Last Updated June 14, 2022
In our past couple of episodes, Kip and Ryan talked about what it takes in order to get into contract successfully. There’s a lot that goes into the process of making an offer – but there’s even more that happens once both parties have signed on the dotted line.
It’s easy to take the escrow process for granted, but this is an area where you (and your real estate team) need to be on top of things. We go through the entire process step-by-step with an industry pro, Kelli Bachofner of Western Title and Escrow. You’ll learn more than you thought you ever wanted to know, and Kip also has some of his patented Kip’s Tips, this time for sellers – “Don’t overestimate your worth.”
Of course, we start this week’s show with our weekly market update, this time with an overview of the market data for all of February.
Voiceover:
Ladies and gentlemen, strap on your seatbelts and hold on to your kombuchas. It’s time to get ready for the Real Estate Revolution.
Kip Lohr:
Welcome back, everybody. I am Kip Laur, your host with LOHR Real Estate.. This is the Real Estate Revolution podcast. And you know what, we’ve been doing this for a few weeks and we’re starting to get our stride going. And I’ve got Ryan again this week, our co-host from our Eugene office. Hello, Ryan Neal.
Ryan Neal:
Hello there, Kip.
Kip Lohr:
I am excited about this week’s episode. We have a very special guest in the house today from Western Title, Kelli Bachofner. And she will be regaling us with the A to Z process for buyers as far as escrow goes. And so that’s going to be a fun interview today. What have you got for us today, Ryan?
Ryan Neal:
I have a very fun market update for you. We’re going to give you a picture of what’s been happening through the month of February. And there’s some interesting stuff.
Kip Lohr:
I can’t wait.
Ryan Neal:
Let’s start with Bend. So the direction of Bend’s market is pretty obvious. It’s going up and up and up and up. Homes are getting more expensive. Inventory is still dropping. The median sale price for February in Bend was $785,000. And that’s a 14% month-over-month increase. That’s month over month, not year-over-year. Pretty crazy. That kind of spike is totally unprecedented here. And it’s happening in the winter. So that’s pretty incredible. However, it might be a little bit of a fluke, at least. What we’re seeing right now as far as Bend’s pending sales is that, you know, these were listed in a median of $750,000. So tha’s a bit lower, but still well above what we were seeing even as recently as last month. Active properties in Bend have a median list price of $840,000. So what we’re seeing right now is that the inventory at the lower half of Bend’s market is getting grabbed up and what’s available now is more expensive even then what’s been selling. In Redmond, on the other hand, prices basically stayed flat through February, give or take a few thousand dollars. The median sale price in Redmond was $497,000. And while that’s quite a bit lower obviously than what we’re seeing in Bend, it’s interesting to look at the inventory that’s actually available in Redmond and how it compares. So there’s a little bit more inventory on the more affordable side of the spectrum in Redmond than in Bend. But if you compare the quality of these homes that are available, there isn’t really a significant difference. So it’s not that your dollar is actually getting you a lot more in Redmond. What’s really the case is that Redmond has a lot less higher-end inventory than Bend and that’s really what’s driving down the median rather than that Redmond’s market is actually that much more of a inexpensive market than Bend’s. Inventory is almost as low in Redmond as it is in Bend. We’ve got just over a half a month inventory in Redmond and just under a half a month of inventory in Bend. In Eugene, we saw sale prices appreciate in February at a relatively modest rate, with a 2% increase month over month up to $450,000. Interestingly, the pending sales in Eugene were listed at a median of only $414,000. So really, the inventory at the lower end of Eugene’s market is getting bought up fast, and here too, what’s left on the market is getting more expensive. There are 105 currently active properties in Eugene, and these have a median ask price of just a hair under $500,000. It’s looking like we’re bound to see prices go higher in the spring. But for now, you know, we’ve just seen this early run on less expensive homes. So with our numbers for next month, you know, it might look like prices are dropping in Eugene, but we don’t think that’s really going to be the case. In Springfield we’re seeing some very interesting trends. Sale prices spiked significantly in February. They were up 16% month-over-month to a median of $431,000. So what we’re seeing is that the gap between Springfield and Eugene is getting more and more narrow. It used to be the case that it was significantly cheaper to shop for a home at pretty much any price point in Springfield, but that’s just no longer really the case. On the other hand, the active inventory in Springfield has a median asking price of $403,000. So in Springfield, what it looks like is that it’s the higher-end inventory that’s getting bought up fast. There could be a number of possible reasons for that, and we might start to explore these in future episodes but for now, it’s time to go on to the main part of our show.
Kip Lohr:
Welcome back to The Real Estate Revolution Podcast. I am Kip Lohr, your host with LOHR Real Estate. I have Ryan Neal from our Eugene office and trusty co host in the studio still today. How you doing, Ryan?
