Menu
TwitterRssFacebook
More Links

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


Category Archive: ‘Auctions’

RSF Auction Today

The highly anticipated, no-reserve auction in Rancho Santa Fe happens later today.  It was on the market for $36,500,000 back in 2006 and for sale ever since – the latest list price was $22,500,000 last year.


Casa Del Sol — from Concierge Auctions

This is the second no-reserve auction in Rancho Santa Fe by this company.  The first was the gambler’s house, and it sold for $13,000,000 last month:

http://www.sdlookup.com/MLS-140037638-5425_Los_Mirlitos_Rancho_Santa_Fe_CA_92067

Any guesses on tonight’s final price?

Posted by on Feb 26, 2015 in Auctions, Market Buzz, Rancho Santa Fe | 8 comments

Bounce Back

solana beach

You’ve heard me say that I think it is my job to conduct a proper bidding war between all buyers and push for top dollar – and I will give them ample opportunity to pay it!  In this case, it was 10% over list price.

But the houses that need work are more prone to falling out of escrow once the scope of the project starts to sink in.  It is part of the business, and you have to be able to bounce back quickly to maintain momentum.

Posted by on Jan 27, 2015 in Auctions, Bidding Wars, Bubbleinfo TV, Jim's Take on the Market, Thinking of Selling?, Why You Should List With Jim | 7 comments

Bidding War Strategy

open bidding

Reader 3rd Gen SD asked yesterday,

“You regularly mention pricing to engineer a bidding war. Do you have a post you could link to that describes your strategy, including how you manage same?”

There are no rules or regulations on how to handle a bidding war – each realtor is on their own to devise a strategy.  As a result, most don’t do more than spreading out the offers on the seller’s table and picking one.

Back in the REO days, the banks would insist on countering each bidder for their highest-and-best offer, and that is the most common solution.  But agents are reluctant to tell bidders how many offers there are, or at what price point – they just want you to bid blindly.  In those cases, at least every bidder has a chance to win, but without some guidance they are likely to be conservative.

When my sellers get multiple offers, I’m working the phones myself.  I am asking questions to qualify each buyer, and giving their agent some coaching on what it will take to win.

It’s the pitting of each buyer against each other that results in top dollar sales.  They are much more likely to pay a higher price if they have a number to shoot at – AND they feel like they have been treated fairly.

Here are specific examples of how I do it:

http://www.bubbleinfo.com/2013/12/15/how-jim-handles-bidding-wars/

http://www.bubbleinfo.com/2012/11/30/open-biddingtransparency-live/

http://www.bubbleinfo.com/2013/04/18/price-coaching-for-bidding-wars/

Why doesn’t every agent handle multiple offers this way?  Because they don’t have to – sellers still think they did well, price-wise, and they can tell their friends and family that their house was sold in a bidding war.

Thinking of selling? Hire Jim the Realtor!

Posted by on Dec 30, 2014 in Auctions, Bidding Wars, Jim's Take on the Market, Thinking of Selling?, Why You Should List With Jim | 5 comments

Online Auctions of Homes

If these home-auction companies spent $100 million per year on advertising, they could go mainstream – and pressure realtors to justify their existence.  Thankfully, sellers resist anything that sounds like they might give it away:

http://dsnews.com/headline/12-12-2014/purchasing-real-estate-online-becoming-prominent-reality-homebuyers

According to comScore, online sales so far this holiday season (November 1 – present) have risen over 16% against last year’s figures from the same time. Housing prices are also accelerating month-over-month and are predicted to reach pre-recession prices by mid-2015 (cnbc.com). With the average online purchase sitting at $180.94 (as of this year’s second quarter), selling real estate online seems like an unlikely scenario.

However, heavyweights in the online real estate auction space such as auction.com and homesearch.com are thinking otherwise. Both companies use an online auction model to sell homes to investors and would-be investors online; however, during this holiday season, both seem to be testing ways to give online home buying more mass market appeal.

Are we witnessing the marriage of e-retailing to real estate?

One example suggests the answer to this is yes. Homesearch recently brought on a new CEO, Kal Raman whose background as an eBay/Groupon executive may foreshadow where the industry’s headed. Earlier this month, Homesearch joined the Cyber Monday craze by launching what seemed to be the industry’s first Cyber Monday sale packed with discounts and buyer incentives on homes. These properties were auctioned online through Homesearch’s typical online auction process.

Their most recent promotion though consists of a “buy it now” price, similar to that of eBay, so instead of actually bidding for a home through an online auction, consumers will call Homesearch to receive a price via telephone. If a consumer likes the price and the extra incentives offered, they can purchase the property before it goes to auction (Homesearch handles much of the downstream closing process already). As eBay’s strategy made clear, there are masses of people who are uncomfortable joining an online auction but who react very well to bargain-basement fixed prices.

Given that Homesearch continues to grow their network of real estate agents and broker partners, is it a stretch to imagine the day when an agent shows homes in the neighborhood and then takes their client online to purchase?

