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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’

The End is Near

click on image for their youtube video

Our broker-cooperation model of sharing listings though the MLS has been the lifeblood of selling homes since the early 1960s.  But it is breaking down right before our eyes.

It’s not going to happen all at once, or even happen out in the open.  Instead, the sharing of listings through the MLS will just quietly go away.

Whether it is the emergence of the PLS, or brokerages developing their own Coming Soon program, or individual agents doing off-market sales out of sight, the sharing of listings is doomed – even though it is what’s best for consumers and agents alike.

Can we just admit it, and carry on like the commercial brokers do?

Everybody for themselves!

The first thing to do is to stop the automatic listing feeds to Zillow/Trulia, and make it broker-optional, which is what’s happening in Las Vegas.

Agents may choose to upload their MLS listings to Zillow and other portals, or maybe not.  But what about Redfin and other brokerages who get their listings directly from the MLS?  Once agents see the benefits of eliminating portals, why would they bother with the MLS at all?

Maybe agents with a hot new listing will just wait a few days or weeks to see if they can find their own buyer first.  Or maybe another agent in the office might have someone?  We already see this happening every day.

The MLS will be the marketplace of last resort.

We should embrace this change, and tell consumers that they have to go to each company’s website – or even each individual agent’s website – to find the hot new buys.  At least they would know the honest truth!

I’m convinced that industry players don’t see this coming.  They don’t see what happens (or they look the other way) when listing distribution is left in the hands of the listing agents themselves.

Yes, thank you for giving us the ability to choose which platforms to use to market our listings – I appreciate having choices. But when you take the automation away, and make it a manual choice for each listing, agents will find it hard to resist the temptation to limit with whom they share their listings.

Posted by on Nov 9, 2018 in Jim's Take on the Market, Listing Agent Practices, Realtor, Realtors Talking Shop, Why You Should List With Jim | 1 comment

The ‘Rancho’ Effect

People are feeling a ‘change’ in the market, and wonder what will happen. The rapid escalation of prices has turned real estate into a rich man’s game – and you need serious horsepower to participate!

As the rest of North San Diego County’s coastal housing market feels the ‘Rancho’ effect, we will see more listings coming to market, listings taking longer to sell, and bigger gaps between list prices and sales prices.

In the surrounding lower-priced areas, the action has been much faster – we’re used to the quality homes selling in the first week or two. Let’s compare RSF to Encinitas to demonstrate what we can expect from now on:

Category
Encinitas
Rancho Santa Fe
Population
63,184
3,117
Active Listings
134
172
October Solds
48
23
Actives/Solds
2.8
7.5
Oct Average DOM
40
73
Oct Average SP:LP
95%
87%

We’ll have more homes on the market, slower market times, and bigger gaps between the list prices and sales prices. It’s how they do it in the Ranch!

Posted by on Nov 8, 2018 in Encinitas, Jim's Take on the Market, Listing Agent Practices, Market Conditions, Rancho Santa Fe | 1 comment

Red-team Fake Refresh

Tom saw that Stewart had a new banner on Redfin, and he wondered if I refreshed the listing on the MLS.  I didn’t, and when I checked, the other listings nearby that have been active for months had the same look:

Buyers are probably smart enough to figure it out.  But in case it brings more eyeballs, we lowered the price to $989,000 and we’ll have open house 12-3 on Sunday!  Three other listings within a couple of blocks of us went pending in the last week, so it’s been hopping in South O!

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The same thing happened to Richard, so maybe it is system wide?

He also dropped the price, ($1,299,000) and NO OPEN HOUSE – PENDING!:

Posted by on Nov 2, 2018 in Bubbleinfo TV, Jim's Take on the Market, Listing Agent Practices, View, Why You Should List With Jim | 4 comments

Selling Your Home in 2019

We have a fundamental problem in the housing market – how it works today.

New listings are distributed within minutes these days, and waiting buyers are on the edge of their seat.  Those who were already frustrated with high prices, higher rates, and coming soons want to get it over with and buy now – and they either jump immediately on the good ones, or they swipe to the next offering.

The graph above show the Zillow views of my one-story listing in La Costa Ridge.  Look how quickly the interest fell off.  The bump on Day 9 was when we lowered the price $100,000, and literally by the next day it was old news.

What’s the problem?

Sellers are unaware.

Once they figure it out, it is natural to resist, and the real estate industry makes no attempt to educate sellers on this dilemma.  Maybe agents aren’t aware either, or are uncertain what to make of it?

