Central Oregon Real Estate Connection - Fred Jaeger

Beautiful October Day in the High Lakes Region of Central Oregon

Sun, 11 Oct 2009 16:01:34 -0500

On October 10th my dog Barney and I hiked to the top of Round Mountain which is directly west about 9 miles from my home in La Pine Oregon.

It's an arduous hike to the top that I had failed reach all summer..

Along the way are beautiful views

Looking East toward La Pine

At the top is a Fire Watch Tower staffed by Forest Service people ...

Shannon Hodgson USFS Lookout.

Mount Bachelor in the Distance

Well we made it.. time to head back down...

More pictures can be seen by clicking here.

See ya next time..

Stand By Me .. and other Great Music just for fun... Toto? Who knew?

Mon, 04 May 2009 20:17:37 -0500

Perpetuum Jazzile is an a cappella jazz choir from Slovenia. It’s hard to think of something further from an ‘80s rock band. But their version of Africa may best the original. The group has amazing voices.

The beginning of this video is really striking. Group members simulate an African thunderstorm with their hands. It’s really something to see and hear. (Turn up your speakers.)

Playing For Change | Song Around The World "Stand By Me" from Concord Music Group on Vimeo.

Playing For Change | "War/No More Trouble" - Song Around The World from Concord Music Group on Vimeo.

Wondering Where Your Bail-out is? Well here you go...

Mon, 16 Mar 2009 15:24:36 -0500

Been paying your mortgage on time, even despite struggling to just to make ends meet? Are you already late on your payments and barely hanging on? If you're wondering where your "Bail-out" is, well here you go!

The Homeowner Affordability and Stability Plan, recently announced by the Obama Administration, may be the very thing that many of us have needed.

There are two separate parts to the plan: a refinancing initiative and a loan modification plan.

The Refinancing Plan allows some homeowners to refinance their loans that are backed by either Fannie Mae or Freddie Mac. Homeowners must owe between 80 and 105% of the property's current value and they cannot have been more than 30 days late on their mortgage payments for the last 12 months.

The Loan Modification Plan helps homeowners that are already late on payments and/or are in danger of going into default. If you have suffered a serious hardship such as an interest rate hike, high mortgage debt-to-income, a sudden decline in income, being upside-down on your loan (owing more than the house is worth,) or can demonstrate reasons why you might be in danger of going into default, you should qualify. (As long as you don't owe more than $729,750.

If you do qualify for the LMP, the government would lower your payment to 31% of your current monthly income. How's that sound? For some of us, this is an absolute Godsend.

Here's how it works: Your monthly payment is lowered to 31% of your monthly income (including taxes and insurance) and then every five years, the interest rate increases 1%, but never exceeds your current interest rate! In other words, you enjoy substantial savings now, when you need it, and don't have to worry about your payment ever increasing beyond what it is now.

The program is designed to help homeowners that did not knowingly purchase homes that they could not afford; rather, it is designed to offer assistance to those who made honest purchases and are now in need of help. Unfortunately, the program offers no help to those who are unemployed or for those who cannot demonstrate any means of making a reasonable payment.

Want another reason to buy a home in 2009? How about an $8000 tax credit? Buyers purchasing homes between January 1, 2009 and November 30, 2009 who make less than $75,000 per year (or $150,000 per couple) and haven't owned a home in the last three years (first-timers) can qualify for the credit. These buyers do have to stay in their home for at least three years or will be required to pay it back.

Got questions? Want to do a little research?

Here's a link to the White House where the plan is discussed in detail:

http://www.whitehouse.gov/blog/09/02/18/Help-for-homeowners/

Here's a link to a summary of the program provided by the US Treasury:

http://www.treas.gov/press/releases/reports/guidelines_summary.pdf

Of course, your current lender should be able to provide you with all the information you need to help determine if you qualify and how to proceed.

If you've been hearing about all the bailout money going to the banks and super corporations like AIG and have been wondering.."Where's my Bailout?", well this might very be the help you've been looking for.

Fred Jaeger is a licensed Oregon Real Estate Broker and an e-PRO Certified Realtor® affiliated with RE/MAX Sunset Realty Sunriver/La Pine. He can be reached directly at 541 598-5449 or fred@fredjaeger.com .

How to Buy a House

Mon, 16 Feb 2009 17:04:44 -0600

Sometimes we Real Estate people need to be reminded that the process of buying a home may not be a 100% clear to everybody, so that's what we're going to talk about today. The following guide is meant to spell out exactly what you need to do to buy a house from step one, to the final close of escrow, when the keys are in your hands and the house (and the mortgage) is finally yours. Here's the process:

Step One: Decide how much money you can afford to spend each month on your new home. Bear in mind that this is different than what amount of money your lender will approve (we'll get to lenders later.) Before you even consider a purchase price, what you need to do at this stage is to carefully consider your budget and decide what monthly payment you'll be able to afford on your mortgage. While you're at it, factor into that consideration that a new home will typically cost more for a lot of other things as well, like the electricity, gas, possible water and sewer charges, home owner's association fees, and other things that you may not have anticipated, especially if you're currently renting something like an apartment. If you don't take great care with this step, you might be in for a rude awakening once you actually purchase and are faced with a whole new set of bills rolling in that you hadn't expected.

Step Two: Shop for rates, talk to a Lender and get yourself Pre-Qualified for financing before you start to look at houses. If you're not sure where to begin, ask your local Real Estate Professional for recommendations. Having a letter in hand from a lender saying you're qualified and ready to proceed can be a tremendous tool that will strengthen your offer when your ready to buy. It will also take away an enormous amount of stress that you don't need in the first place.

Be careful with the financing. Interest Only, variable (ARM,) or other non-traditional loans often have enticing rates to begin with that might make a home normally out of your reach seem affordable. As has been all over the news lately, these types of loans can be trouble if taken out for the wrong reasons. Generally speaking, if you intend to remain in a home more than just a few years, a fixed rate, long-term loan is preferable. However, talk in depth with your lender about exactly what your plans are over the term of your loan. Know the details of any loan you're getting and the reasons why.

Step Three: Shop for a REALTOR®. Remember, not all Real Estate agents/brokers are REALTORS. Realtors belong to the National Association of Realtors and are bound by a particular Code of Ethics that sets them apart from just any agent. Once you've decided with whom you would like to work, bear in mind that your new Realtor has access to ALL the available properties for sale in the "Multiple Listing Service." What's that?

The Multiple Listing Service is a cooperative arrangement between most Real Estate Brokers to pool information about Real Estate for sale into a common database from which all cooperating members can access. When one company lists a house, that information is shared with all cooperating companies. In most cases any commissions generated by the sale of such a property are then split between the listing agency and the selling agency. It's a win-win arrangement that allows listings to be effectively shared amongst the membership.

In other words (and this is important,) real estate brokers don't just sell their own company's listings, they can sell any within their MLS. This is extremely important for the seller as well. Because information is shared among brokers and a broker is not limited to selling property listed within his/her agency, that broker is capable of doing extensive research via the MLS for his clients. Once you've decided on a Realtor, you can trust he or she will have access to every property available, relieving you from feeling the need to have more than one agent working at once.

By the way, 99% of the time, you don't pay a thing to that Realtor that represents you as a buyer. There are some instances when a buyer owes a commission, but generally speaking that's not the case, so as a buyer, don't worry about paying a Realtor.

Step 4: Go shopping with your Realtor, and find a house.

Step 5: Once you've found the house you want, the next step is to make an offer. We say "offer" because it's just that. A house may be listed at a particular price, but that asking price is not always what is paid in the end. This critical step is one of the reasons you will need a good Realtor to help you along. Just what is said at this stage, when it's said, and to whom and how, may involve important strategic considerations that your Realtor will need to help you with, so be very careful here.

Let's say the house you want is listed at $150,000. After discussing it with your broker, you may decide to offer say, $145,000 but with conditions. What conditions? Anything from inspections, to repairs, to having the property's corners marked, might be included with your offer as a condition. Or, you may decide to make an offer without conditions; it's really up to you.

Once your offer is presented, the seller can accept your offer, reject that offer, or, as is often the case, return to you what is known as a "Counter Offer" stating just what they are willing to accept. Once this "Counter" is presented back to you, the very same options of accepting, rejecting or countering back are now in your hands. Offers and counter-offers can go back and forth indefinitely until both sides come to terms that are satisfactory. We call this stage "Mutual Acceptance."

One thing I didn't mention was the Earnest Money that is usually included with your initial offer. Earnest Money is consideration included with your offer in order to demonstrate to a seller just how serious you are. This money is, in some cases, non-refundable to you and is meant as compensation to the seller in return for taking that home off the market while all the details are settled prior to actually closing the deal. In other words, you need to make double-darned sure you want that house before submitting an offer, otherwise, without good reason, if you back out of the deal before it closes, you could lose that money. Now, don't get worried; if the seller rejects your offer, or presents a counter that isn't acceptable to you, you'll get the earnest back. Your earnest money is refundable in some other cases when a deal fails as well, but exactly when, and when it is not, is something you need to discuss in depth with your Realtor.

