Jim Smith's Blog

CES 2021 Featured New Tech and Designs for Kitchen, Bath and Elsewhere

January’s virtual CES 2021 showcased some interesting new products for kitchen, bath and other rooms, which were described in an article by Melissa Dittmann Tracey of Realtor Magazine.

For kitchen appliances, there’s a move toward more intelligent and colorful appliances. Rita and I have one of Samsung’s Family Hub refrigerators, and we like it! You can display a slide show of pictures from a thumb drive, or even mirror your WiFi-connected TV from another room.

Samsung is offering its Bespoke refrigerators in eight glass or steel colors: gray glass; sky blue glass, navy steel, champagne steel, matte black steel, navy glass, white glass, and rose pink glass.

LG introduced its “Furniture Concept Appliances,” which make sense now that open floor plans are commonly combining kitchen, dining room and family room. Their appliances come in several materials and color combos.

Another trend featured in the article was toward a “wellness” design for bathrooms, inspired by the greater amount of time everyone is spending at home because of Covid. Kohler’s $16,000 “Stillness Bath” (above) is an extreme example of this: “It mixes water, light, fog, and essential oils and features an infinity-style water cascade that falls onto a Hinoki wood moat that then recirculates the water back into the bathtub.” No thanks!

LG also introduced a $2,599 “Wash Tower” which is nothing more than a stacked washer and dryer in a single unit with controls of both units between the two. I don’t like this because Rita and I are completely sold on the new style of high efficiency washing machines which are top loading with a glass top and no agitator, also sold by LG. They are smart units which, among other things, sense the size of your load and only introduce the amount of water needed for that load.

As you’d expect, there were lots of innovations displayed by TV manufacturers. I like the idea of Samsung’s The Frame (above): “An extra-slim 4K television, attempts to turn the TV into actual artwork that you can hang on your wall like a picture frame.” When you’re not watching TV, it can display a painting or picture of your choosing or, presumably, a slide show like you are used to viewing on the electronic picture frames available for years.

This Climate Change Movie Is a Must-See

Of all the movies I watched during last month’s Colorado Environmental Film Festival, “Kiss the Ground” was by far the most impactful. It won the festival’s top award, and deservedly so.

You will learn so much, as I did, from this 84-minute documentary about agriculture, farming, carbon sequestration and climate change. Schools can stream a 45-minute version of it free, including if you are doing home schooling. Visit www.KissTheGroundMovie.com to stream it. The rest of us can rent it for a dollar, or find the full-length documentary on Netflix.

The central thesis of the movie is that the mass tillage and spraying of farmlands under industrial farming is destroying the soil’s natural ability to sequester carbon. By the end of the movie you’ll be convinced that “regenerative farming” is the solution of our CO₂ crisis.

The narrator of the movie is Woody Harrelson, who starts out by saying that he had given up on saving the planet from the effects of climate change, until he realized that the solution is “as old as dirt.”

A key character in the documentary is Ray Archuleta, a conservation agronomist with the USDA’s Natural Resources Conservation Service (NRCS), formerly the Soil Conservation Service created by FDR to deal with the causes of the “Dust Bowl” of the 1930s, when excessive tillage of farmland had caused massive erosion and dust storms.

The goal of NRCS agents like Archuleta is to reduce tillage and the use of chemicals that damage the soil. Achieving that counter-revolution would allow the soil to absorb and sequester enough carbon to solve the climate crisis, the film asserts. It’s a powerful argument.

I challenge you to watch the first 10 minutes of this film, and you will want to watch the remaining 74 minutes. You’ll get a huge education about the importance of soil health to the future of our planet. There’s a trailer on the website.

Big Battery-Electric Trucks Are Coming Soon

Previously I wrote about 2021 being “the year of the electric pickup.” Well, this year is also going to see the arrival of multiple box trucks, buses (including school buses), and big rigs with electric drive trains.

Rivian is already delivering on its order of 100,000 electric delivery trucks for Amazon, shown here. Nikola has an order from Republic Services for 5,000 trash trucks using the same platform as their semi tractor (below). Even Detroit Diesel, despite its name, is going to be producing a battery-electric semi tractor (also below) for its biggest customer, Freightliner.

The Tesla Semi (bottom) begins production by the end of 2021. Introduced with great fanfare in 2017, it has been field tested, I’m told, delivering trailer loads of Tesla cars to local Tesla stores. One was spotted last year at the Littleton store.

Want to keep up with EV news? Subscribe to a great weekly newsletter at www.GreenCarReports.com.

**Detroit Diesel electric tractor schematic**

NAR’s ‘Clear Cooperation’ Policy Is a First Step at Eliminating Pocket Listings

A “pocket listing” is a property which the listing agent does not put on the MLS, hoping to sell it himself or get it sold by other agents in his office. It’s not typically in the best interest of the seller, since the property is withheld from the full universe of potential buyers.

The organizing principle of the Multi-List System, or MLS, is “cooperation and compensation.” Every real estate agent working in the public arena needs to belong to the local MLS, because it’s only through the MLS that the agent can show and sell that MLS’s listings and be guaranteed the “co-op” commission displayed on the MLS.

