Thursday, February 27, 2014

Why has my home loan been sold?

It's just human nature to simply want to understand things, especially important things (such as your home mortgage), so in this post we're going to explain what generally happens after you buy or refinance a home and why your loan may be "sold".

First of all, the vast majority of mortgage lenders will only fund loans that either "conform" to Fannie Mae or Freddie Mac underwriting guidelines (these are called conventional conforming loans), OR meet the minimum standards set forth by FHA, VA, or USDA (these loans are backed by the government with "insurance" or a limited "guarantee" against default). By only funding these types of loans, rest assured the mortgage lender can turn around and sell the loan to Fannie Mae, Freddie Mac, or Ginnie Mae (Ginnie Mae typically buys government loans). 

But what does it mean to "sell" a loan? First, we must must take a step back and think about what a mortgage loan actually is. A mortgage loan is nothing but a contractual right to receive payments based on the terms outlined in the mortgage note, along with the right to eventually take real property (foreclose) in the case of default. These "rights" are worth money, so this is where the Fannie, Freddie, and Ginnie come into play. These government sponsored enterprises (GSE's) are "on standby" ready to purchase only specific types of loans, and the process of selling mortgages to them is streamlined. Mortgage lenders establish relationships and get contractual "approvals" to sell their loans to these GSE's and typically sell loans to them within 60 days after the closing date. The GSE's pay the lender for these rights, along with a premium for all the work they did (found the customer, got the proper documentation, paid an underwriter to review all documents, etc.). 

What do you think the right to receive 360 monthly payments of $536.82 over a 30 year period would be worth to YOU (along with the right to foreclose in the case of default)? Your first calculation would probably be 536.82 X 360 = 193,255.78. Your next thought would probably be about other investment returns that would seem to be in the same "risk class" over the next 30 years. Right now, you could go out and buy a 30 year bond that would pay you almost 4% per year, and those are generally considered to be "risk free". Certainly, as interest rates rise in the future, you ought to average about a 7% annual return on your money if you were to buy these rights, considering the risk that you'd need to foreclose on the house and may not recoup your entire investment. So if YOU "require" a 7% return on your investment for this amount of risk, then plugging that into a financial calculator would say that the value (the "present value") of buying this bundle of rights is about $80K. Okay, well here is the surprise-- this was a $100,000 30 year fixed mortgage with a 5% interest rate. Why is the $100,000 "loan" only worth $80,000? This is because your required rate of return was 7%, which is reasonable. There is a lot of math is this paragraph, but this is EXACTLY why lenders want to be able to sell the loan to Fannie, Freddie, or Ginnie. These GSE's will pay the lender the full $100,000 PLUS a nice premium for their work! If the lender can't sell the loan, then they are going to be thinking just like YOU as far as other investment opportunities, so loans that are held "in house" (called "non-conforming" or "portfolio" loans) will generally require higher interest rates, and often have features that allow them to adjust with market rates. By quickly selling that $100,000 loan to a GSE, the mortgage lender gets the money right back (along with their premium for the work), and then they can make another $100,000 loan. They are now able to earn profits by using the same money over and over!

Okay, so now that we know what happens after most loans get funded and why they portfolio loans have higher interest rates, let's dig into why your loan may be "sold" to another lender. Fist off, when you get a notice that you will need to send your monthly mortgage payment to somebody else, your loan never got sold-- the "servicing rights" only got sold! "Servicing" a mortgage loan is just the act of collecting payments. The servicing lender is generally responsible for collecting payments, making sure escrow account balances are adequate, customer service (answering your questions), providing payoff statements, and foreclosure. So, if Fannie, Freddie, or Ginnie own the loan, then why are you sending your payments to Wells Fargo or Bank of America (etc.)? Well, the GSE's are NOT interested in servicing loans (otherwise you would just write checks to Fannie Mae, etc.). Obviously Wells Fargo, Bank of America, etc. are not going to do all of this paperwork for free, so the business of servicing a loan is a secondary way to earn revenue. The GSE's will pay servicing lenders an annual fee for taking care of this paperwork (and answering your calls, etc.). And guess what, just like a mortgage is nothing but a contractual bundle of rights that could be sold, so is a servicing agreement! 