Ryan Neal:
Fantastic, Kip.
Kip Lohr:
Fantastic. You’re always fantastic. You ever have a not fantastic day? When you come in and record with me?
Ryan Neal:
Well, the day is when we record our show are always fantastic.
Kip Lohr:
That’s great. Well, I’m excited to say that we’re going to be doing an interview today. It’s kind of spent the last several weeks talking about the importance for buyers of having a really robust and trustworthy team of real estate professionals by their side to help them have a successful purchase of a home. And you know, we’ve talked about, of course, how you’ve got to have a great real estate agent working with a great real estate company, and you’ve got to have a great lender. We’ve talked about inspectors, and I’m really excited today to bring in a real estate professional from Western Title, Kelli Bachofner. And how are you doing, Kelly?
Kelli Bachofner:
I am doing great, Kip. Thank you for having me today. Hi, Ryan.
Ryan Neal:
Hey, Kelly, thanks for joining us.
Kip Lohr:
Well, you’re stuck with us in a little bit different situation than when we usually get to work with you. Today, we’re bringing you in to kind of walk people through the escrow process for buyers. You know, you guys represent both buyers and sellers in the transaction.
Kelli Bachofner:
We do. So at Western Title and Escrow, what we are is a neutral third party. So we represent everyone as a neutral party throughout the transaction.
Kip Lohr:
We’re bringing you in to kind of give buyers, the buyer side of the transaction, a behind the scenes kind of preview of what you guys do and the services that you provide for them. And, you know, the reason that we talk about the escrow and title company being a part of our team is that it’s really important to, you know, have a trusted relationship with the company and with the escrow agent, so that we have a smooth transaction. And I’m going to do a pre shameless plug for you. You know, we’ve worked together for almost five years now. And I’ve been working with Western title for 16 or 17 years, starting in Bend. And you guys have always been on top of it. The communication has really been on point. And so I guess that’s why you’re on the show today.
Kelli Bachofner:
Oh, thank you. I think everyone here at Western really, really strives to make sure that the communication is on-point. There’s a lot going on when you’re trying to buy a house. So the more that we can boot people in so they aren’t worried or sitting there wondering what’s going on – that’s what we try to do.
Kip Lohr:
Yeah, and you succeed. So I guess to start things out today, I think it’d be great for you to kind of go from the start to the finish of a purchase for a buyer. What are the steps that they’re going through in relationship to their interaction with you guys?
Kelli Bachofner:
Yeah, absolutely. So once you have an accepted offer, the sellers accept your offer, your real estate agent will actually send us over the contract to be able to open up title and escrow on a file. And from there, once everything’s opened, we will have earnest money deposited within the terms of your sales agreement. So typically, within I would say three to five days, depending on your term. And we can do that in a variety of ways, which is really cool. So if you are out of state, we have a mobile deposit option, or wiring funds, or checks or whatever you’d like to do.
Kip Lohr:
And so, there are many different ways to get the money to you guys. Once you guys get the money, then what happens?
Kelli Bachofner:
Yeah, so that money is deposited into our trust account. So it’s deposited in your escrow account here with us. We always send out copies of that deposit out to all the parties, so your real estate agent, your lender, and so everyone gets a copy.
Kip Lohr:
And so with that money, you guys are kind of holding it. Here again, because you guys are neutral third parties, you’re holding it for both parties. And so what what happens if a deal fails, a sale fails? Like for instance, you know, we might get an inspection report back and we just can’t come to terms with the seller as far as repairs go, so we terminate a contract. Who gets that money? Who gets the money back? And, how is that money released back to them?
Kelli Bachofner:
Yeah, absolutely. So what we have to do is wait for a written instruction between the buyers and the sellers and the real estate agents as to who gets that money back. So once we receive a fully executed termination agreement, we would release that money back either back directly to the buyers or in some cases, the sellers depending on the situation.
Kip Lohr:
So I have been at this for almost – well, actually this is my 30th year, and up until 2021, I had never run into a situation where both parties did not agree where the money goes. You know, if the seller thought the seller should be getting it, and the buyer thought the buyer should be getting it. What happens when that situation comes about, when both parties will not sign on where the money goes back to.
Kelli Bachofner:
Yeah, so that does unfortunately happen sometimes. So we still hold that money in our trust account for just as long as we possibly can. Typically, hopefully, at some point, the buyers and sellers do come to a negotiation as to where that money should go. If for some reason, they do not, our accounting department actually has to take over after about a year of those funds being in escrow. And from there, they turn it over to the state. Now, once all parties do come to an agreement, they do have to work directly with the state, which is a little bit more time-consuming and difficult than if it were just to be handled when it could be in escrow.
