The Cook Group: Real Estate Rant

Long term prospects for WA real estate

2011-07-22T09:43:00.000-07:00

I read an interesting piece in the WA realtor magazine's summer issue positing that prospects are good for the long term health of WA's residential real estate industry. Apparently WA's immigration rate ranks 4th among all states, with newcomers accounting for 55 percent of WA's population growth in the last decade. Many immigrants who would otherwise have bought homes in WA have been hobbled by the poor economy or their inability to sell a property elsewhere. As those conditions ease, pent up demand and a desire to take advantage of lower prices & interest rates will buoy the local real estate market. Perhaps an improvement in the overall economy would float WA's boat a little higher than others. My question is whether we'll have a strong enough improvement in the economy without the threat of inflation causing the Fed to finally increase interest rates. As always, it's a wait and see...

interest rates rising

2011-02-18T09:47:00.000-08:00

With interest rates rising, we recommend that all our readers check their mortgage terms. If your loan is an ARM (adjustable rate mortgage), you should strongly consider 1) locking your rate and converting to a fixed rate loan, or 2) refinancing into a fixed rate loan. ARMs have a provision that allows borrowers to convert their floating interest rate to a fixed rate during a particular time window (often the 12th to 60th months of the loan). Your mortgage papers will tell you what index and margin would be used to determine your fixed rate. For instance, if your index is the LIBOR (London Interbank Offered Rate) and your margin is 5%, then your fixed rate would come out somewhere around 5.8% as of today's date.

Converting an ARM could be a good option for people whose credit scores don't qualify them for the lowest refinance rates or whose index + margin calculation comes out lower than current interest rates. It may also be a good choice for folks who can't refinance due to high debt to value ratios or because they own a type of property, such as a condo, where financing is tight and/or expensive. Refinancing might be a better option if current interest rates are below your conversion interest rate, or if you have provisions in your loan, such as a balloon payment, that you'd like to get rid of. However, it's important to consider that a refinance will cost several thousand dollars (which may be wrapped into the loan in some cases), whereas a conversion is essentially free. Make sure you run the numbers to see how you'll come out ahead. But be sure to do them, because rising interest rates could float your ARM rate to an unaffordable level.

If you have an ARM, we recommend that you talk to a reputable lender to esplore your options. If you don't remember your loan officer's name, give us a call. We can look up the information or recommend other talented and trustworthy mortgage professionals.

Price vs Interest Rate

2011-01-15T06:59:00.000-08:00

Buyers in todays residential housing market often consider waiting for a lower price as the best way to minimize monthly loan payments. Thus, many buyers may not be giving adequate consideration to currently low interest rates which may be even more important in keeping costs down. As we pointed out recently, distressed properties (foreclosures, short sales, etc) are not always bargains. A similar assumption, that a lower price reduces costs more than taking advantage of historically low interest rates, may also be in error. While both price and interest rates are important, a half percent increase in interest rates can more than negate a 5% price reduction.

A simplified example illustrates this: Tom and Sue wish to purchase a house priced at $400,000. They have 25% down and need a loan of $300,000. They can obtain that loan now at a 4.5% interest rate requiring a payment of $1,520/mo. They decide to wait instead, expecting the price to come down another 5%, so the loan amount will be $285,000. If they are able to purchase at the lower price and the interest rate does not change, payments will be $1,444/mo. However, if interest rates rise just to 5% while waiting, even if they are able to buy at their price, payments will be $1,530/mo, or $10/mo higher than if they had not waited. If the lower price does not materialize while waiting and the interest rate increases to 5% their payments will be $1,610/mo, or about $90/mo more than they would have paid at the original price and interest rate. This does not even address the greater total amount of interest which might be paid over the life of the loan.

While half a percent may seem a large increase in interest rates, it is worth noting rates have increased about that much in the past month or two. What interest rates will be even a month from now is uncertain, but it appears rates are likely to increase by fits and starts to significantly higher levels. Conversely, while housing prices may go lower, widespread price reductions have slowed to a relative crawl. We suggest buyers who are waiting or are considering waiting for prices to fall further, carefully evaluate the relative impact of lower price versus higher interest rate. By all means negotiate price, but it may be better for your finances to do it now while you can still take advantage of the lower interest rates still available rather than wait.

Foreclosures aren't the only bargains!

2011-01-04T10:13:00.000-08:00

Foreclosures are big these days. There's a proliferation of buyers who only want to buy foreclosures, agents who specialize in foreclosures and web sites that list upcoming foreclosures.