Step Six (ESCROW): Escrow is a general term that describes where the deal resides between the time you have a mutually accepted offer, and the time you actually close the deal. When we say a deal is "in escrow" we are saying that we have a deal waiting to close once all the necessary components have been gathered and investigations (or due-diligence has completed.) Once you have a mutually accepted offer, copies of all the paperwork and the actual earnest money is placed "in escrow" with a title company. The Title Company acts as a neutral third-party in all instances and is an essential and important player in the process. The Title Company conducts what is known as a "title search" to research what is necessary to make a clean transfer of the ownership of that property from one party to another. Who knows, there may be liens, lawsuits, or other "encumbrances" tied to that property that may prevent a clean transfer, and often these so-called encumbrances are unknown by either party until the title search is actually conducted.

Step Seven.. "The Signing" (sometimes confused as "The Close"): Once all the title searches are completed, all the paperwork is gathered, financing is finalized, etc., the Title Company usually acts as the facilitator of the signing. At the signing, you will then be, well, signing a lot of paperwork and sometimes presenting money for closing costs. Closing costs vary greatly depending on how your deal was structured and what your lender may or may not require. In Oregon, you may, or may not sign when the opposite party signs. As a matter of fact, you probably won't even see the other party at all. Once each party has signed, the deal has not "closed" necessarily. That comes next.

Step Eight... "The Close": The close refers to the point in time when the actual transfer and recording of Title has occurred; which doesn't necessarily happen at the time, or even the day of the signing. We Realtors are often guilty of referring to the signing as the "the close" but that's an unfortunate practice that can sometimes lead to problems. I made that mistake with one of my very first deals, and have never forgotten the trouble I almost caused my client who expected to move in to his house directly after signing the paperwork. The close can happen the day of signing, but don't ever count on it. Your Realtor, and/or the Title Company will always notify you immediately, once the deal has funded and recorded, marking the time when that home has officially become yours.

Eight steps is only the briefest summary of all that is necessary to put you into a house. The fine details to consider, such as the timing of offers, when they might expire, how long you have, or do not have, to complete inspections and other "due-diligence" items, how to deal with third parties, Title Companies, Escrow Officers, etc., etc are the kinds of things that only your Realtor can fully explain. If you're considering buying a home, talk with your local professional; you'll be glad that you did in the end. Finding a Realtor that works for you is set at step three here, but it may turn out to be the most important step in the process.

Fred's Top Ten Real Estate Tips

Tue, 20 Jan 2009 15:56:10 -0600

Hire a local Real Estate Professional. You'll be glad you did in the end. Your local Real Estate professional is your advocate in every regard whose job is to provide you with all possible information and/or services that will be of benefit throughout the transaction. A lot of footwork is needed during any Real Estate deal, and you will need and appreciate the resources that can be made available to you via your local Broker. These days, especially if you're selling, you need a REALTOR® now more than ever.

Shop for loan rates and Pre-Qualify for financing before you start to look at houses. If you're not sure where to begin, ask your local Real Estate Professional for recommendations. Having a letter in hand from a lender saying you're qualified and ready to proceed can be a tremendous tool that will strengthen your offer when your ready to buy. It will also take away an enormous amount of stress that you don't need in the first place.

Be careful with the financing. Interest-Only, variable (ARM,) or other non-traditional loans often have enticing rates to begin with that might make a home normally out of your reach seem affordable. As has been all over the news lately, these types of loans can be trouble if taken out for the wrong reasons. Generally speaking, if you intend to remain in a home more than just a few years, a fixed rate, long term loan is preferable. Conversely, if you intend to be selling within a couple years anyway, (and hopefully at a profit) it doesn't make sense to spend more cash than is necessary every month on a fixed rate loan (generally.. however, rates are crazy low right now, even on fixed 30s.) Talk in depth with your lender about exactly what your plans are over the term of your loan. Know the details of any loan you're getting and the reasons why.

Long term loans shorter than 30 years will pay off your home much faster, but be careful. Instead of locking yourself down into a 15 year loan (for example) in lieu of the traditional 30, get a thirty year loan and double up your payment, or at least make a practice of paying extra money each month toward the loan "principle." (Do the math.. it's amazing.) By using the extra-to-principle method, you will always have the optional safety valve, during hard-times, of simply paying the actual amount due on the your loan (and not the accelerated amount) when or if cash ever becomes hard to come by. If you lock yourself down to say, a fifteen-year loan, that monthly amount due is set.

Don't buy more house than you can afford. Most of the time, with good credit, the majority of buyers can be approved for more loan, and consequently more house, than they can really afford. Don't let anyone push you past your financial limits. The combination of excitement, loan approval, outside pressure and sheer good old-fashioned impulse, is often a classic formula for financial disaster.

Don't buy less house than you can afford, or worse nothing at all. I know that sounds like a contradiction of the above but it doesn't make sense to buy less house than you can afford or no real estate at all. Keeping in mind what I said about not buying too much house, try to reach just a little. As long as you can afford it, in the long term, as with all investments, generally the more you invest, the greater will be your corresponding return.

Buy what feels right. Don't get talked into buying a house that feels wrong for any reason. If it's a significant-other doing the pressing, sit down and have an honest talk about your feelings. Even if you can't quite put your finger on why you feel ambivalent, unless you're 100% certain about a potential purchase, don't do it.

Do your homework. In most cases, a home inspection for structural, electrical, and plumbing issues is good advice before closing, but that's not all you should check out. What about Insects and Dry Rot? Asbestos, Lead Paint etc? These things are not part of a normal inspection, so don't just assume that they are. What about the lot lines? Are you certain that the fence you had been looking at is a good indicator of the property line? Does the property have Home Owner's Association dues? Has the escrow company given you a clean title report? Have you checked the local neighborhood Covenants (CC and R's?) Perhaps your beloved horse or other pet simply isn't allowed in the neighborhood. Check out all of these things well in advance.

When selling, get a Comparative Market Analysis (CMA) from a local Real Estate professional who knows the neighborhood in order to get your house priced properly from the very start. Over or under pricing your home can cost you time and/or money that you don't want to lose.

Try to have fun. Think positively. Buying or selling Real Estate can be among the most stressful exercises in life. Most of the time, however, given the right circumstances, it can also be a lot of fun. Let your Real Estate Professional carry as much of the burden as possible (not you) and try to remember that when and if things go a little sideways, that it is that very awkward moment (or more) that will make the happy times to come all the more satisfying. Almost every Real Estate deal, is in the end, a sweet and unparalleled happy Champagne-popping experience.

Once it's over that is! See you next time!

Fred Jaeger is a licensed Oregon Real Estate Broker and an e-PRO Certified REALTOR® affiliated with RE/MAX Sunset Realty Sunriver/La Pine. He can be reached directly at 541 598-5449 or fred@fredjaeger.com .

Head for High Ground - The Second Wave is Coming !

Tue, 16 Dec 2008 12:16:54 -0600

I've got two more terms to be added to everyone's "Everything you didn't want to know about lending in 2009 because you were afraid to ask" vocabulary list: "Alt-A" and "Option ARMs." Don't know what they are? Well, you will, soon.

It seems that a second mortgage shock is heading for the economy at high speed and without brakes. That's right, just as many of us suspected from the beginning, the first "sub-prime" bailout was only the beginning salvo in a battle to protect us from the bloodiest and most damaging financial crisis of our lifetimes.

The initial 700 billion approved by the congress last fall will only be a down payment on a whole new wave of loans that are apparently in danger of defaulting behind the sub-primes..."Alt-A" and "Option ARMs."

That's right, we're not done. I'm not talking about a measly little 34 Billion to bail out the big three auto manufacturers; we're talking about needing perhaps another 1.5 TRILLION dollars of additional bailout money that will become necessary to prevent the U.S. lending industry from complete collapse.

Yep, the silliness didn't end with the sub-primes, a whole new wave of loans that had initially lured borrowers in with tempting teaser rates are due now to "reset" behind the sub-primes. What might have been a nice comfortable mortgage payment of say, $800 a month, is, in all likelihood, going to change to something on the order of double that. Many, if not most, borrowers finding themselves in this situation will not be able to save themselves, so stand-by.

What? Are you kidding? It's sad but true. Even so-called "highly qualified" borrowers got sucked into the trap. But how did this all happen?

It's simple really. When the collateral value of an asset soars through the roof, the viability of the borrower becomes increasingly less important. Or so the argument goes. When housing prices just kept climbing higher and higher, borrowers believed that refinancing before their adjustable loans reset was a normal course of business and an option they fully expected to exercise. In other words, "Alt-A" and "Option ARM" borrowers believed they could refinance or resell their properties (at a profit - of course) before the higher payments on their loans became due.

But then the market hit the skids. Oops.

In a strong market, even the sprinkling of bankruptcies and loan defaults that would normally occur, didn't matter to the banks either because, chances were that the resale value of that foreclosure might actually exceed the original principal value of the loan. At the peak of the housing boom, a poorly qualified borrower became less important. Wow. That's how so-called "liar's" or "stated-income" loans actually made it through underwriting because the borrower had become a far less critical variable in the lending equation. Although I wrote about this phenomenon last year in my "All Bow to the Almighty FICO" and "Got a Job? Decent Credit? You can buy a House!!" articles, I never in my wildest dreams thought that what we're looking at now would ever actually come to be.