Kip Lohr:
Right. So typically, there would be some mediation. If the mediation fails, and it goes too long, then the money goes to the state. You have to make a compelling argument to the state why you should be getting that money.
Kelli Bachofner:
You absolutely do. I would say I’ve only had a couple transactions where it’s had to go that far. I think that we all usually like to come to some sort of an agreement before it does have to go to the state.
Kip Lohr:
Okay. Well, that’s good to know. I think, you know, that’s obviously a question that a buyer is going to have. You know, when we are negotiating the contract and talking about earnest money, buyers almost straight across the board talk about well, you know, do I get the money back? If, you know, we can’t come to terms and obviously, there are many reasons that the buyer can get the earnest money back, and there are a few reasons why the seller can have a valid reason for thinking that the earnest money should be released to them. And like I said, I mean, in 30 years of doing this, I’ve rarely run into issues where buyers and sellers have fought over the earnest money, but I did last year have one one of those times happen, and it is a drag.
Kelli Bachofner:
It is. We always like to be able to, like I said, handle it within escrow, because once it does go to the state, it just opens up so much more complication for all parties, really.
Kip Lohr:
Yep, no fun. It’s always better when we can all part as at least semi-disgruntled friends, right?
Kelli Bachofner:
Yes, exactly.
Kip Lohr:
So what’s next, after you get the earnest money? What is next on the list for buyers to expect as far as their interactions with you guys?
Kelli Bachofner:
Absolutely. So the next thing that the buyers would really hear from us is when the title report comes out on the house. And really what the title report is, is it goes over all recorded documents that are attached to the property. So once that comes out, which is usually within, say, two to seven business days, we will send a copy over to all of the parties to review. And so that is usually done by email. And we have links that are attached to those title reports.
Kip Lohr:
Well, so that brings up like, this is kind of my geeky side. But so I imagine some, you know, grizzled veteran back digging through boxes of old, recorded documents to ensure that there’s not some break in the title. But you know, when you send this to the title department for them to do the research, like, how do they do their thing?
Unknown:
Yeah, so our title department has to go through a lot of documents and go back and back and back. As far as what is recorded on the property, some of it is posted online, which is great. Others, we have to request records from the county. So they’re their job is really hard to do. So really, they examine everything about the property, which is why we estimate those times for the title report to come back to make sure that they do not miss anything.
Kip Lohr:
Well, and I imagine that it’s a big difference between, say, it’s a house that’s two years old and a house that’s 100 years old, right? So as far as their title search is concerned, you know, you could get a quick turnaround on a 2016 home, but maybe a 1896 home might be a little bit of a different situation.
Ryan Neal:
Yeah. So Kelli, maybe you could go into a few examples of different documents that might be found in that process, which could maybe affect the course of a transaction.
Kelli Bachofner:
Yeah, absolutely. So I mean easements – so easements that are recorded on the property so mutually, I mean, it could be as simple as you sharing a road between your guys’ property, or there could be a gas line that goes within your property. So there can be a number of things that show up on that title report, which is why if it’s very important for you to be able to click on those links to review the terms of those documents.
Kip Lohr:
That makes sense. And so, when you get the title report back, if you have questions about what is popping up on the title report – like who should the buyer reach out to to get answers about questions that they have about the title report?
Kelli Bachofner:
Yes, so they should reach out directly to their escrow officer as a first point of contact. There are some times, like when they need to really review the terms within different tricky easements, that we would have our title officer give them a call. But as a first point of contact, usually the escrow officer can handle most of the questions that they would have.
Kip Lohr:
Right. And then on rare occasions, you might even have a real estate attorney have to look into things even a little bit deeper. If a red flag comes up from your title department.
Kelli Bachofner:
Yeah, absolutely. So really, and what we have to do is, we can explain the events as best as we can, and other documents that are recorded, but it’s difficult because we cannot really give you advice as to how they are written. So if it’s something that you are concerned about, again, a real estate attorney would be the next step.
Kip Lohr:
There you go. And another member of our trusted real estate professional team is having a good real estate attorney kind of in your back pocket. You know, I in my career, I’ve mostly seen rural properties be, you know, the issue where there’s funny easements and irrigation rights and things that cloud the title that are a little bit un-standard for just your garden variety, you know, kind of downtown Eugene type of home. So what’s next, once you get the preliminary title report back and maybe some of the questions that pop up on that are answered by your department?
Kelli Bachofner:
Yeah, absolutely. So the point of the title insurance and what we do is to be able to have the buyers have a policy that is free and clear of all liens. So once we have that title report back, escrow works on ordering the sellers’ mortgage payoff, that they have mortgages on the property, if there’s any child or spousal support between the parties, reaching out to make sure that no money is owed. So we really work during that time to be able to free and clear the property of all title defects that could pop up.
