Real Estate Talk Blog for the Willamette Valley

NOTHING!

     I met with a nice young couple a few weeks ago.  They were in search of their first home and had called a friend of mine about her listing.  She had a schedule conflict so she asked me to show them the house and, if they wanted to work with me...that would be fine with her. (We have a VERY friendly office at RE/MAX Integrity - Albany!)

     As I was showing the home it became obvious that they had looked at other homes, and were calling the listing agents and making appointments to see the home...but had no real sense of loyalty to any individual real estate professional.  I began talking to them about possibly making the choice to find ONE REALTOR that they liked, and trusted...and letting them (hopefully me) show them homes. 

     Well...they didn't think they wanted to work with a REALTOR.  Mom had told them that they didn't need one, and they didn't want to add any more to their closing costs by paying an agent.  (Oh, by the way, her Aunt is a REALTOR!).

     That conversation prompted me to write this blog...as a buyer (unless you have a buyer/broker agreement and are looking at a home with an unrepresented seller - a FSBO - and even THEN not always) you won't pay anything...the SELLER is paying the real estate fees from their proceeds.

Q - Well, who pays the realtor?

A. The seller is going to pay the commission from the proceeds of their sale - or directly from THEIR closing costs.  By having it in the Multiple Listing Service they have agreed to a cooperative agreement with the selling agent (the one working for the buyer) to pay them.  It's usually a 50/50 split, but not always. Having a buyer's agent (called the "selling agent") generally doesn't change the cost to the buyer at all.  Not one penny. 

Q - The paperwork is pretty easy, why do I even NEED a real estate agent?

A - Well, in a very simple real estate transaction, the paperwork IS easy.  There is no rule or requirement that a buyer have representation...and many experienced buyers can and do go it "solo" every day.  Its when the transaction gets a little off the standard narrow road that a good real estate agent earns their value, and can save you money, heartache, and sleepless nights.  Everybody starts the transaction thinking its going to be easy, but they aren't always. 

Q - Well - if I don't bring my own agent, can't I just take whatever 1/2 the commission is off of the price? 

A- Nope. The commission agreement is a contract between the listing agent and the seller.  YOU don't have standing in that contract as the buyer and to try to manipulate that contract is "torturous interference with a contract" and may subject you to legal action.  The listing agent is going to get the ENTIRE commission - and nobody will be protecting your interests in the transaction.  Also, if you don't have a real estate agent - the listing agent may not be representing you at all - which means that they have no obligation to advise or counsel you on the paperwork, or negotiation strategies.  This can cost you money when it comes to inspections, time constraints in the contract, and the opportunities for you to cancel the contract and retain your Earnest Money if you decide to do so.

Q - Can't the one agent represent both the seller and the buyer at the same time?

A - This is a question that requires a different answer from state to state...but in OREGON - Yes, they can. Its called Dual Agency and it is perfectly legal and many high quality real estate professionals do it ethically ALL THE TIME.  But again, keep in mind that the listing agent now has intimate knowledge about your situation - as well as the seller's.  They are bound by the laws of agency to maintain confidentiality so, when you ask "How low do you think they'll go?" the best answer you can get is one that doesn't put the seller at a disadvantage because they LEGALLY can't do that.  EVEN if the agent thought the house was 10,000 dollars over priced when they took the listing - they can't tell YOU that.

Buyers - Find a REALTOR that you like and trust.  Make them work hard for you - and repay them with your loyalty and trust (and referrals to your friends are nice too).  They will help to educate you, look out for your best interests, and may even save you money...and in the end, it won't cost you any money at all!

Months of Inventory Calculation based on the rate of sales/pending sales in the previous 90 days.