A listing agent, naturally, would prefer not to give a big slice of the listing commission to the “cooperat-ing” broker who brings the buyer. He or she would much rather sell the listing, keeping the entire commission for him or herself. Meanwhile, other agents (and their buyers) are upset when they don’t have the opportunity to show a new listing and submit an offer, especially when there are so few listings on the market, as is currently the case.

The National Association of Realtors (NAR) took up the issue of pocket listings last year when it adopted a policy called Clear Cooperation. Essentially the policy says that if an MLS member advertises or promotes a listing in any way — including putting a “coming soon” sign in the yard or mentioning it on social media — that listing must be entered on the MLS within 24 hours. It can be listed as “coming soon” on the MLS, during which time it can’t be shown, including by the listing agent. Once it is shown, it must immediately be changed to “active,” allowing all MLS members to show and sell it.

Unfortunately for sellers, who are the big losers with pocket listings, this policy will never be completely effective. That is evident from the fact that over 7% of listings, by my count, are entered on the MLS only after they are sold. Unless a home remains active on the MLS for 3 or 4 days, it’s unlikely that all potential buyers will have had a chance to compete for it.

You may recall the featured listing in last week’s column. It was listed at $375,000, a price consistent with comparable sales, and we received a full-price offer on the first day. Our policy, however, is to get our sellers to wait four days before going under contract. We had 30 showings and received six offers by day four. By being transparent about the offers received, we were able to bid up the property by more than $55,000 by day four. We did get an offer $35,000 over listing price on day two, but we waited. Our seller benefited from waiting 2 more days.

Sadly, most listing agents haven’t adopted this practice. They sell their listings too quickly, potentially costing their sellers thousands but also frustrating would-be buyers who might pay more.

I have calculated that in addition to the 7% of listings being sold with zero days on the MLS, 15% are sold after only 1 or 2 days on the MLS.

One technique for minimizing showings by other agents has been to make a listing “active” but block showings with the showing service. Because the listing is “active,” the listing agent can show the property him or herself without technically violating the clear cooperation policy.

Another technique is the “office exclusive” option. A listing can be marketed within a brokerage without putting it on the MLS. But once any kind of public marketing takes place, the listing must immediately be put on the MLS as either “coming soon” or “active.”

Division of Real Estate Warns Homeowners About ‘Equity Skimming’ Schemes

By now, we should all be wary of people offering to “help” us financially, usually via the internet or email, but also by phone. As the saying goes, “If it sounds too good to be true, it probably is.”

Last week the Colorado Division of Real Estate (DRE) issued a warning about scammers cheating homeowners out of their home’s equity on the pretext of helping them pay HOA liens on their home.

Yes, an HOA can place a lien on your home for failing to pay your HOA assessments or fines, and an HOA lien takes priority even over the lien of your mortgage lender.

It is possible for an HOA to foreclose on your $600,000 home because of unpaid dues or fines, no matter how small. But if you can’t pay, what do you do? Those liens and subsequent foreclosure actions become public records, making you an easy-to-find target for a scammer wanting to “help” you.

Here’s a link to the full DRE warning. It describes several scamming scenarios. According to the DRE’s warning, those scenarios “can leave a homeowner losing their property, becoming a renter in their own home, having their credit rating severely damaged, and having the possibility that the lender may pursue a deficiency judgment against them if the property is foreclosed upon, as well as the HOA pursuing a personal judgment against them for unpaid HOA dues.”

Homeowners are urged to look for the following red flags:

> Anyone wanting you to act fast with a quick-fix to your financial difficulties.

> Promises to resolve your financial problems and to leave your cares behind.

> Someone wanting you to transfer your ownership in the property to them.

> Anyone asking you to sign a power of attorney for them to act on your behalf.

> Proposing that you’ll be a tenant in the home that you now own.

> Someone telling you that there is no need to consult with an attorney, accountant, real estate broker, lender or anyone else.

Feel free to contact me if you find yourself in this or a similar situation. My intention is not to convince you to list your home with me. I just want to give you my own layman’s feedback on what others may have told you, and I can, if appropriate, refer you to a trusted real estate attorney. First, however, read that DRE warning, which has lots of useful information and links for reporting suspected scams or getting other advice.

And, as I like to say, remember that “Google is your friend.” When contacted by someone you suspect could be a scammer, do a web search for the person and/or company and/or email address and/or phone number. Also, we have a special app called “Forewarn,” only available to licensed Realtors like myself, where I can instantly search by name or phone number. My broker associates and I use that app to check out people who want to do business with us, instantly learning their age, properties owned, bankruptcies or liens, criminal charges, and even cars they own. I’m happy to do such a search for you, too.

Lastly, I’d like to put in a good word for my cell carrier, T-Mobile. My previous cell carrier was AT&T, which didn’t provide Caller ID on people not in my contact list, but I do get Caller ID with T-Mobile. If a number does not have a name associated with it, I let it go into voice-mail, and those callers rarely leave a message, suggesting, I believe, that it was a “spoofed” number by a solicitor or scammer. Thank you, T-Mobile! I’m wasting a lot less time than I used to on answering unwanted calls.