Kip Lohr:
And so on that line of thinking, so with like a mechanic’s lien, right, I know you ask standard, right, “Have you had any work done to your house within the last” – is it 90 days?
Kelli Bachofner:
75 days.
Kip Lohr:
So is that question asked, answered, and signed off on, and then we hope that they didn’t forget that they hired a roofing guy to replace the roof 45 days ago? Like how does that work?
Kelli Bachofner:
Yeah, so we ask the sellers to actually write as the title report comes back – so they get our opening packages, which ask if they’ve had any any major work done within the past 75 days. If they do list that it’s something large like a roof repair, we actually call that roofing company and confirm that they have been paid in full. And if they haven’t, we would pay that out of escrow. We also have them sign a notarized document at closing, stating that there are no unpaid bills from contractors or invoices. So we try our best to make sure that everything is paid in full.
Kip Lohr:
So what happens in the case where a seller either forgets or intentionally omits that information? You close a deal, and then all of a sudden, you’ve got a mechanic’s lien that pops up? How is that handled with title insurance? Or how was that handled outside of the close of that transaction?
Kelli Bachofner:
Yeah, absolutely. So it does not happen often. And we also really work with the sellers’ real estate agent as well to try to avoid that possibility of that happening. If it is, then we would reach out to our title department and see if we can work with the seller to either get that invoice paid in full or if we need to, file a title claim.
Kip Lohr:
Right. And then there’s also instances with non citizens who own property where there could be some taxes, FIRPTA. I mean, that’s something that is kind of a hidden landmine out there that maybe buyers don’t understand or are unaware of. Yep, absolutely. So FERPA is a tax law that is imposed on foreign sellers. So again, this is something that we asked from the very get-go of the sellers to see if they are US citizens. And if they do have a valid social security number, and then we also have them signed many documents in effect. If they are not, then it is a tax imposed on them. So, and what’s kind of scary about that is if we close and the person does end up being a foreign seller, that tax implication actually goes to the buyer. To the property. It goes to the property.
Kelli Bachofner:
Yes. Which now is, in a sense, the buyer’s property. So we really, really work hard to confirm that the seller is a US citizen with a social security number so that tax implication does not then in turn go to the buyer after they purchase the property.
Kip Lohr:
So here again, like mechanic’s liens, on the rare occasion that that pops up, then you know that creates a downstream issue for the buyer. Are that can be pretty sticky.
Kelli Bachofner:
It can, and I always tell buyers in signing that if for some reason after closing, they received anything from the IRS regarding a foreign seller, they reach out directly to their escrow officer because we have all of the certifications on file that we will be able to provide to the IRS.
Kip Lohr:
Perfect. Perfect. So what’s next? I’m so curious.
Kelli Bachofner:
Yes, absolutely. So escrow works on ordering all payoffs, getting the property all clear. And for a cash offer, really we can close shortly after we do clear everything on the property within the terms of your sales agreement. So with that can be as quick as a week or if, you know, your sales contract says, the next month. So for cash offers, it can be a pretty quick turnaround time if the seller just has a loan on the property or something easy to clear on the title. What we will do, as soon as a title report comes out, is let your real estate agent know if we see any holdup or delays with being able to meet that timeline. But usually, it can be a pretty quick turnaround time for cash transactions.
Ryan Neal:
A week is pretty fast.
Kelli Bachofner:
Yeah, it is pretty quick. Like I said, if it’s fairly clear, we can be able to close that pretty, pretty quickly.
Kip Lohr:
Yeah, and in my experience, and this is a plug for teamwork, it’s a plug for relationships – is, you know, with this market being competitive, you’ve got 10 or 15 offers coming in on a property that you’re interested in, and you want to be the one that shines through. And one of the ways if you’re a cash buyer is to have a short close if that’s what’s really important to the seller. And, you know, I have had personal experience with you guys doing even quicker turnaround times. You guys put the pedal to the metal – I think our quickest one was, what, three days something like that, three or four days?
Kelli Bachofner:
It can be that quick, yes.
Kip Lohr:
It puts pressure on everybody, I understand that. And I don’t call in that marker very often. But kind of the takeaway that I want buyers to be able to get through these last several weeks of our episodes, is – as you know, we’re constantly striving to put you at the top of the pack. And there’s so many different ways, and it’s very individual to each property, each seller and each buyer’s ability to, you know, perform at different levels. And so you guys being able to step in and give me a four or five day close, sometimes that’s the difference between us getting the house or not getting the house and we really appreciate it.
Kelli Bachofner:
Yeah, absolutely. And I think it’s like you said, Kip, it’s absolutely a team effort and all of the parties working together to really get it close that quickly. And so it’s so helpful to have the team that you’re working with.
Kip Lohr:
So what happens if, and this is most common really – you know, we see many more financed offers than we do all-cash offers. So, when there’s a loan involved, you know, that’s going to add different layers to the transaction. And so what happens when our buyers are working with a lender?