So there we have it. Now what?

Well, lending has tightened. Buyers who are in the fortunate position to be able to purchase now are enjoying spectacular deals, but with a lot more money down and with a far higher level of underwriting scrutiny than perhaps ever before. You'll need a little cash (sometimes more than a little) and your credit score will need to be a smidge higher than back in the heyday if you want to buy. But what incredible buys there are now! I know I keep saying so, but the situation just keeps on getting better for buyers out there.

Recently I was very lucky to have found a bank-owned property that had, in '05, sold for $495,000. My buyers just closed and walked away with that very property for $260k. That's nearly half what it had been, and there's a lot more out there where that came from, believe me.

Spectacular opportunity for buyers aside, many still seem, understandably, a little gun-shy about pulling the trigger on a Real Estate transaction. With what may be a greater than two-year supply of inventory languishing on the open market, the current glut of homes for sale seems destined only to continue to grow, and when a house won't sell, what's an owner to do? One option may be to put the property on the market for rent. The following list is a sampling of companies available to help manage homes for rent in our vicinity:

REMAX Sunset Realty / Long Term Property Management - 541 536 0117
Village Properties - 541 593-7368
La Pine Property Management - 541 536-1114
Accord Property Management - 541 536-1165
Ernst Brothers LLC (Gilchrist / Klamath CO) - 541 433-2610

As you may have noticed, Sunset Realty is happy to announce that we have added our company to the above list and will become operational by mid-January offering long-term property management services in addition to an already established vacation rental and RE Sales divisions. All of the above local companies have excellent reputations and we look forward to working with them in the growing rental market to come.

In the mean time however, we in the industry have got a lot of houses to sell and buyers out there couldn't have better opportunity. Oh, and lets not forget interest rates. Last fall I mistakenly proclaimed that if you hadn't bought by then, you might have lost tens of thousands of dollars due to rising interest rates. I'm very happy to say, however, that rates are now back down and could conceivably hit the mid fours! Considering all the trouble we've gotten into with adjustable loans now coming due, how's a nice thirty year fixed sound at 4.5%? Let's see... buys of the century, record low interest rates.. Hmmm... sounds pretty great to me.

Dogs Don't Carry Wallets

Fri, 17 Oct 2008 18:05:48 -0500

The last few weeks of financial turmoil have reminded me of school and an econ class I took once upon a time. I can remember trying to wrap my head around how the Federal Reserve decides to lend money to the banks and at what rates of interest, and how those kinds of decisions theoretically translate into this-or-that kind of "multiplier effect" or not, supply curves here, demand curves there, yadda-yadda, blah-badee-blah. I've got to be honest, after a while it all seems like voodoo to me, the way things are done. How money literally gets simply printed and pumped into the system, or stuck onto the national credit card is where you've lost me. I don't get it. I didn't get it 20 years ago, when I should have been paying more attention, and I especially don't get it now. I sure hope somebody does because it's affecting all of us now, not just Wall Street.

Can anybody out there explain to me what exactly a "derivative" is? I've looked it up but it doesn't help. It looked like something more akin to calculus rather than finance or economics. But what do I know? Actually, never mind, I'm not sure I have the energy. 700 BILLION DOLLARS (actually 840) more placed on the national debt?? I am completely lost.

One of the reasons I really like dogs is because they don't carry wallets, or wear watches. Residing within a seemingly blissful and carefree "eternal-now," our canine companions can certainly teach all of us about focusing on that which is truly important and rejecting that which is not.

My Dog Barney doesn't even have to worry about haircuts because his constant shedding (that he doesn't worry about either) keeps his coat perfectly coifed, and looking shinny and clean all the time, without, I might add, the need of a daily shower. And unlike his master, however, whose head begins to resemble a dirty old mop if he's even attempted to skip a day, my best friend lets neither that problem, nor a whole lot of other so called "issues" even enter his consciousness...like money, or even worse these days, money tied up in Real Estate.

Dogs don't carry wallets or even have any concept of time outside of dinnertime, but unfortunately we do. After all, like I tell Barney every day when I walk out the door, "I've got to go out and bring home the dog food Buddy." He doesn't; have to bring home the dog food, or anything else, that-is, with me around anyway. As much as I admire those who are able to separate material needs from their consciousness, it's not the best survival strategy in the long run for us normal humans, unless you're already swimming in it, or have a best pal or loved one that's willing to take care of you.

That must be the answer. In order for me to attain a higher level of consciousness and bring my Real Estate career to a higher plateau, I'm apparently going to have to find me a Sugar Momma. Last month I was soliciting for a job, this month I'm skipping the nonsense altogether. That way, I can focus on Real Estate and serve my client's that much more effectively without the mental clutter of having to deal with my own issues. Yep, that'll work.

But alright-already, I'll get serious and get back to Real Estate. After all, these are serious times with life-changing challenges facing our entire country these days. Over the last several weeks I've had to help my clients deal with the kinds of decisions that will make huge differences in their lives. Should we sell now? Can we wait? If we sell now, how should we price it in order to compete in an extremely competitive market? What if we have to sell for less than we owe the bank? Should we simply walk away from our property?

These are serious questions that are difficult enough to deal with alone. However, combined with an explosively volatile stock market and the threat of the collapse of our entire financial system buzzing in the background, the whole package doesn't make anyone feel any better. Our entire financial system is globally intertwined and that which affects one element will seemingly reverberate to the other, and on and on. "Globalism" is such a new concept that my Office 2000 flags that word as a misspell, but it's real and, like it or not, we're now faced with an economy that is not only affected by international influences, it is apparently dependant upon the good financial health of the world. I admittedly don't get much of this, but it seems to me that those who are concerned about a country like China "calling in there loans" should stop worrying; after all, as the primary consumer of their goods, a collapse of our economy would seemingly trigger the downfall of their own.

So what do dogs that carry neither wallets nor watches have to do with Real Estate? Nothing I suppose, other than perhaps to serve as a reminder to all of us that we're not always going to have all the answers and that's not always so bad. Sometimes we just have to let it go, take a deep breath and trust that it's all going to work out. I mean what else are you going to do sometimes? Personally, I'm still carrying my wallet and can tell you what time it is, but I'm going to do my best not to sweat a dwindling stock portfolio, listings that aren't selling, or the lack of a Sugar Momma in my life. Barney and I are determined to carry on. That's at least a start.

Real Estate can wait...

Wed, 06 Aug 2008 16:31:56 -0500

One of the most beautiful things I've ever heard. Real Estate can wait...

Wilhelm Kempff playing Beethoven's Moonlight Sonata movement 1. Wilhelm Kempff (November 25, 1895 – May 23, 1991) was a renowned German pianist. Wilhelm Kempff was born in Jüterbog near Berlin and grew up in nearby Potsdam where his father was a royal music director and organist at St. Nicolai Church.

His grandfather was also an organist and his brother Georg became director of church music at the University of Erlangen. Kempff studied music first in Potsdam and then in Berlin. He was also a composer. Kempff toured very widely in Europe and much of the rest of the world.

Between 1936 and 1979 he performed ten times in Japan and a small Japanese island was named Kempu-san in his honor. Kempff made his first London appearance in 1951 and in New York in 1964. He gave his last public performance in Paris in 1981 and died in Positano, Italy at the age of 95.

Wilhelm Kempff recorded over a period of some sixty years. He is celebrated today for his recordings of Schumann, Brahms, Schubert, Mozart, Bach, Liszt, Chopin and particularly, of Beethoven.

Bio Source: Google Video

Waiting to buy? That decision may have cost you more than 50,000 dollars!

Mon, 21 Jul 2008 14:36:26 -0500

For Buyers who may have been waiting for the market to finally bottom-out, that time may have already passed. As a matter of fact, the decision to wait may have already cost the average buyer 50 thousand dollars or more.

Last Spring I argued that there couldn't possibly have been a better time to buy:

"If you're waiting for prices to decline to an ultimate low, you may be missing the boat by overlooking other variables that should be entered into the equation at this time...

..It's a great time to buy Real Estate now and not just because of the recent downturn in prices. Added affordability combined with historical lows for rates in the lending industry, huge selection due to massive increases in available inventory and market forces that are pressuring sellers to be more flexible than ever, are factors now allowing buyers to be nearly ideally positioned..."

Unfortunately, it now appears that the fence sitters who may have stubbornly waited for an even better time to buy than last winter or spring, will now be faced with not only significantly higher monthly payments, but tens of thousands of additional dollars being paid out over the course of their mortgages.

Interest Rates have gone up and they're more than likely to continue to rise.

Here's how rising interest rates may have impacted a potential buyer and their purchase:

Source: Bankrate.com

In January 2008, the average interest rate (nationally) on a thirty year fixed loan was approximately 5.4% for customers with good credit. Now, (late July 2008) the rate hovers around 6.4 % and will more than likely be higher by the time this article is published. Principal and interest payments on a $250,000 dollar home would have been around $1400 per month; now that same home will cost the buyer around $1563 a month. Amortized over thirty years, that amounts to more than $57,000 dollars of additional expense. (And that's not even considering the lost investment potential of that $150+ per month over thirty years .)

