the
Peggy Hoag group Why Hire
a Real Estate
Team?
HOW CAN YOU Save BUYING A SHORT SALE? p. 5
p. 3
TOP 15 REAL ESTATE MARKETING STRATEGIES p. 4
QUESTIONS TO ASK BEFORE YOU LIST YOUR HOME p. 6
WHAT CREATES AN OVERPRICED LISTING? p. 8
503.906.1370 www.peggyhoag.com
My Long Story
Short
Peggy Hoag
Principle Broker 503.906.1388 peggy@peggyhoag.com
Peggy Hoag Principal Broker Licensed Broker in Oregon & Washington 503.906.1388
Jerry Duke
Client Care Services 503.906.1358 jerry@peggyhoag.com
Terri-Lynn Weber
Listing Coordinator 503.906.1356 terri@peggyhoag.com
Tami Liesy
Closing Coordinator 503.906.1399 tami@peggyhoag.com
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Susan Lestock
peggy@peggyhoag.com
“The Producer”
Exclusive Buyer Representation 503-906-1355 susan@peggyhoag.com
Amilie Van den Berg
Buyer and Seller Representation 503-906-1351 amilie@peggyhoag.com
Julia Click
Seller and Buyer Representation 503.906.1370 julia@peggyhoag.com
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n 1991 I determined real estate was the career for me. As a young five generation Portlander, I had moved abroad for 10 years and returned home at the ripe age of 27. I decided my home town of Portland was where I wanted to set down my own roots. I bought a house and went to real estate school. I then looked around to see how everyone else was running their real estate business. At that time real estate was not online and most brokers had one neighborhood where they did all of their business, this was called “farming”. Coming from the perspective that I had chosen to move back to Portland after all the places I had been; I believed other people would be moving to Portland too, because it was such a great place to live! So I did the opposite of “farming”. Instead of picking one neighborhood to farm, I set out to build my business in all 4 quadrants of town. The focus was to help people moving to our fine city. The purpose was to have a deep understanding of the community and culture variations of the different neighborhoods. This would enable me to share this working knowledge with people moving to the region and help them settle in the community that best fit
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them. An added benefit of my relocentric approach to real estate, I discovered; was my ability to expose homes I represented to a much larger segment of the buyer pool. This was an exciting discovery. I found by prospecting the neighborhoods for our buyers we learned of homes not yet on the market, homes sellers were planning to sell. Buyers love this! Sellers love it because they do not have to go through the listing process; lots of showings and keeping the home ready all the time.
Sell without ever listing your home.
Our goal is to continually ask ourselves, “How can I help my client?”. Trust is the critical element. Trust is built as our clients experience dependable professional service and find their needs are met. Needs as simple as returning phone calls promptly and doing what
we say we will do. Trust is built as our clients experience competence and a job done right with total commitment to their goals in the sale and/or purchase of a home. Your home is one of the most important assets you own and the selling process requires a working knowledge of the current real estate market. We have had the privilege of representing over 1,712 homeowners in the greater Portland/Vancouver Metropolitan area over the past 21 years. I hope to have the privilege of serving you.
“Our Business Tomorrow Is Only As Good As Our Service Today”
To receive a FREE list of Pocket Listings by neighborhood call or email today! FreePocketListings@Peggy Hoag.com 503.906 1370
!
If you plan to sell your home in the next year or so, call me to see it before you are ready to actively pursue listing your home for sale. If a buyer comes along, looking for a home in your neighborhood you may sell without ever listing your home! This is called a pocket listing. If you are looking to find a home in a certain neighborhood call me and I will send you my list of pocket listings in that neighborhood.
With my team you have specialized experts handling each aspect of your home sale. Our team is comprised of individuals carefully selected for their talent and skill set and each is placed in the capacity in which they are at their highest and best use. The cost to hire our team to market and sell your home is often the same as hiring a single agent. An analogy would be when you go to the doctor; you are cared for by intake, a nurse, a specialist or 2 and your doctor. Your doctor alone would not be particularly suited to the various tasks the other team members excel in. Real Estate teams by their very nature have momentum. The volume of active buyer inquiries give a seller instant exposure. Due to this elevated constant level of exposure, sellers realize a home sale at a higher price in fewer days on market, reducing the stress of a delayed home sale.
