View the slide show above and individual photos below.
View the slide show above and individual photos below.
When Aurora, Oregon residents consider selling their home, which Realtor should they hire for such an important job?
Several factors are key to consider when hiring a Realtor. To optimize the sale of your Aurora home, it’s helpful to work with a Realtor having both extensive real estate experience and knowledge of Aurora, too.
Outstanding home marketing ability is also important. That’s because Aurora is covered by two completely different multiple listing systems. It’s expensive for Realtors to belong to two MLS systems. Yet you’ll be better served if the Realtor you use holds membership in both of them and can therefore reach the maximum number of buyers. Otherwise, the result could mean fewer offers and a longer time on the market.
Realtor Roy Widing first began selling Aurora, Oregon homes and farms in 1988. An Aurora resident since 1966, Roy is a co-owner of locally owned Certified Realty. He specializes in selling Aurora properties of all kinds and also hosts the Oregon Real Estate Podcast. Roy has sold hundreds of area homes, holds dual MLS membership and has been designated a real estate ‘expert witness’ in court proceedings.
Thinking of selling? Let Roy provide you with a free report on the current market value of your property.
For your free home value report, call or text Roy at 971-258-4822, or use the form below.
‘When’s too soon to list my Aurora house for sale?’ is a common homeseller question. There are a variety of factors that influence a good time to sell. When considering the best time to sell your Aurora home, several factors stand out. One is the amount of homeseller competition based on predictable seasonality, such as Springtime, when many homesellers place their property on the market. Another related, but independent factor is competing homeseller inventory, which can fluctuate wildly. Curious about factors to consider when timing your Aurora, Oregon home sale? Find out more…in this insightful edition of the Oregon Real Estate Podcast!
Each season of the year has some built in advantages, even during the holidays. But especially enticing for home sellers hoping to beat the Spring rush is the dynamite combination of highly motivated buyers, plus reduced seller competition. Speaking of competition, it’s helpful to understand that when the balance of more sellers enters the equation, buyers have more of a choice and are in a better position to pit one seller against another in search of their best deal.
Charting Your Course
A month-by-month new listings chart illustrates the seasonality of real estate. In Oregon, the months between October through February provide the lowest homeseller competition, with fewest homes placed on the market. This means March through September is typically our ‘hottest’ time for home sales. Does this mean if you don’t have your home on the market before March, you’re ‘out of luck?’ No, because seller competition is but one element to consider.
That’s because housing inventory fluctuates, irrespective of season. And depending on how many homebuyers are looking, demand can be considered relative. We can help adjust for seasonality to better determine buyer demand by using a buyer/seller ratio. For example, typical housing demand in a particular community or neighborhood might be 100 buyers interested in 50 homes in June, a 2 to 1 ratio, then fall to 50 buyers showing interest in 25 homes in January, also a 2 to 1 ratio. Under such a scenario, relative demand would be the same, which should result in a similar amount of real estate activity.
Yet while relative housing demand may be a functional rule of thumb in theory, it doesn’t take into account one other extremely important factor: Motivation. That’s because in less active periods, homebuyers frequently have a more urgent need to buy, or they would be looking during the more usual times of Spring and Summer. Looking for a house in the bad weather typically indicates a higher-than-usual need to purchase. In addition, some buyers beginning in April or May have the luxury of months to ponder their next move.
‘Seize The Gray’
To address the question of how soon is too soon to list your property for sale, the short answer is that it’s often never too early to place your home on the market…for good reason. That’s because even in the midst of Winter, highly motivated homebuyers often make a home purchase their New Year resolution and start looking early…sometimes before Christmas.
Some homebuyers take a week or two off during the holidays, but beating the Spring homeseller rush gives you an early advantage against a very large number of competing homesellers who will be ‘up and running’ during Oregon’s earliest good weather. This clever strategy places your property before these highly motivated buyers before a glut of competing homesellers goes head-to-head against you.
But the good news is that in order to take advantage of seasonal ‘soft spots’ in seller competition, homesellers needn’t place their properties on the market during the holiday season, or even immediately adjacent. There’s plenty of ‘gray area’ to go around throughout the year and that’s typically enough to help make your house stand out even more from the competition. Navigating around May through August is usually enough to help counter higher-than-usual competing listing activity. And if you happen to notice lower than usual housing inventory, that can be a big help for homesellers, too, regardless of when you sell…including between May and August in Oregon. That’s because low housing inventory helps sellers.