But why would one lender want to purchase your servicing agreement? This is probably the question most people are curious about (as this explains why you would get a notice in the mail telling you to send your payments to a different lender). Think about interest rate trends and diversification. If a lender believes that interest rates are going up, then they may want to consider diversifying their revenue streams by purchasing some servicing rights from a different lender. As interest rates rise, refinances fall. As refinances fall, revenue from originating refinance loans falls. If you are a mortgage lender that has historically been originating mostly refinance loans, then you may want to consider "hedging" that revenue stream by purchasing the servicing rights to a bunch of loans. This is nothing more than a way for mortgage lenders to continue to earn profits, even as rising interest rates trigger a decline in refinance volume. 

For current information and Real Estate Listings click the link below:

Wednesday, February 26, 2014

The Judicial Foreclosure Process

If you have been served with a summons and complaint for foreclosure then you are in the Judicial Foreclosure Process.  It is possible to know exactly how the process is progressing along.  You should be served with notices etc. but what if you don't know what these notices indicate.  What if you get a notice showing that the bank filed a "motion for continuance"  That may not tell you anything but it tells us a lot.  Everything that has happened in your case is also entered on your case register on the Oregon Judicial Information Network (OJIN).  An attorney can review your case register and explain to you what is happening in your case, what the major landmarks are, and where you are at in the process.  I will explain the basics below but I encourage you to contact us for a free copy of your case register.  We would be happy to explain it to you and hopefully give you some peace of mind.  We also provide case registers to real estate professionals who need to know where a client or potential client is at in the foreclosure process.  There are two major steps the bank must take to complete a foreclosure listed below. First they must get a judment of foreclosure and second they must have the Sheriff sell the house.  Judicial Foreclosure:  Getting the Judgment To get a judgment the bank must first file a complaint.  They must then serve the complaint on all the defendants and also serve a summons on them telling them that they must appear and answer the complaint if they want to.  Once the bank has served the complaint on all the defendants they then must wait 30 days after serving them to see if the defendant is going to respond or (appear) and defend against the complaint.  If you do not appear then the bank is free to ask the court for a "default judgment" they do this by filing a "motion for an order of default".  A motion is simply a request to have the court do something.  In this case they would be asking the court to order that since you did not show up to answer they can go ahead and get a judgment.  On your case register you can tell that an order of default has already been obtained if the case register has notations for a "motion for order of default" and then somewhere below that shows an "order of default" entered.  Once there is a default judgment in place there isn't much you can do.  But, If you were not served or there are other facts that bring new evidence to light etc. it is possible to get a judgment "set aside" and still have a chance to answer.  Of course it is much better to answer before the bank obtains a default judgment.  On your case register the first item will usually be the date the complaint was filed.  The next items are about the banks efforts to get all the defendants served.  If the bank has trouble getting everyone served in 60 days from the time they file the complaint (they only get 60 days) then they will file a motion for continuance for 60 or 90 days to continue trying to get everyone served.  The court routinely grants these motions.  If they can not get the defendants personally served or serve a member of the household the bank will have to file another motion.  This time it is a motion asking the court to allow them to "serve by alternative means".  They file an affidavit (i.e. explanation) of why they can't get you personally served.  For instance maybe you have a locking gate and you appear to be home but you do not come out and take the papers from the process server.  Or maybe you have moved and have no forwarding address.  Depending on the circumstances the court will routinely grant the motion for alternative means of service and now the bank is free to serve you by another means.  This is usually by posting the notice on the property (e.g. on your gate or on your door) or by publishing the notice in the paper for 4 weeks, or even by certified mail.  It just depends on what the judge believes will adequately give you notice.  Of course all this extra motion filing and continuances means the homeowner is in the home for longer.  Once the default judgment is obtained the bank moves on two step two.  Executing on the judgment.   Judicial Foreclosure: Executing on the Judgment (i.e. Selling the House) Below the order for a default judgment on the case register there may be a notation about a "writ of execution" and maybe "instructions to the Sheriff" if the process has gotten that far.  The writ of execution and instructions to the Sheriff instructs the Sheriff to sell the house.  There may also be a notation for an "Order of Levy".  Once the Sheriff's office has these they still must publish the sale date for 4 consecutive weeks either in the paper or on the Oregon State Sheriff's Association Website.  The law requires the Sheriff's office to send notices of the sale to the homeowner as well so it will not be a surprise where the Sheriff just shows up at the door one day.  As I said this is just a basic outline to give you an idea how to interpret what you see on a Judicial foreclosure case register and to understand how some of the notices you recieve fit into the overall process.  As mentioned we are happy to provide anyone with a copy of their Case Register for free if they give us a call or provide copies to real estate professionals who would like to know where a client or potential client is in the foreclosure process.  