Foreclosures are fascinating because they require knowledge and preparation. Bidders must do their homework in order to know the details of the particular property (or more commonly, properties) that they are bidding on, along with the market knowledge to value them correctly. They must know the expected cost of repairs to the proeprty and check for liens against the title. They must have cash immediately available for the purchase and a cushion for unexpected expenses. Finally, they need the discipline required to bid at an acution, i.e. the judgement to pace bids judiciously, a firm price cap, and the ability to walk away.

After putting in all this work, will the foreclosure buyer have the best and cheapest property? Not necessarily. Don't get me wrong. Foreclosures can be a great opportunity, but they're not the best deal or the best option for every client. The greater Seattle area has a healthy mix of foreclosure properties, short sales, bank-owned, and yes, traditional seller-owned-and-not-in-trouble properties. All of these properties compete with each other for buyers, so that prices are generally equalized, with occasional bargains slipping through.

Where are these bargains? You never know until you negotiate one. Foreclosures are a good source, but more than one potential buyer has bid on a foreclosure property only to find that one of the lien holders is the final buyer. Often in these cases, the bank's loss mitigation formula is showing that there's more value in the property than is evident in the auction bidding. This can be a stumbling block in buying bank-owned properties, as well. In my opinion, the purchase of a bank-owned property often has the best combination of motivated seller and realistic pricing. Unfortunately, these deals can trip over inflated broker's price opinions and pricing floors set by the aforementioned loss mitigation formula. A truly motivated individual seller can beat any of these options with realistic pricing, low hassle closing, and a well-maintained property. In fact, a truly motivated seller of any kind is the real requirement for finding a great deal in the real estate market. For the buyer who's looking to spend the least and get the most, the rest is really just window dressing.

So go ahead and check out the foreclosure listings. Run your numbers and make some bids. But don't neglect the rest of the real estate market; there may be an even better deal right under your nose.

Help for military homeowners

2009-10-03T14:44:00.000-07:00

Military homeowners who must sell a primary residence due to a PCS move may qualify for benefits under the Homeowners Assistance Program sponsored by the DoD and Army Corps of Engineers. Homeowners who cannot sell their homes "under reasonable terms and conditions" may apply for this program. If you've been affected by the downturn in the housing market, be sure to check out http://hap.usace.army.mil. You can also read more about it in this article from Kiplinger's Personal Finance magazine at http://www.kiplinger.com/magazine/archives/2009/08/housing_break_for_military_families.html

Condo buyers get busy

2009-09-28T14:03:00.000-07:00

All signs point to condo financing becoming more difficult in the short run. The Federal Housing Administration will be tightening their financing rules for condos starting on Nov 2nd. Among other things, they'll be requiring that a condominium complex have a reserve study performed or renewed within the last year, less than 30% of homeowners with FHA loans, and a new HUD approval for the property. That's right, in order to get an FHA loan for any unit in a condo complex, the complex will have to go through a new, "improved" HUD approval process. Only HUD or an approved lender can perform this approval and the process is quite involved and likely to be expensive. Buildings that were previously on the approved list will have to re-apply.

Why not just wait to buy a condo until the fall out from these new FHA rules is known? Well, the Federal Reserve recently confirmed that they will slowly draw down the number of mortgage-backed securities that they are buying through spring of 2010. Most lenders believe that mortgage interest rates will begin to rise as the Fed pulls back, so that rates will rise above 6% by next year.

If you're thinking of making a condo purchase, it's time to look hard at your options. If you need an FHA loan, you may be shut out of today's low prices and interest rates unless you make your purchase before Nov 2nd.

A pool in Seattle?!

2009-08-03T10:59:00.000-07:00

I put an ad on Craigslist over the weekend, saying "Buy a pool...get a house for free!" We have a listing in a great neighborhood (Phinney Ridge) that has that rarity in Seattle, a large, in-ground pool. Pools are not common here and opinions are mixed as to whether this pool, nice as it is, is an asset or a liability. The house attached to the pool is what I'd term a cosmetic fixer but charming and with great "bones." So now I spend my days imagining ways to reach the buyer who's going to appreciate a swim after a busy day of working on the house. Any bright ideas out there on marketing the property that's just a little different?!

Bad news and good news

2009-04-27T14:22:00.000-07:00

Here's a quickie: The bad news is that Seattle area prices are down 10-15% on average from the end of last year. The good news is that homes with list prices reduced in line with that 10-15% are selling, sometimes with multiple offers. The buyers are out there if only sellers and agents are willing to market and price houses for today, not last month or last year.