My involvement helps provide housing, outreach, and support to positively transform the hearts and lives of homeless youth through compassion, guidance and the Grace of God.
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Peggy’s Top
15 Marketing Strategies 1
Signage
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Professional Photography: We hire skilled professionals to take photographs and create visual tours.
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Lockbox Access: The security lockbox reports all showings to us daily enabling us to obtain FEEDBACK, a valuable tool as we evaluate what is needed to attract a buyer!
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Marketing: Maximum Exposure = Maximum Price. Online saturation, our NUMBER #1 source of homes SOLD! Nationwide exposure to relocating buyers. We do not wait for buyer’s to come to us; we are proactive daily, getting on the phone and prospecting for buyers.
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Flyers: We post a perma flyer with a QR Code and TEXT to the property specific website. Commission Strategy: Price it low and it will sell fast with little marketing and low commission OR market your home and sell for more $$ in less time. This approach takes marketing $$ to attract buyers and a competitive commission $$ to attract brokers. This approach is proven to NET sellers more $$. Maximum Exposure = Maximum Price.
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Weekly Contact: You will hear from my team weekly to keep you informed! We provide regular communication, feedback comments and neighborhood market activity updates.
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The Peggy Hoag Group is a team of experienced professionals committed to making your real estate experience exceptional.
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Relocation Business: From Peggy’s 21 year focus on relocation she has referral connections with top brokers nationwide. The Prudential Relocation Network, HR contacts and targeted
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online marketing generate a steady stream of buyers relocating to the Greater Portland/ Vancouver area. Maximum nationwide exposure to Relocating buyers.
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Past Clients: A huge base of satisfied past customers make for a rich source of buyers and referral buyers.
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Other Realtors®: Through the power of the Realtor Multiple Listing Service, you are able to tap into virtually ALL qualified homebuyers.
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Representation and Negotiation: Skills honed through 21 years’ experience is the intangible benefit. This experience will save you thousands of dollars and headaches in the end.
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Satisfaction Guarantee: For 21 years Peggy has included a clause in her listing contracts. The clause reads Seller or Agent may terminate at any time. Our clients are with us because they would not wish to be elsewhere. We only retain your listing as long as we believe we can sell your home.
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Responsiveness: When an online inquiry comes in they are responded to within minutes. National Industry response time is 72 hours. Our average is 15 minutes! Buyers reach a buyer’s agent LIVE when they call just waiting to show your home! That responsiveness can make the difference between a sale and no sale for a home seller.
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Track Record: With over $406 Million Dollars in closed home sales since 1991, you have professional, time proven experience on your side. The greatest benefit of having the Peggy Hoag Group represent you is the combined experience, dedication, respect and trust she has earned in the greater Portland/Vancouver area and among other Realtors over the years.
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How Do We Find Your Buyer?
ver the past 21 years the way we find a buyer for our listings has changed greatly. I will introduce our methods for attracting buyers now. Relocation has been a foundational part of my business from the beginning and has been a key factor in finding buyers while the market has been soft. Some of the innovative outreaches we have underway are; the neighborhood YouTube videos, the single property websites, (very popular on Facebook) and the Flip video productions making our Craig’s List campaigns far more productive. We have just added an additional 200plus non-broker generated websites we are posting on, making the total over 500. We also just added SmartZip which provides investment ratings and research for residential real estate to help homebuyers and investors know
if a property is really worth buying. Our engagement with the local industry through broker networking and incentive commission generates industry excitement and awareness of your home. If a home is in the first group of homes brokers show their buyers, you will have more showings; more showings result in a sale sooner! When a home sells sooner it sells for more as the product is fresh and exciting. The seller has more negotiation leverage keeping their price higher. Our marketing efforts are on the leading-edge of how buyers are searching for homes now. When a buyer responds, they are replied to within minutes by my team. Our sellers are selling for more, realizing 1.8% higher net proceeds in 30% less time, experiencing 21% more buyer showings.