Timing Your Sale—Without Unpleasant Surprises
If the goal is to get a ‘jump start’ in selling your Aurora home with less competition, consider several factors. This includes getting an honest evaluation of your property by a licensed Realtor. But first, ask your agent for an honest opinion. Not sure you want an honest opinion? Check out our previous podcast and feature length article ‘Can You Handle An Honest Real Estate Agent?’ here.
The experience and objectivity of an expert Aurora Realtor is difficult to overstate. Take repairs, for example. If you truly want to maximize your return and your home has some needed repairs, it’s unrealistic to expect buyers to absorb, for example, that complete spendy roof repair ‘hit’ by themselves by coming in with a full price offer on your property. Before listing your property what you’ll need is a professional analysis of necessary repairs that could make a difference in discouraging homebuyers. And aside from repairs, sometimes it’s what you don’t do that can make a difference. Like maybe don’t put in new carpet or have the exterior painted, if it’s going to push your price up considerably. Normally, carpet and paint are frequently good ideas to have completed. Yet few updates provide a 100% return, so consult your Realtor for details.
The ‘School Year’ Equation
Some buyers aren’t the likeliest candidates for ‘off season’ marketing by homesellers. This can include families with children, a significant homebuyer pool for many. That’s because many families with kids begin their home hunt around the end of school in late Spring, usually settling into their next home by September. On the other hand, much of the impact of losing these buyers using ‘off season’ marketing depends on the property type you’re selling. Are you selling a tiny house on a postage stamp sized lot, or a 5 bedroom home on acreage? Big homes with fair sized yards, or those located close to parks are often better matches for larger families. Conversely, if you decide to sell a smaller home out of season, marketing to other suitable buyer groups can substitute for larger families, with significant success. Good prospects for smaller or more urban homes might include ‘Baby Boomers,’ professionals, singles, or ’empty-nesters’ with grown children.
Now You See It…
Regardless of season, one interesting real estate phenomena can occur when buyer interest suddenly increases for a home that’s been sitting on the market for a while, with little buyer interest. Then suddenly: ‘Whoosh,’ multiple offers on the table! What could possibly create such a positive shift for homesellers? Buyer activity can spike quickly once a competing property is sold, or otherwise off the market. Price changes aside, sometimes it’s because the most similar competing home is now off the market. This has the effect of buyers then turning their attention to the next closest suitable replacement and the ‘substitution principle’ in action. That’s where the maximum value of a property is often achieved, due to the cost of acquiring an equivalent substitute property with similar use and features.
Thinking About Selling Your Aurora, Oregon Home?
Go with professionalism, experience and results. Roy’s also been an Aurora resident for more than half a century. Contact Roy with Certified Realty, with 31 years of Oregon real estate expertise. For a free Aurora homeseller consultation, call Roy at (971) 258-4822, or use the convenient contact form below.
Given Aurora, Oregon’s lengthy history, there are some unique facts about this unique town you may not know. Here are half a dozen interesting ‘info nuggets’ about Aurora, Oregon.
Fact #1. Aurora Has A ‘Secret’ Cemetery
One of Aurora, Oregon’s best-kept secrets is among its most historic. There are numerous cemeteries in Aurora, nearby Butteville and Champoeg. Yet the one with the biggest connection to Aurora is tiny Keil Cemetery, situated off a graveled, little-used lane called Cole Road near Aurora’s west side. Founder Wilhelm Keil is buried here, as are his family members. Especially noteworthy is the burial site of Dr. Keil’s daughter Aurora, the town’s namesake. The cemetery is less known because it’s located on private property.
Fact #2. Aurora’s Record of Fine Dining
Aurora has both good modern day restaurants, plus an exceptional culinary history. Ben Holladay, President of the Oregon & California Railroad, worked out an arrangement with Aurora’s founder, Dr. Wilhelm Keil to feed train passengers at Aurora with the settlement’s renowned cuisine. The food was so good in Aurora that travelers and even train workers would bypass eating at other railroad stops, making a point to dine in Aurora.