Although we're all feeling the financial pinch of a slowing economy and rising prices, the efforts made by the Federal Reserve to slow inflation by raising interest rates, may be the very thing a struggling Real Estate market needs least.

The Wall Street Journal recently stated:

"...A major economic policy move could come in the final weeks of the U.S. presidential elections. Traders are betting that before November, the Federal Reserve may execute an interest rate hike.."

Also from Forbes.com July 16:

"..Federal Reserve chairman Ben Bernanke said a 'top priority' for the central bank is to bring inflation to an acceptable level.

'We're going to be responsive to conditions as they evolve,' Bernanke said in testimony before the House Financial Services Committee. He noted concern about commodity-related inflation bleeding into headline inflation... "

The point is that we should expect interest rates to go up with the inflation of other items, and because of that, anyone considering the purchase of Real Estate should carefully factor that into their decision about when to buy.

Prices are down, and may continue to fall, but, pricing alone should not be the only factor influencing a buyer's decision. When considering that selection is huge, seller flexibility is nearly maximized, and the price of money is still relatively cheap (but getting more expensive,) the potential overall return on investment on Real Estate available RIGHT NOW, is quite possibly at its very zenith. Whether you're a casual buyer or a full time investor, delaying a purchase now may prove to be a regrettable decision over then next few months and years.

As I said in March, if your waiting for the best time to buy, please allow your local Real Estate professional to explain why now is probably the best time to be helped down off the fence. Ten years in the future, when you see the results of a good investment made now, we're confident that you'll be pleased with your decision.

Fred Jaeger is a licensed Oregon Real Estate Broker and an e-PRO certified REALTOR® associated with RE/MAX Sunset Realty Sunriver / La Pine. He can be reached directly at 541 598-5449 or fred@fredjaeger.com . More of Fred's material is viewable at fredjaeger.com .

Formula for the Death of a Real Estate Salesman

Mon, 14 Jul 2008 14:26:39 -0500

Last year I wrote a story entitled "Support your Local Starving REALTOR." It was meant to bring to light that not all real estate brokers are getting rich.

"..The vast majority of Real Estate professionals are not paid a salary and live purely on commissions.. for every day in, and every day out, for every phone call made, every fax or email sent, every hour of research spent compiling information, every mile driven with both real clients and those who just want to kick tires, your local agent is paid nothing until the deal has closed escrow...

..That theoretical six percent commission generated by the sale of any given property is split typically between the both the buyer and seller's respective agencies and brokerages 50/50, THEN the broker only gets a percentage of that agency's 50% by in many cases, half again between the actual agent and his/her office. In other words, the six percent that was paid by a seller originally becomes often only 1.5% paid to the agent procuring the sale in the end. All that work, all that time, all those endless late nights, for just a pinch of the proceeds at the end.." And that's before taxes, signage, and other overhead like GAS, desk fees, MLS Fees, and on and on.

Although I meant to point out that the industry is a lot more difficult to survive in than many may realize, I never thought that my words would ever ring so true as now. Several good friends of mine, all highly effective professionals that I admire, have made the decision to get out due to the recent slowdown of the market. Offices are closing right and left, and good agents are giving up their licenses. Wow.

It doesn't take an expert in microeconomic analysis to realize that too much supply, coupled with not enough demand, leaves prices with nowhere to go, but down. The hope is however, that with lowering prices a corresponding increase in demand might be realized over time. Over a lot of time apparently, because it just ain't happening in my market as of yet. The current saturation level evidenced by mutiple "for sale" signs visible on each and every street, surely proves the point.

Although I've had several so-called buyers this summer that have been more than happy to drain two or three $150 tanks of fuel with me while looking, precious few are actually pulling the trigger on an actual real estate transaction... and that, my friends, is a highly effective formula for the death of a Real Estate Salesman.

I've been the first to point out that "The Real Estate Market is in large measure, perception driven..." and "All the market needs to recover is the belief that it has..." so I'll have to ask to be forgiven this time within a "member's only" post for my need to vent this time, just a tad. The exiting of good friends, from the industry chills me and leaves me shaking my head in disbelief.

There are those who proclaim now that the Darwinian notion of a thinning of the herd was a necessary evil and that those whom are left behind will be only stronger in the end. That kind of logic strikes me as something similar to the idea that an occasional fire is beneficial to the forest. The problem is that I, among many, am wondering just who among us will prove to be ponderosa and who will be tinder.

Summary of La Pine Oregon Neighborhoods and Subdivisions

Sun, 22 Jun 2008 08:55:07 -0500

Last year the local newspaper asked me to provide a summary of local neighborhoods and subdivisions in the La Pine area. Surprisingly, these descriptions and prices still look pretty current even despite the so-called down-turn. Here's what was published:

Antelope Meadows: South of La Pine center approximately six miles. Neighborhood positioned between Highway 31 and 97off Beal Road. Mostly one to five acre lots with dirt/gravel road access. Mix of bare land, Frame and Manufactured homes ranging from 40,000 to mostly under 300,000.

River Pine Estates: South of La Pine eight miles where Hackett Drive intersects Highway 97. Hackett Drive is one of several other paved roads in the neighborhood that connect with dirt/gravel. The neighborhood is an area of mostly one acre lots with a mix of bare land, Frame and Manufactured homes at levels mostly under 300,000.

Jack Pine Village: South of La Pine 9 miles where Tumbo Drive intersects Highway 97. The neighborhood has dirt/gravel access and is an area of mostly one acre lots with a mix of bare land, Frame and Manufactured homes, mostly under 200,000.

Sun Forest: Ten miles South of town where Sun Forest Drive intersects Highway 31. The neighborhood has dirt/gravel access and is an area of mostly one acre lots with a mix of bare land, Frame and Manufactured homes, mostly under 200,000.

Lazy River South: Seven Miles north of Town Center in the vicinity of the Golf Course reaching south, on either side of the Little Deschutes for approximately three miles. Mostly paved access with many properties having Little Deschutes River frontage. Mix of bare land, Manufactured and Frame homes on varying acreages ranging from low 100's to well into the 600's or more.

Newberry Estates: Just east of Wiciup Junction where Rosland Road Meets Ammon. The neighborhood has dirt/gravel access and is an area of mostly one acre lots with a mix of bare land, Frame and Manufactured homes ranging from the mid 100's to well above.

Ponderosa Pines: Five miles west of town Center where Ponderosa Way meets Burgess Road then south. Mixture of mostly paved and some gravel access surrounded by public and private woodlands. Mostly one acre thickly treed lots with a mixture of Frame and Manufactured homes ranging from the 100's to the mid 500's.

Ponderosa Pines East: Where Dorrance Meadow intersects both Brooks and Pine Loop Drive. Thickly treed one acre plus lots with a mixture of Frame and Manufactured homes ranging from the 100's to the 400,000 plus range.

Sunrise Blvd and Vicinity: This is an area in the Day Road, Woodchip, and up and down the Sunrise Blvd area. This zone features mostly paved road access and predominantly Frame built homes commanding prices mostly ranging between the mid 200's to well into the 400,000 plus range.

Wild River: Where Burgess Road intersects both Kokanee and Wild River Way on either side of the Deschutes river at Pringle Falls. Paved road access to lots ranging from one quarter to full acre lots. This neighborhood features custom built Frame homes commanding prices into the 700,000 plus zone.

Crescent Creek: Planned community just north of Town Center off of Huntington. Paved road access to mostly one eighth to one quarter acre lots featuring frame built homes with access to walking trails and clubhouse. Prices touch into the mid 300's.

Huntington Meadows: Development just south of town off South Huntington Road. Paved road access to mostly one eighth acre lots with Framed homes that have sold mostly in the 150,000 dollar range.

Cagle: Just north of Wickiup Junction on west side of Highway 97 north of Burgess. Dirt/Gravel access to a neighborhood of one acre lots with a mix of bare land, Frame and Manufactured homes at levels mostly under 300,000.

Wheeler Ranch: A development just east of Town Center in the area where William Foss meets Wheeler Road south to Finley Butte. These are mostly quarter acre lots with Framed Craftsman-like homes in the mid 200's plus.

Pine Crest: Five miles north of Town Center where US 97 meets Pine Crest Lane. Dirt/Gravel access to a neighborhood of one acre lots with a mix of bare land, Frame and Manufactured homes at levels mostly under 300,000.

Realtors Don't Sell Kirbys

Mon, 16 Jun 2008 18:22:01 -0500

"So Mr. and Mrs. Buyer, I'm really excited about finding you the perfect property to suit your needs and I think I have a pretty good idea about what you're looking for. I am, however, still a little foggy about what price range you would be comfortable with...

... Ok, I hear that your decision will depend on what's available, and whether or not any given property fits your needs, but does that mean that you're OK with looking at million dollar homes or higher, or are you more comfortable somewhere below that number?

... Here's my problem Mr. and Mrs. Buyer, without a clear price range to consider we have over 500 homes we'll need to look at and I'm afraid that we're probably not going to have time to see all 500 within the next three days. Any chance we can narrow the search down to maybe 200 properties?...