It doesn’t matter when prices are rising – sellers can just wait until the market catches up with their price, which has been the preferred method forever. But in a stalled/stagnant/soft market, prices aren’t coming to meet you – and they might be going to other way.  It could be years before they do catch up.

We expect selling a house to be like every other job – put in a good effort for weeks or months, and at the end we will have success.

But selling a house in this environment gets more-frustrating/less-rewarding with the longer it goes on.

Will sellers resist the temptation to add a little extra to their list price, and instead employ sharp pricing to sell early and for a higher amount?

They should, because buyers are dying to beat down the prices of the stale old listings, and their pricing expectations will be dropping far faster than sellers.  It will get harder and harder to put deals together on the older listings.

It’s simply an educational thing for the new market conditions – if you price your home to sit, not sell, you will be sitting much longer than before!

Get Good Help!

Posted by on Nov 2, 2018 in Jim's Take on the Market, Listing Agent Practices, Market Conditions, Why You Should List With Jim | 0 comments

812 Clicks

I only put this on here because I want you to learn with me, side-by-side.

I spent a couple of bucks on a Facebook ad, and got 812 clicks.

Buyers are interested!

There is a demand right below the surface, and a property that looks under market will get hundreds of buyers to respond. Hire me to handle!

Posted by on Oct 29, 2018 in Jim's Take on the Market, Listing Agent Practices, Market Conditions, Thinking of Selling?, Why You Should List With Jim | 4 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

Modern Farmhouse Open 12-3

We’re having open house 12-3pm Saturday and Sunday to find the buyer, and to keep the pressure on those who have seen it, and may be lurking (in case they’re thinking that waiting longer might mean a better price).

Relentless activity keeps the buyers hopping!

A week ago, the Red team’s estimate was $1,040,313, much like the list price:

After a flurry of hits on their website, they called it a Hot Home, and raised their estimate to $1,055,196.  But then we lowered the price to $999,000:

Conveniently, after we lowered the price, they dropped their estimate by $70,458 in three days, and is now is within $239 of the zestimate:

We can put to rest any question about how they determine their estimates – they just mirror the list prices.

Posted by on Oct 20, 2018 in Jim's Take on the Market, Listing Agent Practices, Tom Tarrant, Why You Should List With Jim | 0 comments

JtR Expands the Market Area

Our local associations of realtors are done suing each other, and as of today, those of us in the NSDCAR are officially using the nearly-statewide CRMLS.  We are going to share the other local option, SDMLS, for the next two years so consumers probably won’t notice any difference on the portals.

What does it mean?

It means Jim the Realtor is going state-wide!

Well, almost – the map above shows the areas of coverage.  While Temecula and the OC would be obvious markets that are closer to home, it’s not out of the question that I can sell homes anywhere.

When my Dad died in 2010, I sold my parents’ home in Concord for top dollar, and the long-timers here might remember my grandparents’ house.

My sister had just become a realtor in the Bay Area when it came time to sell the family homestead.  It was a custom home my grandparents had bought in the 1940s, and there had not been much upkeep or improvements:

Plus, like with many families, there was an overload of sentimental value.  It’s where we had most of the holiday gatherings, and there’s even a photo somewhere of me as a toddler sitting on Earl Warren’s lap in the living room!

My Mom and sister were convinced that it would sell for over $2,000,000.

I told them to send me the comps, and once reviewed, I said it was going to sell for $1,500,000.  They were outraged and hurt, and accused me of knowing nothing about the local market – how could I possibly offer any assistance?

Here’s how it turned out:

I don’t think it’s feasible to be able to help homebuyers in other areas, but I can offer my full compliment of sales skills to sellers – contact me and we can discuss. I already have a listing coming in Murrieta, and another possible one in the OC so we’ll see how it goes.  Tract houses and condos are a little easier to evaluate, but as you saw with my grandparents’ house, I can get pretty close on the custom estates too.

One other change with the CRMLS:

They have the same policy as Sandicor did about requiring that listings are inputted onto the system within 48 hours – but CRMLS only counts business days, not calendar days.  So listings taken on Thursday don’t have to be inputted until Monday.  Of course, agents are still welcome to use the SELM form to exclude the listing for days or weeks if they so desire.

Update on Wednesday morning:

Posted by on Sep 19, 2018 in About the author, Jim's Take on the Market, Listing Agent Practices, Realtor, Why You Should List With Jim | 4 comments