Fact #3. Aurora, Oregon Is An Aviation Powerhouse
The Aurora State Airport is Oregon’s third busiest. Yet given its relatively small size, some might call the Aurora Airport a ‘mighty midget.’ Originally constructed during WWII as a military support airbase to Portland, the Aurora Airport is now a vital economic hub with vibrant businesses, including two helicopter heavyweights, Columbia Helicopters and Helicopter Transport Services.
Fact #4. Aurora, Oregon’s Unique Geography
Aurora includes both a town, but also encompasses a far larger rural setting, too. Greater Aurora is located virtually equidistant between the major metro areas of Portland & Salem, Oregon. Aurora’s 97002 zip code also lies astraddle of both Clackamas & Marion Counties. So depending on your specific location, this means two completely different sets of schools (Canby & North Marion) and property tax systems (Marion & Clackamas Counties).
Fact #5. Aurora Colony Days
Aurora’s Colony Days is a multiple day celebration of Aurora pageantry held every August. Features include a parade, marketplace, concerts, beer garden and even a 5k run/walk. It’s a family-friendly environment with something for everyone.
Fact #6. Yes, There Are Antiques, Too
Among Aurora’s commonly known, modern-day ‘claims-to-fame’ is its antique heritage. In fact, to many, antiques have long been Aurora’s main attraction. Given its small town charm and pedestrian friendly design, weekends are especially popular for many to visit downtown Aurora, Oregon.
Are you interested in buying or selling an Aurora, Oregon home? Contact our Aurora, Oregon sponsor, Certified Realty for a free consultation at 503-682-1083 or use the convenient form below.
A common Aurora homeseller question is ‘How much will it cost to sell my home?’ Hear the audio podcast presentation of this article by clicking here or on the ‘play’ button below.
As is usual with the sale of anything, there are a few factors for Aurora, Oregon homesellers to consider. Local homeseller costs typically include a real estate commission, plus items like title insurance, escrow and recording fees. There are other attendant costs, too, like the ‘hassle factor’ and moving expenses.
Spoiler Alert: The answer to the question of how much it costs to sell your home is, ‘it depends.’
Why is this the case? Well, for starters, Realtors frequently work using different commission rates. On top of that, you don’t always know with precision every single cost you may incur as a homeseller, such as negotiated home repairs. Yet despite all this variability, sellers can still receive an estimate of the cost to sell their home from a Realtor and while sometimes it’s within a given range, that figure is typically close to reality.
First, let’s focus on specific hard costs to actually sell your home. When considering your ‘bottom line,’ it’s important for homesellers to include in their calculations any liens (like an existing home loan, home equity line of credit, or unpaid property taxes) that need to be paid at closing.
Price vs. Cost
In selling a home, it’s helpful to understand the difference between price and cost. Here’s a summary for homesellers to consider when looking at most efficiently selling their home for the least cost:
Price = The ‘sticker’ amount of what you’re buying, like hiring a Realtor to sell your home.
Cost = What you stand to lose if you don’t consider your return-on-investment. For example, if the agent you hire does a poor job, you can:
1. Lose time (say goodbye to opportunities like that home purchase you planned to make, since you expected your home to quickly sell).
2. Receive less buyer activity and fewer offers.
3. Experience frustration (lost sleep and more).
For example, if you find a dentist to work cheaply, but end up with an infection or need to pay another dentist to get the job done to your satisfaction, the case can be made that a cheaper price is hardly a bargain. That’s because the cost can be significantly higher than the price you initially agreed upon.
Commissions Are Negotiable
The Realtor fee to sell a home is usually called a ‘commission.’ Regarding the real estate commission amount, because Realtors are independent contractors, if you ask more than one real estate agent, you may receive a few different answers. This article gives one attorney’s view of a Realtor’s value. A Realtor fee is truly the free market in action. Cream ‘rises to the top,’ so better agents usually are paid as much (sometimes more) than less experienced brokers, who may be less successful and/or offer fewer services.
Give Me A Number
By far the most common commission arrangement is that unless your home actually sells and closes, no real estate fee is paid. According to this 2017 Realtor.com article, the average prevailing commission for a home sale is about 6%. That said, you can expect the majority of professional agents to approximate each other. The commission amounts quoted are likely to be different, but so is the service and expertise of the agent. Like you, Realtors only have 24 hours in a day. When an agent is working with you, that’s time he or she could be spending with another client. And because commission sales are a results-based, expect to pay a competitive rate to hire a successful Realtor.
