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Category Archive: ‘Realtors Talking Shop’

Statewide MLS

I am a proponent of San Diego realtors joining the CRMLS (with 80,000+ members) because their system is vastly superior to the crappy MLS version supplied by our Sandicor. But here’s an alternative reason why we should adopt a statewide MLS – because consumers know more than realtors:

It’s My Business, the campaign for statewide MLS listing access in California, traveled to the C.A.R. Meetings in Sacramento in May 2017.

Industry leaders were asked “What is the Future of the MLS?” Hear their answers, plus what they think about 3rd party listing websites and how they’ve changed the business of real estate.

Including testimonials from:

Bryan Forrest – Director of C.A.R.
Monet Love – Director of Pacific Southwest AOR
Max Zaker – Board Member of Pacific Southwest AOR
Claudia Zaker – REALTOR w/ Keller Williams
Brenda Meyer – Past President of East Valley AOR
Joe Prian – President of Scenic Coast AOR
Mike Carunchio – President of North San Diego County AOR
Kevin Williamson – Director of North San Diego County AOR
Rich D’Ascoli – CEO of Pacific Southwest and N. San Diego AOR
Kesha Toler – Broker Associate, Scenic Coast AOR
Jan Farley – 2017 President Elect of Pacific Southwest AOR
Mike DeLeon – Past President of Orange County AOR

Posted by on Jun 11, 2017 in Jim's Take on the Market, Realtor, Realtors Talking Shop, The Future | 1 comment

C.A.R. and Instant Offers

He says C.A.R. would “oppose any such development that eliminates many consumer protections”. Well, are you opposing the Zillow Instant Offers? It doesn’t sound like it. As usual, the leaders of the realtor business are comatose while outsiders strip us down for spare parts.

There is an easy solution. Everyone provide ‘instant offers’.

I have regular buyers for North San Diego’s coastal region that will happily pay 10% under value, and investors that will pay 20% to 30% under value. Both will close in 5-10 days. Contact me today!

June 7, 2017

Fellow REALTOR®,

C.A.R. President Geoff McIntosh

No doubt you’ve heard about Zillow Group’s “Instant Offers” pilot program for home sellers where, with or without an agent, homeowners can entertain instant offers and sell their home quickly. This program – which is essentially a new take on another “I’ll buy your house for all cash, below market value” business – is a small segment of the marketplace. The reactions we have received so far falls into either the camp of strong opposition or strong support. For those who are opposed, the pilot has been the subject of much consternation by REALTORS® since its announcement because it creates a path that eliminates the critical role an agent plays in the transaction – another step toward disintermediation.

Many see this as an antagonistic step against the very industry that fuels the site with listing content and premier advertising money, only to promote the prospect of excluding REALTORS® from the transaction. For those who see it that way, they have the option of rethinking their participation with the site. Those holding the other opinion have reported that they see business opportunities to enhance their work through this program. No matter how you look at it, we can all agree it’s bad for consumers who need to get sage advice, excellent customer experience, and top dollar when they’re selling their home, especially when consumers have to pay an exorbitant cost to participate in the program.

C.A.R. has been asked for its take. First of all, there is no substitute for the tremendous value REALTORS® bring to what is usually the largest, and often the most complicated, transaction a consumer will ever make. The program seems to be geared toward investors or investment groups who are willing to make more speculative investments. Any move which promotes eliminating REALTORS® from their role as a trusted navigator in this complex undertaking would ultimately harm most consumers, leaving them without a duty-bound advisor just when they need one most. C.A.R would oppose any such development that eliminates many consumer protections and will ALWAYS advocate for the unparalled value of using a REALTOR®.

This is the perfect opportunity for you to discuss with your clients the value proposition that a REALTOR® brings to the table and look at expanding the services you are uniquely able to offer investors and investment groups.

Sincerely,

Geoff McIntosh
Geoff McIntosh
2017 President
CALIFORNIA ASSOCIATION OF REALTORS®

Posted by on Jun 7, 2017 in Jim's Take on the Market, Realtor, Realtors Talking Shop, Zillow | 0 comments

Real Estate Made for TV

People want to see cut-throat realtors! Video here:

http://www.ocregister.com/2017/05/18/orange-county-real-estate-wars-to-debut-on-bravo-tv-july-6/

“Real Estate Wars,” a Bravo-TV reality show pitting Orange County agents against one another as they try to woo wealthy clients and settle bitter scores against a backdrop of luxury homes, will debut on Thursday, July 6 at 10 p.m.