2021 Will Be the ‘Year of the Electric Pickup’

The best selling vehicle in America for many years has been the Ford F-150 pick-up, so 2021 is bound to be a watershed year, given the number of electric pick-up trucks expected to hit the market — including, by the way, an electric F-150, which has been teased for at least a year.

Rivian is furthest along and will beat Tesla’s entry by several months. Rivian is simultaneously releasing an SUV and 4-door pickup, which appeal to the same demographic. The company is backed by Amazon, which has boosted Rivian’s financial situation by ordering 100,000 delivery vehicles to replace the blue Amazon vans we see every day in our neighborhoods. Some of them are already in service, but not in the Denver market. You may have seen an Amazon commercial featuring the new van.

The F-150 Electric begins production this year. Tesla’s Cybertruck may be in production by year’s end but certainly in 2022.

Also coming this year (or soon) are GM’s Hummer EV, the Atlis XT, Bollinger’s B2, and more. Click here for ChargePoint’s article with specs and prices on these six trucks. Click here for InsideEVs.com’s list of all the electric trucks they are expecting in 2021 and 2022, including the above six trucks plus the Lordstown Endurance, the Chevrolet BET, Nikola Badger, Hercules Alpha, and Fisker Alaska. Nissan is reportedly considering hiring Hercules to create an electric Nissan Titan.

**Amazon van by Rivian – already in production and in service**

The Good, the Bad, and the Ugly About Mortgage Loan Forbearance

A record number of homeowners entered into a forbearance plan for their mortgage over the past year amidst the Covid-19 pandemic. Forbearance — an option that allows borrowers to pause payments on their mortgage for a limited amount of time due to an unforeseen hardship — served as a veritable lifeline for many people who found themselves unexpectedly out of work and unable to pay their mortgage as COVID restrictions tightened.

As more time passes, however, it is apparent that issues stemming from forbearance are starting to surface. While this is not an immediate cause for panic if your own mortgage has been in forbearance, being aware of issues that others are facing will help to keep you prepared for any trouble that arises.

For that reason, I had a Zoom meeting this week with Jaxzann Riggs, owner of The Mortgage Network in Denver, to learn more about complications that forbearance may bring about.

When the CARES Act was initially passed back in March 2020, it included a provision for mortgage forbearance, making it relatively easy for millions of borrowers with government backed mortgages to enter into such a program. Fannie Mae and Freddie Mac, the two largest servicers of government backed loans, subsequently issued an extensive list of guidelines for lenders in response to Covid-specific forbearance.

One of the most crucial guidelines involved credit score reporting. An account in for-bearance must continue to be reported as current, provided it was current prior to the forbearance plan. Due to the vast number of people who entered into forbearance in such a short time period, it is especially important to monitor your credit score — but that is not necessarily the end of the story.

Some borrowers who were previously in forbearance that are now applying for new loans are discovering that their issue does not lie with the credit reporting bureaus themselves but with the underwriting on their new loan. Underwriters, who are primarily responsible for qualifying a borrower for a loan from a specific lender, have a significant amount of discretion when it comes to approving an application. The consequence of this is that borrowers who would otherwise be well qualified to purchase — with high credit scores, steady employment, and a significant down payment — may find themselves struggling to obtain the loan they are seeking if they previously had a loan in forbearance. Although Fannie’s and Freddie’s guidelines include specifics for underwriting, the sometimes unfortunate reality is that these guidelines can be interpreted differently by different underwriters.

If you had a loan in forbearance sometime this past year and are now considering a new purchase or refinance, you should not immediately despair. Maintaining meticulous records that indicate when you initially applied for forbearance and being able to produce all communications with your current lender to the new lender are essential. If you have entered the repayment phase of the loan it is critical that the repayment agreement is followed exactly as written.

Because forbearance was originally intended to help those that had a loss of income or employment due to COVID, underwriters are scrutinizing employment history and the likelihood of it continuing for all borrowers. Borrowers that did not have any change in employment status during the pandemic but who entered into a forbearance agreement should be prepared to outline for the new lender their motivations for entering forbearance and to additionally explain how they will be able to avoid forbearance in the future. This is a bit ironic, in that lenders strongly encouraged many to utilize the options afforded them under the CARES Act. If you have questions about how forbearance may impact your future lending, I recommend, as always, that you consult Jaxzann Riggs of The Mortgage Network. You can reach her anytime on her cell phone, 303-990-2992.

DMAR Reports Average Home Price Rose by $100K in Last 12 Months

The Denver Metro Real Estate Market Trends Report, released on February 3rd by the Denver Metro Association of Realtors, reveals that detached single-family homes in the metro area set yet another record for average price, exceeding $629,000 in January. Attached single family homes (condos & townhomes) rose by less than half that amount, as shown in the above chart. Download the full report here.

Reader response to Jan. 27th posting about racism’s role in the evolution of local zoning

An Arvada reader thanked me for that earlier post and asked if I was aware of the 1898 “coup” in Wilmington, North Carolina. (I wasn’t.) I found the following article on History.com which described it as “America’s only successful coup d’etat.” Here’s a link to it.