This isn’t so surprising, since if you were to pay for a doctor’s visit, a home furnace service call, or a mechanic to fix your lawn mower, there is usually a range of what is considered reasonable. Similarly, throughout our region that range can vary. This explains why it’s difficult to provide a precise and accurate dollar figure on seller costs when selling a home. It can also depend on the property itself.
Feeling The Burn
Expect ‘bargain’ commission rate quotes from less experienced or desperate agents. Also expect a low quote from less diligent agents who may simply stick a sign in the yard and either hope it sells, or intend on ‘beating the seller down in price’ in order to increase their odds of eventually being paid. If a ‘churn and burn’ attitude is not what you want, consider working with a helpful, consultant type Realtor who actually represents your best interests and doesn’t use ‘strong arm’ tactics. To summarize, if a commission seems to good to be true, it probably is. In the end, you may pay considerably more than you bargained for to become someone else’s ‘on the job’ training.
The Volume Discount
If a property is priced very low, such as a vacant lot located in a small and distant town, commissions frequently are higher to help make up for an agent’s considerable time and effort. Why? Consider that the real estate commission on a $25,000 lot can be around 1/10th of a $250,000 home, yet both require plenty of paperwork and attention to detail. Marketing the $25,000 lot may even take considerably longer and involve more sheer work. To attract a good, diligent agent may require paying a bit more in the real estate commission to adjust for the reality of that Realtor’s lost opportunities with other more lucrative properties while selling yours.
How A Lower Commission Hurts Homesellers
The thought that sellers are potentially damaged by a lower commission paid to their Realtor is counter-intuitive, right? Think again. Here’s an example using that 2017 Realtor.com statistic of 6% as the ‘average’ Realtor commission.
Real estate is a business. And because Realtors are salespeople, they expect to be paid what they’re worth. This is especially true of experienced agents who are typically among the best at their profession. So let’s consider a seller, Mr. Jones who wishes to save some money. As a result, he talks with several Realtors and finds one willing to work not for 6%, but 4%. Great for Mr. Jones, right? Possibly not and here’s why, looking at just one of numerous reasons.
Doing ‘The Split’
It’s helpful to understand that the Realtor representing Mr. Jones doesn’t typically get the entire commission, regardless of the amount. In our region, it’s common for commissions to be split four ways. There are exceptions, but here’s how the commission distribution usually breaks down and each part can vary, depending in large part upon the total commission:
1. Part to the seller’s Realtor
2. Part to the seller’s real estate company
3. Part to the buyer’s Realtor
4. Part to the buyer’s real estate company.
Given such a ‘split,’ no one is getting rich and compared to the national average of 6%, suddenly a 4% commission is looking pretty skinny. Here’s why that matters.
Commission ‘splits’ or distribution can vary, but if the Realtor and company working for Mr. Jones receive around half of the commission, or around 2%, that leaves a less-than-common 2% commission to be shared between the buyer’s Realtor and the firm they represent.
Why does that matter?
Because the buyer’s Realtor can easily look at the listing sheet and see precisely what commission is being offered to the buyer’s Realtor who writes an acceptable offer for the home of Mr. Jones. If the commission structure pays a percentage or two less than what that buyer’s Realtor is accustomed to receiving for selling a home, expect a tepid response, or possibly no response at all. After all, there are frequently other homesellers who ‘pay the going rate’ whose homes are just as easy to sell.
It’s simply too easy for a buyer’s agent to observe those homes that pay what is seen as a competitive commission. So much for Mr. Jones ‘saving’ money. That’s because the end result of a ‘bargain’ commission could instead be fewer showings, a longer market time and diminished offer activity on his home. Remember, a main reason for multiple listing is to get more offers for a seller’s property. It’s generally a good idea not to work against that principle. Pay professionals the market rate and you usually won’t regret it.
There are different ways to sell your home. The most common and (usually most profitable) is to hire a full service Realtor. Another method is to go it alone, ‘by owner.’ Yet one more alternative is to work with a ‘discount broker.’ Let’s look at each of these scenarios to see which might be right for you.