For current information and Real Estate Listings click the link below:

What Are Seller's Closing Costs In A Home Sale

Sunday, February 16, 2014

Lane county Oregon investor alert! Foreclosure surge predicted

Oregon saw an increase of about 25 percent in foreclosures in January 2014 compared to January 2013.  In Lane County, 43 households received some sort of foreclosure notice last month, with about half of these being bank repossessions, according to RealtyTrac.
State legislation passed in August 2013 temporarily decreased foreclosures by limiting lenders ability to file foreclosures until they and the borrower went through a legislated mediation process. That mediation process was expected to take about 60 days, but in reality is taking six months or more. Many of those properties will still end up in foreclosure, once the mediation process is completed. This is purposed to bring  filings to increase to early 2013 levels.
The market went through a buyer surge as many  who had waited to purchase until they felt safe. This happened in mid Jan 2013 and peaked in mid Aug. After any market surge there will always be a decline.  This decline was  in-line with the seasonal drop in buyer activity that happens roughly mid September to mid January. 
Many distressed  property owners  where either holding out hope or just missed the opportunity to take advantage of the  rising buyer pool window. There where just over  250 notices of default filed in December 2013 in comparison with just under 50 in September 2013. 
see the buyer pool expanding  as my business has encountered a 67% increase in buyer calls from December 15 to march 15. I typically see anywhere from 30-40%. This is setting up a situation where there is typical appreciation with a spike in foreclosures. The foreclosure spike will affect values but this loss will be offset to some degree as investors sell the homes they have remodelled from the increase. 
This will be an excellent opportunity  for investors.   I have stated since 2010 we are in a buy & hold market.  I have been making money on rental investments since 2010 myself but  see an opportunity to  start flipping.
Justin Thayer licensed Real Estate Broker in Oregon
Cell: 541-543-7287
For current information and Real Estate Listings click the link below:

