​Upcoming Free (& non-promotional) Home Buyer Classes:

Saturday November 5th , from 9am-12pm (ish)
       Marshall Community Center, conference room
        1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)

Thursday night, November 10th , from 5pm-8pm (ish)
       Marshall Community Center, conference room
       1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)

Saturday, November 19th, from 11am-2pm (ish)
        Vancouver YMCA, conference room
        11324 NE 51st Circle, Vancouver WA (corner of SR500 & Gher Road/112th Ave)


If these class dates and/or times don't work for you, please let us know.  We understand that you have lives, and families, and work.  We will work something out that works better with your schedule.  Just let us know....                                                                                  
....we also have home seller classes available too...link on left on website
                  
Remember...with reservation...we will throw in lunch, or dinner!  :-D
~~~~~~~~~
Happy Halloween!

Another quick reminder that we have our Winter Client Appreciations coming up...  yep, plural this year!  Chris Berg and I are honored to invite you to either Disney's Moana on Saturday, 12/3 from 3pm-6pm....OR... Star Wars: Rogue One on Saturday, 12/17 from 3pm-6pm (time could change slightly for Star Wars).  Please let us know which movie you would like to attend and I will send you the link to get your tickets.  :-D  Tickets are first come, first served...and no assigned seating.  Chris and I want you to know that we appreciate you!  We appreciate your trust, your friendship, and your referrals!  So...come watch a movie with us!!  :-D  Please email jkomp@pcmloan.com for the reservations link.  

Buying a home will be the largest purchase you ever make.  The only thing that will cost your more than buying a home is having a child.  :-)  Like a child, you have to take care of your home though, and there is more to home ownership than most people realize.  
   Every month you pay bills, and your mortgage payment will most likely be your largest monthly expenditure, but what is it?  We talked last week about how a mortgage payment works, but this week, let's talk about the five parts of a mortgage payment.  

Now...what is all in your payment?
 
   There are four parts to your mortgage payment...it is called a PITI payment.  What that means is Principal, Interest, Taxes, and Insurance.  For example, my payment is $1600, but my principal/interest portion is only $1000 a month, the other $600 a month is put into an escrow account.  Out of this account comes my homeowners insurance payment once a year, my flood insurance (I live in a flood plain and am required to carry this) payment once a year, and my taxes are also paid from this account twice a year.  All of these fees are wrapped into my monthly payment for me.  Anytime you are using a FHA, or any government type of loan like RD (USDA), or the downpayment assistance programs & grants (like Home Advantage or the NHF), these fees must be wrapped into the mortgage payment.   If you don't have a 20% down payment (like 99.9% people), then your mortgage payment will actually have FIVE PARTS with the fifth part being Mortgage Insurance. 

Mortgage Insurance vs Homeowners Insurance
 Mortgage insurance is different than home owners (sometimes called, Hazard) insurance.  In a nutshell, mortgage Insurance protects the lender in case you default on your loan, and homeowners insurance protects you & the lender in case something happens to the home....ie.. a fire, a tree falling on your home, a car driving into your home, burst pipes, etc.  

Homeowners Insurance
   Now, please remember, you do choose your insurance company!  One of the things I suggest to clients is to contact their insurance company after they make their offer and to do a couple of things...(1) Has there been any water of fire claims in the past 3-5 years on this home?, and (2) How much would the insurance be for this home?  Average homeowners insurance is about $500-$700 a year....again, it is wrapped up into your monthly mortgage payment so it is not another extra expense.  You do get to choose your company, and many companies will give you discounts for 'bundling' your policies.  It doesn't hurt to call around for quotes.  Once you choose a company request that your insurance agent send over an 'insurance binder' over to your lender. 

Property Taxes
  Taxes are decided by the county, and are usually paid twice a year.  You may get a copy of the tax bill, but again, it is paid by your mortgage company out of your escrow account.  I always get phone calls when these bills come out.  :-D  No worries...it is just for your records, and I encourage your phone calls!!  :-)  Please remember that 'Tax Assessed Value' is NOT market value.

Principal & Interest
   Now...your principal and interest portion of your mortgage payment.  As we know a portion of your mortgage payment every month goes toward the principal amount that your borrowed to purchase your home, and a portion goes toward the interest that the lender is charging you.  In the beginning of your loan the smaller amount goes toward principal, and the larger portion goes toward interest...this eventually switches.  We all know the wisdom of making an additional payment every year on your mortgage to reduce your loan time.  Some banks will offer to take your payment in two week portions, and make your additional payment for you.  Honestly I don't advise this.....before you think I am crazy, this is the reason why....the bank actually holds your money and makes your additional payment at the end of the year.  This isn't the best way for you, really....  I always pay between $25-$100 extra on my mortgage every month depending upon our finances that month, but apply it directly towards my principal borrowed amount.  At the end of the year I have made that extra payment directly towards my principal, which is less money I can be charged interest on!  This will shorten my loan length considerably.  In the end I actually pay MORE on the principal amount than I would have if I had just made one extra payment.  My suggestion to all my clients is to take that $20 from each paycheck and put it into that credit union far away (with no debit card or checkbook for) that is for your home repairs that are needed as a homeowner.  If you just put at least $25 per month extra toward your principal loan amount you will also be shortening your loan time.  This sounds like a lot...but really is it?  It is a trip to McD's (for my family anyhow as we have 2 adults, a first grader, and either my adult son, and/or my adult daughter and her fiancee.), or a couple of Dutch Brothers trips a month...but it will help you in the long run immensely. 
   So there are the 5 parts of your mortgage payment...Principal, Interest, Taxes, and Insurance...both Mortgage & Homeowners.....all tidily wrapped up into one payment every month..

  Yay!  I kept it shorter this week!  :-D  It's like going to the grocery store, and only coming out with the items you went in for!!  
  
          Information is power, and I hope that I am able to help you.  Good luck, and as always...May the odds be ever in your favor out there....  AND If you are looking for a real estate agent, I would love to be able to help you.                                                                       
 
    As always....this is just a quick overview.... again...and I can't say this enough...please remember that your agent is NOT a salesperson, and should not be acting like one.  Real Estate is not really about houses, it is about relationships.  Your agent, and your lender work for YOU.  You drive the bus...we are merely GPS to help you get to your goals.  Like the classes, this weekly blog email is to help you with your home adventure.  The goal is to be informative and non-promotional.  :-)  We are, however, hoping you will call and want us to help with your adventure.  

If you have any questions about this, or something you have heard...or if you would like me to help you with your home adventure, please call, email,  text, or facebook me anytime.  I am, as always, happy to help!
 
Thank you again for your business and your referrals!!  ...and thank you for referring these classes to your friends, family, and co-workers. 
 
 .   ..disclaimer...if you have already purchased a home, or would no longer like to receive these emails, please let me know and I will be happy to remove you from any further mailings... 
 
 
Upcoming Topics: Escrow Accounts, and what they do
Last Week:  Sellers & Dual agents explained...


Have a great day, and I will talk to you soon,   
;-D   
Tracie DeMars   
Real Estate broker    
Re/Max - Van Mall   
360/ 903-3504 cell   
360/ 882-3600 fax   
www.traciedemars.com   
traciedemars@aol.com   
    
“Interested in free and non promotional home education classes?  Go to www.freehomebuyerclasses.com for local upcoming home buyer and home SELLER classes, or facebook: Tracie DeMars Real Estate for my home buyer education blog.”
"Listen to the mustn'ts, child. Listen to the don'ts. Listen to the shouldn'ts, the impossibles, the won'ts. Listen to the never haves, then listen close to me... Anything can happen, child. Anything can be."    
   - Shel Silverstein, American poet, cartoonist and composer, (1930 - 1999).

​Upcoming Free (& non-promotional) Home Buyer Classes:

​Saturday November 5th , from 9am-12pm (ish)
       Marshall Community Center, conference room
        1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)Thursday night, November 10th , from 5pm-8pm (ish)
       Marshall Community Center, conference room
       1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)

Saturday, November 19th, from 11am-2pm (ish)
        Vancouver YMCA, conference room
        11324 NE 51st Circle, Vancouver WA (corner of SR500 & Gher Road/112th Ave)



If these class dates and/or times don't work for you, please let us know.  We understand that you have lives, and families, and work.  We will work something out that works better with your schedule.  Just let us know....                                                                                  
....we also have home seller classes available too...link on left on website
                  
Remember...with reservation...we will throw in lunch, or dinner!  :-D
~~~~~~~~~
Happy Monday Evening~

