The Real Estate Blog

Difference between Pre-Foreclosure and Foreclosure

Maybe you or a friend or family member is  behind on their mortgage and are trying to figure out what it all means. Know it’s overwhelming. It’s confusing. And that help is available. 

So let’s answer the question about what the difference is between Pre-Foreclosure and Foreclosure. And as a bonus, let’s also talk about what REO stands for and means. 

Okay, let’s say that I am not able to afford the mortgage on my house. Most people believe that if you miss the mortgage payment on the 1st of the month then you are late. This is not true. You have a grace period until the 15th of every month. You are late on the 16th, but it's kind of late. Yes, It’s true. You are late and you will be assessed a late fee, but there will be no impact to your credit as long as you pay by the end of the month. That’s why I say it's kind of late. The late fee is annoying, but your credit isn’t harmed so in the grand scheme of things… Who cares? The mistake cost you a couple bucks. 

Okay, once you are a month late, that’s when you have moved over to the pre-foreclosure pool of loans. This is essentially when the bank will most likely move the loan to the loss mitigation department. Most. I say most because all banks don’t operate the same. But, most banks won’t really do anything for the first 90 days. They may call to try to get some money. Send a couple automatically generated notices outlining a borrower's options. But they don’t really take it all that seriously at this time. They are hoping the homeowner cures the loan. 

It’s after 90 days, that’s when banks start to move forward and take it a little more seriously to begin the actions of settling the debt....

Real Estate Lead Generation

Best Lead Sources

I have spent well over $2 million dollars in my career on leads. They are expensive, but ultimately they are an investment in yourself and your business. 

Some lead sources are better than others. Others convert higher than others while others may cost less. 

It’s about creating a strategy. Giving that strategy some time and staying consistent. 

So let’s talk about a lot of lead sources. Let's talk about the pluses and minuses. And then in the end, I will talk to you about how I built out my company and where I saw my success. And we will talk about the lead sources that I found to be an absolute waste of time. And I will also give you some of my biggest advice that could have saved me a ton of money if I had followed over the years. 

Let’s start off with the lesser expensive ones that ultimately are great to get your business started and growing. 

Real quick, hey it’s Jeff Chubb. I am a recovering RE/MAX, then eXp Agent that now is partnered with REAL. If you have any questions about my experiences, then know I am an open book and ready to help… All confidentially of course. And if you like the content, then I appreciate you slamming that like button right down there and considering subscribing!

The free lead sources are great, but the issue is that they really can’t be scaled. So ultimately, they really aren’t free because they suck up your most valuable commodity, your time. 

The easiest one is open houses. You don’t have any listings? As a top...

New to Real Estate? Should You Join a Team?

Just Starting - Should you Join a Team? 

A question that I get over and over again revolves around teams. And if you are new to real estate, then does it make sense to join a team? 

It’s a tough question to answer for a couple of reasons. The first is that not all teams are created equal. So, quite frankly if it is a crappy team whose existence is to just feed the team leader that you are looking at, then it may make more sense to go it alone. 

And then if you have a little bit of undisciplined natural tendencies, then being on your own may be your own worst enemy. 

We are going to talk about all that here as we weigh this question. And we will also go over all the pros and cons of joining a team. 

Oh and in the end, I will tell you the one question that is asked, especially in the beginning, that is a sure fire way to ensure that I won’t hire you. 

Real quick, hey it’s Jeff Chubb. I am a recovering RE/MAX, then eXp Agent that now is partnered with REAL. If you have any questions about my experiences, then know I am an open book and ready to help… All confidentially of course. 

Okay… So team or not to team. 

I think a team is a GREAT idea for a new agent. There is a reason why 87% of all newly licensed agents are out of the business within 2 years. We will touch more on that in a couple moments. 

But a team offers a newly licensed agent a steroid shot and drastically increases their chances of making it in the industry. And for the record. This industry is cut throat. It is one of the most difficult out there. I know the HGTVs of the world make it look easy… But again. There is a reason that...

Real Private Label - Independent Brokerages Best Option?

The Best Option for Independents - REAL Private Label

Have your cake and eat it too. That is what REAL has created with their Private Label program that is specifically designed to allow independent real estate agents to keep their identity while plugging into a larger model that is tech driven and eliminating liability. 

I am getting a little ahead of my skis here. First let’s talk about what it is. 

The REAL Private Label is a program that allows a brokerage to keep their name and their independence, but also allows them to be part of the REAL network. 

