Seattle rated #2 among Best Cities for the Next Decade study

Seattle finished behind only Austin, Texas in the study conducted by Kevin Stolarick, research director of the Martin Prosperity Institute, for the magazine.

Seattle's well-educated workforce, its world-class research university in the University of Washington and the presence of innovative companies such as Amazon, Microsoft and Boeing, elevated the city above the crowd.

"We only have two products here:" the magazine quoted soon-to-depart UW president Mark Emmert, "smart people and great ideas."

Other cities on the list beginning at number three Washington, D.C. were Boulder, Colo.; Salt Lake City; Rochester, Minn.; Des Moines, Iowa; Burlington, Vt.; West Hartford, Conn., and Topeka, Kan

                                       

How to Ask Your Agent to Reduce a Fee 

You know real estate commissions are negotiable, right? Regardless of local customs, all real estate fees are up for discussion. Some agents will agree to a fee reduction right off the bat. Others will discuss it. But nobody will feel upset that you asked. It's expected.

Understand First How Agents Are Paid.
Splits vary among brokers, depending on policy and production. A top-producing agent who closes 100 transactions a year is paid more, a higher split, than an agent who closes one deal every couple of months. Only licensed real estate brokers can receive a commission. Brokers have written agreements employing agents and, in turn, pay the agents, typically as independent contractors. Commissions paid by a seller are divided with about half going to the listing side and the rest to the selling side; it's not always a 50/50 division.

Typical Net Profit
Let's say Mary's buyer purchases a $150,000 home. The total commission paid is 7%, with 4% to the listing broker and 3% to the selling broker. Mary's broker is paid $4,500. Mary's entitled to 50% less an 8% franchise fee. Mary receives $2,070. From that, Mary pays her overhead expenses of 22% and puts away 30% into savings to hold for payment of social security, federal and state income taxes. Mary has made $993.60 net profit.

If Mary closes only one transaction a month and works a typical 40-hour week, that makes her net hourly wage about $5.78 for the month. If she closes two deals a month, then Mary makes about the same as the aisle clerks at The Home Depot.

Selling & Buying With the Same Agent
It's permissible to ask Mary if she will discount part of her commission if she represents you to sell your home and also represents you to buy a home. The theory works on the premise that two birds in the bush are better than one in the hand. In other words, if Mary is your listing agent, she'll earn the listing side of the commission. Plus, by helping you to buy another home, she will earn the selling side of that transaction. One person. Two deals.

There are agents who will offer you a discount if you sell and buy a home through their agency. Real estate agents who refuse to discount fees likely believe the two transactions are separate from each other, which they are. They entail the same amount of work, whether the seller and buyer are the same person or two different and unrelated individuals. If Mary discounts her listing commission for you in order to do twice the work and earn less than twice the money, she might also be hit on the selling side of the commission since she has no control over the fees another agent negotiates. To persuade Mary to "give you a break," you might have to offer Mary another incentive such as referrals, sending her more business down the road.

When the Same Agent Represents You and the Buyer
This is called dual agency and it's not even legal in some states. But where it is legal, Mary would earn both sides of the commission, the listing and the selling fees. It's called double-ending a transaction. Same property but two separate parties with separate interests and separate abilities to sue. Mary now has increased liability.

It's common to ask a listing agent if she will agree to lower her commission if she ends up representing both the seller and the buyer. You have the option of negotiating this when you sign the listing agreement or when you receive an offer, but it's better if you discuss this scenario upfront, at the listing's inception.

Bear in mind that this negotiation might backfire. It could reduce the listing agent's eagerness or motivation to sell your home to her own buyer. Apart from her legal fiduciary responsibility to market your home to all available buyers, what is her incentive to induce a buyer to purchase your home when her fee will be reduced? Especially if she stands to sell this buyer of hers someone else's listing and get paid more. But go ahead and ask. Many agents agree to "variable commission" when asked because they suspect the odds are they won't represent both sides, so they're not giving up anything.

Multiple Listings, Same Seller
Reducing commissions in exchange for a number of exclusive listings from the same seller depends on:

·         Dollar volume

·         Ease of sale

·         Market mobility

If all three of those variables are in the agent's favor, it's a no-brainer to negotiate and probably the easiest negotiation to win.

Agents Who Control Neighborhoods
Agents who do a ton of business every year in specific areas typically discount a point here and there. These are agents who might ask for a higher commission but quickly agree to lower fees if there is competition from another agent. If you like an agent who has quoted you a higher commission but interviewed a second who agreed to do the job for less, call back the first agent and offer the second agent's fee. She'll probably agree to it, and you'll both be happy.

Statewide Recycling Network Launched January 1

  NWREporter February 2009

Effective January 1, 2009, electronics manufacturers will begin to pay for recycling computers, monitors, laptops and TVs through the new E-Cycle Washington program. More than 20 million pounds of electronic waste is expected to be collected and process in the first year of operations. Not all electronics products will be included in the free program.

Electronics manufacturers, collectors, recyclers, retailers, local and state government and non-profit groups worked on E-Cycle Washington to carry out the provisions of the Electronic Product Recycling Act that passed in July 2006. The law allows households, schools, small businesses, small governments and special purpose districts, and non-profits to drop off covered electronics for recycling.