Wednesday, February 12, 2014

Oregon will lead the west coast's Real Estate recovery this year

Oregon with it's  second-tier cities should lead the west coast recovery this year
Investors, developers and builders are losing some interest in the so-called 24-hour gateway cities -- San Francisco and, Seattle  -- and have developed more interested in cities like, Portland, &  Eugene,  where there are more housing deals to be had.
Example:  2011 only New York City and Washington, D.C. had good prospects for real estate investors and developers, according to the ULI report, but now Austin, Boston, Dallas, Houston, Miami, Orange County, Portland, San Francisco, San Jose and Seattle make that list -- and D.C. actually dropped out. Now narrow this field down to the west coast and Oregon appears to lead the way in potential for 2014 housing deals
Real estate recovery stilTl hinges on job growth
The  slow pace of job growth as well as income and wage growth is still holding back the real estate recovery and that's not likely to change quickly.
Only North Dakota and Florida expanded faster in 2013 than Oregon, according to the federal Bureau of Labor Statistics.
Oregon's job base expanded 2.4 percent, or by about 39,000 new jobs. Florida posted a 2.6 percent job growth rate -- gaining nearly 193,000 new jobs. 
North Dakota, where the oil boom has attracted workers and jobs, saw the biggest expansion in 2013. Its employment base grew 4.0 percent, adding more than 17,000 new jobs. 
Oregon, Florida and North Dakota weren't alone. Hiring picked up in almost every other state in 2013, though by smaller margins. Alaska was the exception. It shed 0.7 percent of its jobs over the past year. 
The "smile investing" philosophy is back
Real estate developers are interested once again in a smile investment philosophy. According to the philosophy, developers and investors start looking at cities in the Northeast and moving south to cities along the Sun Belt -- Florida, Texas, Arizona -- and then coming back up to the Northwest -- Northern California, Oregon and Washington state. So we can expect to see more activity in Northwest.
Multi-family apartment building will wane
With rapidly rising demand for apartments during the recession -- boosted by increased demand from homeowners-turned-renters -- multi-family building surged. But that's likely to quiet down in 2014, as supply and demand have swapped places.
Inventory is coming back
The experts at ULI are predicting that 2014 will be the last year that low inventory will aid property prices. Distressed inventory is drying up and sellers are looking at better profits than they have in years.

Shadow banking is emerging
There's optimism among those surveyed by ULI that lending standards will loosen next year.
To fill the void, a concept called "shadow banking" has started to emerge and may take on a larger role in the lending market next year. Shadow banking is similar to traditional bank lending, but it's done outside banks and can therefore get around bank regulations.
Borrowers going this route will find a private funds, wealthy individuals, family offices. 
By: Justin Thayer
 Licensed Broker in Oregon
Cell: 541-543-7287

For current information and Real Estate Listings click the link below:

Friday, February 7, 2014

What if my house sells for less than I owe in a foreclosure?

If your house is sold at auction or is transferred to the lender and the amount for which it was sold or transferred is not enough to cover the balance of your loan, the financial institution, with certain exceptions, may have to cancel or forgive the balance between the fair market value of the house and the amount you owe. This balance or deficit is also known as "cancellation of debt." The institution will file the applicable IRS forms with the amounts owed and other relevant information. You will receive a copy of the applicable 1099 forms in reference to the amount "forgiven." With certain exceptions, you may have to include this amount as part of your income when you file your income taxes. Talk to a tax adviser about the potential impact on your tax filings. 
The "Mortgage Forgiveness Debt Relief Act," which amemded the Internal Revenue Code, provides with additional exclusions for some homeowners who lost their homes, if occupied as their primary residence, to foreclosure and the lender canceled or "forgave" a portion or the total debt secured by the house. This new law can be applied for residential discharged debts of up to $2 million ($1 million if married filing separately) made on or after Jan. 1, 2007, but before Jan. 1, 2012. 

For current information and Real Estate Listings click the link below:

Foreclosure process. Sale mediation.

