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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: ‘Jim’s Take on the Market’

Compass Culture Champions

Going to work at Compass came with expectations of high-tech, big-game, etc. on my part, but underneath it all has been a quiet and humble fit for us among the family of experienced agents who appreciate being on the right team.

All three recipients today (Donna on our behalf) mentioned how it felt like we are in the right place, at the right time with a brokerage who cares.

In one of the most curious things I have ever seen in my career as a realtor, Compass doesn’t award agents based on production. In truth, it kind of bugs me because competition is what drives me.

Instead, what is rewarded is those who champion the culture of being a team player, which is commendable.

You can probably guess that Donna had everything to do with this recognition, and it’s true.  She is the ultimate team player, and deserves to be recognized by the staff of Compass for this honor.  Thank you team!

Posted by on Apr 16, 2019 in About the author, Compass, Jim's Take on the Market, Klinge Realty | 3 comments

Inventory Watch

It appears that buyers are being more patient in 2019 – the median days-on-market is 11 days slower this year:

NSDCC Detached-Homes Sales Between Jan 1 – Apr 10

Year
# of Sales
Median SP
Median DOM
2018
660
$1,310,112
17
2019
617
$1,293,691
28

I had three different couples at open house yesterday who told me that if their home would just sell, they’d be in position to buy!

Hopefully we’ll see a surge in the next 1-2 months now that Tiger won.  Speaking of Tiger, the San Diego Case-Shiller Index has risen 246% since he won his first Masters in April, 1997.

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Read More

Posted by on Apr 15, 2019 in Inventory, Jim's Take on the Market | 0 comments

125 Best Places to Live in the USA

Are you thinking of moving?

According to the U.S. News & World Report, there are 35 towns in America that are better than San Diego!  And 33 of them are cheaper!

Austin, Texas is #1, with Denver, Colorado Springs, Des Moines, Portland, Seattle, and Raleigh/Durham all in the Top Ten.

Check out the full list here:

https://realestate.usnews.com/places/rankings/best-places-to-live

Posted by on Apr 14, 2019 in Jim's Take on the Market, Where to Move, Why You Should List With Jim | 4 comments

Hike Carlsbad

From the Reader:

Denk Mountain is the unofficial name of the highest point in the City of Carlsbad. It may be a little presumptuous to call it a mountain, but at 1041 feet of elevation, it is high enough to offer dramatic views up and down the San Diego coast, especially west to where the Batiquitos Lagoon discharges into the Pacific.

The name honors the Denk family, who once owned much of the land that is now the Rancho La Costa Preserve, which is owned and managed by a non-profit, the Center for Natural Lands Management (tax deductible donations are appreciated). If you are a mountain biker and don’t already know about these trails, you should definitely check it out.

The preserve has over 6 miles of trails, some of which are very challenging. It can be a pleasant hike or trail run for anyone in moderately good physical condition. Many trails of varying difficulty lead to the peak. The route described here is only one of several possibilities.

The trails are open year-round from dawn to dusk, but the best times to go are mornings between January and June, preferably after a storm has left the area with clear air and perhaps some dramatic clouds.

Warning: rattlesnakes live here. Also, it is a very active mountain biking area. While hikers have the right-of-way, you should do whatever you need to do to avoid a collision with a rapidly moving bicycle. There is no shade, and the hillside tends to face toward the sun. Bring trekking poles if you have them, as they will be useful at times.

Link to Full Article


Posted by on Apr 13, 2019 in Carlsbad, Jim's Take on the Market, Local Flavor | 1 comment

Realtor Class-Action Lawsuit 2

A few readers have sent in articles regarding the class-action lawsuit filed about commissions – an excerpt:

A class-action lawsuit is seeking to upend the way homes are listed for sale and the commissions paid to agents. The goal, say the plaintiffs, is to make home selling more affordable by challenging how agents share commissions on local Multiple Listings Services known as the MLS.

The focus, the suit claims, is on NAR’s “Buyer Broker Commission Rule,” which, according to the complaint, requires “all brokers to make a blanket, non-negotiable offer of buyer broker compensation” in order to participate in the MLS, which is what brokers traditionally use to list for-sale properties. Brokers who don’t participate in the MLS can’t effectively market their properties, according to the lawsuit.

NAR, however, has no such “Buyer Broker Commission Rule” as described in the lawsuit, according to Mantill Williams, vice president of communications at NAR.

“The only requirement imposed by NAR rule is that the listing broker advise all other MLS participants what the amount of compensation to the buyer’s broker will be,” Williams says. “That amount is determined by the seller and the seller’s broker – not by NAR or the MLS.  It can be expressed as a percentage of the sale price or as a fixed dollar amount – as low as $1. Under NAR policy, a buyer’s broker is free to negotiate the amount of the commission with the seller’s broker.”

Sellers can negotiate the amount of commission they pay to their own agents. Although sellers traditionally pay the commission, that commission is typically split with the buyer’s agent. The seller might end up passing on the commission costs to the buyer in the form of a higher listing price.

There are two problems that contribute to the situation; 1) The commissions aren’t disclosed to buyers, and 2) In spite of the statement in bold above, the commission rate offered to the buyer-broker is non-negotiable, according to the Code of Ethics:

Standard of Practice 16-16
REALTORS®, acting as subagents or buyer/tenant representatives or brokers, shall not use the terms of an offer to purchase/lease to attempt to modify the listing broker’s offer of compensation to subagents or buyer/tenant representatives or brokers nor make the submission of an executed offer to purchase/lease contingent on the listing broker’s agreement to modify the offer of compensation. (Amended 1/04)

The lawsuit wants to cause the buyer-agent’s commission rate – and who pays it – to be more negotiable (it’s not negotiated by the buyer now). What this lawsuit will include, but not solve, is buyer-agents steering their clients to listings that pay 2.5% or more in commission.

The attorneys will sensationalize the facts during their jury trial, and NAR will probably end up agreeing that buyers have more access to commission rates.

We will ignore this basic premise though: sellers should be free to offer a bounty to buyer-agents to sell their house, and the listing agent should convey that message, and encourage sellers to offer a rate that causes buyers to be steered to their house.

It sounds edgy, but it’s how it works in real life.

I said previously that this will likely cause more buyers to go directly to the listing agent, which will destroy the broker cooperation model we enjoy now.

But we could solve all of these issues with one answer.

If we did auctions instead, we wouldn’t have these problems.

The commissions would be obvious in advance (it’s been the 10% premium, paid by buyers), and all buyers would have an equal chance to buy the home.  The sellers would be the big winners – no commissions, and eye-to-eye competition to drive the price higher, with no shenanigans!

Posted by on Apr 12, 2019 in Auctions, Commission War, Ethics, Jim's Take on the Market, Listing Agent Practices, Realtor | 0 comments

Buy A Town

Looking for a quaint little place to move?

In Indiana, the town of Story — with a population of three people — is on the market for $3.8 million.

For that price, you get 17.4 acres with a historic general store, fenced horse pastures, an old grain mill, several barns, rental cabins and outbuildings that include two 19th-century outhouses.

And as of 2018, only three people — plus four dogs and a resident ghost — lived in the town, located about an hour south of Indianapolis. The only employer is a bed-and-breakfast called the Story Inn.

The B&B’s owner, 62-year-old lawyer Rick Hofstetter, also owns the town. He plans to keep the hotel — which, as the state’s oldest country inn, attracts visitors — but wants to relinquish the responsibility of managing the rest of the properties.

“The town’s fortunes should be decoupled from our hospitality operations,” he told the Herald-Times. “Macy’s doesn’t own the mall.”

The lucky buyer will get what Hofstetter calls “an entire historic town nestled in the hills of southern Indiana” that dates back to 1851, per the listing.

“This is not a reconstruction of an authentic little town,” Hofstetter told WANE-TV in Fort Wayne. “This is an authentic little town.”

Link to Article

Posted by on Apr 12, 2019 in Jim's Take on the Market, Where to Move | 0 comments