New construction heaven

2009-03-30T15:00:00.000-07:00

Now's the time to shop if you're thinking about buying new construction. Many lenders are now offering special mortgage rates and money toward closing costs for buyers who purchase a home whose construction loan the bank holds. The lenders are willing to offer these favorable terms in order to get bad debt off the books. Essentially, they're paying buyers (in the form of closing costs) to buy a house with an already low price (due to market forces) and to finance it with a low-rate mortgage.

We currently receive lists of houses eligible for special programs from lenders weekly. Current offered rates are as low as 3.875% with up to $20k of closing costs paid by the lender.

Great north Seattle listing

2009-03-16T13:14:00.001-07:00

Chuck and I just dropped the list price on a cool home in Victory Heights. The yard is very cool: big decks, hot tub, waterfall & pond, fire pit, gorgeous landscaping, and much more. Usually when agents talk about the outside of a property first, it means that inside leaves much to be desired. That's not true here, though. This house has skylights, tall ceilings, wood floors & trim, lots of light, and up-to-date heating/plumbing/electrical systems. It's a great house for a single, couple, small family or retirees. Heck, it may be great for somebody in a category that I didn't think of; feel free to call for a showing, no matter how you define yourself. :-)

Work outs and short sales

2009-03-16T13:01:00.000-07:00

If you are at all concerned about your financial situation, it's important to check out the new mortgage landscape. The administration's Homeowner Affordability and Stability Plan includes:
1) a refinancing intiative which would help homeowners who have less than 20% equity in their homes and are therefore having trouble qualifying for a refinance under current rules, and
2) a stability intiative designed to reduce homeowners' payments to 31% of their income through lower interest rates on the loan.

Homeowners who are NOT yet delinquent on their mortgages qualify to apply for the stability program, making this an option for those who have struggled to make their payments and preserve their good credit. Only personal residences are eligible for these programs at this point.

If you need more information about these programs, or about the first time homebuyers' credits now available, let me know. Some of our clients are looking into these programs as an alternative to selling a home that they'd like to keep. If you're in that situation, these programs are worth a look.

A new favorite - not my listing!

2009-02-14T14:24:00.001-08:00

As promised, when I see a property that I think is really great, I will include it here. These are NOT my listings; they're properties that I've seen while out screening for my own clients.

Recently, I saw an estate in Lynnwood that's just gorgeous. I will say up front that it needs extensive remodelling, but with such beautiful bones, it would be worth it. The house is set back in a little enclave of 5 or 6 homes - no subdivision here. A lovely circular driveway sweeps up to the front, where a colonnade of brick archways leads to the front door. There is a sense of arrival upon stepping through the front door. The main room has a masterful use of light and volume, with vaulted ceilings, multi-paned floor to ceiling windows, a massive central fireplace and changes in floor level that define the differently used spaces. A well-designed kitchen space (again great bones, needs remodelling) sits between the formal dining room and a family room space. I wasn't surprised to find out that the late owner had been an architect who had designed the home himself. Few houses built in 1974 (or perhaps any other year) boast such an intelligent floorplan and site usage. I could go on about this house, but I won't. Suffice it to say that a buyer with $700k or so and the stomach for a remodelling project could find themselves with a home that they never want to leave.

Real estate microcosms

2009-02-14T14:11:00.001-08:00

I did attend that CRS conference in San Francisco last week and enjoyed it very much. The stories from the agents in attendance were very interesting. Conventional wisdom has always been that real estate is local and our current economic climate has really underlined that. There were agents at the convention from markets where median prices were down over 50% and whose practices consisted almost entirely of short sales and foreclosures. Other agents described markets that had small increases in median price, perhaps lower than in previous years, but were otherwise untouched. Many agents envied our Seattle market statistics - down about 10% overall with about 6 months of inventory available. Of course, as new statistics come in each month, we get a new sense of how 2009 is shaping up. Still expecting a wild ride...

CRS convention

2009-02-03T18:47:00.000-08:00

This week, I'll be attending the Certified Residential Specialist convention in San Francisco. Since only 4% of realtors in the U.S. have earned the CRS designation, I'm looking forward to exchanging ideas with top agents and learning new ways to work smarter & better for my clients. I'd love to hear comments on how to make the most of a trade conference and particularly the CRS conference.