Kelli Bachofner:
Yeah, absolutely. So Escrow is really working with your lender fairly quickly within you guys opening up escrow, having a mutual agreement signed. So the lender is in the process of processing your loan and working on the appraisal, and in the meantime, also is reaching out to escrow to make sure that we can work with how much money you need to come in for closing and fees. So we are working with them pretty much the whole entire time that you are in contract. And from there, we wait on the lender as far as when we can get the loan documents and are able to schedule for signings. So like I said, it’s a team process during that time as well.
Kip Lohr:
Yeah. And so in staying on top of what the lender needs and the lender, obviously, staying on top of what you need, you get to the point in the transaction where they’re going to bring you back docs and basically have the final figures for you guys to calculate when you work up the closing statement.
Kelli Bachofner:
Yep.
Kip Lohr:
On a closing statement, what are the things that the buyers need to be looking out for? What are the line items that they need to make sure that they’re checking the numbers on?
Kelli Bachofner:
Yeah, absolutely. So the closing statement is really everything that is on their closing disclosure that they have already acknowledged with their lenders. So the biggest thing that you want look out for is making sure if you have escrow accounts that you and your lender have set up an escrow account to be able to pay for your property taxes and homeowners’ insurance, that that’s listed on there. If you were going to pay for any home warranties, or if you and your lender agreed on if you pay the appraisal outside of closing, to make sure that we have that on there correct. So it’s really going over what you’ve acknowledged with your lender, just a little bit different format that we send it over. That’s really line itemed-out.
Kip Lohr:
And once they get that document, review it, and get it back to you, you know, signature of approval, then we’re kind of in the homestretch at this point, right.
Kelli Bachofner:
We are. So depending – usually when we send you over your closing statement, that is when we also have your loan documents and are ready to schedule your signing, so whether that be if you’re out of state, or if your here and have a scheduled signing here in our office.
Kip Lohr:
Yeah. And so what happens if you are an out-of-state buyer? Talk a little bit about that process for people who aren’t in town, where they aren’t going to walk into your office and actually sign the documents.
Kelli Bachofner:
Yeah, so it’s happening more and more. And so what will happen is your escrow team will usually reach out directly to the buyers to see where are they at and get a window of time that works for mobile notary and how our mobile notary service works that’s kind of cool is that we put in that timeframe and where they’re at. And it almost acts like Uber for notaries.
Kip Lohr:
Wow,
Kelli Bachofner:
So a notary will pick that. Yeah, it’s really cool. So I just get email notifications that a notary has picked it up. What is so important, especially on the buyer side of things – when you have a loan, we require the original loan documents to be back in our office before we can close.
Kip Lohr:
You mean Western Title.
Kelli Bachofner:
Western title, yeah.
Kip Lohr:
So you need wet documents.
Kelli Bachofner:
We do need wet documents. We require the original, really the deed of trust, which is the document that ties your loan to your property, to be back in our office so we can close. So it’s so so important with the lender to be working with us and getting our loan documents and also scheduling, defining where we can facilitate having those documents back in our office, at least the day of closing. Some lenders require them to have their loan documents back in their office before closing, so they need to come to us and then go to them. So it’s really working as a team to make sure that you can schedule that signing when you are away and having enough time where all the documents can get where they need to be so we can close on time.
Kip Lohr:
Right? So here, again, back to teamwork and communication – you know, having a team that has worked together and knows the ins and outs of all these different pressure points in a transaction. And you know, for instance, myself as the agent saying, hey, Kelly, my folks are going on vacation right at the time when we’re going to be signing, they’re going to be in Mexico, here’s where you can contact them. So, you know, at the beginning of the transaction, where they’re going to be or, for instance, you know, we work with a lot of out-of-state buyers. So at the beginning of the transaction, we’re letting you know that, you know, this is going to be a courtesy-signing, mobile notary situation so that you’re got the whole transaction to get it set up rather than me calling you, you know, the day before close and saying, oh yeah, by the way, you know my folks are in Mexico, right?
Kelli Bachofner:
Yeah, yep. And Kip, I will say your team always – I love that about you guys, because you always do let us know at the very beginning of the transaction, which is so important, because this time should be an exciting time. And it shouldn’t be stressful. So I think, again, just a great team that you’re working with where with that being your real estate agent, your escrow and your lender, and all of them being in communication, that can go very seamlessly.