These results will not continue without the diligent attention to the changing market and buyer expectations, monitoring of results and the continued and timely adjustment to the changes. The differences between brokers can be subtle. However the results often are not. Myself and my team are enthused about what this year holds for real estate in Portland. Our imaginative efforts have resulted in increased market share with over 95 closed home sales in the past 12 months. Forty percent of those sales were to buyers moving to the Portland area from out of state. I am enthused to introduce our proven strategies and welcome the opportunity to attract the buyer for your home, allowing you to move on to the next phase in your life.
What Is Your Home Worth?
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he most commonly asked question from clients is “What is my home worth right now?”. There are three basic ways to estimate the value of a home. 1. A value estimation web site. 2. A comparative market analysis. 3. A professional appraisal.
There are a number of websites which offer value estimates of your home based on data you input in their web form. The value these sites offer is an estimate of your home’s worth based on their system which may use a proprietary formula. If you read carefully, you are also advised to do the following: 1. Obtain a comparative market analysis (CMA) from a licensed Real Estate agent. 2. Hire a professional to appraise your home. Since these on-line valuations use a proprietary formula which is not shared with the public, the only way to verify the true value of a home is to have professionals with “boots on the ground” visit the property and generate a value based on first hand knowledge. The hard reality is a home is worth what the market will bear at the time it is sold. The most reliable estimate comes from 503.906.1370
the sale prices of the SOLD homes in your neighborhood for the past three months which are similar in size, condition, etc. The Comparative Market Analysis is an average of those values. If you’ve done quite a bit of updating and remodeling, it might be a few percentage points higher.
How to Buy a Short Sale
A short sale is an opportunity to buy a distressed property before the bank forecloses on it. This saves the bank considerable money and time. The short sale process is lengthy and of uncertain duration. For a buyer with specific timing needs, a short sale may not be suitable. For someone with no specific move date, a short sale is an opportunity to purchase a home at a price typically 8 to 10 percent below market. Contact us If you would like a list of short sales available at this time. w w w. p e g g y h o a g . c o m
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Questions To Ask An Agent
Before Listing Your Home Do you have any testimonial letters from previous clients I may see? Yes, please see page 14. Can I contact some of your past clients? Peggy—Yes, please request a list. Where does your company rank among the other companies in the area? Peggy—According to the Portland Business Journal: #2 in number of agents, #2 in listing inventory, tied for #2 in overall sales volume/ units sold, #1 in productivity per person in units at 16 per person, #2 in market share. Are you a member of the National Association of Realtors and the local Board of Realtors? Why should that be important to me? Peggy—Yes I am. Membership means accountability.
How many years have you been selling real estate? Peggy—21 Years. How many homes have you sold in your career? Peggy—1712 homes SOLD and counting! 95 in the past 12 months! How does that compare to home sales of the average agent? Per the MLS the average agent sells less than 3 homes per year.
What is your education and work background prior to your real estate career? Peggy—Nursing What awards have you won? Peggy’s Sales Awards: Company Top Producer 12 Years, Chairman’s Circle Platinum 9 Years, Top Listing Associate 11 Years, Top Agent 11 Years, Legend Award 15 Years, Top 1% of Realtors Nationwide 16 years. Do you offer any guarantees? Peggy—If at any point you would prefer to work with another agent, you may terminate our agreement.
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Are you a member of the Multiple Listing Service? How will that help me? Peggy—Marketing to Portland Metro/SW Washington’s 10,000+ real estate agents. Describe the staff support you provide. Peggy— • My Team and support staff include Listing and Sale Coordination from contract to close. • Dedicated buyer and seller representation. • On line, social networking, mail, telephone, Realtor, and relocation marketing expertise. • Client Relations • Courier Service for on-site support
Do you stay in touch with me from the beginning of the listing until the closing? Yes, weekly communication by phone or email with showing feedback and neighborhood market updates. How “High Tech” is your business? How advanced are your software programs? High tech and High touch is our motto! How would you like to be communicated with? Visit, Phone, Text, Email?