If a mediation service provider sends you a notification about your right to have a meeting with your lender’s representative, act immediately. The first step: Meet with a certified Housing and Urban Development (HUD) nonprofit counselor within 30 days after receiving the mediation notification form. The notification of your right to a mediation meeting will include information for the Lawyer Referral Services of the Oregon State Bar and providers of low-cost legal services. The form will include a list of options to avoid foreclosure. Even if you are not currently in the foreclosure process, you can also request a mediation meeting with your lender, if you were 30 days late on your loan payment at least one-time and your financial situation will likely not improve. You can request a mediation meeting by using a form available from a mediation service provider approved by the Oregon Attorney General. 
You will also be notified about the documents you need to bring with you to the meeting. Consult an approved housing counselor because the counselor will be able to better prepare you for the mediation meeting, including the paperwork you need to bring with you and other conditions you will have to meet. One condition is to pay a fee (not to exceed $200) to the mediator at least 10 days before the meeting. If you are not able to meet with an approved housing counselor within 30 days, you can still request a mediation meeting, but you must submit an affidavit to the mediator stating the reason why you could not consult an approved housing counselor.
You do not have to agree to attend the mediation meeting if you choose not to. You can notify the mediator at the address or contact information provided in the mediator’s notice about your decision. Visit the Attorney General’s office website.
You have the right to reinstate your loan by bringing your loan current, in addition to paying the late fees and the expenses to foreclose, but you should do this no later than five days before the sale (auction date) of the house. If, after exhausting all your options, you were not able to reach an agreement with the lender to save your house and unless the lender decides to postpone the sale, the trustee will conduct a trustee’s sale at the place and time noted on the Trustee’s Notice of Sale. Oregon law allows a postponement of the sale for up to 180 days. The postponement will be announced at the time and place of the scheduled sale date and a written notification will be also be sent to the homeowner at least 15 days before the new sale date, unless the first postponement is for less than two days from the sale date. Oregon law requires trustees to provide homeowners additional notifications. One is the “NOTICE: YOU ARE IN DANGER OF LOSING YOUR PROPERTY IF YOU DO NOT TAKE ACTION IMMEDIATELY.” Trustees must provide this notification to the homeowner at the same time or before the required notification that the house is in pre-foreclosure to promptly and clearly notify homeowners who occupy the property as their primary residence about the risk of losing their homes and, if possible, what the homeowners could do to try to save their homes. The notification also must include a toll-free number where homeowners can call to get information about approved nonprofit providers of foreclosure prevention counseling programs in different areas of the state. The notice also includes contact information for the Oregon State Bar’s Lawyer Referral Service if you decide to hire a lawyer. Low-income homeowners can also ask for legal assistance. If you receive such notification, we strongly recommend calling the toll-free number provided and seek help from an approved counselor or legal assistance in your area. Approved nonprofit counselors are trained to facilitate the interaction with lenders and, in many cases, increase the possibility in obtaining the best possible solution. Their services are often free of charge or have a small nominal fee for credit reports.

For current information and Real Estate Listings click the link below:

How does the foreclosure process work?

There are two types of foreclosure processes in Oregon that lenders can use when a mortgage loan is in default — judicial and nonjudicial.
In a judicial foreclosure, the lender or a representative acting on its behalf takes you to court to recover the money you owe by selling the house used to guarantee the repayment of the loan. In a real estate judicial foreclosure, there are some restrictions about the amount of money you can be sued for. If you receive a Notice of Hearing or a notice to appear in court regarding the sale of your property, immediately contact an attorney. There is contact information for the Lawyer Referral Services from the Oregon State Bar Association in this brochure’s resources section. Before you receive this Notice of Hearing, your lender may send you a notification informing you of its intention to start the foreclosure process. Remember, once you are in default on your loan agreement, the lender can start the foreclosure process at any time. 