Listings

2008-12-12T14:12:00.000-08:00

I left our listings & sales out of our last real estate newsletter because I felt other information was more useful at that time. Since the newsletter publication, we've finished up several deals, but we have one listing left I really like this house; it's very stylish and the space is used really well.

24235 SE 9th St.
Sammamish, WA
3 bdrm/2.5 bath
Renaissance Ridge community
$415,000

http://www.cookgrouphomes.com/mls=28189197

Awesome combo

2008-12-12T14:07:00.000-08:00

I've blogged on this once, but I've got to say it again: keep an eye out for real estate bargains this holiday season. Builders who are within a few units of closing out a project are extremely motivated to make deals. In a couple of condominium complexes, I've seen the last units go for 30-40% below the original list price. With interest rates around 5 1/8% for borrowers with excellent credit, these make hard-to-beat deals. Of course, you need to take a hard look at your financial position before you make any purchase, but if you are thinking of making a purchase early next year, consider starting now.

Holiday Specials

2008-11-29T15:34:00.000-08:00

This is the time of year when I find properties for my toughest buyers. These are the clients who can't quite afford the type of house they want or the ones who want a neighborhood that's particularly sought after. Sellers who have their properties on the market during the holidays are usually serious about getting the property sold. At other times of year, you might see some "market testers," but nobody puts their home on the market during the busy holiday season just for fun. So if you've been looking for a house this year, but not finding much, take another look in the next few weeks. You might stumble across a gem.

Ballard bargain

2008-11-15T15:46:00.000-08:00

I look at properties of all shapes and sizes; sometimes one strikes me as a real gem. The latest is two adjacent properties in Ballard that a buyer could purchase for under $850k. The buyer would have a lot of over 10,000sf, an attractive 3 bdrm/1 bath bungalow for a main house, a 1 bdrm/1 bath guest house, a large shop and garage and a beautifully landscaped yard. A new construction home on a lot 1/2 the size will cost you the same, without being as good an investment. It's a great owner/occupant setup; I sure wish one of my clients needed a property of this sort!

Ask for help!

2008-11-12T13:52:00.000-08:00

Part of our listing prep these days is to check the foreclosure activity around our clients' properties. As I look at the bank owned homes, I see a fair number of properties whose numbers don't add up. Now, I don't know the specific situations of these homeowners, but in a fair number of cases, sellers appear to have allowed their home to be foreclosed upon when they could very likely have arranged a short sale. Short sales are a pain to negotiate and can take forever to close, so why not just let the bank take the property and have done with it? In a word: credit.

Why should you care that a foreclosure will ruin your credit rating? The list is long, but here are a few examples. Do you enjoy having a credit card with a limit above $500 and an interest rate below 20%? Is it possible that you might need a car loan in a few years? Would you prefer to get a reasonable rate for your homeowners/auto/etc insurance? Might you want to buy a house or condo again some day? If your answers to any of these questions is "yes," then don't accept a foreclosure as inevitable.

No matter how bad your situation looks and how mean the bank rep is acting on the phone, call a competent real estate professional and ask them to look at your situation. Find out how much money you could net from selling your home and compare that number with the amount that you owe. Now - even if you owe more than your house is worth - discuss your options with someone who knows the real estate and finance markets. It's not fun to be in a foreclosure situation, but you can make a difference to how things will be when you come out the other side. So don't give up - ask for help!

Patience

2008-09-27T12:53:00.000-07:00

Sellers must be patient people these days. We're back to a more moderate market, where buyer activity tends to kick over a period of weeks, rather than a period of hours. This means that sellers have to be very practical about how they deal with having their house on the market. Pottery Barn staging for a week has given way to figuring out strategies for keeping a house liveable but tidy over a period of months. Showings are now spread out over a longer period and may come at unexpected times, so that it's important to keep the house in good shape and be flexible about making it available for showings. There are still plenty of sellers and buyers out in the marketplace; they're just taking things a lot slower.

Get Real

2008-08-30T12:23:00.000-07:00

I got a call recently from a homeowner who had received a marketing postcard from us. He had a unit in the same complex as our listing and felt that we must have underpriced our unit because he thought that his unit (with the same floorplan) was worth about $25k more. He listed all the extras that his unit had - more parking spaces, extra storage - and demanded to know where we had gotten our pricing. Since we do our homework very carefully, I was on firm ground in our discussion. It reminded me of a number of important things that sellers should remember about pricing.