Do you advertise your listings online? Peggy—Yes, on local, national and international sites, relocation sites, and trend sites. The Internet is my number #1 Source for buyers! Maximum Exposure = Maximum Price! Do you us QR codes and Text for prospective buyers to access immediate information on your signs? Peggy—Yes, buyers my swipe or text a code to access the property
specific website with photos, amenities, schools, taxes and neighborhood information. When are you available to discuss selling my home? How can I contact you? Peggy—Call me at 503.906.1370 or text me at 503.936.8955 or email me peggy@peggyhoag.net. If you are unable to reach me live, please leave a message. I check my voicemails and email often.
Some of the trend websites where we currently post our listings: craigslist YahooClassifeds CityCribs GoogleBase vishomes.com HomeSeekers.com
HomeGain.com MLS.com RealEstateEspañol.com Lycos.com oodle.com edgeio.com
Real-Estate.com News12RealEstate.com trulia propsmart Move.com MSN.com
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Excite Juno NetZero Internet Broadcasting WorldNow Moving.com
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What Creates An
Overpriced Listing?
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hen the average seller sits down to interview a Realtor®, it’s easy to get caught up in the excitement over choosing a sales price. More money means more financial opportunities for the homeowner. Perhaps it means the seller can afford to buy a more expensive home, help pay for their child’s college education or take that greatly overdue vacation. Unfortunately, uninformed sellers often choose the listing agent who suggests the highest list price, which is the worst mistake a seller can make. The truth is that it doesn’t really matter how much money the seller thinks the home is worth. Nor does it matter what the agent thinks or ten other agents just like them think. The person whose
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opinion matters is the buyer who makes an offer. Pricing homes is part art and part science. It involves comparing similar properties, making adjustments for the differences among them, tracking market movements and taking stock of present inventory, all in an attempt to come up with a range of value—an educated opinion. This method is the same way an appraiser evaluates a home. Although no two are ever exactly the same to the penny, they are generally close to each other to establish a value. In other words, there is no hard and fast price tag to slap on your home. It’s only an educated guess and ultimately it will be the market and the competition (other homes on the market in your neighborhood) that will dictate the price. How It Starts To Go Wrong Sometimes sellers don’t select the right agent. There was this particular seller who had a beautiful home in a town neighboring Portland, out in the country. Their first choice was someone they plucked off the Internet because, “He looked like such a nice guy and his website said he was #1 in his office back in 2003.” The seller was excited when the agent told them he could sell
503.906.1370
their home for $1.3 million. The agent never heard the local agents chuckling behind his back at his pricing. After 120 days, the listing expired. No lookers, No offers. It Continues To Go Wrong The next agent was from the city as well and specialized in the Pearl District. This agent was a referral. Our friend said “Call Mary Lou—she sold us our home 20 years ago and was a very good agent.” They didn’t know Mary Lou was semi-retired, that she didn’t know anything about country properties and she thought being ‘tech savvy’ was only important for
Pricing homes is part art and part science. Intel employees. In her defense, Mary Lou had been a good agent years ago when agents had listing ‘books’ and the newspaper was their only source for advertising. Her plan was to get a price reduction—that makes all homes sell, right! Surely a $200,000 drop in price was enough. She listed the home at $1.1 million, put a sign in the yard and sent printouts of the listing to the local real estate offices. Now it should sell, after all, could the first agent have been off much more than that? Months passed. Eventually the sellers requested another price reduction to $1 million.
