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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: ‘Realtor’

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

Risky Off-Market Scenarios

This is how the industry enforces the rules – run an article like this every once in a while that gives tips how to CYA.  We do have a form that absolves agents from wrong-doing, which just begs agents to ignore the rules:

From N.A.R.

If you or your client is interested in proceeding with an off-market listing, be aware of the potential peril of compromising your fiduciary and ethical responsibilities. Here are five scenarios to avoid, along with ways to reduce your risk.

  1. The real estate agent or broker, not the seller, is the one pushing for an off-MLS listing. Ensure the decision is made voluntarily, solely by an informed seller. Have a signed listing agreement that spells out to clients the limitations of not listing on the MLS (such as that it may reduce their chances of getting the highest and best price for their home by reducing its exposure more widely to the public).
  2. “Coming soon” marketing that limits the listing’s availability to a specified group of brokers during the premarketing period. Be certain all brokers and buyers have equal access to the listing.
  3. An agent fails to notify their member MLS when a client opts to keep the listing private. Most MLSs require that after a listing agreement is signed, the agent must file a certification—signed by the seller—noting the listing is not to be disseminated to other brokers using  MLS. Typically the notification must be filed within two to three business days after a listing agreement is signed.  Agents can be fined for failing to do so.
  4. An agent faces accusations of breaching fiduciary duty in order to earn a double commission. Off-market listings can lead to more dual agency transactions, as the agent may actively advertise the property only to his or her clients. While not illegal, the practice can be problematic if the prospect of a double commission is the reason an agent suggested an off-MLS listing. Agents risk being sued by a buyer client, for example, who might believe you didn’t seek the best price since you also represented the seller.
  5. Agents are accused of antitrust or fair housing violations by limiting listing exposure to a narrow buyer segment. Be sure  you are fulfilling your duty to “cooperate with other brokers except when cooperation is not in the client’s best interest,” as stated in Article 3 of the REALTORS® Code of Ethics.

https://magazine.realtor/technology/feature/article/2018/09/5-risky-off-mls-scenarios

Posted by on Sep 15, 2018 in Ethics, Jim's Take on the Market, Listing Agent Practices, Realtor | 0 comments

Open Chaos

Opendoor, the ibuyer who purchases your home for cash and closes escrow at your leisure (as long as you don’t mind paying their 6% to 13% fees plus home repairs) has made a deal to acquire a discount brokerage:

Opendoor announced Tuesday morning that it has acquired Open Listings, a real estate site that offers homebuyers a 50% refund on the fees their real estate agent would have received.

With the acquisition, Opendoor will now be able to buy a home directly from a seller, then help that seller find a new home (whether it’s a newly built home or an existing one), offer them a mortgage, and close on the sales through its own title operations.

Basically, buyers who use Open Listings find, tour, and buy homes through the platform. Real estate agents only come into the process when it’s time to make an offer on the home.

Link to Article

They are building a platform similar to the Red team’s, and both are weak in the beginning – they both offer inexperienced agents or no help at all at the initial showing of the home.  These guys expect you to go to the listing agent’s open house, and then make an offer with their online agent.

I believe that every buyer should receive professional advice from their agent while at the property – and reflect those details into the offer price.  Otherwise, you pay too much!

The online agents haven’t seen the house in person, and can’t offer the same expertise.  Besides, if you are an online agent, you just want to hurry up and write the offer and expect any defects to come out during the home inspection.  The buyers end up basing their entire investigation on a $500 guy who has no fiduciary duty to them and whose job is limited to the moving parts of the house.

But let’s say you can live with that.

These types of disrupter platforms are entirely dependent upon all agents sharing their listings on the MLS.  But as the major brokerages continue to input their listings on their company website first (Redfin’s publicly-stated policy), the MLS will soon become a relic, and the marketplace of last resort.

All of the market conditions are pushing in this direction.  We are transitioning from the Wild, Wild West to Full-Tilt Chaos!

Get Good Help!

Posted by on Sep 12, 2018 in ibuyer, Jim's Take on the Market, Listing Agent Practices, Realtor, The Future | 1 comment

The Real Estate Business, 2018

People are wondering where real-estate-selling business will go.

The Uber Real Estate yesterday proved to be fake news – they aren’t affiliated with the real Uber – but they did follow a familiar theme; bashing the traditional realtor model.

Virtually every disrupter does the same thing, accusing regular agents of charging too much for doing too little.  Then they claim to do the same thing (full service) for less money.

But nobody has offered a different way to sell homes.  Why? Because there isn’t any mystery about the process; it is what it is.

Sellers decide how much help they want and need to expose their home to the marketplace, and handle the details of getting to the finish line.  Buyers review the offerings, and decide how much help they want and need to buy one.

That’s it – that’s the process.

HOW MUCH HELP DO PEOPLE WANT?  DO THEY KNOW WHAT THEY NEED?