The judicial process starts when the lender or its representative requests the circuit court authorize the sheriff to conduct the sale of the house. To allow the sale, the court must first give the homeowner the opportunity to be present at the hearing. After the request to the court, the homeowner will be served with a new notification at least 10 days before the hearing with a “NOTICE OF HEARING ON SHERIFF’S SALE OF YOUR PROPERTY.” The notice, or summons, will also be sent by first class mail to the property address. The notice will include the name of the lender asking for the property’s sale, the property address, the reason for the request, and the time and location of the hearing. The homeowner does not have to attend the hearing. The judge will decide if the lender is entitled to have the house sold. If the judge rules for the lender, the judge will issue an order called writ of execution. One important difference in a judicial foreclosure, after the sale of the property, is the right of the former homeowner to recover the house within 180 days, known as the redemption period. To redeem the house within this period, the former homeowner, following a formal notification process, must notify the new owner of that intention. The former homeowner must pay the new owner, whether a person or the financial institution, the amount paid at the sheriff’s sale to purchase the house, including applicable interest. The total amount to redeem the property may also include payments made by the purchaser for property taxes, insurance, and other expenses to maintain the house in good condition.
In the nonjudicial process, where the document securing the loan is a Deed of Trust, with a power of sale given to the trustee, the parties involved in this model are the “beneficiary,” which is the financial institution or investor you owe the money to; the “trustee,” which is the neutral third party to whom you conveyed or “transferred” temporarily the title of your house to be held in trust until your loan is paid off; and you as a borrower or “grantor.” This process applies to owner occupied, one-to-four unit, single-family dwellings.
A nonjudicial process of foreclosure by “advertisement and sale” commonly starts if you, the homeowner, are in default by not making your mortgage payments as agreed and they have been continuously late. After trying to contact you to bring your mortgage payments current, the financial institution collecting your payments will give instructions to the trustee to start the foreclosure process or, in lending jargon, “accelerate” the loan. First, the trustee will file a Notice of Default in the county records where the house is located. When the notice of default is recorded, the foreclosure process becomes public information and will take approximately 120 to 180 days until the house is sold or transferred. Immediately after the filing of the notice of default, the trustee will send to you and all parties with an interest in the property, a Notice of Trustee’s Sale or Trustee’s Notice of Sale. You will also receive a notification about your right to request a face-to-face mediation meeting with the lender or its representative. The purpose of the mediation meeting is so the parties involved - the lender, you, and a mediator - can attempt to come to agreement to avoid foreclosure. The foreclosure can be avoided by applying various options available from the financial institution, such as a forbearance, loan modification, pre-foreclosure sale or “short sale,” or voluntarily giving up the title of the house commonly known as deed-in-lieu of foreclosure. 

Foreclosure is the legal process a lender initiates to force the sale of a mortgaged property when the borrower has not met the terms of the loan agreement. Foreclosures can also be initiated by others having a lien on a property such as the county if property taxes are not paid. 



Review your state and local laws regarding security deposits as they are different from state to state.
Laws of all states allow landlords to collect a security deposit when the tenant moves in to their property. A lot of states limit the amount property owners can charge, which typically isn't more than a month or two worth of rent - the exact amount a landlord can ask for depends on the state.
Mostly, security deposits are equal to the first month rent and even the last month rent together. Make sure all fees are clearly explained in the lease or rental agreement and whether you have a reason as defined by your state law to keep a tenants' deposit.
Damaged apartment or violated lease terms are two most common reasons Landlords may keep tenant’s security deposit. If the reason of withholding a tenant’s security deposit is legal in your area, then consider informing your tenant you are allowed to keep their deposit for the reason you have stated legally. Also ensure you have followed your state ordinances correctly in order to prevent force security deposits returns.


Even if the reason of keeping your tenants deposit is legitimate you have to claim the damages by pictures documenting the apartment before the tenant moved in and after they moved out. Also, you have to present estimated cost of a repair. If the tenant has broken the lease in another way, like disturbing neighbors or excessive noise, you will need the evidence of that fact too. If you have sufficient facts to prove your claim, then provide them to your tenant. After a fair number of arguments your tenant may give up, or may want to recover the money and try to sue you in small claims court.


Even if you have proven your rightness and the reason of withholding tenant’s security deposit is legal in your state, your angry tenant may still want to sue you in small claims court to get this money back.
However, before you are going to the small claims court, make sure that the sum you are fighting for is worth it. It often depends on how much your tenants owes. If you are fighting over $300, wasting whole day in court, think if it a justified compensation for your time and nerves. Sometimes it's better to give the tenant that $300 and deal with a problem peacefully. Still, if you are confident that everything is done correctly and legally then go to the court and bring the truth to light but make sure that everything is lawful or better consult with an attorney.

For current information and Real Estate Listings click the link below:
Do you have legitimate reason for keeping your deposit?

4748 SCENIC Dr. Eugene Oregon 97404,

Monday, February 3, 2014

Why is the real estate industry drop-out rate is so high?