More Than a Year Later We will try one more time. The seller had grown weary and exhausted. It was now 12 months later and if they absolutely didn’t need to make a move, they would have certainly given up! Fortunately for them, they were then called by an agent who specialized in working with expired or hard to sell properties. The agent came to their home with a complete presentation, a very detailed CMA and gave them lots of information on what she would do different than the other two agents. Obviously aggressive pricing was now in order, so this agent not only priced the home at $899,000 but asked the seller to spend some money on freshening up the home by repainting the front door and the house trim, freshening up their front yard landscaping, cleaning the roof, and changing some paint color in two rooms. The agent also gave them a few good tips for showcasing the home. After this was done, the agent had professional photos taken and had them ready to be posted along with a virtual tour. New flyers were prepared and Internet postings readied for submittal. All this had to be done prior to the home going back on the market. Actually the seller felt refreshed when they saw the energy the agent was putting into preparing the marketing. It gave them new hope. Everything happened at once and the home immediately sold for full price with a fast close. Now after a year of waiting they had to move in a hurry. The sad part is the comparable sales in the neighborhood could have justified a price of $955,000, but the home had been on the market for so long at the wrong
Do You Hire By Price? not even pay attention as they had passed on it before, they pass not even recalling why. It seems your home has become invisible. Now the home may be priced in the ball park but few buyers are paying attention. The home is now 90 days on the market, no longer a hot new listing. Now you must reduce the price further if you want to sell. I do not choose to use this Finally when the offer comes the approach. Telling the seller what buyer now has the leverage. The they want to hear to ensure the home is market procurement of the worn. The buyer listing is the single Do you hire the broker that has little fear reason a home someone else recommend the highest list price? will ultimately sell will snatch it up, for less. If a home because no one is priced correctly has wanted it all this time. when it comes on the market, it will It is common in the industry to list a home at a price higher than the market will bear to avoid the risk of not being selected to represent a seller due to pricing alone. Once the home is listed brokers know the seller will reduce the price when the home is not receiving offers or showings.
receive an offer in a timely manner and will be sold while the seller has the leverage of being a NEW listing, when buyers are excited about the home and fear perhaps another buyer will snatch it up.
I am committed to doing everything in my power to protect my clients from the above scenario. It is a natural inclination for a seller to place their belief in the broker that tells them what they want to hear.
Conversely when a home comes on the market priced high, potential buyers pass on it, a month passes and the seller reduces the price and still no offers or showings. Another 30 days pass, the seller reduces yet again. Now they are no longer a HOT new product on the market. Buyers have already seen the home come up on their search criteria twice and have passed on it. Now when it shows up again they may
Select your representation based on the broker’s ability to expose your home to buyers that will value what your home has to offer. You want to select a broker with the courage to tell you the truth about current values, a broker with the strength to be honest with you about value will also be a broker with the strength to negotiate on your behalf. You want a broker with experience and finally a broker you believe you will work well with.
price, and now the market had softened with worries of further softening in rural areas. At least the sellers could reap the benefits of the softening on their next purchase, which they did and they used the third agent as their
buyers’ agent too. In the end, being unsold affects the value that a buyer ultimately chooses to pay because it’s not a fresh listing anymore. It’s now stale, dated and a market-worn home that was overpriced for too long.
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Is Your Company On This List? Clorox Co. Coca Cola Conagra Foods Conoco Phillips Conway Daimler Trucks Int’l LLC (Freightliner) Danhaher Daymon Worldwide Dell Computers Drug Enforcement Agency Enterprise Rental Car ESCO Family Health Center Fisher Investments Genentech General Motors Genesis Financial
3M adidas Ameriprise Financial Applied Materials Arm Inc. Bandag Bank of America Bend Memorial Clinic Boeing British Petroleum Burlington Northern California Portland Cement Cascade Healthcare Community C-Cor Century Insurance Citidel CitiFinancial
Short Sale Negotiators
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▪ Largest Short Sale DMSP in Oregon ▪ 91%Success Rate on 140 Closed Files in 2011! ▪ Attorney Review on Every Transaction ▪ Short Sale Management Software w/ Client Access ▪ Each File Touched Every 48 Hours ▪ Regular Communication & Reporting to all Parties ▪ Professional Negotiators on Premier’s Successful Team ▪ Management Oversight on all Files for Fast Processing “We go the extra mile to ensure every transaction is successful!”