It is essentially set up as a D/B/A (Doing Business As). Let’s say you are the owner of ABC Real Estate and you have a 70 agent brokerage. You have spent millions on marketing so that ABC has some brand recognition in your town. Understandably this would be a lot to walk away from! 

REAL allows you and all of your agents to join REAL, but also keep ABC Real Estate. Like I said, you get to have your cake and eat it too! 

So what are the benefits of taking an independent brokerage and becoming a part of REAL and using their Private Label program. 

To me the first and biggest benefit is the elimination of Liability. In today's Class Action Lawsuit and sue for your coffee being too hot world… This is a pretty nice perk. Being a part of REAL means that they are responsible for the liability of your agents as well as the industry sales practices. It’s REALs Errors and Emissions. 

Another benefit is the back end management of the real estate company. I remember it was this benefit that tipped the scale for me going to eXp back in the day when I was looking at leaving RE/MAX and was deciding...

Which Real Estate Companies Survive?

Which Real Estate Companies Survive the Next Downturn?

There is about to be a lot of change in our industry. So the question becomes, who survives? Everyone is talking about that. There is a lot of disagreement on what and how much is going to change. But time will tell with the best ideas and the best changed business models ultimately winning. 

So let’s talk about what so few are wanting to talk about, let alone admit. A reduction in agent count AND a reduction in the amount of real estate companies. 

I have heard some talk on the agent count, but no one has talked about the reduction on real estate companies. 

Let’s do a quick survey of the field. Even without these industry changes, the industry was on it’s way of contracting the agent count either way. 

We currently have 1.6 million agents for 4.5 million sales. The last time we had a market with 4.5 million sales it was supporting about 1 million agents. Essentially the agent count was already going to have to contract in order to get back within the historical norm. 

But now let's add in this additional cluster that is the NAR settlement. 

We can debate the amount of agents that will be forced to leave until we are blue in the face. But what is not really up for debate is the question as to whether this will reduce the amount of agents in the industry. 

I think it’s safe to say that it’s a lot of the same agents that were going to be forced to head to the door due to the natural re-alignment from the decrease in sales. But I still think there will be additional fallout. I think this lawsuit essentially makes being a part time agent nearly impossible. The people...

MYTHS DEBUNKED - National Association of Realtors Settlement

National Association of Realtors Settlement Myths

The National Association of Realtors settled in a class action lawsuit. Once approved, the settlement will take effect in July. There have been declarations in the media about what the outcome of this settlement will be. The media has had a consistent drum beat that transacting real estate will become almost free, it will protect consumers and make homeownership affordable again. 

This lawsuit does not do this. Let’s break down what they are saying and shine a little truth on the matter. Because the bad information is only adding to the market confusion. 

My name is Jeff Chubb and I am a retired investment banker turned real estate agent that has sold more than a 1,000 homes. If you have real estate questions, then know that I am here to help. 

Let’s go over 6 media declarations and clear the air. 

The Settlement forces brokers to reduce their compensation. 

False. The settlement in no way establishes a standard or limitation on Realtors for what they charge, nor the services that they elect to deliver. Those fees have always been negotiable and there has never been any collective bargaining. 

I do think there will be more negotiation in fees and ultimately the fees will decrease in the beginning, but as more and more agents leave the industry then you will start to see the average fee increase. 

The Settlement will, for the first time, allow sellers to no longer pay compensation for an agent bringing the buyer. 

This one is false as well. There has never actually been an obligation for a seller to pay a buyer agent. I guess that’s not a 100% true. I guess a seller needed to put...

eXp Realty's BIGGEST Negative

Join eXp Realty? THIS is a MUST know when considering joining eXp Realty. It's the ultimate eXp Realty Complaint!

I am on record saying that the worst thing about eXp Realty are these what I call… Downline Silos. They are bad for the agents. They are bad for the company. And they ruin the company's culture. 

Yes, this is my opinion and you should definitely do your own research to see if you agree. 

But the downline silos are ultimately what will end up being the company's biggest downfall. Stick around because we are going to talk about exactly what a Downline Silo is and why they are bad and a culture killer. But I am also going to bring the receipts… I am going to show you examples of what’s going on at eXp Realty… It’s all out in the open…

Real quick, hey it’s Jeff Chubb. I am a recovering RE/MAX, then eXp Agent that now is partnered with REAL. If you have any questions about my experiences, then know I am an open book and ready to help… All confidentially of course. 