The attrition rate in real estate is astronomical. In fact, a greater percentage of new licensees fail than do new restaurants. Some 90% plus will not see their second anniversary in the business.
Of course, there are myriad reasons why this is the case. Some agents discover that the business is not what they thought it would be when they decided to attend real estate school. Others attempt to pursue real estate sales when they are between regular jobs. Still others are in related professions, such as construction, and think that a real estate license would add to their professional arsenal, not realizing just how much time and effort it takes to maintain their license.
However, in my opinion, there are two other, more prevalent causes of why so many real estate licensees cannot make it.
Financial difficulties are a principal reason. In order to keep a real estate license, along with board memberships (which are all but necessary to function as an agent), it costs a couple of thousand dollars a year or so. Expenses include licensing fees, continuing education, insurance, transportation, printing, advertising, national/state/local Realtor memberships, MLS fees, lockbox and lockbox key expenses, office fees and more. TRR does not have any monthly fees, but most other real estate companies do. And they charge this whether agents work full-time or part-time, and whether they are closing deals or not.
I believe that an even bigger reason for agent dropout is their own personal lives. Yes - their personal lives getting in the way of their careers.
In a regular job, you need to go to work a certain predetermined time, and stay until a certain time. You have responsibilities,quotas, and the like. But real estate sales is not a job; it's a business. It's your own business. No one is going to be responsible for the agent except the agent himself. If he wants to sleep late, he can. So it takes the determination, dedication and work ethic to survive and prosper in our business.
Often, especially in this economy, agents have other jobs. That limits their schedules and availability, reduces their time to show properties and work with customers, and hampers their ability to take phone calls and handle emails. While I understand the financial realities, I have heard repeatedly over the years how turned off customers are when their agent is not available. Research has shown that the public is very opposed to part-time agents. In fact, people don't like part-time anything.
Studies show that part-time agents are less likely to keep abreast of changing laws and events, therefore becoming a greater liability to their brokers and to themselves. In many cases, they are simply not able to do a great job for their customers regardless of their best intentions. Frankly: if you are not doing something frequently, you start to lose the ability to do it at all. Real estate is not a hobby, and it's not to be taken lightly. Successful agents have found a way to practice real estate full-time, which in my opinion, is a prerequisite for making it in this business.
Agents also, to their own detriment, put other priorities ahead of real estate. I am not here to judge or assess whether they should or not (those are very personal decisions), but when soccer matches, piano lessons, weekend TV, religious holidays, ski trips and such are an agent's priority, then needless to say, real estate will suffer. There are literally thousands of licensees in the Las Vegas area who have gone a year or more without even a single successful transaction. Some have not updated their training in several years. There are licensees who do not even have business cards. Would you want an agent like that to represent you? Do you really think they are capable of handling today's complex transactions?
Too many real estate agents think that customers need to understand their lives and accommodate their schedules. The reality is just the opposite. Agents need to be available and willing to work with customers on the customers' schedules.
Today's customers are impatient, and justifiably so. In this age of instant gratification, online research that pops up in milliseconds and 24-hour news cycles, people want what they want when they want it. And if a phone call is not answered the first time, often a customer will simply move on to another agent. Not many of us are really worth waiting for when there are so many choices.
To be successful in real estate, it takes financial backing (like it does in every startup business), a strong work ethic, unyielding energy and passion, and it takes the dedication and commitment from the agent to put real estate first and foremost in his life. If he in unable to make real estate a top priority, I can almost guarantee that failure, or at best, mediocrity, is on the horizon. 