1) For an accurate picture, you must use all the comparable properties that have sold. Only using the one you noticed for sale last week or the one that sold for the most money isn't going to give a realistic picture.
2) The sales must be recent. In any market, but particularly a falling one, only very recent sales give a true picture of what is selling. January prices don't mean much in August.
3) Sold prices are the only ones that count. Just because a unit was listed at $600k when you went to the open house doesn't mean that it sold for that price. Most homeowners are aware of listing prices in their area, but few are aware of sale prices. Sale prices reflect what buyers are actually willing to pay.

Some agents throw a pile of comparable sales at sellers and let them decide on the list price. I recommend a specific list price to my sellers and explain the reasoning behind the recommendation. I believe good pricing requires careful analysis of recent sales, current market conditions and buyer preferences. The disgruntled homeowner mentioned above might not like my price recommendation for his unit, but he should really consider whether he just wants to put his unit on the market or whether he actually wants to sell it.

Mixed messages

2008-08-25T09:38:00.000-07:00

NAR reported overall sales up 3% today, but inventory (# of houses on the market) also up - about 10% over 2007. I know that year-over-year comparisons can be useful, but I think that it's profitless to compare current real estate figures to 2007- the top of an overblown market. Perhaps we could publish some figures comparing 2008 to 2004 (or so) before loose lending practices helped to push the go-cart over the cliff. We've noticed a little uptick in activity in the Seattle market, but buyers are still cautious. As well they should be. Let's all buy and sell real estate as the need arises, but keep back from the cliff edge!

VA loans

2008-05-26T11:42:00.000-07:00

On Memorial Day, we at the Cook Group salute our nation's veterans. For over 30 years, Chuck served in the navy, following in his own father's footsteps. We are proud of our family members who have served, as pilots, surface line officers, and engineers, and grateful to all who protect our nation and our freedoms.

Recent changes in the VA loan program and shifts in the overall mortgage market have made VA mortgage loans worth another look for veterans who are considering a home purchase. Here are a few useful facts:

Loan limits are now as high as $417k in CONUS. A full VA entitlement is $36k, but this can be combined with cash to make a full down payment in a higher priced market like Seattle's. In a lower priced market, it means that you might not have to come up with a down payment at all.

Most veterans need to have 2 years of service to qualify for a VA loan; however, those who have combat service may only need 90 days of service to qualify. Check with the VA to confirm your eligibility.

VA loans are easier to underwrite than they used to be. More mortgage brokers are offering them as they begin to compare favorably again with loans available from commercial lenders. VA loans will not be best for every veteran, but it's worthwhile to compare them with the other available mortgage options. Always ask your lender for a Good Faith Esimate for each program under consideration; this will allow you to compare costs and benefits side by side.

Financing

2008-05-22T15:01:00.000-07:00

I've been hearing from clients who have had their unused bank lines of credit frozen. Previously, it seemed that banks were concentrating on freezing LOCs that had high loan to value ratios. Now, it looks as if they may be freezing products that offer particularly good interest rates, i.e. loans whose rates are at prime minus a 1/4 or 1/2 point.

It's also important to note that condo financing has become more arduous. Fannie Mae has added requirements, such as a letter from a lawyer who has reviewed the condominium documents, that slow the process. The financing is still available; there are just more hoops to jump through.

Good townhouses?

2008-04-28T12:43:00.000-07:00

A few weeks ago, I ranted about a news story that complained about cheap, ugly townhouses and held up as the townhouse "ideal," some Wallingford properties that were listed at and around $700k. I've been thinking that I should provide some more moderately priced properties as a counterpoint. There are still plenty of boring looking townhomes out there, but here are some projects where the builders have tried to add interest and individuality through design. I'm not promising that you'll love them all, but I think they deserve recognition for making an attempt at originality. A small sampling:

212 W. Boston (28066050): Plain but well finished with whimsical touches (Queen Anne)
3206 21st W (28069560): Redemption through color (Magnolia)
3624 Palatine N (28067618): Echoing the traditional details of nearby homes (Fremont)
1424 NW 64th (28067674): A modern take that gets lots of light (Ballard)
4525 4th NE (27214854): Brick & wood detailing, varied rooflines (Wallingford)
8350 28th NW (28071217): Practical but attractive live/work spaces (Ballard)

I haven't hit all the good projects in the city by a long shot. Feel free to post projects that you think have quality construction and design at a relatively (it's Seattle, after all) affordable price.

