All Forum Posts by: Seraina Aguayo

Obviously there are benefits to both being a licensed broker and handling your own transactions or having a licensed professional to do the work. Yes, there are going to be fees involved with both options.

The bottom line here is this, what do you wish to put your energies in and focus upon? If you are going to become a licensed broker you have to account for a serious learning curve and we all know that time is money. There are, of course, the necessary fees and required continuing education courses that a licensed broker must maintain as well in order to keep the license.

However, on the flip side, I would have to agree that there may be more room for negotiation if you are a licensed broker negotiating your own deals; Keeping in mind that you have the skills necessary to negotiate successfully and consistently. It is easy to smear your name in the real estate world if you don't have the accurate knowledge or experience. If you have the time and patience to get your broker’s license and learn the tricks of the trade, it could be a very worthwhile investment.

I am a full time REI and Licensed Real estate broker in Oregon. I also coach my clients with real estate investment strategies. If you are going to hire a broker to represent you in a transaction, make sure that you interview that agent well and ask for references. The more resourceful your agent is the better will be your access to deals.

Thanks,

Seraina Aguayo

It is common for clients to ask me, “Just exactly how is a Realtor compensated?” It is quite interesting how many people out there do not know.

When a buyer hires a Real Estate Broker as their personal agent, there is no compensation provided by the buyer. The “buyers broker” will be compensated by the seller once the closing takes place.

When hiring a Real Estate Broker as the seller, the broker becomes the “listing agent” or “seller’s broker” and the broker will likewise be compensated upon the sale and close of escrow of the subject property.

In both situations the Seller is covering the cost of both the “listing agent” and the “buyer’s agent” brokerage fees.

The amount varies depending upon the percentage agreed to between the listing agent and the seller. For instance, if the Broker agrees to List a seller’s home for sale for a 6% commission, the listing broker may receive 3% and the remaining 3% may provide compensation for the agent who brings the buyer. Of course in any transaction, these percentages may vary as well as the distribution ratio. Keep in mind that each agent has to divide that 3% (in this example) with their brokerage and will only retain the balance after their desk fee or “split” with their brokerage firm is divided.

and the second question I have is can someone sell their home without a real estate agent? Is it a wise decision?

To answer this question, yes absolutely! A seller does is not required by law to hire a real estate agent to sell their home. However, I would recommend hiring an agent and here are some of the reasons why:

Real estate transactions involve one of the biggest financial investments most people experience in their lifetime with most transactions exceeding $100,000. If someone has a $100,000 income tax problem, would they attempt to deal with it without the help of a CPA? If someone had a $100,000 legal question, would they deal with it without the help of an attorney? Considering the small upside cost and the large downside risk, it would be foolish to consider a deal in real estate without the professional assistance of a REALTOR®.

The process of a real estate transaction is complicated. In most situations, the purchase or sale of real property includes disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, contingencies, multi-page government mandated settlement statements, market research, property research, etc. An experienced guide throughout this process can save a buyer or seller valuable time and money.

I could go on but I have already taken up quite a bit of space.

In regards to your last question:

What are the types of things they would have to know if they wanted to sell their home without a real estate agent and really profit from it?

I would have to say that it would behoove the seller to know a bit about how to market the property. When you are selling a home, exposure is absolutely crucial, so knowing how to obtain a fair amount of market exposure is vital and usually requires experience and internet savvy.

The National Association of Realtors conducted a recent study that revealed the median home price for sellers who use an agent is 16.0 percent higher than a home sold directly by an owner; $230,000 vs. $198,200; there were no significant differences in the types of homes sold.

In conclusion, while some home owners are motivated to save on paying a commission, the difference speaks for itself.

I have to agree with jlabelle, it is wise to interview at least 3 Realtors to determine which individual is most qualified for the job.

Here are some questions you could ask the Realtors:

1. How long have you been in residential real estate sales?
2. Is this your full-time job?
3. What designations do you hold?
4. How many homes did you and your company sell last year?
5. How many days did it take you to sell the average home and how does that compare to the overall market?
6. What types of specific marketing systems and approaches will you use to sell my home?
7. Will you represent me exclusively or both buyer and seller?
8. Can you recommend service providers such as mortgage lenders, home inspectors, contractors, etc?
9. What is your business philosophy?
10. What systems do you have in place to keep me informed of the progress of my transaction? How frequently? Using what media?
11. Can you please give me the phone numbers for your three most recent clients?

I hope this is helpful! :D

*This information is designed to provide information about the subject matter covered. The accuracy of the information is not guaranteed. This information is offered with the understanding that the author and/or publisher are not engaged in rendering legal, accounting or other professional services. If legal advice or other expert assistance is required, the services of a competent professional should be sought.

Thanks to all for reading. Your replies are valuable to me. Please let me know if I can be of any assistance regarding your real estate inquiries!

Seraina

Hi txboy, thank you for your interest in this blog. To answer your question, yes you definitely want to research the market, taxes, utilities although there is a lot more to learn. While a real estate agent can help you research the data relating to taxes, average time on the market, HOA dues, title history, encumberances, income statements for investment properties, easements etc.... It is wise to educate yourself in the buying process as well.