In a space where nothing like this has been tested before it’s hard to know for certain how successful Homesearch and others will be trying to scale mass-market retailing strategies to real estate. However, if they’re really able to go the retail merchandising route and apply discounts of 20%-50% off the list price of homes for sale, I can see how people might be inspired to buy their next home online.

http://dsnews.com/headline/12-12-2014/purchasing-real-estate-online-becoming-prominent-reality-homebuyers

Posted by on Dec 16, 2014 in Auctions, Jim's Take on the Market, Thinking of Selling? | 13 comments

Why Sell Early

Sellers expect their listing agent to toil for weeks and months searching for the right buyer for their home.  Let’s face it, that’s how other jobs work – the desired result comes at the end of the effort.

But it’s the opposite when selling a house.  The tight inventory has left anxious buyers waiting for the next new listing to come along, and when it does, they pounce on it in the first few days.

This is why Zillow has become the go-to website for buyers.  Zillow provides transparency with several great features (and the zestimate is down the list):

1.  Zillow shows how long the property has been listed for sale, and how long the property has been on Zillow.  The ‘re-freshing’ of listings isn’t fooling buyers, because Zillow divulges the truth.

2.  They track how many times the property has been viewed on Zillow, which is a secondary ‘sniff test’, much like the days-on market stat.  Once a property has been seen hundreds of times, the buyers start wondering why it hasn’t sold (much like the DOM count):

stale meter

3.  Savvy buyers know that the zestimate is a rough guess of actual value.  But Zillow backs it up nicely with three similar listings nearby, AND the last three closed sales – all on the same page!

4.  They also show how much the seller paid, and when.   Buyers will grant sellers the right to make a profit, so only the greedy are harmed here.

5.  The categories of homes for sale on Zillow are prioritized by date listed.

These data points are all in a seller’s favor during the first few days the home is on the market – use them wisely!

The best thing that could happen to the market is a mass marketing campaign by Zillow (or anybody) to explain to sellers that the urgency created in the first few days on the market should be used as a selling tool.  Then, at some point, maybe we can convert to an auction-like format to sell houses!

Posted by on Nov 14, 2014 in Auctions, Jim's Take on the Market, Listing Agent Practices, Thinking of Selling?, Why You Should List With Jim | 14 comments

No Shills…..Almost

Just had to hedge it a little….from CAR:

This law, on and after July 1, 2015, with respect to an auction that includes the sale of real property, prohibits a person from causing or allowing any person to bid at a sale for the sole purpose of increasing the bid on any real property being sold by the auctioneer.

The law, however, does allow an auctioneer or another person to place a bid on the seller’s behalf during an auction of real property if notice, as specified, is given that liberty for that bidding is reserved. The law also requires in this regard that the person placing that bid contemporaneously disclose to all auction participants that the particular bid has been placed on behalf of the seller.

The law exempts a credit bid made by a creditor with a security interest in the property that is the subject of auction when the credit bid can result in the transfer of title to property to the creditor.

Finally, this law prohibits a lender or an auction company that is retained to control aspects of a residential real property transaction from requiring, as a condition of receiving a lender’s approval of the transaction, a homeowner or listing agent to defend or indemnify the lender or auction company from any liability alleged to result from the actions of the lender or auction company and declares a clause, provision, covenant, or agreement in violation of this prohibition to be against public policy, void, and unenforceable.

Assembly Bill 2039 (codified as Civil Code §§ 2079.23 and 1812.610) (effective July 1, 2015).

Posted by on Oct 15, 2014 in Auctions | 6 comments

REO-Auction Contest Results

My high school baseball coach used to say,

“I don’t believe anything I hear, and only half of what I see!”

In our latest contest, readers submitted their guess at the highest bid + 5% buyer’s premium for this property in SE Carlsbad:

http://www.bubbleinfo.com/2014/06/03/carlsbad-reo-contest-2/

lamaca4

The auction included an outrageous set of conditions, which many thought would drive down the price to compensate.  They included:

  1. The 5% buyer’s premium tacked onto the highest bid.
  2. No showings.
  3. Tenant-occupied, and buyer was responsible for evicting.
  4. Cash only.
  5. No buyer’s agent commission paid.
  6. Not in the MLS.
  7. 5% deposit required upon winning.
  8. Reserve price.

They conducted the auction online, which gave participants the convenience of bidding from their couch at home. It should have allowed bidders the chance to double-check the comps as the auction wore on – because every time a new bid was made, they extended the ending by 1-2 minutes.

Those checking the comps would have seen that in the heat of the frenzy last year, three of this identical model sold for $638,000, $653,000 and $679,000.  Then in October this sale with nice view closed for $705,500, which was the highest price since May, 2007:

http://www.sdlookup.com/MLS-130050274-2704_La_Duela_Ln_Carlsbad_CA_92009

The bank foreclosed in 2011, and nobody wanted it then for $459,088.  The opening bid this week was $325,000, and once the auction started the initial bid increment was $25,000.

Most of our readers guessed it would sell in the $400,000s, which would be an adequate buffer to evict and remodel.

Look what happened today:

lamaca42

AND IT DIDN’T HIT THE RESERVE PRICE!!!!!!

Somebody was willing to pay almost $200,000 more than the bank didn’t get in 2011, and that wasn’t enough to reach the reserve price?  Hopefully the bank will come to their senses and reconsider before that bidder changes their mind.  Counting the 5% buyer’s premium, the highest bid was $678,038!

Our closest and winning guess was $568,050, and submitted by blucore – congratulations!

Posted by on Jun 9, 2014 in Auctions, Contests, REOs, REOs for sale, Unbelieveable | 15 comments