You can't borrow at the Fed Funds rate

2008-04-03T15:10:00.000-07:00

We need a simple explanation to remind simple people (like me!) that when the Federal Reserve Board lowers the Fed Funds rate, there is no direct impact on mortgage rates. How's this: Banks borrow money from the Federal Reserve at the Fed Funds rate for a period of about 24 hours. We borrow mortgage money from the bank to buy our houses for a period of 30 years. Should these interest rates be linked in some simple and explicable fashion? 1 day: 30 years. 1 day: 30 years. Maybe not.

Want to know exactly what the Fed Funds rate is and what it's used for? Try this link: http://www.bankrate.com/brm/ratewatch/fedFundsRate.asp

Media Schmedia

2008-02-28T12:42:00.000-08:00

I was doing my sit ups in front of the tv yesterday morning. Another really stupid story about the real estate market was on the news. This one was so stupid that I can't resist saying something about it. The story was about townhomes. It began by applauding the appearance, construction quality and high end finishes of 4 (admittedly lovely) townhomes that have recently been completed in the Wallingford neighborhood. It then showed pictures of townhome projects in other neighborhoods while a "person on the street" opined that most townhouses are ugly and poorly built. At the end of the piece, the reporter mentioned in passing that the Wallingford townhomes "don't come cheap" and list at about $680k and up.

Aaargh! The things they are comparing have nothing to do with one another. The townhomes in Wallingford were built on a lot with almost 100' of street frontage! 100'! In Wallingford! They are in one of the most expensive neighborhoods in the city and sell around $700k. The other townhomes shown in the story were in outlying neighborhoods and cost in the high $300k and low $400k range. These houses may not be built with BMW parts, but considering all the construction requirements that the City of Seattle places upon developers, it's hard to imagine that they are poorly built. Has anyone heard of affordable housing? How many people think that we need more $700,000 townhomes? How many think that we need more $350,000 townhomes? I rest my case.

Keep your agent!

2008-02-13T10:52:00.000-08:00

As everybody knows, there can be a lot of money at stake when selling real estate. If you are already in contact with an intelligent, competent, honest agent, STICK WITH YOUR AGENT! Why would you increase your risk by switching to an unproven, unknown agent? There are lots of "carrots" that agents will use to try to get your business, but most of them don't gain you much in the end and don't compensate for the risk of working with an unknown agent.

Here's a recent example to illustrate my point: The site agent at a new condominium complex convinced a buyer that the developer would accept a contingent offer on one of the units in the building if the buyer allowed the site agent to list her house for sale. The implication seems to have been that the developer would not consider a contingent offer if the house was listed by another agent. If the site agent is a good agent, things may turn out fine. But given the current sales climate, I can just about guarantee that the developer would consider a contingent offer written by any agent, particularly if that agent had a good reputation and could show that the property had a good chance of selling at the listed price. The buyer is taking a big risk for no reason.

There are lots of good agents out there, but there are plenty of mediocre ones, too. Mediocre in real estate affects your pocket book, your legal obligations, and much more. If you've got a good agent, keep him (or her)!

Gift or Grab?

2008-01-30T15:16:00.000-08:00

I should probably start this blog with some earth-shattering market information, but you can find that just about anywhere, including our Cook Group Newsletter. So I'm going to just move directly to my own little real estate world and ask you all a question. Here's the scenario: An agent friend of mine called up the other day to get my opinion. She had just closed a purchase for some clients and was doing a quick walk-thru of the property to make sure it was in good condition for them. The listing agent had left a gift and a note in the property for the buyers. This struck my friend as over the line - an attempt to solicit a relationship with her clients. However, she didn't want to over-react and so called me. Having been in this biz a few years, I assured her that she was in the right. Solicitation of another agent's clients is a big no-no in real estate and the listing agent could probably be fined under multiple listing rules. There are lots of agents who gleefully poach clients, especially since some buyers and sellers are fuzzy on just what their agent is doing for them. Even if they've had a terrifically smooth transaction, they figure that all agents must give great service, all transactions must be terrifically smooth, and they don't credit their agent's experience and talent. (Now don't get all worked up; I'm not saying this is true of every buyer and seller. All I'm saying is that it happens regularly.) So here's my question to you: As a "civilian," what would your reaction be to such a gift? Do you think that we, as agents, are right to be concerned, or are we over-reacting? Also, I know I said I wasn't going to get into market info right now, but this is a good article ranking the risk of various U.S. housing markets: http://www.pmi-us.com/media/pdf/products_services/eret/pmi_eret08v1s.pdf