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An Insider's Guide to North San Diego County's Coastal Real Estate
Jim Klinge, broker-associate
858-997-3801
klingerealty@gmail.com
Compass
617 Saxony Place, Suite 101
Encinitas, CA 92024
Klinge Realty
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Are you looking for an experienced agent to help you buy or sell a home? Contact Jim the Realtor!

Jim Klinge
Cell/Text: (858) 997-3801
klingerealty@gmail.com
701 Palomar Airport Road, Suite 300
Carlsbad, CA 92011


Category Archive: ‘Coming Soon’

Compass Search Portal

The real estate industry has never felt the need to create a powerful search portal in response to Zillow.  There should have been an industry-wide effort to create a realtor-centric website to support our business, but NAR and others just shrugged it off.

Traditional realtors should be demonstrating why our experience, our advice, and our gravitas is a better solution for consumers.

It starts with realtors having the best real estate search portal – and Compass has committed to producing it!  Our website will make it clear who the actual listing agent is on each listing, regardless of company.

There is another benefit – we put our Coming Soon listings in the front of the search, which will hopefully cause consumers to keep coming back, and help build the traffic faster.

From our CEO:

The future of the real estate industry will be defined by the company that creates the best experience for buying and selling a home. I believe Compass is going to be that company. To achieve our mission of helping everyone find their place in the world, we must make it as simple and straightforward as possible for people to navigate the process of buying and selling a home. We must also put the person who knows how to create a world-class customer experience front and center: the agent.

Many technology companies are doing the exact opposite. They’re confusing consumers and taking advantage of agents in order to maximize their own profits. They most commonly do this by hiding the true listing agent and monetizing the client lead in a variety of ways.

At Compass, we are not just looking to elevate ourselves, we are looking to elevate the industry. Being the first company to show the true listing agent on every listing will not only help bring clarity to the home-buying process, but it is the right thing to do.

It is part of a 3-step strategy to win the consumer:

  1. Make the Compass website and mobile app just as good as the best aggregators by end of summer 2019
  2. Invest millions of dollars advertising our Coming Soon inventory to consumers around the country
  3. Put the listing agent on every listing, making Compass.com the only site in the country where consumers can always find the listing agent

It means we are gently nudging consumers towards connecting with the listing agents directly, making that trend more obvious to all.  If the business is going that way anyway, we might as well be out in front of it. JtR

https://www.compass.com/

Posted by on Mar 12, 2019 in Coming Soon, Compass, Jim's Take on the Market, Realtor, The Future | 2 comments

Coming Tomorrow

One of the problems with Coming Soon is the vague timing.  It’s is more like Coming Soon/Some Day/Maybe/Who Knows.

It’s frustrating for buyers because they’ve been trained to want to see the hot new listings immediately before somebody else beats them to it.

Can we at least put a date on it?

My new listing in Old Carlsbad with this view and priced at $1.6 million will be on the MLS tomorrow, with open house 12-3pm on Saturday.  I’ll have more information and photos/video later today!

Posted by on Mar 7, 2019 in Coming Soon, Jim's Take on the Market, Listing Agent Practices, Realtor, Why You Should List With Jim | 0 comments

DRE on Coming Soons

The DRE has finally issued ‘guidance’ on the Coming Soons.  Ignored are these facts about agents making off-market deals with no MLS exposure:

  1. We see top agents doing it regularly,
  2. There is no enforcement whatsoever, and
  3. You give us the forms to CYA (last paragraph).

Burying this advice in the back of the bulletin isn’t enough.  Until we see realtors being prosecuted and found guilty, nothing will change.

DRE Weighs In on “Coming Soon” Advertising: “Be Sure to Maintain Fiduciary Responsibility for Your Client or Face Civil and Regulatory Liability”

The Department of Real Estate has included in its 2018 Winter Real Estate Bulletin an article which discusses the risks of “Coming Soon” marketing. It includes a statement of the DRE’s view of “best practices” for listing agents:

“Coming Soon” advertising CAN benefit the seller if handled properly. Such advertising can increase exposure time of the property and generate interest in the public about a soon-to-be marketed property, helping potential purchasers prepare to tour the property or make an offer when the property is put up for sale. A practice of “Coming Soon” advertising coupled with initially not showing the property is sometimes known as a “Coming Soon—No Showing” strategy (or similar) and can well serve a client. In such a strategy, the property may show as “Coming Soon” on a multiple listing service, but also as not yet being shown to potential buyers. After a time, the property is broadly marketed as for sale. There are likely multiple listing service requirements that must be met to advertise a property as “Coming Soon—No Showing” or similar.