  Here we are...Monday again.  Just a reminder that we have our Winter Client Appreciations coming up...  yep, plural this year!  Chris Berg and I are honored to invite you to either Disney's Moana on Saturday, 12/3 from 3pm-6pm....OR... Star Wars: Rogue One on Saturday, 12/17 from 3pm-6pm (time could change slightly for Star Wars).  Please let us know which movie you would like to attend and I will send you the link to get your tickets.  :-D  Tickets are first come, first served...and no assigned seating.  Chris and I want you to know that we appreciate you!  We appreciate your trust, your friendship, and your referrals!  So...come watch a movie with us!!  :-D

  Now that it is football season, I can use my football analogy!  :-)   So real estate can follow along the lines of football...you have two opposing teams (the buyers agent vs the sellers agent), and after the game ends, you should both be able to shake hands still.  In real estate there really isn't a 'winner' or 'loser' though....a good transaction ends in a tie....even if football usually doesn't.  The seller sells their home to a buyer who then makes it their home.  The agents should both be representing their clients best interests.   Just like in football, the team is only as good as it's supporting staff.  Your lender & real estate agent are YOUR supporting staff....no matter who that staff is, make sure it is a good one.  A good supporting staff can turn your home buying adventure into a championship one.  Buying a home (and even more so...selling a home) is stressful.  As I say in the classes, it is a lot like driving down Mill Plain on Friday around 5pm.  There is always going to be a hiccup somewhere.  Your lender and agent (ie your supporting staff) have the job of smoothing out those hiccups....to come up with solutions and providing you the best options for you to choose from.  In real estate, the championship trophy is keys, and we all want you to get those keys!  
   So, last week we talked about what buyers agents do.  This week we are going to talk about Sellers agents & Dual agents....  (If you missed the buyers agent blog you can find it on my Facebook page at:  Tracie DeMars Real Estate)