Because nobody in the business does much to expose what they actually do to sell homes, the difficulty of buying and selling is a mystery.  As a result, it looks easy – easier than it really is, especially as we’re transitioning into new and relatively unknown market conditions.

They don’t know how much help they will need because they under-estimate the difficulty.  Sellers have sold cars and other items in their life, and take pride in knowing a few things about their world. Buyers have rented homes before – how hard can it be to buy one?

Disrupters ignore the difficulty too, and claim their Full Service is all you need.

But we’re in an era where the difficulty is getting harder, as the disrupters are making it sound easier – and cheaper.

As a result, the consumers (sellers and buyers) are under-served.  Some don’t think they want much help, if any.  This includes the sellers who think that paying less for limited exposure will still net them the same money, and the buyers who go to the listing agent direct – thinking they will get a better deal.

Traditional realtors could make their stand by mounting an effective advertising campaign to demonstrate the truth about the difficulty, and how important it is to get good help.  It’s what consumers need to hear – and then find the appropriate service provider.

Without that guidance, consumers will select their realtor like they buy everything else in the Amazon era – rush a cursory review of the choices, and then grab one based on chance and luck, not thorough research.

Why don’t the traditional realtors step up to the microphone?  Because they haven’t had to yet.

But when they do, they will be faced with an interesting decision.  Do they take the high road, and educate consumers properly?  Or jump into the swamp?

Let’s hope for more consumer education.  We have more choices of service providers than ever, but less truth!

GET GOOD HELP!

Posted by on Sep 7, 2018 in About the author, Jim's Take on the Market, Market Conditions, Realtor, Why You Should List With Jim | 1 comment

Uber Real Estate

Uber Real Estate is not affiliated with the real Uber:

SAN FRANCISCOSept. 4, 2018 /PRNewswire/ — Uber Real Estate has announced the launch of Uber Real Estate services. Uber Real Estate is disrupting the traditional real estate brokerage brick and mortar business model by reducing the transaction cost by up to 50 percent using their unique on-demand model.

“You will never again pay a full commission using Uber Real Estate. We take the Jack Ma and Steve Jobs approach to business and supply the consumer with what they want. We will make Uber Real Estate the premium service it should be, provide the ultimate value and market liquidity. This is for the people,” says Brent Ritz, Chairman of Uber Real Estate.

Consumers receive Uber – Like Execution with only experienced professionals, no more drama and only substantive yes or no, answers. Uber Real Estate provides Broker and Broker Attorneys with ten to thirty years of experience to the company’s clients. Associates have equity participation based on performance metrics. They have assets, skin in the game and perfect records. They are part owners of their firm and consequently, do not compete against others at their own firm. They actually do provide agency and work for the clients of the company as it should be.

“People are completely sick of fees and the boring drama of under-educated inexperienced Realtor cheerleaders. Uber Real Estate provides superior service with the unnecessary overhead, inefficiencies and bureaucracy removed. Uber Real Estate is the much-needed disruption in the Real Estate space.”

“Consumers just want to go online and get it done with Uber – Like Execution. Presently we are completely website driven. An Uber, mobile application, for Real Estate, is under development.”

Uber Real Estate was registered in 2009. Uber Real Estate owns the Trademark, for the word, Uber, itself, for Real Estate.

Link to Article

Posted by on Sep 6, 2018 in Jim's Take on the Market, Realtor, The Future | 5 comments

The Long Road Ahead

Things that blow out deals are usually avoidable, and are easy to identify in hindsight. In this case, the agent let the buyers pick a roofer out of the book, which is a terrible way to do business. He gets paid the same whether he blows the deal or not, so of course he tells the buyers the house will fall down some day. No wonder he has great reviews – think of all the homebuyers he saved from buying a regular house, and are still renting!

But the most important lesson is how the agent handled the situation once a concern has been identified.  Buyers are counting on their agent for expert guidance, which should include pointing out that there are no perfect homes out there, and let’s find a way to deal with the imperfections – because in this case, the house had far more positives than negatives.

But instead, the agent – who had been telling me that everything was fine – just sends over the cancellation form in the dead of night.  She didn’t give me any more opportunity to address the concern (even though I has already provided ample evidence), or try to fix it herself.  Instead, once her buyers objected, she just cancelled.

This is where we will see the last nine years of a bull market come back to haunt us.  There are plenty of agents who got into the business since 2009 that not only consider themselves one-percenters, but have built teams and are riding a high horse.  But they have never had to handle buyer objections.

Expect a long, stagnant, bumpy market ahead.

Get Good Help!

What did I do? I went back to the second-place finisher and sold it to them.

Posted by on Sep 5, 2018 in Auctions, Bubbleinfo TV, Jim's Take on the Market, Listing Agent Practices, Realtor, Realtor Training, Why You Should Hire Jim as your Buyer's Agent, Why You Should List With Jim | 2 comments

More on Pocket Listings

For those who ‘specialize in the off-market space’, here’s a new excuse to justify your unethical and probably illegal practices: “some buyers don’t want photos of the home they’re purchasing on the internet”.

http://rismedia.com/2018/09/04/brokers-turn-pocket-listings-rising-markets/

The real estate market has heated up so much in certain regions that brokers are taking transactions into their own hands—or, rather, their pockets. With increasing prices and, seemingly, more buyers willing to pay an amount that’s leaving sellers with nice profits, the question these sellers keep asking is, “Why bother with the MLS?”