The potential conflict a “Coming Soon” strategy can have with a licensee’s fiduciary duty comes when the listing agent begins accepting offers before the property is exposed to a larger audience via a multiple listing service or by other means. When a property is not exposed to the full market, a client’s best interests might not be served, even when a full price offer is received (because the property may well have sold above the marketed price if better advertised). Imagine the dilemma for a listing agent if a seller accepts an offer on a poorly marketed property and then receives much higher backup offers as the property receives greater exposure.

At a minimum, an agent should disclose that a better sales price could be obtained if the property were to be marketed on a multiple listing service and obtain the seller’s prior written permission that she or he agrees to not fully market the property.

A listing agent who encourages the use of a “Coming Soon” program, without broadly advertising a property via a multiple listing service or other means, especially exposes himself/herself to the potential for an increased chance of civil liability and regulatory action when the agent also then represents the buyer in a dual agent capacity. Such a dual agent would need to be able to demonstrate that the agent acted in the best interests of the seller to obtain a purchase price that was as high as could be expected for a fully marketed property. This agent, who receives commissions on both ends of the transaction, could face scrutiny questioning whether they worked to obtain the best offer possible for the seller or was acting in such a capacity for personal financial gain.

The following are some best practices for agents when representing a seller:

• Market the property via multiple listing service or other broad advertising means.
• Make sure the seller agrees to and understands how the property will be marketed.
• If using a “Coming Soon” strategy, do not accept and act on offers until a property has been broadly marketed.
• If the property will not be fully marketed, obtain prior written permission from the seller that demonstrates they understand that such a “Coming Soon” strategy may not result in receiving the best sales price.
• Avoid double-ending a property that is not fully marketed—it is best to refer potential buyers to another agent.

The C.A.R. Residential Listing Agreement explains the benefits to the seller of using the MLS and the impact of opting out.

For the seller to instruct the agent to opt out of the MLS, the seller and broker must initial paragraph 5 of the RLA. Additionally, the seller must sign form SELM (Seller Instruction to Exclude Listing from Multiple Listing Service) or the comparable form provided by the MLS.

Link to Bulletin

Posted by on Feb 28, 2019 in Coming Soon, Ethics, Jim's Take on the Market, Realtor, Realtors Talking Shop | 3 comments

Off-Market As A Strategy

It’s been widely accepted for years that off-market sales are part of the real estate landscape.  After the (fraudulent) short sales went away, realtors needed another sexy lure to attract new clients, and rather than crafting the high demand and bidding wars into an auction-like experience, we went the other way and are using restricted access as our ploy.

None of the industry players want to even talk about it, let alone do anything.

In the meantime, it’s the way the business is trending.

With no public objections and so many off-market deals happening right before our eyes, every agent and brokerage wants to take advantage and create an effective off-market strategy.

It restores control of the inventory to the agents – we decide who gets exposed to the listings, and when.   It will also turn the MLS into the website of last resort, used only when a listing agent can’t find their own buyer.  The real estate portals will suffer, and full access for consumers won’t be the same.

We might as well go back to the MLS books!

Many agents claim it’s just ‘pre-marketing’, but what happens if a buyer makes an offer before the listing hits the open market?  Are you going to turn it down? Or are you going to make a quick deal and move on to the next one?

The phase underway now is the building of realtor clubs.

There’s the PLS, as well as the Top Agent Network, which is operating in 31 markets and should be coming to San Diego soon.  They offer club membership to the top 10% of producing agents in each region so they can network and market their listings to each other.  I’m also a member of 4-5 groups on Facebook, where the focus is pre-MLS exposure of listings and ‘making deals’, plus there are several realtor meet-ups around town too.