 So in a recent video, I talked about why I left eXp Realty. And the downline silos was one of those reasons. Don’t get me wrong, this wasn’t THE reason I left. It came down to being a financial decision for me, but the cultural rot of these downline silos always bothered me. To say it another way… These silos were not what pushed me out the door, but man was I happy to have that door slam shut once I left. 

So what is a Downline Silo? At eXp Realty you are an agent and if you recruit someone, then they are in your downline. Now there are some very epic recruiters at eXp that have amassed downlines of 10,000 plus people. As your downline grows, the financial rewards get bigger and bigger. So different COMPETING downlines started offering different...

UNPOPULAR Realtor Insight...Realtor Commission Settlement

I will admit. I have been slow on getting a separate video out on this as I didn’t want to just react. I wanted to see how it was going to play out and see what other people were saying and what they would be doing as a reaction to what I would consider being the biggest development in our industry since at least the 20 years that I have been in it. 

And the reactions have been surprising. I have the luxury of networking with some of the biggest teams in the country. These people are far more successful than I am. Smart folks that are the top in our industry. And I have been shocked by their response or should I say lack of response. 

It seems that… I can’t even say the majority. Because it feels like nearly the entirety of our industry is continuing to operate in a fashion that the business will stay the same, but the way we do it will be a little different. 

Yes, we are going to talk about that. We are going about my opinion on the future and what I am seeing today. And what it means for you, the consumer. I think a lot of what I am about to say will surprise you. 

Real quick, my name is Jeff Chubb and I am a retired investment banker turned real estate agent that has sold more than a 1,000 homes. If you have real estate questions, then know that I am here to help. 

Let’s recap extremely quickly. The NAR settled with a group of seller’s in a class action lawsuit. With this settlement came agreements on changes to how the Organization operates and thereby how the industry will operate. Essentially what is being called for is a decoupling of the real estate commissions where the seller...

For Real Estate Agents: Next Home Buyer Showing - What Are You Going to Do?

What Are You Going to Do? 

So what are you going to do? The next buyer that calls to take a look at your listing or the next buyer that wants to see the house at 123 Main Street.

So what are you going to do? We’ve been trained… For pretty much forever to go jump in our car and show them that house! Made sense because we were always pretty much guaranteed compensation if that buyer was to love that house and want to buy it. 

But things changed. Now you are not guaranteed anything. Are you willing to work for free? Are you willing to use the gas in your car and take time away from your family for the very big chance that you won’t make any money for your time and effort? 

If you are just throwing a buyer in a car or just jumping to immediately show that buyer a house, then that’s what you are risking doing. 

Yes, you don’t see a ton of 0% buyer side house listings today. But come July… They all will be. 

So I ask the question, the next time a buyer calls or the next time a buyer clicks a little showing request button… What are you going to do? 

It CAN’T be jumping in the car and rushing to show them the house. You need to create a system that ensures that the buyer understands how the fee structure works and that they are paying it. And you need to let them know how much they are paying. 

And this needs to be done with EVERY buyer. Yes, the buyer may go call another agent to show that house… And the other agent may jump at the chance to show that house… But If they aren’t willing to sit down and go over the...

Massachusetts Market Update April 2024

YOUR Massachusetts Real Estate Market Update for April 2024

There is some big news from let's call it a correction from last month’s data. Two markets saw the price gains pull back while one market segment saw the appreciation rate grow. 

The Massachusetts real estate market continues to be very strong… One of the strongest in the country.

If you are looking to hear about the Massachusetts Real Estate Market data for Single Family Homes, Condos and Multi-Family properties… Then you are in the right place.

The Spring market started a little earlier this year and it’s off to a big start. This is going to be a very strong Spring market, even with interest rates not going down. I am personally still in the camp that the FED doesn’t cut in June, but time will soon tell. 

I continue to be in the camp that the FED can’t lower interest rates. If they do, then the cost of housing is going to skyrocket and lead to more inflation. I was relieved to finally hear others start talking about this as recently Barbara Corcoran started to talk about economic common sense. 

Real quick, my name is Jeff Chubb and I am a recovering Investment banker, turned real estate agent that has sold more than a 1,000 homes. If you are planning on buying or selling a home now or in the future, then it would be a pleasure to speak with you. 

Let’s start with Single Families

In March of 2024, we saw 2,290 Single Family homes sell for an average sales price of $771 thousand dollars.