While the answer to that question varies greatly depending on who is asked, more and more brokers are saying don’t list on the MLS, or even Zillow, for that matter.

“It’s an opportunity for a savvy agent, who uses his or her network properly, to make more money for their client,” says Jon Paul Molfetta, a broker with Keller Williams Realty in New York and New Jersey.

“If sellers aren’t familiar with the concept of a pocket listing, I would expect that their area/location doesn’t warrant it. Savvy sellers know when they live in a hot market. They understand the value of having a strong broker with a large network. If they contract with the right agent, they can realize top dollar without the hassle of having every nosy neighbor or unqualified buyer through their home,” says Molfetta.

“Agents who lose touch will lose deals (and) miss opportunities,” says Molfetta. “When someone misses out on a property, they might be willing to overpay for the next one. Regardless, people will not underpay for a pocket listing. If you’re a strong listing agent who controls a portion of the inventory, you provide added value to both the buyer and seller. For the buyer who wants into the neighborhood, you offer the unique opportunity of finding a home before it hits the market. For the seller who is ready to list, you provide a pool of qualified buyers from months of successful marketing and proper lead capture. It’s a win-win.”

California seems to be a haven for pocket listings, where sellers are coming to their brokers and demanding it. Lori Steele is a specialist with Beverly Hills, Calif.-based The Agency, which launched a private national off-market platform last summer called The Pocket Listing Service (PLS). Steele says it’s been incredibly popular among sellers who value privacy and speed, and it helps all the agents under The Agency roof generate business for clients and cultivate their networks.

Steele is involved with The Agency’s expansion through Orange County, Calif., and she says The PLS is a big part of the appeal.

“About 40 percent of all of our deals are done off-market,” she says. “It’s important for seller discretion, and some buyers don’t want photos of the home they’re purchasing on the internet.”

Link to Full Article

Posted by on Sep 5, 2018 in Ethics, Jim's Take on the Market, Listing Agent Practices, Realtor | 5 comments

When Your Broker Poos in Your Closet

Kayla sent in this old New York real estate story (agent still in the business):

We knew the NYC real estate market was crazy, but we didn’t realize it was Satanic ritual crazy!

Upset “Manhattan millionaire” Daniel Farash tells the Post that he listed his Upper West Side three-bedroom apartment at 310 West 79th Street with Warburg Realty in 2003.

When Farash came home one weekend, the real estate agent holding the open house was naked and screaming, after apparently urinating on his beds, breaking various objects, arranging things to “look like a woman giving birth” – and pooping in a closet!

Farash is now suing Warburg Realty, charging the incident resulted in him selling his $1.4 million apartment for $500,000 less than market value. He also says it’s left him suffering from post-traumatic stress disorder.The broker was identified in court papers by her company as former real-estate agent Julie A. Johnson.

According to a deposition, the firm’s president, Fred Peters, admitted the company knew she was mentally unstable, having discussed her anxiety and stress issues with one of her therapists. But Peters insists the company is not responsible for the damages.

Peters and the company attorney did not return calls for comment.

Interesting – if you have an open house, and the broker knocks over something, the broker is not responsible? We suppose most brokers would pay for damages – but the ones with Satanic and bodily function issues probably wouldn’t. What we’d like to know is whether Warburg paid for cleaners.

Farash has brought his sensational lawsuit to the Post because Warburg is being “uncooperative,” which surprises us because you’d think the realty would want to keep this quiet.  And not that we know the details and highlights of Farash’s old apartment, but in 2002, a 2-bedroom in the same building sold for $1.75 million.

http://gothamist.com/2006/09/25/when_your_broke.php

Posted by on Sep 2, 2018 in Jim's Take on the Market, Realtor | 1 comment

Realtor Films

Here’s a homebuyer story that also gives a little-known but important tip on how self-employed people can qualify for a mortgage (Freddie Mac only requires a single tax return to qualify).  It combines a Zillow-like personal story with some education too – NAR should do more like these!

https://free.vice.com/en_us/topic/real-state-created-with-the-national-association-of-realtors

Posted by on Aug 30, 2018 in Jim's Take on the Market, Realtor | 1 comment

Virtual Real Estate

Hat tip to Rick for sending in this incredible VR – I need to broker these!

Investors are spending real money to buy land in a new city that only exists in virtual reality. Buyers can build whatever they want on their plots in Decentraland. Many hope to make a profit trading goods and services in the virtual world’s own crypto currency. But will Decentraland be an online utopia or a cyber slum?

Posted by on Aug 28, 2018 in Jim's Take on the Market, Realtor, The Future | 1 comment