The shift to private, off-market deal-making isn’t just coming soon – it’s here.

I think we should just admit it to ourselves and to the consumers, and then find a way to make the best of it – because it’s not going away.

Posted by on Jan 15, 2019 in Coming Soon, Jim's Take on the Market, Realtor, Why You Should List With Jim | 22 comments

C.A.R. Attorney Gov Hutchinson

Yesterday we heard from Gov Hutchinson, the assistant general counsel for the California Association of Realtors.  He travels around the state to inform realtors of the basic changes to forms, and helps define other aspects of the business – here’s a summary of what we heard:

  1. Transfer Disclosure Statement – The buyer has a five-day rescission period after receiving the completed TDS from the seller (the form where the sellers disclose pertinent facts about the property).  If the form is delivered to the buyer’s agent late, incomplete, or unsigned, the buyer can still cancel the transaction even if they have already released their other contingencies.
  2. The CA Department of Real Estate is unhappy with compliance to the rule that realtors need to have their license number on every flyer, business card, sign, social-media account, etc. They have hired additional personnel to chase us around.
  3. It’s acceptable for landlords to say ‘no pets’, but they must accept tenants with service animal (seeing-eye dog) or emotional-support animal with a note from a licensed caregiver – as long as it is reasonable. If the animal affects the landlord’s insurance, or is a threat, the landlord can say no.  The law supersedes HOA, C,C,&Rs, and city codes, and the landlord cannot require a pet deposit or higher rent for these animals.
  4. A landlord cannot require tenant insurance.
  5. A landlord cannot be compelled to take a Section 8 tenant.
  6. Low-flow plumbing is required in all homes throughout the state.  Sellers don’t have to fix/update if the buyers will accept as-is.
  7. If a house for sale has hidden cameras, there should be a sign near the front door to alert buyers and agents who are showing the property that the house is under surveillance.
  8. No laws, rules, or guidance on Coming Soons – it is a local MLS issue.

I think we can say that the Coming Soon dilemma has been decided – nobody wants to address it globally, so it will be left up to the agents.

Realtors love the Coming Soons, and are now pitching them as a vital part of the marketing program.  But with no rules or guidelines, what happens when a buyer wants to see the home?  Do you show it during the Coming Soon period?  Do you field offers?  If you do get an offer, do you throw the listing on the MLS to give everyone a chance too?  Or do you just make the deal and hurry off to the next one?  How do you know if you got full value? (you don’t know)

Virtually every listing will go this route in 2019, and then most will be uploaded to the MLS with diminished urgency because the motivated buyers already saw the sign two weeks ago, and forgot about it.

Instead of relying on instant market data from the internet, we’ll need drivers to patrol for new Coming-Soon signs, and rely on word-of-mouth between agents to make these off-market deals we now crave for some reason.

This business is going backwards!

Posted by on Jan 8, 2019 in Coming Soon, Ethics, Jim's Take on the Market, Realtor, Realtor Training | 3 comments

November Panic?

If sellers were feeling a sense of panic about the market – and prices – we would be seeing more new listings hit the market.

Let’s boil it down to one simple comparison.

Are there more listings than usual coming to market?

NSDCC Listings, November

Year
November Listings
Median List Price
# Sold
Percentage Sold
2013
223
$1,159,000
137
61%
2014
267
$1,199,000
167
63%
2015
299
$1,399,000
163
55%
2016
284
$1,354,999
163
57%
2017
252
$1,600,000
162
64%
2018
292
$1,499,500

I wouldn’t be too concerned about the median list price being lower. The list prices don’t mean much, and if it weren’t for an extra 13 lower-end listings then the 2018 median LP would have matched last year’s.

More listings, longer market times, and higher failure rates are in our future – and we can handle it!