"This program is unique in that it is entirely manufacturer-funded, and shows that Washington is a leader in providing responsible recycling of unwanted electronics products," says John Friedrick, Executive Director of the WMMFA. Commenting on expectations of processing more than 20 million pounds of electronic waste this year, Friedrick said, "Our collector network will include over 200 individual collection sites, in every county in the state and in every city or town with a population greater than 10,000—making electronics recycling easier and more convenient than ever."

"We want to reassure people that while there surely be some hiccups as we implement a program of this size and scope, we are committed to building a comprehensive system that works for everyone and that will benefit Washington's environment," Friedrick continued. "We'd also like to emphasize that this is a permanent program, so there is no need to ‘rush' to collection sites right away. Sites will be open and available to accept products throughout 2009 and beyond."

Why Free?
Millions of pounds of unwanted electronic products end up in Washington State landfills each year. These products can contain toxic materials that can harm human health and the environment. By providing a comprehensive and convenient network of collection sites available to the public, for free, electronics manufacturers will contribute towards a cleaner and safer environment while reducing the volume of waste by recycling metals, glass, plastics and other materials contained in these products.

Products collected under the program will be taken to an approved processor that has agreed to follow the state's comprehensive processing standards, intended to ensure that no materials either hazardous to the environment or to human health are allowed to enter landfills in this country or abroad. All materials will be accounted for and all processors will be subject to audit and reporting requirements to the approval of the WMMFA and the Department of Ecology.

For more information
For up to date information about E-Cycle Washington, residents can go to www.ecyclewashington.org.

For information about WMMFA, the organization designated to operate and implement the statewide electronics recycling program, visit www.wmmfa.net or call 1-866-779-6632 toll free.

Understanding Real Estate Trends Can Lead to Savvy Decisions

  NWREporter December 2008

In a volatile real estate market, prospective home buyers and sellers – and their agents – should be mindful of what’s happening in the housing market in order to make wise decisions, according to Scripps Networks, home to HGTV. The recently launched FrontDoor.com site helps consumers understand the fallout of loose lending practices and the benefits and consequences of the government’s bailout programs. The authors also recommend consumers and their advisors be mindful of top 10 current trends in real estate when making buying and selling decisions:

1. Homes in foreclosure reach record highs.
   While some markets have started to show improvement, the number of homes in foreclosure continues to rise to unprecedented levels. According to a report from the Mortgage Bankers Association, a record 1.2 million homes were in foreclosure in the second quarter of 2008. This number may reach 2 million by the end of the year, analysts say.
2. Home prices continue to fall.
   But because real estate is local, the rate of decline varies on your market. And in some high-demand markets, prices are still climbing, though at a slower rate. According to the Case-Shiller Index -- a survey of home prices in 20 major metropolitan areas -- prices nationwide fell 15 percent in the second quarter of 2008 compared with last year. Despite the national numbers, some regions are starting to make a comeback. Some say the trend in falling home prices will mean lower divorce rates because a couple is less willing to sacrifice their equity.
3. Borrowers will have a harder time getting a mortgage.
   During the housing boom, mortgages were easy to come by -- too easy to come by. Risky lending practices have come back to bite companies who profited from millions of bad loans, and many mortgage companies (including industry giants Countrywide, Fannie Mae and Freddie Mac) and financial giants Lehman Brothers and AIG have fallen apart. As a result, U.S. banks have tightened their lending standards, limiting non-traditional loans such as interest-only mortgages and getting rid of subprime mortgages.
4. Bad real estate agents will get weeded out.
   In the past, homes practically sold themselves, and enterprising people became part-time real estate agents. Nowadays, home sellers are looking for premium service and expertise from Realtors in exchange for the 6 percent commission. And savvy buyers want an agent who offers insight and knowledge not available on the Internet. So be selective -- only the best Realtors will succeed in this market.
5. Mortgage rates are still at historic lows.
   After the government bailout of Fannie Mae and Freddie Mac, rates of 30-year fixed rate mortgages plunged from 6.35 percent to 5.93 percent in a week, the biggest weekly drop in more than 28 years. However, some analysts believe mortgage rates will rise if the government has to borrow money to finance Fannie Mae and Freddie Mac. But remember before the 1990s, interest rates were in the double digits.
6. Urban areas are making a comeback.
   The U.S. experienced a mass exodus to the 'burbs after World War II, but homebuyers are now regaining interest in downtown areas. Urban core homes are often more expensive per square foot than their suburban counterparts, but many buyers are willing to pay a premium to avoid long commutes and urban sprawl.
7. Bigger is not always better.
   While the size of the average American family shrunk from 3.1 people in 1974 to 2.6 people in 2004, the size of the average American home increased from 1,695 square feet to 2,349 square feet. However, many homebuyers looking to save money on utilities, taxes and maintenance are now foregoing McMansions and instead opting for smaller homes.
8. Buyers are going green.
   Eco-friendly attributes such as radiant floor heating systems, Energy Star rated appliances and on-demand water heating units are all the rage with homebuyers right now. For sellers, promoting your home's green features will give you an edge in the competitive market.
9. Technology and social networking are changing how we buy and sell homes.
   Listings, home valuations and other information previously only available through real estate agents are now available on the Web. Because of this, agents have had to rethink their roles in the real estate world and adapt to the times. For buyers and sellers, more technology means alternatives to the traditional route of selling through an agent, such as home swapping and online auctions.
10. Flipping is out, buying and holding is in.
    Falling prices and a large inventory of unsold homes mean there are more potential bargains out there. Real estate investors are taking advantage of current conditions, knowing that a down market is the best time to get a good deal.