Pocket Listings

Pocket Listings

A pocket listing is where a seller signs a listing agreement with a broker but they don’t want the house marketed on the Multiple Listing Service (MLS). Due to the current housing market, this practice is becoming less common.

What’s the benefits and drawbacks of pocket listings?

The main benefit is convenience. Many property owners want to sell their house but do not want the aggravation associated with showing the property.

However, if you aren’t marketing your home on the MLS, you’re not exposing the house in the entire market so it’s harder to determine market value.

For example, if I’m going to sell candy and I’m going to sell it to one person, it’s worth $1. However, if 30 buyers want the same candy, it increases the value of the candy to perhaps $15.

What’s your experience with pocket listings?

As a general rule, we don’t encourage our sellers to keep their property as a pocket listing because it doesn’t fully represent the seller. We’ve had occasions where sellers signs the listing agreement but they aren’t ready to have the house exposed to the market. In the meanwhile, if someone wants to buy the house, they want to sell.

Recently, one of our buyers heard about a house for sale directly through the seller and we submitted what we felt was a fair market value offer based upon the comps. The seller decided at the last moment to expose the property to the entire market and they ended up getting $15,000 or $20,000 more than what we had offered.

Tune in to KXL’s “Experts on the 19′s” every Monday morning at 6:49AM and 8:49AM and listen to real estate advice from Portland’s Real Estate Advisor, Rick Sadle.

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Should buyers & sellers purchase a home warranty?

Home Warranty

Should buyers & sellers purchase a home warranty?

Quite honestly, home warranties are a great idea.

When we’re selling a home, it’s something we use as a value proposition. We market the home warranty to potential purchasers. During the transaction, a home warranty can help with inspection or repair negotiations.

Recently we had an inspection on one of my listings where the inspector found that the furnace was functional but it was near the end of its useful life. In lieu of replacing the $3500 furnace, the seller offered the buyer a home warranty. If something goes wrong in the near future, for a service fee of $60, the buyer will have the furnace repaired.

What is the cost of a home warranty?

A one year home warranty will cost approximately between $400-$500 depending on which company and add-ons you choose. They’re definitely worth the money.

We purchase one every year for our house. Our oven stopped functioning so we filed a claim with the home warranty company. They weren’t able to repair it due to it’s age (they couldn’t find the parts to repair it) so they purchased us a brand new $1200 oven.

Our buyer specialists search for homes that offer complimentary home warranties as it provides additional protection for the buyer. However, if we cannot find a home where the seller is offering a home warranty, we suggest for our buyers to purchase one themselves.

Tune in to KXL‘s “Experts on the 19′s” every Monday morning at 6:49AM and 8:49AM and listen to real estate advice from Portland’s Real Estate Advisor, Rick Sadle.

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16672 Fir Lane

16672 Fir Lane

16672 Fir Lane Lake Oswego, OR 97034
RMLS Listing #: 14172536

Stunning Monogram custom home brimming w/ high-end amenities boasts main level living w/ gourmet kitchen w/slab granite counters, island, wine storage & Butler pantry. Great room living w/fireplace & exposed beam ceilings, formal dining, office w/fireplace. Impressive master suite w/ two walk-in closets. Upstairs features large bonus room, three bedrooms two w/en-suite baths. Private backyard w/patio & water feature. Deeded lake access.

http://www.searchingportlandhomes.com/listing/mlsid/210/propertyid/14172536/

For 24-hr recorded information and current price, call
1-800-358-1829 ext. 2491

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Legal Facts About Oregon Short Sales

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As the real estate market grows bigger, we’re hearing less and less about short sales. Problem is, it’s still a
significant part of our market, and some of these transactions may not actually be legal.

What does Oregon state law say about short sales?

There’s a lot of confusion about who is and who isn’t legally allowed to negotiate a short sale, and that’s because most real estate agents and consumers believe that the former are allowed to do it. It was, up until House Bill 2191 was put into effect; it’s a consumer protection law which states that anyone who negotiates a short sale has to be registed with the state of Oregon as a debt management service provider and there is a $20,000 bond for that. Unfortunately, there were over 30 people who were given cease and desist orders for breaking this law in 2012.

So how can a person be sure that the person who’s helping them with a short sale is legally qualified? The good news is there isn’t a lot to sort through. There are only 12 registered entities in the tri-country area who are registered as Debt Management Service Providers. Someone can simply go to the Division of Finance and Corporate Securities website or just search online for debt management service providers in Oregon to find out.

Tune in to KXL‘s “Experts on the 19′s” every Monday morning at 6:49AM and 8:49AM and listen to Real Estate advice from Portland’s Real Estate Advisor, Rick Sadle.

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What’s Happening to Short Sales and Bank Owned Sales?

What’s Happening to Short Sales?

A lot of people are wondering now that the housing market’s turned around, what’s happening to Short Sales?

Well, right now nationally, distressed sales make up 24% of the market and 12% of the those are short sales.A year ago that number would have been 35% and short sales 13%. What’s interesting is that most of the decline in distressed sales has come in the form of bank owned sales.

With all the talk of the “Shadow Inventory” (the mythical backlog of homes that the banks have either foreclosed on or are about to), there has been some concern that these homes would hit the market all at once and this would affect home values. With foreclosures slowing down dramatically, it doesn’t look like that is ever going to happen.

As a matter of fact, with home prices rising and short sales being processed more efficiently; we should see a significant decline in the number of short sales in the next 2 years.

Won’t that be a relief?

S
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Tune in to KXL‘s “Experts on the 19′s” every Monday morning at 6:49AM and 8:49AM and listen to Real Estate advice from the expert himself, Rick Sadle.

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