Chad Kumpe

My wife Wendy and I got back from a Real Estate Educators Convention in Portland, Oregon. It was held in Portland because the title for the conference was "Going Green." Portland is reported to be the Greenest large city in the US of A. It truly has the most LEED Certified Buildings of any major city and the public transportation could be the envy of any metropolitan area. Most of the central city transport was street cars running on electricity and free. To go on longer trips to the suburbs it only costs about $4.50 both ways. All of that was pretty impressive until we learned the sun really did not come out till mid May and we never saw it for the week we were there until around 4:30 PM and some times from 6:30 AM until 7 AM. However, there were Solar Collectors on some of the roofs.

It is always interesting to get outside of one's area and find out what the rest of the country is doing. As for sustainability, the West is really into it. There was recycling everywhere, the produce in the local Farmers Market was almost all Organically Grown, and we went to a Winery that was almost completely solar. Nine months of the year (except for the Crush) they actually put electric power into the grid and the electric utility paid them for it.

The Midwest was wrestling with a multitude of empty houses. 15% of the homes unoccupied, 9% of the homes built since 2000 unoccupied, homes over $500K are just as likely to be vacant as homes under $100K. Michigan, Illinois, Ohio and Indiana were not expected to turn around till 2015 or beyond. Thankfully Arkansas, Texas, Tennessee and Oklahoma were predicted to come out of recession this year.

Another phenomenon that was explored was Social Networking. We learned that Twitter was like an on-going Cocktail Party with a lot of chit-chat similar to what would occur at a party. It was useful to some in keeping clients informed about the purchase and selling process, but only if they appreciated Tweets, more helpful, it seemed, in the big cities. Face Book seemed the most productive for Realtors, again mostly in the larger cities. But I do see some of my FBF (Face Book Friends) that are using the medium effectively in NWA. It depends quite a lot on the audience. I notice a good many fellow Realtors wanting to be friends, but don't hear much from them after the initial Hookup. A good Real Estate site is "Active Rain" with helpful information on the daily blogs. There was a mention of Plaxo and LinkedIn as a good way to connect with other professions and may be even to find jobs.

All total, to a country boy, it seems that once again things happen other places and finally get here, and certain thing work a whole lot better where there is a large concentration of people. In regard to "Hard Times," we are a whole lot better off than most

I have a lot of random thoughts and a Tweet only gives you 140 characters. Not being sure how many characters each of my random thoughts would use, I decided to distribute those thoughts on good old e-mail (with emphasis on old.)

The Government is sure borrowing a lot of money. Interest rates will surely rise. I remember the last time, when Carter was President. The fear is that some deserving folks will get left out.

Inflation is good for the Real Estate business but bad for the economy as a whole. Saving is good for the individual but bad for the economy as a whole. What an interesting time we live in!

Did you notice what HUD (government) has done about the $8,000 tax rebate? First it could be clamed with a re-filing of an individual's tax return. Then it could be clamed at the closing table. That second option lasted less than a day, as some wise person figured it would lead the housing market right down a path we had just left. Some banks were loaning the money in return for the assignment of the tax credit, but that mess up the borrower's ratios. Now some financial intuitions are making a kind of Bridge Loan to help "First timers" buy a house.

I noticed a superior court ruling in Alabama that declared the Broker Service Fee was a violation of RESPA, deciding it was an unearned fee. When that paragraph was first placed in our ARA forms, Andy Schaus warned Brokers to clearly define the specific service that the Broker Service Fee covered. It was not the paper work or the closing of the transaction.

Your closings may take longer than in past times. In order to assist the borrower in understanding the mortgage transaction and to prevent loan originators from pressuring appraisers about values, originators and appraisers have a fire wall between them now. A third party now selects the appraiser, and the buyers should get a copy of the appraisal to approve three to ten days before closing, depending on the lender's guidelines.

I know some loan originators that have a hard time understanding the appraisal forms. Will there be classes for home buyers on how to judge the validly of the collateral they are using for the mortgage? Add ten days to your projected closing time.

On a personnel note: I went to two CE classes this month. Yes, CE Instructors must do CE too. The first was sponsored by the Arkansas CRS Chapter. It was an excellent presentation on the anatomy of a Short Sale and dealing with REO (foreclosed) Property. We must thank those Realtors that tackle that tough part of the market. The faster those properties get out of the market, the quicker we will return to a semblance of order.

The second class was presented by Paul Bynum. It was the most carefully researched presentation on the causes of the Mortgage/Credit Crisis I have seen or read. He may present it again in this market area. It is worth a day's time. Get ready for information overload. I am still wondering what a Credit Default Swap was ever concocted to accomplish.