Albany

¨        SOLD/Pending (past 90 days) – 127

o       Average price – $151,249

o       Median Sale Price – $174,000

o       Average Days on the Market – 119

o       Average Dollar per Square Foot - $119.79

¨        Current Active Listings – 367

o       Average Price of Active Listings - $233,884

o       Months of Inventory – 8.67

Corvallis

¨        SOLD/Pending (past 90 days) – 74

o       Average price – $209,227

o       Median Sale Price – $243,000

o       Average Days on the Market – 100

o       Average Dollar per Square Foot - $161.61

¨        Current Active Listings – 206

o       Average Price of Active Listings - $322,615

o       Months of Inventory – 8.35

Lebanon

¨        SOLD/Pending (past 90 days) – 42

o       Average price – $126,113

o       Median Sale Price – $145,750

o       Average Days on the Market – 119

o       Average Dollar per Square Foot – $111.08

¨        Current Active Listings – 144

o       Average Price of Active Listings - $183,629

o       Months of Inventory – 10.29

¨     Last show:   Thursday 29 January – Grayson Fidler, Grayson Fidler Construction will be Dave’s guest to discuss new construction with a custom builder, remodeling and upgrading your current home, and new legislation in Oregon regarding energy standards.  *Encore airing on Saturday 31 Jan.

Upcoming Guests Scheduled:

¨      February Guests include:

o       5 Feb – Chris Ingraham, VP of Sales for DR Horton.  Chris will be talking with Dave about the big Grand Opening at the newest North Albany neighborhood – Benton Woods. 

o       Later in February -  Shelly Garret, Lebanon Area Chamber of Commerce will be in to talk about the economic outlook for Lebanon and Ken Marshall, Corvallis Realty and Investment on commercial projects and rehabs

Are you a First Time Home Buyer?  Do you want to participate in Real Estate Talk?  Dave is looking for someone to go through the process “on the air” by working with him, and letting the listeners know how things are going throughout the entire process.  The person(s) selected will receive some nice gifts as a way of saying “thank you.”  Jay Chase Inspections will provide the Pest and Dry Rot Inspection at no charge to the buyer(s) selected for this program. Corvallis Moving and Storage will provide the Local Move (packing not included).

 For more information, contact Dave at realestatetalk@kgal.com.

Months of Inventory Calculation based on the rate of sales/pending sales in the previous 90 days.

Albany

¨        SOLD/Pending (past 90 days) – 123

o       Average price – $150,659

o       Median Sale Price – $174,000

o       Average Days on the Market – 119

o       Average Dollar per Square Foot - $118.81

¨        Current Active Listings – 364

o       Average Price of Active Listings - $234,954

o       Months of Inventory – 8.88

Corvallis

¨        SOLD/Pending (past 90 days) – 77

o       Average price – $212,846

o       Median Sale Price – $243,000

o       Average Days on the Market – 97

o       Average Dollar per Square Foot - $163.08

¨        Current Active Listings – 204

o       Average Price of Active Listings - $323,383

o       Months of Inventory – 7.95

Lebanon

¨        SOLD/Pending (past 90 days) – 42

o       Average price – $129.206

o       Median Sale Price – $145,000

o       Average Days on the Market – 118

o       Average Dollar per Square Foot – $110.60

¨        Current Active Listings – 147

o       Average Price of Active Listings - $184,396

o       Months of Inventory – 10.5

Last show:   Saturday 24 January – Kelly Gardner (Pinnacle Mortgage) Refinancing ABC’s.  Interest rates are incredible right now – should YOU consider refinancing your current mortgage?  How to decide and how the process works.  Kelly was here to give you the information you need in order to make a good decision.

Upcoming Guests Scheduled:

¨     Thursday 29 January – Grayson Fidler, Grayson Fidler Construction will be Dave’s guest to discuss remodeling options).

¨      February Guests include:

o       Shelly Garret, Lebanon Area Chamber of Commerce

o       Ken Marshall, Corvallis Realty

Are you a First Time Home Buyer?  Do you want to participate in Real Estate Talk?  Dave is looking for someone to go through the process “on the air” by working with him, and letting the listeners know how things are going throughout the entire process.  The person(s) selected will receive some nice gifts as a way of saying “thank you.”  Jay Chase Inspections will provide the Pest and Dry Rot Inspection at no charge to the buyer(s) selected for this program. Corvallis Moving and Storage will provide the Local Move (packing not included).

 For more information, contact Dave at realestatetalk@kgal.com.