...Ok thanks for giving me some more information, and yes Sir, I understand that ideally you would like a 3500 square foot home with at least four bedrooms and three and one half baths. The home must also have a tiled entryway with hard wood flooring beyond, granite counter tops in the kitchen and separate guest quarters preferably over at least a three-bayed garage with insulated shop facilities all on no less than five acres. Unfortunately, finding a home with those features under $150,000 will be a little tough. Yep, even in La Pine. Now, you say that you might be willing to go up a little in price. Can you give me just a hint just about how much more you're willing to go? That sure would make it a little easier on both of us... "

Sometimes as a Real Estate professional, it's a little difficult to gather from my clients the information necessary to properly assist them. And although I am admittedly exaggerating a little bit with my scenario cited above, I sometimes think that people are afraid that I might be the Real Estate equivalent of some kind of used car salesman; and that's a shame.

I really cringe at the thought of being called a "Salesman" in the first place. To me, "sales," in the classic sense, is really not what we as Realtors are trained to do. If given a preference, I'm sure most Realtors would be much more comfortable to be thought of as more of a facilitator, or real estate advisor, rather than being tied to the negative connotations associated with that of a "Salesman."

Now, I know I'm setting myself up for some grief by insulting every other person engaged in sales, so I'll apologize in advance. It's tough duty that requires an interesting skill set to master. I actually have done serious hard-core sales in the past, vacuum cleaners door-to-door when I got out of the Navy. It took me exactly two weeks to realize that the object of that particular game was to extract as much money as I could from someone with whom I had just made friends. That didn't set to well with me, so I quit.

Real Estate is so much different. Granted, we Realtors do work on commission, and yes, the more money our customers spend, the more money we make. That's stating the obvious. However, what separates a Realtor from the common salesman is apparently not so obvious. Beyond ignoring a natural aversion to the cutthroat nature of hard-core sales, Realtors who might actually choose to engage in that kind of practice would soon find the process to be ultimately, self-defeating.

The lifeblood of a Realtor is the establishment of a reputation for ethical and honest practice. That's what separates not only Realtors from "salesmen" in general, but those who simply hold a Real Estate License as well. Many people might be surprised to know that not everyone that holds a Real Estate license is a "Realtor." It's not like calling any facial tissue a Kleenex.

Realtors belong to the National Association of Realtors and must follow a strict code of ethics. Here's a quick summary of what I mean:

From The NATIONAL ASSOCIATION OF REALTORS® website at www.realtor.org:

The NATIONAL ASSOCIATION OF REALTORS® Code of Ethics:
What Does it Mean for Consumers?
How does the Code of Ethics affect everyday real estate practices?

If a REALTOR® represents you, whether you are buying or selling a home, you can count on that REALTOR® to:

1. Be honest with all parties in the transaction - not just with you, as his or her client, but also with the other real estate practitioner and his or her clients.
For example, if REALTORS® represent a buyer with a spotty credit history, they can't be dishonest with sellers about this fact. At the same time, REALTORS® can help their buyer clients collect and assemble information, such as credit reports and audited tax returns, to demonstrate that the buyer has addressed the problem and improved their situation.
2. Put your interests ahead of his or her own, at all times.
A REALTOR® makes every effort to understand the housing needs of his or her client, thoroughly researches available inventory, and shares all relevant information with the buyer so that he or she can make an informed decision. This service is provided regardless of the compensation available.

3. Disclose all pertinent facts regarding the property and the transaction to both buyer and seller.
If a REALTOR® believes information provided by a seller is questionable, the REALTOR® is obligated to investigate. REALTORS® should recommend that buyers consult their own experts, such as home inspectors, to address concerns. For example, if a home seller asks his or her REALTOR® to conceal the fact that the roof leaks, the REALTOR® cannot comply; if the seller insists, the REALTOR® should end the business relationship with that seller.

4. Be truthful in all communications with the public.
When REALTORS® distribute newsletters, create Web sites, or place advertisements, they must be careful not to represent other real estate professionals' work product as their own. If recently sold or listed properties in the community are publicized, it must be clear whether the REALTOR® was actually involved in the transaction, or whether that data came from the local multiple listing service or other source. This ensures that the public understands the REALTOR®'s experience and can make an informed decision when choosing real estate representation.

The only real "sales" I personally engage in as a Realtor, is the promotion of myself; and that's hard enough. Perhaps if Mr. and Mrs. Buyer realize that I'm not asking them to buy the Kirby in the trunk of my car, they'll tell me how much money they're willing to spend on their new house. That'll be the day.

A Fashion Statement about Real Estate

Fri, 16 May 2008 19:26:07 -0500

Last year I wrote an article suggesting that if you want to know something about your Realtor you should check out his or her ride. It occurs to me, however, that instead of using a Realtor's car as an indicator of what kind of agent you'll be getting (or already have) a more interesting point of reference might simply be what they're wearing.

That's right, I'm going to be talking about clothes...what Realtors wear, when and why.

First of all, I have to admit that I am not particularly known for any real keen sense of fashion (ok, and everyone who actually knows me can stop laughing), and although the whole concept of "dressing for success" is something that is not beyond my intellectual capacity, actually executing the idea on a consistent basis has been, lets say, somewhat of a challenge. So there, I've said it; I'm not Tim Gunn.

But that doesn't mean I'm not a good Realtor, I hope. (Gulp.)

Anyway, despite my own fashion weaknesses, I do occasionally notice some differences in what seems to be appropriate attire given different circumstances. For instance, if I were a Portland or even a Bend agent, shirt and tie, or even a full-blown suit worn on at least a some-what-regular basis, would be the norm. It is my contention, however, that in the La Pine and Klamath County markets, anyone showing up in a suit and tie, especially a Real Estate guy, would be looked on with great suspicion as some kind of yuppie city-slicker who's too arrogant and full of himself to be given even the time of day. Obviously, that kind of perception wouldn't be too good for business.

However, it's funny that although we Realtors who work primarily in the area enjoy the privilege and expectation of dressing "smartly casual," if you will, I'm often quite amused about how the actual practice of this kind of dress manifests itself, even within the less-than-thirty miles that separate Bend from the county line.

Say what? I'm saying that when it comes to casual attire, there seems to be some kind of difference between even Sunriver and La Pine. I haven't quite put my finger on it, but there is a difference. It's sort of a JCrew/ LL Bean / (dare I say - Birkenstock) kind of thing, versus something that's not. I'm not arguing that either choice is better, but the distinctions between the two are, at least occasionally, somewhat amusing.

My friend the investment advisor has, on more than one occasion, expressed a belief that for him, in his business, maintaining a certain business-like image is an essential component of his success. The fact that this subject has come up on more than one occasion might suggest that my buddy is actually making a tactful recommendation, rather than a declaration with regard to his own situation. It is still my belief, however, that despite the fact that each of us is regularly tasked with making equally critical recommendations regarding our respective clients' financial conditions, the so-called image of a Realtor seems distinctly different from that of any other advisor.

Buying a home is personal, and it is the very personal nature of the Realtor-Client relationship that is most effectively facilitated by a more relaxed atmosphere than perhaps that of other business relationships. For me, as a Realtor in my market, I'm pleased to operate within an environment that seems to place a higher level of importance on actual deeds, practice and reputation, rather than a place where image is factored more seriously into the equation.

Fred Jaeger is a licensed Oregon Real Estate Broker and an e-PRO Certified Realtor® affiliated with RE/MAX Sunset Realty Sunriver/La Pine Oregon. He can be reached directly at 541 598-5449 or fred@fredjaeger.com .

I Love Technology – But Please Don’t Make Me TM !

Thu, 17 Apr 2008 21:17:49 -0500

I used to be known as a bit of a technophile; you know, one of those geeky Inspector-Gadget kind of guys, who's on top of the latest gismo that's on, or will be coming onto the market soon. I have to admit however, that despite my dual subscriptions to Popular Science and Mechanics, my widening separation from a close proximity to the cutting edge seems to correlate directly with my increasing age.

In the Real Estate business, that tendency to separate from the latest-and-greatest can, over time, be a pre-curser to the death of a salesman, a Real Estate Salesman that is.

I'm an "e-PRO" certified Realtor, which is meant to signify that I have not only been trained to be familiar with the latest and greatest technological tools in the industry, but can actually use them as well. That's my story and I'll be sticking to it, for the most-part; but I'll have to admit, I'm feeling a little resistance within myself to fully embrace every little watch-ya-call-it that comes around the bend, which is a strange new phenomenon that surprises me about myself.

Here's what I mean. As a Realtor who should be up to speed with all the latest tools, it would be necessary to do, or already have in my possession, the following:

Establish a private Internet domain. (Ok, I've done that - fredjaeger.com)

Activate a Real Estate Website using the above domain. (I'm cheating a little on that one. I'll explain later.)

Adopt SEO Technologies to be applied to your domain and Website. (OUCH, busted. Don't even ask; you don't want to hear about this one, believe me.)

Have an internet-capable PDA "Smart" cell phone. (Nope. Busted again. Having my emails chase me wherever I go via Blackberry is probably a good idea, however unsavory, and being able to research listings out in the field would be great; but I'm not quite there yet.)

Abandon Faxing in lieu of scanning important docs via PDF creation software that can batch together multiple items into a single email-capable file. (Ok, I do this and encourage others to do it too, at every opportunity.)

