Menu
TwitterRssFacebook
More Links
Jim Klinge
Jim's Bio

Are you looking for an experienced agent to help you buy or sell a home? Contact Jim the Realtor!

Carlsbad
(760) 434-5000

Carmel Valley
(858) 560-7700
jim@jimklinge.com


Most recent articles

Plateau/Stall Coming?

We’ve seen how buyers have reacted to the amount of inventory.

When there are plenty of choices, buyers are very deliberate in their hunt.  But when the inventory dries up, especially when (or because) prices AND rates go ultra-low, buyers lose their patience and start gobbling.

The shortage of new listings last year started in late spring – let’s compare to this year to see if there is an indicator of what to expect the rest of the year:

NSDCC New Listings Between May 1 – June 15

Year
#Listings
Avg LP/sf
2010
814
$514/sf
2011
836
$452/sf
2012
649
$431/sf
2013
709
$527/sf

We’ve had a few more listings this year, but, unlike last year, the 22% increase in average list-pricing will likely slow the buyer enthusiasm once school starts – if not sooner.

Posted by on Jun 19, 2013 in Inventory, Sales and Price Check, Thinking of Buying? | 0 comments

Extend Debt-Tax Forgiveness?

A tax provision that spares underwater borrowers from being penalized when they agree to a short sale is due to expire at the end of this year.  But two senators want to extend the Mortgage Forgiveness Tax Relief Act through 2015. 

Senators Debbie Stabenow, D-Mich., and Dean Heller, R-Nev., introduced the extension bill Wednesday.

“It is bad enough that so many families are faced with mortgages that now exceed the value of their home. But to add insult to injury, without this bipartisan bill, the IRS would once again require these families to pay hundreds or thousands of dollars in additional income tax when they sell or refinance their home. That’s just wrong,” Sen. Stabenow said.

Congress has provided this tax relief for underwater homeowners since 2008.  If it isn’t extended, more distressed borrowers will choose do go through foreclosure as opposed to a short sale or deed-in-lieu transaction. 

The Hope Now servicer alliance recently reported that 83,400 short sales were completed in the first quarter.

“If Congress does not act this year, then thousands of Nevadans who are underwater in their homes will be forced to pay a tax at a time when what they need is some relief,” Sen. Heller said. “This legislation is a common sense approach that will prevent Nevadans from being taxed on income they never received.”

http://www.nationalmortgagenews.com/dailybriefing/senators-seek-2-year-mortgage-debt-forgiveness-extension-1037051-1.html

Posted by on Jun 19, 2013 in Short Sales, Short Selling | 2 comments

Market Direction

Was last year’s end-of-summer pickup an abnormality that was driven by ultra-low rates and prices?

Or could the deep demand cause the market to keep cranking straight through, in spite of both rates and prices being much higher?

The next 4-6 weeks should be fairly predictable – hot, for those sellers who are priced within reason.

Then what?

Posted by on Jun 18, 2013 in Thinking of Buying? | 3 comments

Short-Sale Specialist’s Mentality

I had this email conversation with a short-sale realtor who had listed  a property for at least 10% under value last month, and marked it contingent immediately:

JtR:  I’m curious about the price.  With the reaction (she said she received a “bazillion” offers), it is obviously under value, and there are comps 10% higher.  Why don’t you try to sell these for market value?

SSS:  The short sale lender established the price – I am mandated by their program to advertise it, list it, amend my listing contract, etc at their approved list price, which is reflected as such.  It is what it is – I am not doing anything I am not instructed to do by the powers that be….and who pays the agents’ commissions!

There is no reason to sell a property for more than a short sale lender requires unless the seller has tax implications – which they don’t. I am actually netting the lender $30,000 MORE than their required net proceeds believe it or not….So, the buyer gets a great deal – one of the few left out there…

JtR:  No reasons? How about these:
 
1. The bank deserves full disclosure that their valuation is too low, and proper open bidding would attain a market-value sale.  Don’t the investors deserve the truth?
 
2. The neighbors deserve a realistic comp.
 
3. Other buyers deserve a shot to compete.
 
I’m not blaming you personally, it is the system that is flawed.  I’d love to see a short-sale agent address these reasons.

SSS:   At the time the appraisal was completed, (months ago) – this was the fair market value of the property (maybe $20,000 low). There was no “full disclosure” needed – there was a full appraisal completed – not just a BPO. It’s not secret that the market has skyrocketed – but we had an open escrow and a legally binding contract when they issued their price.

The sellers chose the offer – not me.

I am not going to debate this with you to be honest; I don’t need to. I was instructed to do something by the two parties in charge – the short sale lender and the seller. And I did my job.

Have a good week…..

I dropped it after that, but the next question would have been – Did you disclose to the lender that you found a buyer, created a legally-binding contract, and opened escrow prior to putting the property on the MLS?

Posted by on Jun 17, 2013 in Short Sales, Short Selling | 8 comments