Kip Lohr:
Yeah. And on the other side of it, you guys are actually doing something with that information. I mean, I don’t want to call out any other companies by name, but you know, we operate that way with whoever we work with. We don’t always, unfortunately get to work with you. But, you know, we’ve had times when it’s like, we’ve told them at the beginning of the transaction that this is going on, and then they just they forget about it, or they wait too long to get the pieces in place for it to be a smooth, close-on-time kind of arrangement. And, you know, you talk about it being stressful – I mean, sometimes it can be the difference between a deal closing and a deal dying, right at the end of the transaction, because if we need to extend the close, the seller doesn’t have to agree to that. We are out of contract when the date for close comes and goes. And if we can’t renegotiate a different close date, then we have a dead deal. And it’s not common for sellers to not give extensions, but it’s more common for sellers to find a way to dig into your pocket for the privilege of being able to extend the closing date. And, you know, very rarely we’ll get a seller that’s just like, “You know what, I’m not gonna close, you said you close on this date. And, you know, I’ve got three backup offers.” And, you know, we are in a market right now that’s going up so fast, maybe in the time that it took us to get to the closing table, and we couldn’t close, you know, they can get another $20,000 or $30,000 for their house.
Kelli Bachofner:
Yeah, it’s so true. It’s again – I know that we keep on talking about that whole team thing and communication, but it is so, so so important, especially when you’re a buyer signing out of state.
Kip Lohr:
Yeah, and for me, I love to not have to do all the elements of a transaction. In other words, I don’t have to worry about what you’re doing, Kelli. I love to be able to say –
Kelli Bachofner:
You don’t want to wear all hats?
Kip Lohr:
Well, I’m willing to do that. And quite frankly, when I’m working with a company or an escrow agent that I’ve never worked before, until you show me that you’ve got the goods, I am going to wear that hat for you. But at the end of the day, it’s always nice to be working with, you know, a team that gets you. You know, I don’t have to worry about what Kelli’s doing, or our preferred lenders that we’d like to recommend to our clients, I don’t have to worry about what they’re doing. They are on top of their stuff, and hopefully you don’t have to worry about what we’re doing.
Kelli Bachofner:
Yeah, I couldn’t agree more.
Kip Lohr:
So, okay, now we’ve signed – well, actually, we’re not done. We’ve talked about remote signings and mobile notaries What happens – so somebody is in town, and they’re going to come sign with you. What’s that experience like? What can they expect?
Kelli Bachofner:
Absolutely. So if you are in town, you can come just directly to our office and sign at Western Title, or if you have a different title company that you’re using. And we love when that happens. I think one of the funnest things is to sign buyers who are excited about purchasing their property. And it’s one of my favorite things to do. So having them come in and sign the documents. And again, we work with your lender, sending them back and making sure that they can review everything in time to be able to close.
Kip Lohr:
Yeah, I mean, you guys have been actually – how long has it been since you’ve actually had people come in your office? I mean, with COVID that was not happening for a while, right?
Kelli Bachofner:
Well, you know what, we never turned away buyers and sellers and borrowers, if you’re refinancing, to come in and sign at our office all throughout COVID, which I don’t think was the case at all title companies. We just put in a lot of extra precautions to make that happen. But it has only been recently – well, I would say in the past year now, that real estate agents and lenders can actually come in for the signings as well.
Kip Lohr:
Yeah, that’s – for me in my career, it’s always been important to be there to help answer questions, not just to leave it on your shoulders to be there to answer all the questions. And a lot of times, there’s questions that you shouldn’t be answering, or you just can’t answer them. You know, having the lender there or having their real real estate agent there is really important, okay. And you still give away pens.
Kelli Bachofner:
We are still giving away pens, they come individually wrapped.
Kip Lohr:
Wow, very COVID-friendly pens.
Kelli Bachofner:
Very, very COVID-friendly pens. It kills me about all the plastic, but you get to go away with the pen. And sometimes we do have like a little additional goodies that we can give buyers and sellers as well.
Kip Lohr:
That’s kind of exciting. So okay, we’ve signed, now what?
Kelli Bachofner:
So now what we do is we work on sending those documents back to your lender. So the lender actually reviews everything that you just signed. And once they have and it’s the day that we are closing, they will actually send us the money to be able to fund the buyer loan. And once we have that money, and they have called us and given us the thumbs-up that we can officially transfer ownership, we record all of the documents – it’s actually an easy recording with the county to transfer ownership from the current owners over to the new buyer. And then also to your lender to record the deed of trust which ties your loan to the property. And once that all happens, the house is officially the buyer’s.
Kip Lohr:
And then I get to give them keys.
Kelli Bachofner:
You do. So that’s, again, one of my favorite calls, because we would typically call your real estate agent who wants to know it’s all recorded. so they can give you a call to give you the good news.
Kip Lohr:
Yeah, for me, that process is always pretty exciting. I’m appreciative that you allow me to be the one that lets them know that we’re closed. And it’s obviously the exciting time. So any other last minute tidbits of the process you want to share before we give you an opportunity to have a shameless plug about you and Western title.