Dan Hanna
Chief Executive Officer (503) 453-4446 danhanna@premier-negotiations.com
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Genuine Parts Georgia Pacific HDR Company Hexel Holly Creek Honeywell InFocus Intel JC Penny JP Morgan Chase Kaiser Permanente Kerry Foods Kraft Foods Laika Les Schwab Liberty Mutual Lowes
We Handle Relocation Moves For These Companies. LSI Master Brand MEMC Merck Michelin Tires Microchip Multnomah School of the Bible Nation Wide Insurance Nationwide Insurance Nestle Waters Nike Novartis OHSU Oregonian
PacifcCorp Pella Pfzer Phillip Morris Providence Health System Rockwell International Safeco Safeway Saint Joseph’s Hospital Sanof Corp Sara Lee Sears State Farm Insurance Sulzer
Sumco USA SW Washington Medical Center Symetra Tektronix The Home Depot True Value Hardware US Department of Justice Vanderbilt University Medical Vtech Waggener Edstrom WelchAllyn Wells Fargo WL Gore Xerox
Relocation Companies That Partner with Peggy Hoag: Altair Capitol Relocation Cartus Chubb Relocation Ciao International Relocation Commonwealth Relocation Corporate Relocation Services DCS Relocation FAS GMAC Global Relocation
Graebel Relocation Hewitt Mobility Services MSI Relocation National Equity Inc. National Residential Nationwide Relocation NEI Global Relocation Neighborhood Scout Paragon Primacy Relocation
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Prudential Fo x and Roach Relocation Prudential Relocation Realty Executives Midwest Relocation SIRVA Relocation Summit Mobility Total Move Weichert Relocation Resources WHR Group XRS Relocation
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“For Sale By Owner”
T
Considerations
his is not a simple world we live in today. Thanks to e-mail, faxes, and the Internet, everything moves at hyper speed. And with the constant threat of litigation, transactions are documented using more and more paper. In real estate, even the simplest residential transaction raises a complex maze of issues, including agency disclosure, property disclosure/disclaimer, lead based paint, underground storage tanks and the ever present risk of lawsuits.
Property Disclosure or Property Disclaimer? With no prior experience or assistance, how can a seller be expected to understand this law? The consequences of noncompliance can be significant. A seller who fails to give their buyer property disclosure may not know that the buyer can terminate the transaction at any time—with no reason—prior to closing. Understanding the questions and the seller’s responsibility for correctly answering them is critical to a successful transaction.
Seller or Buyer’s Market? In order to establish the price of the home, and how much room should be left for negotiation with buyers, a seller must know what is happening in the marketplace. Looking at the classified section of the newspaper is of little help, since ads do not portray actual selling prices. Relying upon comparable sales in the area is only effective if one knows how to interpret the information. For example, even though a home sold for $10,000 more than similar homes in the area, this information is relevant only if one knows how long it remained on the
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market, and what amenities that home contained. Without touring the home, or speaking with Realtors® who have, the FSBO is at a loss to know whether they can obtain a similar offer. The longer the FSBO’s home remains on the market at an unrealistic price and with few offers, the greater the chance that it will become one that nobody wants to buy. Perhaps more financially devastating is the FSBO who sells their home for less than the going price because they have misjudged
A seller must know what is happening in the marketplace. the market. This is a frequent error by FSBOs who have not adequately evaluated the market or have relied upon incomplete information.
Lead Based Paint? How can a FSBO possibly know whether they must give a lead based paint disclosure form? And what is the consequence of failing to do so? As all Realtors® know, this is a federal law that applies if the home was constructed prior to 1978. The buyer must be given the federally required disclosure documents, including an informational pamphlet, before the buyer is to become legally bound under the agreement of sale. The failure to comply with this federal law could not only result in the buyer voiding the transaction, but the imposition of a sizeable fine, as well.
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BY PHILLIP C. QUERIN
Earnest Money Deposits? How can a FSBO possibly know what an appropriate earnest money deposit should be? Is $1,000, $2,000, $5,000 or $10,000 reasonable? Is a promissory note appropriate? Without knowing whether it is a buyers’ or sellers’ market, or how fast properties are moving, a determination of what is reasonable is nothing more than a wild guess. It’s hard to play poker if you don’t know when to “hold ‘em” or when to “fold ‘em.” Equally important questions the FSBO must face are: When should the earnest money be paid: Who should it be paid to? Can it be made non-refundable, and what does this really mean? What if the promissory note is not redeemed on time or the buyer’s check bounces? What if the deposit is insufficient to cover the seller’s actual damages caused by the buyer’s nonperformance? These are all questions that most sellers should want answers for. How can the FSBO know the answers to these important questions without the assistance of a professional?