Speaking of CE, Tina Daniel and I will be presenting a six hour CE class the first Friday of every month at the Metro Board of Realtors and the first Tuesday, Wednesday and Thursday at our Lowell classroom on AR Hwy. 264 West, 3.6 miles west of the Lowell exit off I-540. We will be presenting weekend classes on the second and third weekends in July. Call me for start times. You may register at the door.

A couple of weeks ago, Wendy and I got to go to Cancun, Mexico; not to lie on the beach, but to give away Wheelchairs for Rotary and The Wheelchair Foundation. I was impressed by the extent to which the area had gone in order to reduce their energy use in the hotels and commercial buildings. Everywhere the lighting was fluorescent. In the hotel, all of the lights were compact fluorescents and the power turned off when you left the room.

It occurred to me that in that area of Mexico, they were far ahead of us in Arkansas in the "Green Revolution."

While we were gone, tax day and the "Tea Parties" happened as well as Earth Day. From the pictures I saw in the papers, the participants in the Tea Parties were a whole generation apart from the participants in Earth Day. It seemed the older generation (Boomers and Silents) were complaining because the Federal Government deficit was so high that it will be passed on to the next generation and beyond. The people involved in Earth Day were calling for Greener Earth, a reduction in greenhouse gasses and reducing the depletion of our natural recourses.

The newspapers also reported that eleven of eleven "Land Farmers" were polluting central Arkansas streams and the water table with the waste water and chemicals left over from drilling for gas in the Fayetteville Shale. What a contrast - the older generation worried about the national debt which is only money and the younger generation worried about the health of planet earth and its air, water, and recourses. I kind of think I am on the younger generation's team. I hope we in Arkansas can become Greener and continue the good life for our children and grandchildren. Air and water are critically important. We can always print more money.

Almost every one knows the Golden Rule. In a large part it is the basis for our Realtor Ethics and is quoted in the Preamble to the Code. The Platinum Rule challenges us to look beyond ourselves - not to treat others as we like, but as to their preference of treatment. The only way we will know how to treat them or communicate with them is to ask and observe. Many great observations come from the NAR "Profile of Buyers and Sellers" published each year. Knowing that the median age of first time home buyers in 2008 was 30 and the median age of repeat buyers was 41, should give a Realtor evidence that a newer, younger generation is becoming our Client/Customer. They perhaps do not desire to be treated nor communicated with the same way as the Boomer generation, of which most of us are a part.

Look at the wealth of information that can be gleaned from the Internet. Look at the length of time buyers spend looking before contacting a Realtor. (Nearly one year!) 94% of the buyers find the internet a "most helpful tool." Today's buyer did, most of the time, eventually purchase the home with the assistance of a Realtor. They did, however, narrow their search and almost 50% of the time find that Realtor looking on the Internet first.

Think hard about your presence on the World Wide Web: Is it all it could be? Do you have a whole bunch of pictures? Are they professionally done? Is your information correct, and how many sites does it appear on? Did you know there are web sites that are free and world wide in exposure in a language for a specific country?

In order to get with the buyers of now and in the future, we must communicate with them in the way that they want to communicate.

New Market report for February at www.ChadKumpe.com .

Some "Green Things" about the President's Economic stimulus Package: Lower interest rates if home owners to retrofit their homes, 5 Billion for weatherization of residential homes, 3 Billion for retro-fitting buildings in the private sector, 11 Billion for a "Smart Electrical Grid," 6.3 Billion for state-level grants for energy efficiency.

According to www.greenandsave.com the return on a residential programmable thermostat is 156.5%. That represents a return on investment in a little over six months. Installing an energy-efficient residential hot water heater can provide a 32% return; money back in an average of three years.

One of the bright spots in the job market is weatherizing homes.

New job description: According to Stefan Swanepoel in the book, "Trends Report 2009," the job description of today's real estate professional is being characterized as an interpreter of information and a process facilitator.

If you are a member of REBAC, you received a couple of great articles on "NEGOTIATING." When does negotiation begin in the transaction? You might be surprised at the answer. Alex Hagerty, ABR,ABRM,CRB,e-PRO,SRES points out the most overlooked negotiating opportunity is the Buyer Agent making the offer presentation to the seller. (MLS Policy Statement 7.73, Rights of Cooperating Brokers in Presentation of Offers)

If you are not yet an Accredited Buyer Agent you will have a chance to take the two day required course on March 19^th and 20^th in Lowell at the AIRE Campus on Hwy 264. Register now at www.AIRE.us . This also counts for your CE 2010 in Arkansas.

New market report for January at www.ChadKumpe.com .