Seller's Agent~ 
 
   This is the agent who works for the seller.  The agents name and/or picture will be on the sign and flyers.  They are hired by the sellers to help them market the home.  A sellers agent is hired by the seller to represent the seller to the best of their ability.  In a nutshell, a sellers agent want to sell the home for the highest price, and with the least amount of money out of the seller's pocketbooks.  When the agent meets with the sellers initially they discuss commission, price, marketing, and what the seller has for a bottom line, and how much they might be willing to pay in closing costs for a buyer.  The seller pays a commission to the sellers agent off of the purchase price.  Some people believe that by calling the sellers agent to help them buy the home they can get a better deal since the seller only has to pay for one agent.  This is wrong....the sellers have a written contract with the sellers agent for a contracted commission.  The sellers agent is going to split that commission with the buyers agent who represents the buyer of the home they are representing the sellers on.  This split is at the sellers agent option and choice....it can be split 50/50, or 60/40, or whatever they want to.  The only time the sellers agent receives the full commission is if the sellers agent represents both the seller and the buyer on the same home/transaction (see below).  I know I talk a lot about buyers agent, so you know that there are many real estate agents who represent buyers.  The sellers agent offers, on the rmls, a BAC (Buyers Agent Commission) to a buyers agent to bring their buyers to the home.  If the buyers like the home then their buyers agent will assist the buyers in writing up an offer for the home.  The buyers agent then sends the offer to the sellers agent to present to the seller for their consideration.  An offer written up by a buyers agent should be in the best interest of the buyer as the buyers agent represents the buyer.  The sellers can accept that offer, counter the original offer, or ignore the offer.  The sellers agent will assist their clients, the sellers, to help them negotiate an offer that they are acceptable with.  The sellers agent works for the seller, to the best of their abilities....helping the seller to navigate the sellers paperwork, assist with the sellers questions, translate lingo, and work to help the sellers find the best deal possible for them.  The sellers agent works for the sellers in the same ways that a buyers agent works for the buyer....just on the other side of the transaction.
 
 
 
Dual Agent~ 
 
   So, what happens if you call the sellers agent to show you the home?  They will.  What happens if you ask the sellers agent to help you write up an offer on that home that they are representing the seller on?  Well...this is a hot topic in real estate...   A dual agent is an agent that works for both the seller and the buyer on the same home.  If the buyer were to call the agent whose name is listed on the flyer or sign, they would be asking for help from the agent hired by the seller to represent the seller.  That agent can show them the home, and can write up the offer, but is still hired originally by the seller to represent their best interest.  By writing up the offer for the buyer as well, that agent now has dual employers, on the same home.  On one hand the agent knows what the seller's back interests are, and now the agent also knows what the buyer's back interests are.  It is my opinion only that it would be very difficult to serve two masters.  A team would be a dual agent, regardless of who is listing or selling, as by being a 'team', in essence they are acting as one.  A builder's agent is also a dual agent as they are employees of the builder, and not the buyer.  If you call an agent, and the agent says something like, "I am sorry, I work for the seller on that home...but let me get you a (or the) buyers agent".  That would still be a dual agent as they are most likely contacting their team member or an assistant.   A dual agent is not splitting the commission with anyone.  There are some agents who will offer a seller a 'discounted' commission if they bring in the buyer (act as a dual agent), and they can really make it sound like they are 'helping' the seller by offering them that discounted commission, but who are they really helping?  Who are they really representing?  Dual agency is not illegal in the state of Washington, but yes, there are states where it is illegal.   It is only my opinion that every buyer should have their own agent hired to exclusively represent the buyers and their best interests.  Personally, I will not do a dual agency as I don't believe that you can serve two masters.  I firmly believe that each side should have their own representation....just like a courtroom.  You would never call the other parties lawyer to represent you, right?  So why would you call the other parties agent? 
 
 
  Again...85% of homes are purchased where the buyers are using a buyers agent!  The buyers agent is paid, at closing, with what is called a BAC (Buyers Agent Commission) that is offered by the sellers agent from the commission being paid by the sellers.  If an agent talks to you about their 'buyers agent fee', or the fee they charge to assist the buyers in their home buying adventure....well, if it were me I would ask them about BAC, and how they work!  One of my favorite questions to ask agents is how they feel about dual agency as I feel that it tells me a lot about that agents work style, and ethical beliefs.  I also like to ask agents if they ask buyers to guarantee them a certain BAC percentage, or if they charge a fee when they work as a buyers agent.  The answers are always very interesting, and the explanations and defenses of such practices always crack me up!!  Remember....real estate and lending is all about verbiage!  We are taught 'scripts' to make things sound very good when, in fact, they may not be good for YOU!  Ask questions, and if you don't like the answers...move on!!  And NEVER sign anything without a very good explanation of what it is, why they want it, and what it means to you!! 
  We are all a little crazy here, and sometimes what you hear isn't what we are really saying....be sure to ask questions until you are happy with the answers.  Agents, whether we work for the seller, or the buyer, are always here to helps, advise, and assist our respective clients. 

          Information is power, and I hope that I am able to help you.  Good luck, and as always...May the odds be ever in your favor out there....  AND If you are looking for a real estate agent, I would love to be able to help you.                                                                       
 
    As always....this is just a quick overview.... again...and I can't say this enough...please remember that your agent is NOT a salesperson, and should not be acting like one.  Real Estate is not really about houses, it is about relationships.  Your agent, and your lender work for YOU.  You drive the bus...we are merely GPS to help you get to your goals.  Like the classes, this weekly blog email is to help you with your home adventure.  The goal is to be informative and non-promotional.  :-)  We are, however, hoping you will call and want us to help with your adventure.  