There have already been ten listings from last month close escrow – five were sold off-market – and another 54 are pending, so somebody’s buying something. Here are three examples:

1. This 2-br house sold for $1,400,000 in March, 2018, and then was advertised as a Coming Soon for $1,695,000. It closed for $1,650,000 a month ago:

Link to Listing

2. Amy and Susan sold this CV house for $51,000 over list, and closed this week:

Link to Listing

3. This Cardiff house backs to the freeway but it does have ocean view – it just closed this week for $1,950,000, which was above the high-end of the range:

Link to Listing

Here is the sales history of the same house:

If sales dropped 20%, we’d still have 80%!

Posted by on Dec 5, 2018 in Coming Soon, Jim's Take on the Market, North County Coastal, Sales and Price Check | 0 comments

Pocket Listings / Coming Soon

More tip-toeing around the Coming Soon topic in Realtor Magazine yesterday:

The surge in off-market “pocket listings”—those held off the MLS in favor of secret channels and networks between agents or within a brokerage—is a growing issue in the real estate industry.

In markets starved for inventory, real estate professionals are struggling with being kept out of these secret dealings for homes that their buyers could potentially want.

In markets such as Los Angeles, for example, reports say that up to 30 percent of sales are being withheld from the MLS for the sake of more private channels, according to some brokerage estimates.

In response, some brokerages—and even MLSs—are looking for ways to expose these listings to a larger audience. One of many recent launches in the past month came from the brokerage Compass, which allows its real estate agents to post their listings to Compass’ website days before sharing them with the local MLS and third-party portals, like realtor.com®. “Compass Coming Soon” is available nationwide in markets where the brokerage operates.

“This will help our agents get a head start on marketing while still getting the property ready for market,” Compass CEO Robert Reffkin reportedly shared with Compass real estate professionals in an email. “By harnessing the power of pre-marketing, [the listing] actually shows up twice in everyone’s alerts: once when it hits Compass.com, and again when it hits the open market, doubling potential exposure.”

Pacific Union International, which Compass acquired in late August, had launched its own solution to handling the disruption from the growing prevalence of pocket listings in May with “Private View,” debuting $400 million worth of exclusive property offerings. But its portal of off-MLS listings can be viewed by any registered users—real estate professionals from other brokerages as well as the general public. Registered users can see exclusively signed listings before they’re publicized on the MLS. The portal is currently available in northern and southern California.

In September, Long & Foster launched its own exclusive Coming Soon Portal to promote upcoming listings to its agents before they are on the market. It’s a way to gauge interest and create early demand for a property before it hits the MLS.

“Our agent-to-agent portal allows our sales associates exclusive access to Long & Foster properties that are not yet in the MLS,” Barry Redler, chief marketing officer for The Long & Foster Companies, said in a statement announcing the portal. “Having this platform not only allows us to respond to certain seller requests but also gives our agents a leg up on the competition by helping their buyers more easily find a home in a tight inventory market.”

MLSs are searching for the answer to expose these homes listed for sale, which the seller may wish to keep secret. The Chicago area MLS, Midwest Real Estate Data, launched the Private Listing Network in 2016 as a separate feed to share information to registered brokers about “coming soon” listings. These are not displayed publicly. MRED officials cite it as a way for real estate professionals in their area to premarket listings that aren’t ready to show yet or that are in the process of being renovated, repaired, or staged prior to being marketed publicly. It’s also a way to test the price, as a range can be entered.

But some brokerages and MLSs are taking a firm stance against the practice of pocket listings or “coming soon” forms of premarketing. Since 2013, Northwest Multiple Listing Service—serving the Seattle area—has prohibited its members from promoting or advertising a property until it is listed in the MLS.

Off-MLS deals amplify concerns about limiting exposure of the property “to a select group of agents to the detriment of the seller and other MLS members,” Tom Hurdelbrink, president and CEO of NWMLS, told REALTOR® Magazine.

Nobody wants to project how this will play out, but it seems obvious.  Every brokerage will operate a Coming Soon program, and the MLS will become the marketplace of last resort.

https://magazine.realtor/daily-news/2018/10/23/brokerages-wrestle-with-growth-of-pocket-listings

The photo from the article:

Posted by on Oct 24, 2018 in Coming Soon, Compass, Jim's Take on the Market, Listing Agent Practices, Pocket Listings, Realtor, Realtors Talking Shop | 1 comment