Albany

¨        SOLD/Pending (past 90 days) – 129

o       Average price – $159,013

o       Median Sale Price – $174,000

o       Average Days on the Market – 119

o       Average Dollar per Square Foot - $118.68

¨        Current Active Listings – 369

o       Average Price of Active Listings - $236,501

o       Months of Inventory – 8.58

Corvallis

¨        SOLD/Pending (past 90 days) – 78

o       Average price – $228,455

o       Median Sale Price – $240,000

o       Average Days on the Market – 93

o       Average Dollar per Square Foot - $164.91

¨        Current Active Listings – 197

o       Average Price of Active Listings - $321,749

o       Months of Inventory – 7.58

Lebanon

¨        SOLD/Pending (past 90 days) – 45

o       Average price – $126,739

o       Median Sale Price – $153,000

o       Average Days on the Market – 117

o       Average Dollar per Square Foot – $113.08

¨        Current Active Listings – 145

o       Average Price of Active Listings - $184,658

o       Months of Inventory – 9.67

Last show:   January 10 – Bryan Milligan (Pacific Residential Mortgage) Taking a Loan Application.  What information do you need to have?  Documentation requirements…and more importantly understanding why you need to have a great deal of trust in the person to whom you are giving some very personal financial information.

Upcoming Guests Scheduled:

¨        Thursday January 15 – Real Estate Roundtable.  Monthly panel discussion on the local real estate market.  Guests Jennifer Fidler (RE/MAX Integrity), Greg Jackson (AmeriTitle), and Bryan Milligan (Pacific Residential Mortgage).

¨     Saturday 24 January – Kelly Gardner (Pinnacle Mortgage) Refinancing ABC’s.  Interest rates are incredible right now – should YOU consider refinancing your current mortgage?  How to decide and how the process works.  Kelly will be here to help you make a good decision.

¨     Thursday 29 January – Grayson Fidler, Grayson Fidler Construction will be Dave’s guest to discuss remodeling options).

Months of Inventory Calculation based on the rate of sales/pending sales in the previous 90 days.

Albany

¨        SOLD/Pending (past 90 days) – 124

o       Average price – $169,232

o       Median Sale Price – $175,000

o       Average Days on the Market – 111

o       Average Dollar per Square Foot - $118.89

¨        Current Active Listings – 363

o       Average Price of Active Listings - $236,879

o       Months of Inventory – 8.78

Corvallis

¨        SOLD/Pending (past 90 days) – 79

o       Average price – $241,427

o       Median Sale Price – $252,696

o       Average Days on the Market – 102

o       Average Dollar per Square Foot - $165.03

¨        Current Active Listings – 187

o       Average Price of Active Listings - $317,815

o       Months of Inventory – 7.10

Lebanon

¨        SOLD/Pending (past 90 days) – 43

o       Average price – $130,183

o       Median Sale Price – $147,675

o       Average Days on the Market – 122

o       Average Dollar per Square Foot – $113.06

¨        Current Active Listings – 142

o       Average Price of Active Listings - $181,673

o       Months of Inventory – 9.91

Last show:   January 3 – The Year that Was – 2008.  An overview of the past year and a highlighting of some of the important concepts that you need in understanding what is going on in the housing market in the mid-Willamette Valley today.

Upcoming Guests Scheduled:

¨        January 10 – Bryan Milligan (Pacific Residential Mortgage) Taking a Loan Application.  What information do you need to have?  Documentation requirements…and more importantly understanding why you need to have a great deal of trust in the person to whom you are giving some very personal financial information.

¨     Thursday January 15 – Real Estate Roundtable.  Monthly panel discussion on the local real estate market.  Guests TBD.

¨     Saturday 24 January – Kelly Gardner (Pinnacle Mortgage) Refinancing ABC’s.  Interest rates are incredible right now – should YOU consider refinancing your current mortgage?  How to decide and how the process works.  Kelly will be here to help you make a good decision.

¨     Thursday 29 January – TBD (Tentatively – Grayson Fidler, Fidler Construction will be Dave’s guest to discuss remodeling options).

Are you a First Time Home Buyer?  Do you want to participate in Real Estate Talk?  Dave is looking for someone to go through the process “on the air” by working with him, and letting the listeners know how things are going throughout the entire process.  The person(s) selected will receive some nice gifts as a way of saying “thank you.”  Jay Chase Inspections will provide the Pest and Dry Rot Inspection at no charge to the buyer(s) selected for this program. Corvallis Moving and Storage will provide the Local Move (packing not included).

 For more information, contact Dave at realestatetalk@kgal.com.