Try to utilize text messaging and/or try to wrap your head around why the kids think it's better than just calling. (I'm trying on this one; I really am.)

Post all listings out on Craig's List , and other internet portals, in addition to the company Website. (I am doing this one as much as possible.. the problem is the listings expire and take babysitting to keep current.)

Start a BLOG (WebLog) and make regular postings on topics of interest. (I started this reluctantly I admit, but have found it to be one of the better networking tools available. I point my domain fredjaeger.com to my BLOG on the Active Rain Real Estate network.)

Make use of Virtual Tours and/or Video Software, in addition to just pictures for listings. (I'm all over this one and use it regularly.)

Get a Laptop Computer in addition to your office and home machines. (My office machine is a laptop, which I find useful for listing presentations and field research while traveling. However, if I were going to be really snazzy, I'd have a touch screen capable model with Optical Character Recognition (OCR,) and a swivel view screen to boot; but I don't.)

Get a Broadband-Capable Wireless Card for the laptop. (Ok, I've got one of these, but I didn't get it for the laptop. I'm still in dial-up hell at home, and use it there. Does that count?)

Make use of a Virtual Assistant. (There are various versions of this concept available on the Internet now, the idea being that various secretarial services can be taken care of on-line, like posting transaction documents for internet availability, call forwarding and voicemail, etc. I'm definitely not up-to-speed on this idea.)

Establish a private Fax-to-Email number. (I just started this and wish I'd done it a long time ago. All my incoming faxes now go to my email inbox in PDF format, which saves me TONS of time and energy.)

Purchase a Global Positioning System GPS. (Ok, I'll have to admit that my inner-geek couldn't resist this from WAY-BACK. I used to work in the navigation department on an aircraft carrier 20-plus years ago and I just marvel at the modern GPS. I actually have two units, a hand-held one for my geocaching hobby, and a PDA in the truck loaded with GPS-capable software for getting around on the roads. This tool has been invaluable when I'm out there trying to find properties in unexplored territory.)

I started out thinking I was losing touch with technology, mostly because I have, admittedly, a slight aversion to the text-messaging thing that has developed over the last few years. It's unsettling every time one of my twenty-something clients sends me a "TM" because first of all, figuring out how to even begin to read them, let alone respond back, is frustrating, particularly to someone who is apparently becoming as increasingly crotchety as myself. There's a whole Chat-Room / IM world that the post-baby-boomers play in, that I have a tendency to look on with little more than tempered amusement.

As far as keeping up with it all, I'm glad to be able to say that in the Real Estate world, we're pretty much on the cutting edge, as evidenced by the partial list I've cited of the tools that we use in the industry today.

If I could just get myself past this Text-Messaging thing, I'd be golden.

Fred Jaeger is a licensed Oregon Real Estate Broker and e-PRO certified Realtor® associated with RE/Max Sunset Realty. He can be reached directly at 541 598-5449 or fred@fredjaeger.com .

Fence Sitters - The Time to Buy is Now !

Fri, 14 Mar 2008 17:40:36 -0500

If you've been uncertain about whether or not to buy Real Estate in the current market, let me be the first one to help you down off of the fence. This is not just a great time to buy, its a classic "Buyer's Market" out there, combining seemingly a "perfect storm" of contributing circumstances that appear to be making this perhaps one of the best times ever to purchase your dream home or investment property. Here's why:

Prices are down. You don't need me to tell you that the name of the game with any investment strategy is to buy low and sell high, so it should be obvious that it's good idea to take advantage of the opportunity that presents itself now. However, the first thing a savvy investor might say to me is.. "Ok Fred, sure prices are down, but what guarantees do I have that they're not going to continue slipping down?" The answer, of course, is that there are no guarantees. I'll be honest; it's actually my opinion that prices will, in fact, continue to decline slightly, in the short term. However, in the long term, buying now could turn out to be the smartest investment decision you could ever make. Real Estate has proven over time to be one of the best, if not the best long-term investment you can possibly make. If you're waiting for prices to decline to an ultimate low, you may be missing the boat by overlooking other variables that should be entered into the equation at this time...

Available Inventory is Up. There's a lot to select from. If you're a buyer, in addition to lower prices there's more to look at and select from which increases the likelihood that you'll find not just a house that works for you, but a better value that fits your taste. In a seller's market, buyers often feel compelled to settle for something that perhaps isn't quite right while simultaneously paying more (or even too much) for the privilege of that compromise. Buyers presently can take their time, take a good look around long enough to make better decisions.

Lending Interest Rates are Low. Buyers are still enjoying the huge benefits of lending rates that are really reasonable. Right now rates are hovering around 6%. You're principle & interest payment on thirty year fixed loan on $250,000 would be around $1500/month (before taxes and insurance.) If the rate increases to just 7% that payment would become $1663/mo... at 8% $1834/mo, etc. You can save substantial money by taking advantage of the current rates.

Sellers are Motivated. A lot of the current inventory has been out there a long time and sellers are willing to negotiate now more than ever. Not only is price an area that can flex, but also financing terms, personal property, even buyer closing costs, repair requests and more can potentially be mixed into, or out of the deal.

Buyers can make Real Offers. The occurrences of multiple competing offers arriving above the asking price are few and far between these days, and buyers know it. Offers that at one time may never have been taken seriously are now not looking so silly. Unreasonable "low balls" are never appreciated when received by a Seller, but the point on the scale that defines such an offer, has definitely shifted into blurry territory.

It's a great time to buy Real Estate now and not just because of the recent downturn in prices. Added affordability combined with historical lows for rates in the lending industry, huge selection due to massive increases in available inventory and market forces that are forcing sellers to be more flexible than ever, are factors now allowing buyers to be nearly ideally positioned. For buyers sitting on the fence waiting for the perfect time to jump in, it would be hard to imagine a time that could possibly be more advantageous than now. Even if you're just thinking about buying but can't quite decide, talk to your local Realtor to show you what's now available; you're more than likely to be very excited with the current possibilities.

Fred Jaeger is a licensed Oregon Real Estate Broker and an e-PRO Certified Realtor® associated with Gilchrist Real Estate Company in La Pine. He can be reached directly at 541 598-5449 or fred@gilchristrealestate.com.

GO GET THAT FSBO ... Here's some AMMO

Fri, 14 Dec 2007 17:17:22 -0600

At first thought, selling your house by yourself might seem tempting. After all, how much work could it possibly be to sell a house anyway? You just plunk a sign out in the yard, run a couple newspaper ads, park yourself in the rocker on the front porch for a while and wait for the buyers to start showing up, literally at your doorstep.

I'll admit that perhaps that particular strategy has worked, and may still work on that rarest of rare occasions... at least getting the buyers to your door, that-is. The problem is that even if that was the extent of your Marketing strategy, there's still some major hurdles to be cleared before you've got signatures on the dotted line and have actually closed the transaction. But we'll talk about all the paperwork and other hassles later.

For now, lets get back to the Marketing. Perhaps the most compelling reason a seller should use a local professional Real Estate Agency to sell their property is because that agency has the ability to "list" homes for sale through the Multiple Listing Service (MLS.)

The Multiple Listing Service is a cooperative arrangement between most Real Estate Brokers to pool information about Real Estate for sale into a common data base from which all cooperating members can access. When a house is listed by one company, that information is shared with all cooperating companies. In most cases any commissions generated by the sale of such a property are then split between the listing agency and the selling agency. This creates a win-win arrangement that generates traffic and allows listings to be effectively shared among the membership.

The most important result of this arrangement is that any property placed on the MLS can be sold by any other member (Real Estate Broker) of the MLS.

In other words (and this is important,) real estate brokers don't just sell their own company's listings, they can sell any within their MLS. This is extremely important for the seller. Without information being shared via the MLS, Real Estate would be exceedingly difficult to market beyond what newspapers, periodicals or any other advertising would be able to accomplish. Without the MLS, you'll usually be sitting in that rocker on the front porch waiting for your house to sell for a while. But that's not the only reason to use and Agent.

An Agent is your advocate in every regard who's job it is to provide you with all possible information and or services that will be of benefit throughout the transaction. A good Agent will field phone calls, distribute information and stand between you those who might waste your precious time.

Without the help of a professional Agent, you run the risk of misjudging market conditions. A home that is priced too high may waste precious time sitting on the market for longer than it should. On the other hand, what could be worse than to price your home too low? Other than the likelihood that it will probably sell in record time, there's nothing good about losing money that you shouldn't have by under pricing your property. Among the tools an agent can provide for you is help with pricing information via a Comparative Market Analysis (CMA.)

The Comparative Market Analysis (CMA) prepared by your agent/broker will compare active listings, recent and pending sales, days on market, price adjustments etc. of "like" or comparable properties first in your immediate neighborhood, then in the surrounding similar neighborhoods within the region. CMAs are given by brokers in pursuit of a listing free of charge. It's important to stress however that a CMA is an informal instrument meant to be used as a guide, never as a substitute for a formal appraisal. When or if a formal appraisal should be used is another question your broker can help you answer.