Is The Buyer Really Qualified? This is one of the most important questions to answer before agreeing to sell your home. What many uninformed sellers fail to realize is that anyone can make an offer. If the terms of the offer are carefully crafted, a buyer can avoid having to actually come up with any earnest money deposit for a substantial period of time—and sometimes, not until closing. Watch the late-night television infomercials and you’ll see how training people to “buy property with
no money down” is a thriving industry. But how can the FSBO distinguish a financially qualified buyer from one that is trying to tie up the property with little or no money down?
Unusual Contingencies? Frequently, buyers who might not otherwise qualify for a conventional home loan or who have special needs focus on FSBOs, knowing that they are not represented by an experienced Realtor®. In such cases, these buyers may submit offers that include conditions or contingencies that vary from the industry standard or would be regarded as too risky by most informed sellers. Such provisions might include: excessive periods of time for removal of inspection or financing contingencies; a promissory note that does not have to be redeemed at a fixed period of time, but rather is tied to the removal of other contingencies; an unreasonably long period of time before closing; terms that permit the buyer to actually take money out of closing; complicated provisions calling for the seller to carry back some or all of the down payment; provisions requiring the seller to subordinate to the buyer’s financing; or the use of leaseoptions, early possession clauses, and other techniques that a FSBO may not recognize as financially risky. Without some guidance from a Realtor®, the FSBO is at risk of placing their entire transaction in jeopardy. Most good Realtors® can instantly distinguish offers that are genuine from those that are not. The FSBO can only draw upon their own limited experience and nickel’s worth of unsolicited advice from their friends and relatives.
Abandoned Underground Storage Tanks? Many older homes contain them. Occasionally, the homeowner is unaware that they have an abandoned tank in the ground, because the home was heated by gas for as long as they owned it. Is the FSBO at risk if they sell the home and fail to disclose
the existence of the tank? They can be if they gave the seller property disclosure. If the home is sold and the tank is later discovered to have leaked, the buyer could make a claim against the FSBO. The greater the cost to fix the problem, the greater the chance that the buyer will seek financial help from the FSBO seller.
A good Realtor® adds value to most transactions. What if the FSBO knows of the abandoned tank, but does nothing prior to sale? Does he or she know that Oregon law now requires that the seller must provide the buyer with evidence that the tank has been cleaned out? Do they know the penalty for non-compliance? What can a good Realtor® bring to the table? An experienced agent will know to ask the right questions before the home is even placed on the market. If there is a tank, a discussion should be held with the seller about the possible need for testing and decommissioning. And if there is some question as to whether there actually is a tank located on the property, the seller can be referred to a company who will do the necessary inspection to make a final determination.
The Earnest Money Agreement? For the FSBO, reading the standard form Sale Agreement for the first time—which Realtors® have been using for years—can be a daunting experience. How can the FSBO know what provisions contained in the buyer’s offer are “standard” versus those that would be considered unusual or risky? For example, most good Realtors® know what time frames are reasonable to grant for the satisfaction and removal of contingencies. Most important, they know how to pre-qualify the buyer by asking many important questions, such
503.906.1370
as: whether the sale of their current home will need to be a contingency in this purchase; whether the buyer could qualify for a conventional loan, and if so, how much; whether they could obtain a bridge loan if they were unable to sell their home in time to close on this one; and where will they obtain the down payment—is it contingent upon any other source, such as a gift, a loan, a bonus, or disbursement from a retirement plan? The standard Sale Agreement form contains many sections that Realtors® understand should be specially explained to the seller. What if the buyer wants a $1,000 credit for repairs? What if the buyer wants the repairs completed as a result of the professional inspection? Who should authorize the repairs, and who should verify that the work was properly done? How long does the buyer have to approve or reject an inspection? What if the buyer fails to reject the inspection report in time? What if there is another buyer who wants to write a backup offer? What is a 72-hour contingency and how does it work? What if there is a dispute—what happens to the earnest money? Do disputes that go to Small Claims Court first have to be mediated? How long will it take if the matter has to be arbitrated? Is there a right to a jury trial rather than arbitration? Can the arbitration ruling be appealed? A good Realtor® adds value to most transactions. For the seller, this value is not only measured in terms of a higher selling price or better terms, but also in the peace of mind in knowing that the multiplicity of today’s laws and regulations have been met. For the FSBO today, ignorance is not bliss—it is an invitation to disaster. About the Author Phillip C. Querin is a partner with the law firm of Davis Wright Tremaine, where he chairs the Real Estate Practice Group for their Portland, Oregon office. Phil is legal counsel to the Portland Metropolitan Association of Realtors.
