It’s time to step up – you know better! Get educated before you call the guy who sends you postcards every month and let him list your home.  The internet is a huge wealth of information – do some research! Ask around. Find out who your friends used and google them to find out what they’re all about before you commit to working with them.  Make sure your agent is going to be the right fit for you, and don’t be afraid to ask a lot of questions. They’re making a lot of money because it’s a complicated transaction with a lot of liability for a lot of different parties.  You’re paying them that money – make sure they earn it. And once you’ve done your research, commit to the right person so that you can have a relationship built on mutual trust and understanding.

 

And what am I going to do about all of this?

 

I’m going to make a commitment (scary!*) today.  I’m going to do my part to educate.  I’m going to use this blog to share information, stories, and sometimes just humor in an effort to get the word out there.  But this isn’t a one way street.  It’s a conversation and I hope you’ll join in.  I’m always open to the opinions of others, even if they aren’t the same as my own.

 

Kris Berg wrote a post on Inman News today where she said that we in the the industry are “living with the backlash of a poor image and questioned value.”  So let’s change things, one person at a time.  I hope the industry will shift towards treating real estate with the professionalism it deserves, and I truly hope the consumer holds us to a higher standard. Starting. Right. Now.

 

*seriously, I’ve got a thriving business, do the marketing for my husband’s, and have two kids and enough poo stories to keep me busy for a lifetime. So it’s a weighty commitment I’m making to you readers.  But this is important and I want to make it happen. If we’re going to have a better world out of all this turmoil, we’ve got to each work to make things better, one person, one scary commitment at a time. 

Who’s with me?