Don't forget the mountain of paperwork an Agent can help get you through. Earnest Money Agreements (that you might need help understanding) run at least eight pages in Oregon, and that's not including any counter-offers back and forth or the state-mandated disclosure forms that will have to be completed and presented to any potential buyers before you can close a deal. Just shuffling the paper and keeping track of it all is a huge undertaking. Taking that paperwork and dealing with buyer's lenders, appraisers, title companies, escrow officers etc., should be reason enough by themselves to convince anyone to make good use of a professional Agent and his Brokerage.

It is estimated that more than 80% of FSBOs end up getting listed by a professional agency in the end. Unfortunately, this usually only happens after the seller has wasted much more time and effort than was necessary. In worst case scenarios, this decision finally to list professionally comes only after markets have softened and prices have weakened to a point that have cost the seller much more than any possible agency commissions would have originally.

After time, you might be successful selling your home on your own. However, without the help of tools like the MLS and an Agent to help you get you through the paperwork, doing it by yourself is likely to take a lot longer and be a lot more work and trouble than you were expecting.

Fred Jaeger is a licensed Oregon Real Estate Broker and e-PRO Certified Realtor® associated with Gilchrist Real Estate Company in La Pine Oregon. He can be reached directly at 541 598-5449 or fred@gilchristrealestate.com

All Bow to the Almighty FICO

Tue, 11 Dec 2007 14:37:04 -0600

The key to getting ahead in this country used to be an education. Absent even that, at least what a person had done in life, what they had actually accomplished was what counted. These days however, it seems that the only true mark of achievement that makes any real difference one way or another is, unfortunately, the almighty "Credit Score."

Even today, during the so-called "lending crisis," there are "Stated Income" loans available where virtually the only requirement is a minimum credit score. Forget what that person does for a living, how long they've been doing it, what kind of money they make, or even if they have a job in the first place; if your credit score is high enough, you can probably get a loan.

On the other hand, even a Pulitzer Prize winner or a Nobel Laureate's loan application could be rejected if their credit score didn't measure up. That, to me, is pretty astounding. Some would argue however, that the system set up by the Fair Isaac Corporation (they were the first to come up with the so-called "Credit Score") is a fair and equitable means of determining credit worthiness, by considering the most relevant facts while disregarding other variables which might be considered extraneous.. like what you've accomplished in life.

Oh brother.

I guess even my client's Nobel Prize might be considered extraneous if he had a recent bankruptcy so the best lesson to be learned from all this is to protect your credit score at all times!

Lets look at what can be done to Improve Your Credit Score:

Check you credit via one or more of the three predominant Credit Agencies, Equifax, Experian and Trans Union often. If you haven't checked recently, you might find errors that are hurting your score. Each agency provides a place on their website where you can register a dispute. Use it.

Don't close old accounts that you're not using. Long histories, regardless of activity help your credit score.

Pay your accounts on-time. Even one incidence of over 30 days past-due can hurt your score dramatically.

Keep a small balance on your credit cards while guarding against keeping high balances relative to your credit limit. A small balance, believe it or not, is better than a zero balance. A general good rule of thumb is never to exceed a balance that is more than 30% of your credit limit.

If you run into a bind (illness, loss of job etc,) call your creditors before you get behind in order to work out a payment plan.

Checking your own credit often (a soft pull) won't hurt your score. However, if a lot of outside companies do too many checks, too often, this can hurt your credit. Don't apply for credit to a lot of creditors at once. If you're buying Real Estate, what ever you do, don't buy that new car until your transaction has closed escrow!! Many a deal's been killed by people who bought "furniture for the new house" at precisely the wrong time. Remember, that your lender might pull credit one final time before funding the transaction. (or not)

Consider getting a "Secured" credit card to establish credit. This kind of account is secured by a deposit placed on account with the issuer.

Don't apply for too many credit cards that you don't need. Having a lot of credit availability can actually hurt your score.

If you've been a good customer over the years, ask to have that one payment that you made late erased from the record. You'll be surprised what you can sometimes get by simply asking.

Don't ever ask a creditor to LOWER your credit line. The result of that will increase your debt to limit ratio, which hurts your score.

Resist the temptation to consolodate accounts into a single card, even if its at a much lower rate. The idea here is to maintain low balances on your cards instead of a high balance (relative to limit) on just one.

There's a part of me that thinks it's a little sad that the measure of a person's reliability and almost by implication, their worth to society, can be sythesized into a single number; but like it or not, in our society today the almighty FICO score apparently reins supreeme. Making sure that "score" is protected is an essential componant of modern survival.

Here's the Secret..

Wed, 28 Nov 2007 15:00:14 -0600

The so-called media talking about the so-called National Real Estate Market needs to shut up with all the doom and gloom! I don't know what kind of crystal ball these so-called experts are looking into in order to make the recent rash of negative predictions, but accurate or not, just the saying so is, unfortunately, enough to drive the market in the wrong direction.

The Real Estate Market is in large measure, perception driven, in one direction or another. It's as simple as this; if you're a buyer out there listening to it all, why in the world would you make the decision to purchase in a market you believe to be in a declining condition? The answer is, of course, that you wouldn't. Anyone in their right mind would wait until a point in time where, right or wrong, when they believe the market to have hit bottom or to be finally trending upward.

All the market needs to recover is the belief that it has. I know that's a tall order in reality, but the simplicity of what can make or break any market is both elegant and fascinating.

I know, I know, I want to throw up as much as the next guy every time every time I get quoted something along the lines of the so-called "Secret" and a so-called "Law of Attraction" which essentially says all will be well if we just think positively. In the case of the Real Estate Market, that might just be what we need to do - that and a lot of convincing out there that all is well with Real Estate.

Whenever anyone asks "How's the market these days?" we should make it our mission to declare that it's "Looking up!" or something equally or even more positive.

That might make all the difference in the world. Let's at least give it a try. That and a letter writing campaign in each of our respective communities for the news media to just shut up with the recent rash of what invariably become self-fulfilling prophesies in the wrong direction.

Who knows, maybe if we do, you'll make me a believer in "The Secret" after all.

It's not about Left or Right.. it's about The American Dream

Mon, 12 Nov 2007 13:09:46 -0600

I'll never forget what I did that first time I purchased Real Estate. I actually sat on the ground of that property and, just like a kid, played in the dirt. I just had to feel the ground, dig down into it with my hands and let my fingers feel the rocks, sand, sticks and mud of this tiny piece of the earth that had somehow, incredibly, become mine. I looked around at the trees blowing in the breeze, and yes, I admit it, I had to run up to a couple of them and give'm a good squeeze. How could I not have? Tree hugger or not, to own your own land is a feeling like none other. I don't know, maybe it's a guy thing, but I doubt it. To this day I still occasionally walk around my humble little property and marvel at the still seemingly impossible notion that it could actually be mine.

But then of course, it's about now when reality slaps me in the face.

It's about now when it occurs to me that even if the property was paid off, and it technically were "mine," that in reality, it's not. You see, in this country, God love it, we may hold title to Real Estate, but it's the Government that reserves the right to take it at any time of its choosing, if it feels the need. Thankfully the "Just Compensation Clause" of our Constitution's Fifth Amendment provides that although our land can be taken, at least we've got to get paid, supposedly at fair market value.

Without regard to the whole notion of "Eminent Domain," even if I never had to worry about the government's stepping up and deciding it just had to have my property, there are other ways it can take it from me; like via taxes, or rather, because of my possible failure to pay them.

If I had the power to eliminate any tax, it would be the property tax. (Do I sound like a Conservative? Read on..) To me, the property tax is the government's little reminder to us all that it's not we who actually own our property; it is our government who does, and to whom we pay rent every year for the privilege of occupying that space.

Ironically, after even a short study of our system of government and its place in the whole scheme of things what becomes blatantly apparent to me is that this whole "right" - "left" labeling trap we've all fallen into during the last couple of decades has very little foundation. This is especially true when trying to tie one or the other into some kind of idea of Liberalism or Conservatism. For one thing, since we're talking about theoretical "Private Property" ownership, it should be noted that the very notion of someone actually owning his or her own land is a relatively modern concept. Relative to human history, "Free Enterprise" and the whole idea of a so-called "Capitalist Democracy" in the first place is, in truth, an extremely Liberal concept. And although the so-called Conservatives today tend to champion the idea of lowering or eliminating taxes, that idea could be argued as a purely liberal notion, bordering on the radical-left. After all, it really wasn't that long ago when it was the Kings and Queens of the world who ruled over everyone, and owned it all as well.

But I didn't mean to tread down that path, other than to point out that there are a whole lot of flaws in this whole notion of "Right" or "Left" and when viewed in the proper context, it's pretty silly at best and completely illogical and historically inconsistent at worst. We're all Americans, and in most things we all agree; like the idea that all of us should have the freedom, if not the right, to pursue the American Dream of Home ownership.

I'll never forget how I felt, as I described at the beginning of this story, when the day finally came when I bought my first place. And although it's the government to whom we actually pay rent, it is the fact that we are allowed to control that property, work it, improve it, put it out on the open market and actually re-sell it while pocketing the profits, that is such a wonderful thing; a privilege worth recognizing as neither right nor left, but essentially and fundamentally American at its core.