Kelli Bachofner:
You know, I think that we covered pretty much the whole process. But again, I’m just going to say again, it’s just about working with your team and making sure this all goes seamlessly for a buyer. I will not say this again, but it’s so exciting to go through this process and it shouldn’t be stressful on you – to have the right people backing you.
Kip Lohr:
I totally agree. Kind of the line that I give my clients is, if we’re not having fun, then we’re doing something wrong. And so, exactly. You’ve worked with us long enough that you know that we’re pretty fun to work with.
Kelli Bachofner:
Yes, you guys are so much fun.
Kip Lohr:
Well, you’re pretty fun to work with too. So first of all, let’s talk about you. You are five years in the business this week. Is that right?
Kelli Bachofner:
Yeah, it’s it’s my work anniversary, work-iversary
Kip Lohr:
Well, happy work-iversary And all those years are at Western Title, right?
Kelli Bachofner:
Yep. I started here at Western Title, and that’s – my escrow background has been here, and I love it.
Kip Lohr:
That’s great. And tell us a little bit more about Western Title in general and some of the reasons or some of the ways that you guys kind of go above and beyond, or some services that you provide that might be different than some of the other companies out there.
Kelli Bachofner:
Yeah, so we have been Oregon-operated for the past 30 years. And really, our whole mission at Western Title is just to provide an exceptional closing experience, again, just trying to make it as seamless and easy as possible for all parties. And what is cool about Western Title is, I just think our team is awesome. We have a great team over here. And so you are always going to be getting exceptional customer service. If someone is out sick, there’s always escrow officers to step in and help out everyone. We also about five years ago were hired by Fidelity National Title, which is one of the largest title companies in the nation. But what really sets Western apart is that they always wanted to keep our local feel. And I think it speaks a lot that we can text our president and, you know, our team. They come in on a regular basis, and really keeps the spirit of Western with being backed by a Fortune 500 company. I think it’s great that we really, really have kept that local feeling through throughout that time.
Kip Lohr:
Yeah, and I don’t want to interrupt you, but I’m going to anyway, because I’ve been using Western Title for about, it’s I think 17 years now. So a little bit over half of the time that you guys have been a company, and I – actually my first agent with Western title was in Bend, Oregon, and her father actually started Western Title. And so she would tell me stories of her as a little girl diving through boxes in the title plant, getting things organized and stuff. And so I can speak directly to the almost seamlessness of the transition from being a small Oregon-operated, Oregon-grown company, and the kind of like, really top-flight, personal customer service that came with that, to when Fidelity purchased Western. And really, the only differences that I’ve been able to see on my side, and you know, the experience that’s different for buyers and sellers out there, are actually some of the benefits that Fidelity brings in, you know, some systems. And I’ll let you talk more about some of the technology, but you know, the customer service side, the feel of being an Oregon-grown company, I don’t think you guys have changed a bit from the user side. That’s my experience for sure.
Kelli Bachofner:
And I feel that stance says a lot about our leadership team, and like I said, our president and vice president are really working hard that we keep that feel, and having employees that have been here – one of our escrow managers has for over 30 years, and just making sure that we keep that feel of Western. But I think going on the positives, one of the great things for us is really the technology that we have access to being backed by Fidelity. So we – I think I mentioned it earlier regarding mobile deposits, especially for buyers who are out-of-state, so you can just take a picture of your earnest money check, and it will be deposited mobily into the trust account, which I think came out about a year ago. So that’s been super, super helpful. We have digital opening processes just to make it easier on both buyers and sellers to have just a more seamless transaction. So it’s the technology that we have access to that’s been incredible.
Kip Lohr:
Yeah, I just, you know, in the last couple of years started to dive a little deeper into the technological offerings that you guys have. You know, it’s really great to have kind of the muscle Fidelity has as far as the way – it’s like having a really cool little boutique hotel that you go to that has all the awesome features, you know, a great pool and all the great workout equipment. And you know, the, the breakfast buffet is just like three or four notches better than what you would typically expect of a small, little local boutique hotel. So you guys kind of have all the best of both worlds where you get kind of like that homey feel, but also really robust technologies that are available for the agents who use you guys. And it’s very user-friendly for both buyers and sellers, for sure.
Kelli Bachofner:
It absolutely is. It’s just even on – I mean, I don’t think your buyers would care, but even on our end, we have these like scanner sheets so you can scan in multiple documents and just the the sheet that goes to all of the different folders, just – it’s just cool. I don’t know, I nerd out a little bit.
Kip Lohr:
It’s okay for you to nerd out. Because listen, what makes your job easier and better allows you to really excel at the front-facing customer service side of things, right?
Kelli Bachofner:
Exactly, exactly. It makes my life so much easier.