Homeselling ‘For Sale By Owner’
If you do decide to try selling your property by yourself, you will soon realize there are good reasons why even real estate agents pay a commission to sell their own homes. That’s because in addition to taking on a second job, from a ‘bottom line’ standpoint, hiring a Realtor is usually by far the most profitable way to go.
The irony for ‘by owner’ homesellers is that in their attempt to save money, they usually leave the most money on the table. That’s because ‘by owner’ is often the least effective and most expensive way to sell your home. Since your property isn’t in the Realtor’s multiple listing system, you can expect to have far fewer qualified buyers aware of your property. Fewer buyers means less competition and less offer activity.
Home & Personal Security
Before offers, come showings. This brings the security of yourself and your possessions into play. Realtors routinely scrutinize buyers before agreeing to represent them. Don’t like the idea of unscreened and unaccompanied strangers in your house? Then selling ‘by owner’ may not be for you. The simple fact is that working with a Realtor provides one more layer of scrutiny and seller security.
Sellers ‘by owner’ routinely must deal with ‘tire-kickers’ who are unqualified to buy and therefore can be a significant waste of time. And if you do happen to get an offer when selling ‘by owner,’ there’s no Realtor to deal with under-handed offer tactics, contingency ‘landmines’ and other potential pitfalls, plus no documents to help protect your interests, such as the arbitration and mediation clause. As a result, lawsuits can become more of a likelihood. Didn’t complete a property disclosure or lead paint form? Don’t know a good repair contractor? Dislike ‘legalese’ in documents you’ve never seen? If you plan to sell ‘by owner,’ be prepared for some expensive surprises.
Convicted fraudsters can appear very unassuming. Some ‘sketchy’ buyers take advantage of ‘for sale by owners’ too. That’s because there is often less buyer competition, since you’re not in the Realtor multiple listing system and therefore buyers typically have both time and less buyer activity working for them. If you happen to be a real estate attorney with a ‘hot property’ that has buyers knocking on your door and you have it priced right, plus you don’t mind doing a lot of legwork, going ‘by owner’ may work for you.
Want A Second Job?
But if you have a full time job, want maximum exposure, plus an experienced professional to assist in pricing, marketing and transactional minutiae, including a Realtor simply makes sense. Sellers with a Realtor net a better return at closing compared to ‘for sale by owners.’ Some of the most parsimonious banks realize this and as a result, financial institutions routinely hire real estate agents to sell their REO (real estate owned), which are often foreclosed properties.
Homeselling by Discount Broker
For homesellers, a step up from ‘for sale by owner’ is the ‘discount broker.’ Some consider it akin to a low budget buffet, the kind where the food and service may find you walking away wishing you’d gone somewhere else. You could get lucky, but don’t be surprised if you get heartburn, instead.
That’s because while you’ll now probably be placed in a Realtor multiple listing system, a potential downfall is a possibly reduced commission paid to buyer’s Realtor. Unless you’re paying the buyer’s Realtor a competitive rate, don’t expect agents to rush to your door and sell your property. On top of that, some discount broker agreements require the seller to handle showings, negotiate the transaction on their own and even handle much of the paperwork. So much for being easier!
Homeselling by Full Service Realtor
This is the ‘full meal deal.’ You’re in at least one multiple listing system, have full representation, plus the abundant resources of a licensed professional at your disposal. Showings are followed up on, paperwork is handled on your behalf and you can expect priority to be made for your questions and scheduling.
The Bottom Line
Because any commission charged by your Realtor is only one piece of the seller’s ‘net at closing’ puzzle, it’s a good idea to request an estimate of closing costs, including real estate commission, prior to listing your property. This provides you with a better picture of what to expect at closing. This is a free service provided by Realtors and helpful in gauging an approximation of the funds you can expect at closing.
See Additional Articles Like This:
10 Reasons Why Homesellers Hire a Realtor
Why Does My Realtor Do That?
7 Strategies to Sell Your Your Home Sooner!
The Art of War for Homesellers
3 Steps to an Oregon Home Sale
Thinking About Selling?
Consider working with full service Realtor Roy Widing at Oregon’s Certified Realty. For a free consultation of what your Oregon property could sell for in today’s market and your ‘bottom line’ of seller’s proceeds at closing, use the convenient contact form below or call 800-637-1950.