If you have any questions about this, or something you have heard...or if you would like me to help you with your home adventure, please call, email,  text, or facebook me anytime.  I am, as always, happy to help!
 
Thank you again for your business and your referrals!!  ...and thank you for referring these classes to your friends, family, and co-workers. 
 
 .   ..disclaimer...if you have already purchased a home, or would no longer like to receive these emails, please let me know and I will be happy to remove you from any further mailings... 
 
 
Upcoming Topics: Escrow Accounts, and what they do
Last Week:  Buyers Agents...what do they do?

Have a great day, and I will talk to you soon,   
;-D   
Tracie DeMars   
Real Estate broker    
Re/Max - Van Mall   
360/ 903-3504 cell   
360/ 882-3600 fax   
www.traciedemars.com   
traciedemars@aol.com   
    
“Interested in free and non promotional home education classes?  Go to www.freehomebuyerclasses.com for local upcoming home buyer and home SELLER classes, or facebook: Tracie DeMars Real Estate for my home buyer education blog.”
"Listen to the mustn'ts, child. Listen to the don'ts. Listen to the shouldn'ts, the impossibles, the won'ts. Listen to the never haves, then listen close to me... Anything can happen, child. Anything can be."    
   - Shel Silverstein, American poet, cartoonist and composer, (1930 - 1999).

​Upcoming Free (& non-promotional) Home Buyer Classes:

Saturday, October 22nd, from 12pm-3pm (ish)
        Vancouver YMCA, conference room
        11324 NE 51st Circle, Vancouver WA (corner of SR500 & Gher Road/112th Ave)

​Saturday November 5th , from 9am-12pm (ish)
       Marshall Community Center, conference room
        1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)



If these class dates and/or times don't work for you, please let us know.  We understand that you have lives, and families, and work.  We will work something out that works better with your schedule.  Just let us know....                                                                                  
....we also have home seller classes available too...link on left on website
                  