Is there a good reason to hire a real estate agent instead of FSBO? #Justin #Thayer #Team #Thayer #Real #Estate #sales #Agent #vs #FISBO # Eugene #Oregon #Broker

Your attorney get paid if you loose you court case. Your doctor gets paid if you die. You probably have no idea you pay your insurance agent a commission. Accountants get paid even if they make costly errors. Your money manager takes a commission from you no matter how much money you loose. Appraisers take $900 from you to place the ultimate value on your home but where are they when you need to sell it. Even our close cousins the the mortgage industry get little grief about the amount of compensation you pay them. (They don't pay your application fee & appraisal if the loan fails)

 Real Estate brokers put in money, time, & risk litigation yet you pay us nothing unless there are proceeds from a sale. There is no other profession like it. 92% of Realtor's fail in under 2 years. (The Navy Seals buds school attrition rate is only 78%)

 The reason people don't get it is #1 we have more disclosure than any profession in the world. People tend to see commissions paid as money they are loosing instead of investing. The massive costs of advertising, insurance, MLS memberships & bi yearly education directly benefit the clients as an investment netting them more money. #2 Much of the public is confused on the difference between brokers & traditional salespeople. A broker has the same fiduciary responsibility as your doctor. You hire us to protect you & your money. A salesmen is hired to work against you to increase profits for the company who hires them. The only similarity is we are both paid commissions.

Justin Thayer 541-543-7287 @justinleethayer

Why is it the rich always hire realtor's if they would save money selling their homes themselves? #Team #Thayer #Justin #Thayer #Real #Estate #broker #Eugene #Oregon #FISBO's #vs #Realtor's #home #sales

You never see self made millionaires putting their house for sale by owner. They learned not to step over dollars to pick up pennies. If you sold your house without using a good broker you did 2 things... #1 According to statistics you gave an average of 12% of your money the buyer...(This is after a full commission is factored in) . #2 You opened yourself up to a massive litigation risk. At least have the smarts to buy some E & O protection!!!!! Man we spend tons of money working for the public & you don't even have pay us! We don't earn a deal that makes you happy we are out the time & expense.

Justin Thayer

Sunday, February 2, 2014

The wall street journal says "Veteran Real Estate Brokers are worth an extra $25000 to home sellers"

"The wall street journal Says"

The Price of Real-Estate Experience: $25,000

Veteran agents sell homes for an average of 12% more than their less experienced counterparts, says Bennie Waller, professor of finance and real estate at Longwood University in Farmville, Va. Veteran agents also tend to list more new properties, more townhouses and condominiums and larger properties.

"The more experience you have, the more likely you are to sell the properties that you list, the more likely you are to sell it at a higher price and the less time it stays on the market," Prof. Waller says.

Prof. Waller became interested in quantifying experience when he noticed an increasing number of agents who chose not to renew their licenses after two years. Real estate has "very, very, very low barriers to entry," he says. But brokers then face a steep learning curve and many struggle to reach a level of expertise that is profitable

Two-thirds of properties listed by veteran agents sold, while only half of properties listed by rookies did. That may be because rookie agents have to be more flexible in picking up listings, even if the chances of selling are low. "If a house is priced ridiculously, they might say, 'Fine, I'll take the listing,' " Prof. Waller says.
Generally, experienced agents have greater knowledge of the neighborhoods and a larger network of buyers and sellers, as well as relationships with home inspectors, appraisers and mortgage brokers.
There are the lessons learned. Michael Rankin, principal and managing partner of TTR Sotheby's International Realty in Washington, D.C., began selling real estate right out of college, so he faced the twin pitfalls of inexperience and youth.
"I would meet people and say I'm a real-estate agent. They would joke and say, 'I've got children older than you. Are you sure you're a real-estate agent?' " he says.
Mr. Rankin says he didn't get referrals until his third year in the business. Referrals now make up about 70% of his sales. His listings stock also has changed dramatically. In his 20s, his average sale price was about $300,000 to $400,000. Now, it is more than $2 million.
Experience taught him how to deal with consumer behavior. "Residential real estate is really an emotional transaction. I don't think I was prepared for any of it. It's about understanding and knowing people. That, to me, is what an experienced broker brings to the table," he says.
Information originated in the Wall Street Journal , Story concept originally written by The wall street journal
Question or Comments call or email Licensed Oregon 
Real Estate Broker Justin Thayer  
Cell: 541-543-7287  Email:

For current information and Real Estate Listings click the link below: