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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: ‘Listing Agent Practices’

HGTV Influence on Buyers

Home sellers have a lot to worry about: Will anyone want to buy their property for its full asking price? How long will it take to find a buyer? Is it really worth the expense and trouble of staging a home to boost its desirability with buyers?

“Heck yes” is the answer to that last question, according to an overwhelming number of buyer’s agents polled for a recent National Association of Realtors® report. About 40% of the agents surveyed said that staging had an impact on most buyers, while 52% said it affected at least some of the folks interested in the abode.

“Buyers’ expectations have changed and risen. They want to see the types of homes they see on TV in person,” says Jessica Lautz, NAR’s vice president of research.

Styling a dwelling with some well-placed furniture makes it easier for buyers to imagine the home as their own, according to 83% of the buyer’s agents surveyed. And home shoppers are more likely to visit a property in person if they liked what they saw in photos online.

Link to Full Article

Posted by on Mar 15, 2019 in Jim's Take on the Market, Listing Agent Practices, Staging | 2 comments

Price Reductions Already

The percentages are quite a bit higher this year. The title of the graph could be ‘Sellers Who Are Having No Showings’ because most are (overly) optimistic this early in the selling season and hold tight on price until later.  Something must be rattling them – like no showings.

An excerpt from the UT article:

Home price reductions are still common when the market is red hot. It is sometimes a selling tactic — although not usually considered a good one — to price a home higher and then come down so the buyer feels like they are getting a deal. But, the number of reductions recently shows a big change.

For instance, 8.5 percent of homes had price reductions in November 2016. In November 2018, there were 29.4 percent.

Jason Cassity, a real estate agent based downtown, said the industry has a problem shifting when there has been a big change — such as a downturn in sales at the end of last year. He said some agents are operating like there will still be a bidding war.

“If you continue pricing like it is 2016, it is going to sit on the market a long time,” he said. “Or you are going to be one of those 20 percent (in February) that have to price reduce.”

He said a lot of the reductions he has seen were listings marked up too high out of the gate, something a lot of agents could get away with for years. He said sometimes homes are priced overly high just to meet sellers’ expectation of a huge payday, not the actual value.

Cassity said he presents news articles about the real estate market to clients before they decide on what price they are going to market with.

Link to Full Article

Posted by on Mar 15, 2019 in Jim's Take on the Market, Listing Agent Practices, Market Conditions, Realtor, Realtors Talking Shop, Thinking of Buying?, Thinking of Selling? | 1 comment

Street-Level Impact

Let’s examine what happens when a hot new listing gets taken by one of the big real estate teams in 2019.

What qualifies as a hot listing?

I think we can say that 70% to 80% of listings are priced at full retail or higher, so the rest are either priced attractively or have unique features that propel them into the ‘hot’ category – great location, newer, remodeled, one-story, etc.

First, let’s note that the leaders of the big real estate teams have hired several newby agents to carry the load.  The leaders do their best to train and supervise, but once the system is up and running, everyone gets too busy to pay much attention to how the sausage is made.

The lead agent takes the hot new listing, and hands it off to the assistants.

  1. They start the selling process with the Coming Soon round, which lasts for days or weeks.  While the bosses intend this to be a pre-marketing campaign, if a buyer contacts the assistant-squad during the Coming Soon period and wants to buy it….well, then, heck – let’s make a deal.  If an outside agent wants to show or sell it, they are told to wait until it’s on the open market.
  2. If the Coming Soon round is unsuccessful, then the listing goes into the MLS and onto the open market.  The quality of the remarks and photos can tell you a lot.  If they are brief, it’s another sign that the squad is trying to couch the listing so outsiders might miss it.
  3. Now the games begin. This happened to me this week. Following the showing instructions, I call and text the agent, but no response.  I persist, and finally catch a squad member answering the phone. He says “the occupant needs more notice to show”, even though I had begun my inquiry six hours prior, to which there was no response.  He says he’ll get back to me once he can schedule something with the occupant. This goes on for two days, until he finally answers his phone again…..and you know what’s coming. “Oh, we just accepted an offer on that one!”

The team leader insulates himself from the gritty details by not publishing his phone number.  For showings, they list a separate phone number in the MLS so they know it’s an agent calling.  Then the squad gets just a little too busy to call back those inquiries.

The seller has no clue how the squad’s actions denied him the chance to get more offers – heck, he’s just glad it sold quick.  The broker doesn’t supervise that closely and really doesn’t want to know, and the team leader looks the other way, because this was part of the recruiting process to build the squad, and take more vacation.

Posted by on Mar 14, 2019 in Jim's Take on the Market, Listing Agent Practices, Thinking of Selling?, Why You Should List With Jim | 13 comments

More Clearview

Our listing on Clearview is a photographer’s dream with such a wide and unobstructed expanse – white-water surf, whales and dolphins, Navy maneuvers, and the eventual tearing down of the smokestack (shortly).

I won’t do it justice, but I’ll post a few shots as we go.

It’s one of the few places where the ocean view dwarfs the plant:

This photo below is about half of the ocean view you see in person, but without the zoom.  The ocean view looks bigger in person:

Wide lot = max view & privacy

Posted by on Mar 8, 2019 in Jim's Take on the Market, Listing Agent Practices, View, Why You Should List With Jim | 6 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

Price Reductions – How Much?

Home sellers who have been on the market for 30 or more days and are tired of not selling may eventually consider a price reduction – but by how much?

There are a number of reasons why a home isn’t selling.  Thankfully, you don’t have to be an expert on why – because price will fix anything:

  1. Inferior location
  2. Funky floor plan
  3. Repairs needed
  4. Market conditions
  5. Few or no comps
  6. Struggling economy
  7. Low zestimate
  8. Listing agent
  9. Bad weather
  10. Bad neighbors

Buyers are willing to pay within 5% of the list price.  So if you are getting showings and offers, then the list price is about right.

If you’re not getting offers, then the list price must be more than 5% wrong.

Won’t buyers make an offer, even a low one? No – it’s too easy for buyers to stay on the fence while they wait-and-see, rather than make a low offer.  In fact, we rarely see an offer that is lower than 5% below the list price because buyers would rather not bother – plus they don’t want to offend anyone.

A proper price reduction re-ignites the urgency and enthusiasm in buyers, which makes them want to write a good offer.

How much is needed to get buyers to engage?

Lower the price by 5%.

You see sellers lowering their price by 1% or less, but that’s not impressing the buyers – if anything, it reminds them that your price is still wrong because it still looks too much like the old price.

Lowering the price by 5% not only re-engages the existing buyers who are considering your home, but it also picks up a new set of buyers who weren’t looking as high as your previous price.

It may sound bold, but what else can a seller do to regain momentum?

Two things: a) Complete repairs/improvements to bring the home’s value up, or b) cancel the listing and try again a few month later.

If you don’t want to bother with repairs and really want to sell now, then do this exercise:

How does your home compare to the active listings priced at 5% below their current price – are you winning that test?  Is your house the best of that bunch?  Find the group of active listings where your house is the obvious winner, and you’ll know the price that will work.

If 5% sounds like too much, and waiting longer for that perfect couple with 2.2 kids to come along is easier to swallow, then no problem.  It could happen.

But if you’re tired of waiting and will consider a price reduction, then 5% is the recommended amount – which isn’t giving it away.  It’s just recognizing that the initial list price was too optimistic, and a more-realistic price is needed.

Smaller reductions won’t cause buyers into doing anything different than they’ve been doing – waiting for a fair price/value for today’s market.

Posted by on Mar 5, 2019 in Bidding Wars, Jim's Take on the Market, Listing Agent Practices, Thinking of Selling?, Why You Should List With Jim | 3 comments

The Bridge House Photos

Welcome to the Bridge House!

Inspired by Frank Lloyd Wright’s Fallingwater, this modern craftsman is one of the most architecturally-significant homes in Carlsbad.  A wonderfully artistic design and brilliant use of space – this one-of-a-kind home is defined by its clean lines and dramatic use of materials.  Enjoy the stylish great room with fireplace, hardwood floors, high-end windows, sophisticated lighting, and then step out to the patio under the stars!

4 br/3.5 ba, 3,294sf built in 2006 on a 10,298sf lot.  LP = $1,499,000.

https://www.zillow.com/homedetails/4240-Hillside-Dr-Carlsbad-CA-92008/69016703_zpid/

Ideally suited for multi-generational living with two master suites (entire home is on one level except for a bedroom suite). A home for the individual who appreciates quality, craftsmanship and wants an impressive home that stands out from the rest! For comps see 3255 James, plus 4039 and 4120 Sunnyhill.

4240 Hillside Drive, Carlsbad – open house 12-3pm Saturday, February 16th.

Posted by on Feb 15, 2019 in Jim's Take on the Market, Listing Agent Practices, Why You Should List With Jim | 4 comments