Remember...with reservation...we will throw in lunch, or dinner!  :-D
~~~~~~~~~
Happy Monday Morning~

   Ever have one of those weeks that makes you want to drink?  yeah...?  Ok then!  We are good.  :-)  Last week, my favorite inspector was doing a one year re-inspection for a client and fell through her laundry room ceiling!  10 foot ceilings, and down he went...taking out the laundry room sink too...  Good news is that nothing was broken, but he's got a pretty serious sprain on his ankle & knee.  Bad news is that we had 5 inspections scheduled so all the inspections had to be rescheduled...with other inspectors.  Now, good news is that I do know other good inspectors...bad news is that he is (in my opinion) the BEST, and everyone is booked out at least 10 days.  ugh...not stressful at all, right?  

On Saturday we had a great class of people for the home buyer education class.  It was a larger class (about 10 people), and while some people don't think that is a big class, for this type of information, it really is.  In the classes there is a LOT to cover, but most importantly we want to answer questions....and there is no such as a stupid question in lending or real estate....there really isn't.  In real estate, and lending, it is all about verbiage, and a lot of that verbiage is misleading to the public who doesn't understand what is really being said....and what isn't being said.  With the bigger classes, we have a hard time covering everything, but will cover the important things, and most importantly, your questions.  As always, we are available for questions even AFTER the classes....feel free to call, email, text, or facebook either Chris Berg, or me anytime.  We are here to help...always!

   I was recently asked about negotiating agent commissions, and a "Buyers Agency Fee"...  I was fairly confused since this was being asked by a buyer.  This was confusing to me because as a buyers agent, I have no charge.  You can't negotiate free....well, I guess you can, but that isn't going to help you since free is pretty much the best price you can get.  As Tom Peterson once said, "FREE is a very good price".  Yes, the buyer can hire a realtor AT NO CHARGE!  All buyers agents should be at NO CHARGE to the buyer.  Now, honestly, as I've talked about before every agent runs their business differently, but a buyers agency fee is really just an agent asking for a bonus.  This is not something that 'every agent does'...as I was told.  Pretty sure I'm a Realtor, and I've never asked for a Buyers Agency Fee...and I know plenty of other agent who've never asked for one either.  :-)

  So, I went to the website that these clients were telling me about, and while some of the information was good, about half of the information on the website was incorrect for our area. Each state has different rules and regulations.  This is why a lot of what you see on HGTV is invalid for our area.  So what else from that website was incorrect for our area?  This was a big one....that particular website was advising people to look at homes up to 20% more than what they were approved for.  I do NOT advise this...in fact, I discourage it.  Our market is very much a sellers market.  Homes are selling for 97% of the listing price average in our area.  Some price ranges are busier than others, of course, so are some neighborhoods.  I have some awesome clients who have worked very hard to be ready to buy a home.  They took the home buyer education class a couple of years ago, and are ready now.  I am so excited to help them find a home!  :-)  They sent me a list of 8 homes they liked, and within 5 days, six of those homes are pending sale.  Don't look at homes that are more than you can afford.  This is a sure way to get discouraged.  I (or any buyers agent), should want to help you find a home you can afford and be happy in.  I can't stress it enough... Don't look at homes that are more than you can afford.  Be realistic.... on that note....let's talk about the THREE types of real estate agency.  This week I am going to go over what a buyers agent does, and next week I will talk about a Sellers Agent, and a Dual Agent.  


Buyer's Agent~ 
 
    This is the agent who works for the buyer. A buyer's agent is hired by the buyers to assist them with their purchase, and the steps to closing. A buyer's agent will ask the buyer's what the top 3 items the buyer is looking for in a home....area/school district, bedrooms, bathrooms, garage, yard, etc, what price range the buyer is looking to stay in, and they will ask the buyers who their lender is and if they are pre-approved already. The buyer's agent will contact the lender and inquire as to what type of loan the buyers have, and how much the buyers will need in closing costs. This is important for the buyer's agent as the type of loan you are on will really have an effect on what types of homes your agent shows you, and when you are writing up an offer with your agent knowing the amount needed for closing costs saves time, and benefits the buyer. Most, if not all, first time home buyer programs through the state and government will require that the home be able to pass a home inspection. An agent helps with that....and is available for all questions, concerns, and helping you through each step. In essence though, the buyer's agent is hired by the buyer to help them get the lowest possible price for the home, and the most closing costs from the seller that your loan program will allow. If the buyer is pre-approved then they should be hearing from their buyer's agent at least once a week with homes that may be a right fit for the buyer, and be available for questions, and showings. Again, the buyer's agent is paid by the seller, but works for the best interest of the buyer. A buyer's agent wants to do the best job possible for the buyer in the hopes of future referrals from the buyers to their friends, family, and co-workers. Your happiness is key to our future business!
 
  Remember that you can interview agents without signing anything (and you shouldn't!). See last weeks emails for questions to ask your Realtor.   While these are only some questions that it might be good to ask. What it really comes down to though are the questions that you need to ask yourself. Are you comfortable with this agent? Do you like him/her? Do you feel confident in their abilities? What are YOU looking for in an agent? Does this agent match those qualifications? Are they knowledgeable in the area/price range/loans that you are looking for? Does he/she listen? Do you feel that this agent cares about you and what you need?

What a Buyers agent does...
    This is kind of a mix of the above two paragraphs, so we will keep it short and sweet. A Buyers Agent works for YOU...the buyer! We are here to assist, advise, and help you through the entire process of buying a home. Your Buyers Agent can assist you with your lender and help you with they need. A Buyers Agent should be in contact with your lender so that he/she can do so. Your Buyers Agent helps you find a home that matches as many of your needs as possible and still stays as close to possible in your preferred price range (which isn't always your pre-approval range...unless you are comfortable going up to that amount). Your Buyers Agent should be listening to you and your needs. Your Buyers Agent is with you at the home inspection, helping you and advising you on what the best course to take may be and providing options that you can choose from. Really that is what it comes down to....a Buyers Agent advises only...we provide options for you to choose from and assist you as much as we can providing information on all options so that you can decide what is the best course to take. We, by law, must follow your directions. YOU, as the buyer, is the boss in this situation...a Buyers Agent is the employee of the Buyer. A Buyers Agent is here to assist, advise, and help...but the Buyer makes the final decision. A Buyers Agent should always be available for questions and be ready to help you find answers. Of course, there are some questions to which there are no answers, but a Buyers Agent will help with that too!  

What can you expect from a Buyers Agent?  
   
   Loyalty, understanding, compassion, knowledge, laughter, hard work, accessibility, putting your interest and concerns first, and all of the above. Remember that a Buyers Agent works for you so they should be there to help, assist, and advise YOU. As you can see, in a lot of ways, a Buyers Agent is like a mom... ;-D
 
Remember that real estate is a relationship business.  As a buyers agent, we want to form a relationship with you, and hopefully, continue that relationship into the future.  Many of my closest friends started off as clients!  :-)  You should always feel comfortable calling, emailing, or texting your agent....ANYTIME...even if it is 5, 6, 10, or more years down the road.  A good buyers agent wants to develop that long term relationship as over half of our current clients comes from the referrals of past clients. 
 
Compensation....
 
  The big question is who pays for the buyers agent?  When a seller hires an agent to represent them, they offer that sellers agent a commission from the sale of their home.  A sellers agent will offer a BAC (buyer agent commission) on the rmls for buyers agents to bring their buyers to the home that the sellers agent is representing.  That percentage is part of the contract between the seller and the sellers agent.  85% of homes are purchased with a buyers agent, and yes, you read that correctly...the buyers agent is free!  By hiring a buyers agent, you, the buyer are hiring an agent who only represents you in the transaction.  The sellers agent represents the sellers, and the buyers agent represents the buyer.  So, what happens if you contact the sellers agent for representation?  ahhh....that is next weeks topic!!  :-)  So...until we meet again...have an excellent week!

          Information is power, and I hope that I am able to help you.  Good luck, and as always...May the odds be ever in your favor out there....  AND If you are looking for a real estate agent, I would love to be able to help you.                                                                       
 
    As always....this is just a quick overview.... again...and I can't say this enough...please remember that your agent is NOT a salesperson, and should not be acting like one.  Real Estate is not really about houses, it is about relationships.  Your agent, and your lender work for YOU.  You drive the bus...we are merely GPS to help you get to your goals.  Like the classes, this weekly blog email is to help you with your home adventure.  The goal is to be informative and non-promotional.  :-)  We are, however, hoping you will call and want us to help with your adventure.  

If you have any questions about this, or something you have heard...or if you would like me to help you with your home adventure, please call, email,  text, or facebook me anytime.  I am, as always, happy to help!
 
Thank you again for your business and your referrals!!  ...and thank you for referring these classes to your friends, family, and co-workers. 
 
 .   ..disclaimer...if you have already purchased a home, or would no longer like to receive these emails, please let me know and I will be happy to remove you from any further mailings... 
 
 
Upcoming Topics: Sellers Agency/Dual Agency, 
 Escrow Accounts, and what they do
Last Week:  Agency...explained & questions to ask a Realtor

Have a great day, and I will talk to you soon,   
;-D   
Tracie DeMars   
Real Estate broker    
Re/Max - Van Mall   
360/ 903-3504 cell   
360/ 882-3600 fax   
www.traciedemars.com   
traciedemars@aol.com   
    
“Interested in free and non promotional home education classes?  Go to www.freehomebuyerclasses.com for local upcoming home buyer and home SELLER classes, or facebook: Tracie DeMars Real Estate for my home buyer education blog.”
"Listen to the mustn'ts, child. Listen to the don'ts. Listen to the shouldn'ts, the impossibles, the won'ts. Listen to the never haves, then listen close to me... Anything can happen, child. Anything can be."    
   - Shel Silverstein, American poet, cartoonist and composer, (1930 - 1999).

​Upcoming Free (& non-promotional) Home Buyer Classes:

Saturday October 8, from 9am-12pm (ish)       Marshall Community Center, conference room
       1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)

Tuesday night, October 11th , from 5pm-8pm (ish)
       Marshall Community Center, conference room
       1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)

If these class dates and/or times don't work for you, please let us know.  We understand that you have lives, and families, and work.  We will work something out that works better with your schedule.  Just let us know....                                                                                  
....we also have home seller classes available too...link on left on website
                  
Remember...with reservation...we will throw in lunch, or dinner!  :-D
~~~~~~~~~
Happy late Saturday night~
 