Real Estate sales is a marvelous component of modern western thinking; a system that really works for the most part, despite an occasional slap in the face with the down side of a market system that can be as harsh as it is normally generous. It is, however, the actual owning of Real Estate that's even more magical to me. It's not the process of buying and selling that is most meaningful; it's that moment in time, illusory or not, when dirt is in one's hands, and the ground is under foot, when the spiritual impact of property ownership is fully recognized and appreciated.

Every House will Eventually Get Sold. Even the Ugly Ones...

Thu, 01 Nov 2007 17:36:31 -0500

Every house will eventually get sold. Even the ugly ones that are hard to love, or even like. Realizing that fact and doing a good job of not projecting personal feelings is one of the greatest challenges I've found while showing homes.

Every time I show a house I just hate, I practically have to bite my tongue in order to keep my mouth shut. "Somebody's going to buy this house!" I try to say to myself; "so don't embarrass these people if they end up being the ones who do."

I've actually been foolish enough to say something negative about a house while showing it, only to watch the faces of my clients change while feeling the whole mood of the showing turn awkward and tense from that point forward.

By making that mistake, my clients were from that moment forward, embarrassed to tell me how they actually felt, which just made my job exponentially more difficult and their chances of me being able to help them, that much more remote.

Needless to say, its our duty as Realtors to bring to our buyer's attention any material facts that might affect their decision to purchase, but beyond that, unless asked, I try to shut up, listen (and hear) while showing. I've even learned to give some clients, especially couples room to walk around and talk on their own. After all, as some have pointed out on the Rain, people don't need to be told that they're now entering the kitchen.

Yikes, I've been guilty of that too. See ya next time.

Central Oregon Get-Away Spot - Priced to Sell

Mon, 29 Oct 2007 15:57:45 -0500

MLS #: 2713461
Price: $79,900
Status: Active
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Agent: Fred Jaeger
Email: fred@gilchristrealestate.com
Phone: 541 598-5449

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Address:
52530 Railroad St
La Pine, OR 97739
Neighborhood: Cagle
Type: Manufactured Home for Sale
Floors: Single Story
Bedrooms: 3
Baths: 1
Square Feet: 672 +
Lot Size: 1.02
Year Built: 1971
School District: La Pine

Description:
PRICED TO SELL! Older manufactured home in nice shape on a well cared for acre. Add-on allows for a couple extra bedrooms and a living space with a great woodstove. Includes out-buildings. Storage trailer with built-on will be dismantled and removed. Would make an excellent get-away place or primary residence.

Prime Central Oregon Building lot on quiet cul-de-sac Surrounded by Nature.

Mon, 29 Oct 2007 15:43:18 -0500

Prime building lot on quiet cul-de-sac surrounded by nature.
MLS #: 2713845
Price: $119,500
Status: Active
Request more photos!
Agent: Fred Jaeger
Email: fred@gilchristrealestate.com
Phone: 541 598-5449
Schedule a showing
Email this listing
Map this location
Driving Directions
Print this listing
Mortgage calculators

Address:
300 Long Prairie
La Pine, OR 97739
Type: Lot/Land for Sale
Lot Size: 2.87 Acres

Description:
Prime building lot on quiet cul-de-sac surrounded by nature. Nearly all the clearing has been done and is ready as an ideal get-away spot. This is the location you've been hoping to find for your dream house! Come take a look and see if we're wrong. Park-like scenery in a must-see setting. This is really special.

Exterior Features:
Horses Allowed

"We Got the House!!" WRONG! - Hold your Horses.. just slow down a minute!

Sun, 28 Oct 2007 21:03:39 -0500

I just love all these Real Estate shows on the TV lately where an accepted offer arrives and the Realtor declares, "You got the house!"

HOLD THE PHONE! I might be the only one that starts getting agitated with that, but it's usually at about this point when I start screaming "NO YOU DON'T!" while simultaneously throwing something at the tube.

We all know there's a long way to go once a deal hits escrow before it's actually closed, so let us count all the ways a deal can get killed post mutual acceptance, (and these are just for starters:)

Fred's favorite ways a deal can get killed in Escrow...

Inspector makes it his mission to find anything and everything wrong that he possibly can. Nice job Mr. Inspector; you certainly are thorough. I'll make sure to recommend you.

House won't appraise. Sometimes this is due to some of our own creative Monkey Business like asking the Seller for closing costs and bumping up the purchase price as an offset. Nice job everyone on that one.

After getting "Pre-Approval" for the home, Buyers decide to purchase "new furniture for the house" on credit. Or a car, boat or other "must haves" prior to what would have been the close.

Lender can't get final "Underwriting Approval" for a thousand different reasons, even after so-called "pre-Authorization."

Buyer gets cold feet and just can't go through with it. (This is my favorite.) Will forfeit Earnest Money in Escrow and has no problem wasting your time as well.

Upon pre-close walk-through, it is discovered that the Seller changed out all the sparkling new appliances present at the showing for 25-year-old models. "We didn't say THOSE appliances were included." Nice job Mr/Ms buyer's agent for not spelling it out in the EM Agreement to begin with.

It goes on and on... what do you think?!"

Alright-already.. I admit it - My Vehicle is a Little Sloppy !!

Sat, 27 Oct 2007 22:57:03 -0500

When I first got into Real Estate, I promised my self that I'd keep my vehicle in tip-top, ultra-clean condition, ready at all times for my clients. The reality is however that somehow every time I've got a showing you'll find me making a mad dash out to remove trash, dog hair, nose prints, mail or other various Real Estate Implements-of-Destruction (anybody remember Alice's Restaurant?) just in the nick of time before we need to dash.

This has got to stop.

But it's not just the inside. (If you could see my head, it would be hanging in shame.) My problem unfortunately extends to the outside as well. Who knew these darned vehicles actually require an occasional scrubbing once in a while? I sometimes kid around with my colleagues that I wash it twice a year, whether it needs it or not, but then I hear the knocking on the wood of my inner voice telling me that twice a year may not be that much of a stretch in my case. Ouch.

And I haven't even mentioned the ever-accumulating mountain of signs, stakes, frames, riders, flier boxes, hammers, zip ties, on and on and on that is ever present in the bed of my truck.

Yikes, just talking about this is getting embarrassing! My truck, my clients, and myself need some help apparently. If there's any kind of Real Estate clean-up rehab or something out there, well, alright-already, I admit it... I need it. Oh and please, what ever you do, don't start on me about my desk.

Am I the only one?

First Time Buyers in Oregon need to know this...

Fri, 26 Oct 2007 18:02:30 -0500

Oregon's State Housing Finance Agency (HFA) may be an excellent source of financing to first time home buyers. Providers of the "Oregon Bond Home Loan" and the "Purchase Assistance Loan" (PAL) programs, the HFA says that this little known resource might just be the solution for home buyers seeking financing in an ever-tightening lending market.

Tapping into a large source of below-market rate lending capital (225 million in 2005,) the Oregon Bond claims to "never run out of money" and has had an ongoing source of funding for over 10 years. 99.5% of 2004 Oregon Bond borrowers served were first time home buyers with 80% having household incomes at or below 80% of the state or area median income.

Oregon Bond - Main Benefits

Ø Provides a great 30 year Fixed Rate

Ø 3% Cash Assistance provided by the CashAdvantage Home Loan

Ø NOT just for low-income households - Income limits up to $58,600 statewide (higher in some areas.)

Ø Purchase price limits are now over $200,000

Ø No fee 90 day Rate-Locks for existing homes and 120 day Rate-locks for newly constructed homes!

Two Oregon Bond Loan Choices are provided:

CashAdvantage

Ø Includes 3% Cash Assistance to pay closing costs

Ø O.5% higher than the RateAdvantage option

Ø 30 year fixed rate

Ø No Secondary Liens

Ø Cash assistance is like a Grant

Ø No Pre-payment penalty

Ø Less Cash Needed to close

RateAdvantage

Ø Provides a below market rate

Ø 30 year fixed rate

Ø Compatible with gifts, grants and DAPs

Ø Assumable

Ø Maximum purchasing power

Ø No Prepayment penalty

Oregon Bond-Borrower Qualifications

Ø First-time Home buyers: May not have owned a home in the last three years (unless purchasing in a targeted area.)

Ø Household income limit (100% of State median - $58,600)

Ø Must Occupy new home as a "primary residence."

Ø Must meet applicable mortgage insurance requirements or other lender requirements.

Ø Bankruptcies must have been discharged at least two years prior to closing the program loan.

Ø Foreclosure or "deed-in-lieu of forclosure must be at least five years prior to loan closing the program loan.

New homebuyers might also be able to get help with down payments and closing costs through the Purchase Assistance Loan PAL! Low income or first time homebuyers can get up to a $10,000 loan at 0% interest with no payments due until payoff or transfer of title. This option must be paired with the Oregon Bond's RateAdvantage Home Loan option.

With money seeming to be tightening, especially in the so-called sub-prime market, first time home buyers should take a serious look at the many resources currently being provided by Oregon's State Housing Finance Agency (HFA) and the Oregon Bond.

An excellent source for more information regarding the Oregon Bond can be found at http://www.ohcs.oregon.gov/ and lenders familiar with the program.