For example, there are a few neighborhood stats that are not considered to be latent material fact that must be revealed by the seller or your real estate professional. It may be important for you to research the crime rate or history within a certain given area. This type of research is available to you through your local government agencies. The agent is not allowed to tell you whether a neighborhood is considered "good" or "bad" because this is a matter of opinion, not FACT.

It is equally important to familiarize yourself with the demographics of the particular area you are considering.

Are you primarily interested in purchasing for yourself or would you be looking to invest in income properties?

Also, happen to know any lenders, hard money or otherwise, than can do 100% finance for purchase and repairs? Is it usually best to only make the repairs that are necessary to make a house livable? When should you make cosmetic repairs?

I work with several excellent lenders. I would be delighted to discuss this topic further with you.

As far as making repairs, the way I see it is this, repairs are absolutely necessary if the repairs will make the property more livable. However this is not the only instance in which you may benefit from repairs or improvements. Remember, repairs and improvements are completely different. Normally a repair is simply a fix of something that already existed. An improvement is an addition to or addition of an enhancement that may or may not have already existed. What is vital to your pocket book is that most improvements are tax deductable whereas repairs are not.

I have several excellent free reports that I would love to send to you regarding home improvements and taxes. Just send a request to my email and I will deliver those to you immediately. I hope this helps!

Happy Investing!

Seraina Aguayo

Thank you for the comment Pam :type:

When Should I Invest In Real Estate?

In my opinion, now is the best time. Unlike the stock market, home investment is much less volatile since home equity will rise and likely never fall. Of course, there are steps anyone should take before embarking upon a real estate investment venture….

· Know What You Want

Whether first time investor or experienced mogul, it is vital that you evaluate what it is you want to buy and why you are buying it. Are you familiar with the community? Have you familiarized yourself with the demographics specific to this area? Research the real estate market where you would like to invest. A Realtor® specializing in investment property is an excellent resource for answers to questions regarding investment endeavors.

· Can You Afford It?
Before you expedite any transaction, consider the property and its resale factor when investing. What are you willing to spend for the remodeling? For instance, would it be profitable to buy a home requiring updates that could cost you a year’s salary? Are the changes you have in mind conducive to creating a more valuable space? For example, if you were to covert a three-bedroom home into a seven-bedroom home we might call this structural obsolescence, in appraisal terms, because the changes made to the structure may cause the home to become less desirable in use or appearance. These modifications would consequently result in a loss of value and income.

Make sure you discuss your financing options with a qualified lender. Lenders typically prefer to work with a 45% or lower debt to income ratio. Those with higher debt may discuss with a lender the most frugal ways to decrease their debt. Several loan programs exist that offer the purchase of a home with little or no money down. However, with this option you should expect higher monthly mortgage payments. With this in mind, it may be wise to purchase your investment property with a considerable down payment. Make certain to explore all of your financing options.

According to the Federal Reserve, home sellers averaged a net capital gain of greater than $25,000 in just the last five years. How’s that for investing motivation? If investing in real estate is for you, contact a Realtor® to discuss an investment plan that is best for your budget.

Is now the right time to invest in real estate? I have to agree with this well-known investing guru,
“Well, real estate is always good, as far as I’m concerned.”- Donald Trump

Hi there Scholar. Initially, investigating the nuances of Real Estate can prove to be a daunting task for many. If you are looking to glean some insight into the world of real estate through the eyes of a Realtor, please feel free to contact me with questions at any time. Some of the areas of Real Estate I specialize in include: Relocation, Home Investments, Property Marketing, First Time Home Buying, Mortgages and the like. My area of Expertise is currently Gresham, Troutdale and much of Portland Oregon. Contact me anytime at:

:D Hello everyone. I would like to introduce myself. My name is Seraina Aguayo, licensed Realtor located in Gresham, OR. It is true that some brokers may find one high earning transaction to be of a greater priority in comparison to a transaction of a lower earning capacity. This is unfortunate however not only for the potential client but also for the agent who is discriminating so to speak. In my experience it is wise to treat all transactions of equal importance. Ive found, reguardless of the earning potential, the quality of service I provide will simply pave the way for future success with not only this client but also all contacts related to this client.
One of the most important attributes needed for any relationship with a real estate broker is a solid foundation of trust and diligence. In response to your question, it may be possible to learn much about a broker by simply getting one on the phone and making contact. This will help the potential client gain a better perspective of the broker and their personality. It may be helpful to find out everything you can about the company a broker is representing. It is unfortunate to hear about unpleasant experiences with other brokers. Although, I would like to point out that not all brokers are Realtors but all Realtors are brokers. As licensed Realtors, we have to abide by a Standard Code of Ethics because we, as Realtors, strive to maintain a positive image and a healthy reputation for other Realtors. At least, we should. Look for the Realtor logo. Thank you.

:D Hello investors and fellow Realtors! I would just like to introduce myself to the forum. My name is Seraina A and I am a Realtor for Kastings & Associates in Gresham, OR. If there is anyone interested in learning more about the market or the availability of new construction or residential property just reply or send and email and I will be happy to assist you. Have a great day and happy investing!

"There's the undeniable potency of the "real" in real estate. Unlike investing in stocks and bonds, real estate offers people the opportunity to invest in something that is concrete and material."
-Donald Trump