    October 1st....WOW!  How are we even at October already?  I love fall...  the end of the year is always my favorite time of year as I adore the holidays!  :-D  I love the colors, the scents, and the craziness...
   And speaking of craziness...  yep, real estate is still crazy, and I don't just mean me.  :-)  I think though, that with all the craziness of real estate going on, that I really need to spend some time talking about Agency this week, and for the next couple of weeks.  This week I want to talk about what Agency IS...next week I'll talk about Buyers Agency, and then Sellers Agency and (cue Jaws music) Dual Agency.  
  So why is Agency so important?  Because Agency is what we DO...and you need to be aware of what to expect from your agent.  The biggest thing I can tell you is that a Realtor is NOT A SALESPERSON!  The only thing a Realtor is selling is themselves...their education, their experience, their talents, their level of customer/client service, their personality, their ethics....who 'they' are, and how that Realtor can help you with your home adventure.  Really, all Realtors essentially do the same thing, but it's HOW we do it, who we are as a person, and what each individual agent brings to the table, that makes a difference. Once your Realtor is hired to help you buy (or sell) a home, they're not (or shouldn't be) selling anything.  Once hired, that Realtor works FOR you...that Realtor should be using all those things that made you want to hire her (or him) to your benefit as they represent you.  Agency is how we do it, and how we represent you.  Agency is the relationship between you, and your realtor.  

  Why is Agency so important?  Agency is the relationship between you, and your realtor, right?  So, when you hire a Realtor to help you buy (or sell) a home, you are trusting that Realtor to put your interests first, to represent YOUR best interests, to be truthful (even if that stings a bit), to be honest, to be act as your representative.  You're trusting this Realtors experience, knowledge, care, education, etc...and trusting that this Realtor is going to provide you with client customer service for this, the biggest transaction, of your life.  This all sounds correct, right?  That Realtor should not be trying to 'sell' you on anything.  This is YOUR home adventure, and our main job is to help you get keys on 'the' home you want.

  Please....LIKE your agent!  Too many times I talk to people who do NOT like their Realtor, and folks... I'm just saying that that's not right!  The average home sale in Clark County is $250,000...that is a QUARTER OF A MILLION DOLLARS...why are you going to trust that kind of money to someone you don't even like?  

  The National Association of Realtors has a Code of Ethics that every agent is legally bound by...or at least...is supposed to be...  The first article is the duty to clients, and it states, "When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS® pledge themselves to protect and promote the interests of their client. This obligation to the client is primary, but it does not relieve REALTORS® of their obligation to treat all parties honestly. When serving a buyer, seller, landlord, tenant or other party in a non-agency capacity, REALTORS® remain obligated to treat all parties honestly."  