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Here’s What
Peggy’s Clients
Have To Say...
STEVE AND I WANT TO THANK YOU AND YOUR TEAM ONCE AGAIN for the
Thank you, Peggy, for your expertise, your professionalism and your trustworthiness. I feel you deserved every bit of your commission. I would go with you again in a heartbeat. — KIRSTEN BIONDI
excellent service in the sale of our home. Your spot on appraisal of the asking price, listing/showing techniques and bringing in through closing were above and beyond anything we’ve ever experienced-and we have been through quite a few home purchases and sales in our life. You have a talented, professional team. Thank you and best to you all!
IN MY 62 YEARS , I HAVE MET AND WORKED WITH MANY persons on a professional
— CANDACE AND STEVE CHINICK
WE FOUND THE VERY BEST THERE IS! Peggy Hoag and her staff are excellent in all they do. Peggy is walking, talking integrity and to us that is the highest possible praise. She put tremendous effort and energy into our sale, kept all promises she made and followed through on everything. She did exactly what she said she would do. We were totally satisfied with Peggy and highly recommend her to you! — BROOKS AND SUSIE KEY
PEGGY, I WANTED TO TAKE A MOMENT TO TELL YOU how incredibly impressed I have been with you and your team. From the first phone call, to every contact I have had with you and your professional staff, I have felt so confident in your advice, grateful for your contacts and amazed at the organization level and speed with which you operate. I wondered, with the large volume that you deal with, if I might not get much time or attention with our measly little transaction. To the contrary, I’ve been amazed how personally available you have been and we have immensely appreciated the thoroughness and the attention to detail you yourself have given this deal.
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503.906.1370
level. Immediately, you were able to understand our needs and wants and able to put up with our peculiarities to help us find the right property. You negotiated a fair deal for us and made the entire process smooth and comfortable. Peggy, you are a fine businesswoman, good person and a delight to do business with. When we retire, we will likely move to the Portland/Vancouver area and we will once again be in need of your services. I will recommend you to any person who may be in need of real estate services in the area. Once again, thank you for a job well done. — RICK CATON
2008, 2009, 2010, 2011, 2012 QUALITY SERVICE CERTIFIED GOLD© - PEGGY HOAG , QSC In recognition of exceptional client satisfaction as measured by Leading Research Corporation and the Quality Service Assurance Survey©. No professional achievement is as important as the delivery of exceptionally satisfying service. The Quality Service Certified Gold © status acknowledges an exceptional level of quality service achievement. — LARRY D. ROMITO, PRESIDENT/CEO, QUALITY SERVICE CERTIFICATION, INC.
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Reviews.
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15
2,000 Loans and Counting with 19 Great Years of Preferred Lending!
Jerry Wilson Mortgage Advisor MLO-267270
Main 503.699.6444 Cell 503.312.3332 Fax 503.624.6046 jwilson@alpinemc.com
Emily Matheson Assistant Direct 503.699.6444 Fax 503.635.4593
ematheson@alpinemc.com
Theresa Fleck Angela Stein Loan Coordinator Production Coordinator MLO-452076
Main 503.699.6444 Fax 503.748.2805 tfleck@alpinemc.com
Main 503.699.6444 Fax 503.718.985
angela.stein@alpinemc.com
With 19 years experience, the Jerry Wilson Group brings a unique experience in residential lending with an expertise in relocation services. Jerry is directly responsible for providing over 2000 mortgages for homeowners and investors. This unique experience level in residential lending is truly hard to find. Whether it is a first-time homebuyer or a seasoned investor, Jerry still has the same passion for professionalism and integrity to have a successful transaction. His ultimate compliment has been the number of returning clients and referrals over the years.
Apply Online www.alpinemc.com/jwilson