Kip Lohr:
So you’re not digging through boxes that are stacked to the ceiling in your office anymore?
Kelli Bachofner:
No, not at all.
Kip Lohr:
That’s great. Well, so is there anything else that you want to say before we cut you loose? I mean, I am super impressed that you put up with this for this long. And I am deeply grateful for the time that you’ve shared with us today.
Kelli Bachofner:
No, thank you so much, Kip. Thank you, Ryan. And just the whole LOHR Real Estate team, I just am so happy to do that. Thank you for having me.
Kip Lohr:
Well, before we let you go, why don’t you – I’m giving a shout out to you personally. I think you are one of the greats in the industry. Why don’t you give people your contact information so that if they’re needing a good escrow agent, they know how to get ahold of you?
Kelli Bachofner:
Absolutely. So you can call me directly. My phone number is i 541-4347-076. And my email address, it’s a long one – it’s my first name, dot last name at Western title.com. So that’s [email protected].
Kip Lohr:
All right, well, you heard it out there in podcast land. Give Kelli a call if you need a good title company and a good escrow agent. And I am currently in transactions with you right now, Kelli. So you’re kind of stuck with me for the rest of the day. But for now, I really appreciate your time. And maybe we’ll have you back in another time.
Kelli Bachofner:
Absolutely. I would love it. Thank you so much. All right.
Ryan Neal:
Thanks, Kelli. Great to have you with us.
Kelli Bachofner:
Thanks, Ryan. I’ll talk to you soon.
Kip Lohr:
All right. We’re in the home stretch. It’s the Real Estate Revolution Podcast. I am Kip Lohr, your host with LOHR Real Estate. And we are to our favorite part of the show, Kip’s Tips. What’s the tip this week? Don’t overestimate your worth. And I’m talking to sellers right now. So I know we’ve been doing a lot of buyer advice during the last several shows, and we’re going to throw out some seller advice this week. And what do I mean by “Do not overestimate your worth?” So, it is actually possible in a seller’s market to overshoot the mark and actually miss out on getting your top dollar. And we saw that last summer in great relief when we saw the exuberance of the market driving prices up. Buyers were, you know, irrationally making offers, paying up to $100,000 above list price, which led sellers and their listing agents to get a little bit too optimistic with what they could get for their homes. And so, at the beginning of the summer, 100 grand over list, bam. By the end of the summer, we were seeing days on the market go up; we were seeing price reductions. And what happens when you are the seller and your property does not sell in the first week, and you are now reducing price? Well, let me tell you what happens – you lose money. So the best approach is to be able to gauge where you are in the market cycle. Obviously this spring, you know, buyers have been looking all winter long. There’s been no inventory in Bend, no inventory in Eugene. And they’re getting a little antsy. So as we see more properties come up in the spring, we’re going to see that last gasp of irrational buyer behavior where they’re going to pay everything and their firstborn child to get your property. But by the time we get to mid to late summer, what we’re going to see is buyers are going to be sick of overpaying, they’re going to be sick of, you know, the multiple offers, and they’re going to get more realistic. And we’re also going to see market forces this summer that are very different than than what we saw last summer. And so the key is to know where you are in the market cycle and price yourself just a hair, just a hair under what the comps are telling you the price. And what that will do, regardless of where you’re at in the cycle is create this ability for buyers to come in. There are going to be multiple offers, and buyers will still fight over your place a little bit. So, you know, at the beginning of the summer, do you get 50 to 100 grand over list? Maybe. At the end of the summer, are you going to get that? No, but you will still get over list price. But if you over price your home, what’s going to happen is you’re going to linger on the market, and your agent is going to compel you to reduce your price. And the net result is you’re going to get less money for the deal. So Kip’s Tip – don’t overestimate your value. Know where you’re at in the cycle and price your house correctly for that cycle. Anyways, thanks for joining us this week. We have fun every week doing this, and we will see you next week in another episode of The Real Estate Revolution podcast.
Voiceover:
Thank you for joining the Revolution. We are over and out until next week, when we’ll continue to fill you in on all that matters most in our local Bend and Eugene real estate sees See you next time on The Real Estate Revolution.
Further reading
When Will the Housing Market Crash (and Housing Prices Drop) in Oregon?
Eugene Seller’s Agents: How to Know Who’s Best for You
The Ultimate Bend, Oregon Relocation Guide
Eugene Oregon Relocation: The Ultimate Guide
Best Places to Live in Oregon: Bend vs. Eugene
Tips for First-Time Home Buyers in Oregon
Looking to Retire in Bend, Oregon? Here’s What to Consider.
Looking to Retire in Eugene, Oregon? Here’s What to Consider.
Best Neighborhoods in Bend Oregon: Our Definitive List
Best Neighborhoods in Eugene Oregon: Our Definitive List