BAM!!!  If I had a mic, I'd drop it.  :-D  


Furthermore, the Realtor Code of Ethics states, "Such interests impose obligations beyond those of ordinary commerce. They impose grave social responsibility and a patriotic duty to which REALTORS® should dedicate themselves, and for which they should be diligent in preparing themselves. REALTORS®, therefore, are zealous to maintain and improve the standards of their calling and share with their fellow REALTORS® a common responsibility for its integrity and honor.
In recognition and appreciation of their obligations to clients, customers, the public, and each other, REALTORS® continuously strive to become and remain informed on issues affecting real estate and, as knowledgeable professionals, they willingly share the fruit of their experience and study with others. They identify and take steps, through enforcement of this Code of Ethics and by assisting appropriate regulatory bodies, to eliminate practices which may damage the public or which might discredit or bring dishonor to the real estate profession."    For more information on the Realtor Code of Ethics, you can go to www.realtor.org, and type in "Code of Ethics".  
  Some things I want you to know...whether you are buying or selling a home, everyone is legally entitled to their own realtor representation...and yes, this has come up recently.  Sadly, a realtor recently told someone that they could not have their own representation...that this particular realtor refused to work with another agent(s) on that home that the buyer wanted to buy.  Legally, EVERYONE is entitled to representation of their own when buying or selling their home.  If something sounds, 'off' to you...ask.  
  What many people fail to realize is that, as a home buyer, or a home seller, YOU are the boss.  You are hiring someone to help you with one of the most important stages of your life.  YOU ARE HIRING SOMEONE.... this is an interview.  What questions should you be asking?

HOW long have you been in the real estate business?  
   Do they have experience, a network of people that they can contact to help?  Nothing wrong with a newbie, but do you know everything about a job when you first start out?  How do you learn?  In real estate, we are always learning, but do you want to be the transaction that an agent 'cuts their teeth' on?

HOW long have you been licensed?  
   This ties into the last question.  Sometimes an agent worked with another licensed agent as an unlicensed assistant so they could have a couple of years in the real estate industry, but very few (or none) as a licensed agent.  Again, nothing wrong with a 'newbie' agent....often times they have more time to help you vs an experienced agent who has other clients we are working with as well.  An experienced agent usually has a pipeline of clients and closings so we're not as concerned with 'pushing' a sale because we don't need to.  Newer agents usually don't have that pipeline so may be more concerned about getting you into (or out of) a home as fast as possible.  

WHAT did you do prior to real estate?  What was your other careers?
   Why is this important?  Buying, or selling a home is one of the largest financial decisions you will ever make.  You are hiring someone to assist you with this decision.  What qualifications does this person have to help you do so?  Did they working in marketing?  Office management?  Accounting?  Did they wait tables?  Work in a factory?  Were they a car salesperson?  

DO you have any college education or degrees?
   Again, see above...this is your largest financial decision....how is this person qualified to help you with that?  What background do they have that will assist you?

WILL I be working with you, or an assistant?
   Sometimes you hire an agent to help you, but then you never see them....you've been handed off to an assistant who may not have the qualifications you had asked about to that other agent that you 'thought' you had hired.  Sometimes you hired the assistant because they had the qualities and the qualifications you were looking for, and you are surprised that they are actually part of a team.

WHAT days/times are you available?
   This is pretty important as you need to know if the times you are available are going to work with the times that your agent is available.  Are they there for you when you need them?  Or can you never get a hold of him/her?

HOW many homes to you sell (on average) per year?
   Why does this matter?  Most people think that a 'full time' agent sells about 12 homes a year...but really that is a part time agent.  It's a 'gross' check vs 'net' check kind of thing...and in real estate there are a lot of expenses, dues, fees, and taxes.  Being self employed has some great things, but they come with expensive costs and overheads.  For example, in my family my husband works for health insurance only... I am the main source of income, and to 'break even' I have to sell, at least, 2 homes a month.  Of course, a lot of that depends on the types/values of the homes an agent sells.  I work mainly with first time and move up buyers/sellers vs some agent friends of mine who sell luxury homes.  They don't help as many people as I do, but make more.  You know... like that supervisor at work who makes more than you, but does less work?  LOL

WHAT is the average price of the homes you help people buy/sell?
   This does tie into the last question....  If someone works mainly with luxury homes, do they understand the market for the type of home you are buying or selling?  Not too long ago, I had a call from someone who wanted to sell their 4000 sq ft home in a very swanky Portland neighborhood.  I actually referred them to a different agent for 2 reasons...one reason being that I don't work in the Portland area and I believe that agents should stick to the areas they know.  Not all markets are the same, and I am not helping someone if I am taking on an unfamiliar market, am I?  ...and that's also kind of the second reason...they have a luxury home and that is a different selling, and buying market.  Honestly, they are better serviced by the agent I referred them to as that agent specializes in Portland, and in that high price range.  I'm always too busy wondering how long it would take to clean it!!  

DO you have another job besides real estate?  
   This kind of ties into the question about how many homes does an agent sell per year as many part time agents have other jobs to supplement their income.  This also ties into when that agent is going to be available to help you.  Real estate isn't just about showing homes...there is SO much more to it.  Phone calls, marketing, searching for homes on the internet, calling about that home, calling other agents, other vendors, paperwork, more paperwork, talking, phone calls, texting, emails, title companies, inspections, appraisals, lenders, etc... it's an 80 hour a week job some weeks.  There are no 'real' vacations as you are always 'on duty'.  

HOW do you feel about Dual Agency?
  This is an interesting question as you don't know what I'm talking about...so let me explain as quickly as I can...  When a seller hires an agent that 'sellers agent' should be working for THAT seller.  They will be marketing the home, and 'selling' that home to buyers, and buyer agents...in a nut shell the sellers agent is selling that home for the seller for the highest possible price and lowest amount of money out of the sellers pocket book (ie buyer closing costs and repairs).  A buyer hires an agent to help them find that 'perfect' home.  To work with them with the lender, to negotiate the offer trying to get that home for them in a multiple offer situation (and maybe for less?), to negotiate closing costs, repairs, to be with the buyers for the home inspection, to help understand appraisal, paperwork, the process...and to support the buyers from contract to keys...and beyond.  Real estate is a relationship business, and we LIVE for referrals.  You should always feel comfortable talking to, and contacting your agent ANYTIME with ANY questions...before, during, and even years after you get keys.  
As you can see, the sellers agent and the buyers agent kind of have two different agendas.  So, if you call the sellers agent to help you buy the home, and that agent works for the sellers, and the buyers on the SAME home...that is a dual agent.  Who is that agent really representing?  Dual agency isn't illegal in the state of Washington, it's just my opinion that each side should always have their own representation.  
Builders agents are dual agents which is why you should always bring your buyers agent with you when looking at have a new home built.  Teams are dual agents.  
Who is working for, and looking out for you?

DO I have to sign a contract to work with you?
   If you are selling a home, there is a sellers contract that you will need to sign.  This contract gives your agent the right to represent you for marketing, offers, and negotiations.  But what about if you are buying a home?  There is a form called a Buyers Agency Form, that is a contract between the buyer and the buyers agent.  As a buyer you do not have to sign this form.  As a buyer, I probably wouldn't sign this paper, no matter how good an agent makes it sound.  Real estate and lending is all about verbiage and there are a ton of 'scripts' that can make any form sound reasonable....and good for you, when it may not actually be so.  In real estate, the buyers agency form is a pretty hotly contested piece of paper...there are agents who won't work with you if you don't sign it, and there are others (like me) who think it's awful.  Customer loyalty is built with good customer service...not a piece of paper...but this is only MY opinion.  :-)  If you, as a buyer, choose to sign a buyers agency form, you are now legally in contract with that agent to buy a home with them.  Technically you always have the right to fire someone, but that is a legal contract for a period of time for a specific purpose.  The first question that, as an agent, I always ask a potential client is if they have signed a contract with a previous agent.  This protects everyone involved....it protects the other agent as I don't want to step on another agents toes, it protects the potentials clients since if they are in a contract with a previous agent then they need to either let that contract expire, or deal with it in another way before hand, and it protects me because getting that call from another agent that they have a contract with one of your clients is not a good one.  So what happens if one of my clients then talks to another agent and signs a contract with that other agent?  Well, then they're not my client anymore....they're now they other agents client.  


I'm not going to lie to you.... I know that this blog is going to ruffle some feathers, and while I debated actually sending it out...  I decided to do it anyway.  I want to say that I am not knocking anyone in my industry here.  Everyone has to choose to work the way that their ethics and morals dictate.  As a buyer, or seller, YOU need to ask the questions that mean most to you when hiring an agent.  What questions, and qualifications mean most to you?  Are you looking for someone professional looking, or someone more laid back?  Someone with a warped sense of humor, or someone more 'traditional'?  There are a LOT of great agents out there, and some...well...  like any industry we have our share of crappy.  Sometimes you just have to go with your gut when talking with an agent, and hire the person that you are most comfortable with.  

          Information is power, and I hope that I am able to help you.  Good luck, and as always...May the odds be ever in your favor out there....  AND If you are looking for a real estate agent, I would love to be able to help you.                                                                       
 
    As always....this is just a quick overview.... again...and I can't say this enough...please remember that your agent is NOT a salesperson, and should not be acting like one.  Real Estate is not really about houses, it is about relationships.  Your agent, and your lender work for YOU.  You drive the bus...we are merely GPS to help you get to your goals.  Like the classes, this weekly blog email is to help you with your home adventure.  The goal is to be informative and non-promotional.  :-)  We are, however, hoping you will call and want us to help with your adventure.  

If you have any questions about this, or something you have heard...or if you would like me to help you with your home adventure, please call, email,  text, or facebook me anytime.  I am, as always, happy to help!
 
Thank you again for your business and your referrals!!  ...and thank you for referring these classes to your friends, family, and co-workers. 
 
 .   ..disclaimer...if you have already purchased a home, or would no longer like to receive these emails, please let me know and I will be happy to remove you from any further mailings... 
 
 
Upcoming Topics: Buyers Agency, 
 Sellers Agency/Dual Agency, 
 Escrow Accounts, and what they do
Last Week:  Appraisals & You

Have a great day, and I will talk to you soon,   
;-D   
Tracie DeMars   
Real Estate broker    
Re/Max - Van Mall   
360/ 903-3504 cell   
360/ 882-3600 fax   
www.traciedemars.com   
traciedemars@aol.com   
    
“Interested in free and non promotional home education classes?  Go to www.freehomebuyerclasses.com for local upcoming home buyer and home SELLER classes, or facebook: Tracie DeMars Real Estate for my home buyer education blog.”
"Listen to the mustn'ts, child. Listen to the don'ts. Listen to the shouldn'ts, the impossibles, the won'ts. Listen to the never haves, then listen close to me... Anything can happen, child. Anything can be."    
   - Shel Silverstein, American poet, cartoonist and composer, (1930 - 1999).