The show “brings the cut-throat world of real estate in Orange County to life,” Bravo said in its announcement on Thursday, May 18. “With 10 agents, eccentric clients, multi-million dollar deals, old vendettas, and one common goal of winning, all is fair in real estate and war.”

Posted by on May 18, 2017 in Jim's Take on the Market, Listing Agent Practices, Realtor, Realtors Talking Shop | 1 comment

Real Estate Speed Dating

Real estate hysteria is reaching new levels:

LINK

It sounds like an unorthodox concept: Meeting complete strangers to see if you’re compatible to buy a house together. But as bizarre as it might sound, that’s exactly what happened on the third floor of the Toronto bar the Pilot in Yorkville on Thursday night.

Lesli Gaynor, the organizer of C-Harmony: Creating Co-operative Connections said the idea came to her when she watched her sons using dating apps.

“I have three young men and I was thinking about their reality and thinking about all of the apps they engage with on a daily basis and one of them has … used a dating site,” Gaynor said.

“It literally occurred to me that why can’t we take that kind of app or that style of meeting people and apply it to different things. It works for romance, so I think it could work for a mortgage.”

Gaynor said prospective buyers would combine financial resources to purchase real estate in Toronto.

“I combine my revenue with your revenue and your income with my income, we have more buying power and then we buy a property,” she said.

The former social worker turned real estate agent said while it seems unconventional, the idea of sharing space with strangers happens more often than you might think.

“People share homes all the time but there is a landlord,” she said.

“You might rent the bottom of a house and I might be your upstairs flatmate and it’s just that it’s controlled by a landlord as opposed to being controlled by you.”

Gaynor said she wants to stress that there is no expectation that participants need to exchange information and the evening was meant to open people up to the idea of co-operative purchasing.

“We are hoping people will meet and discuss their needs and they might go ‘hey, I really really like you and I could potentially buy a house with you’ with a solid legal agreement,” she said.

Posted by on May 7, 2017 in Jim's Take on the Market, Realtor, Realtors Talking Shop, The Future | 2 comments

Auction Questions

David from Louisiana sent this in:

Jim,

I just watched your first attempt at the auction and must say that you did a fine job as the auctioneer. I have been a real estate auctioneer/realtor for 30+ years and have often recommended an auction to fellow realtors in high demand situations such as yours. Of course, it usually falls on deaf ears as the realtors usually feel that they don’t need the service nor do they want to share the fee.

I hope you don’t mind the questions but I have been trying to work with realtors for many years and it seems to be a constant struggle.

I’m curious about what made you suddenly decide to utilize an auction when you could have easily achieved more than the asking price without it?

JtR:  Because there were multiple people at the open house that said they would be interested in purchasing the house, I thought this would be the best way to determine the winner fairly, and create maximum urgency.  The agents involved were willing, and so was the seller, so it worked out.  We did close escrow with the winning bidder at the price determined by the open bidding.

What was the seller’s opinion when you told them you were having an auction?

JtR: She was motivated to sell, so that made the difference.  Sellers who aren’t that motivated are suspicious of selling too quickly, thinking that this is like most jobs in the world where you work hard for weeks or months to achieve the desired result at the end.

But selling real estate in this low-supply, high-demand environment is the exact opposite – you stand the best chance of selling for top dollar in the beginning when the property is a hot new offering, and has max urgency. Buyers think something must be wrong with houses that aren’t selling in a hot market.

Did you consider actually marketing the property as an auction for a longer period of time and possible having more bidders?

JtR: No, because the highly-motivated buyers are there first.  There could have been other people interested later, but if they aren’t interested enough to come to the open house, then they probably weren’t willing to pay 4% or more over list price.  Yes, there could always be two in the bush, but our environment has trained buyers to race to hot new listings that might be a perfect match for them.  Not only will they be the most likely to pay more than others, but they are more likely to close escrow too.

I consider the quality/suitability of the property too.  This was a 1,541sf two-story house with a steep slope behind, so it wasn’t for everyone.  There were 3x as many people who didn’t bid.  Sellers and listing agents should consider how many people who came and didn’t offer.

Will you consider using the auction method in the future?

JtR: Absolutely, it is the best way to achieve top-dollar sales.  The animal spirits are driven when competing with your opponent eye-to-eye.

But auctions aren’t commonplace yet, so when I have multiple offers on a listing, I create a similar experience by pitting bidders against each other to increase the price.  I tell them the price to beat, which nobody does. Realtors want you to think it is better to bid blindly, but buyers are much more likely to go higher if they have a number to beat.  I take advantage of the competitive spirit, which you don’t have with blind bids.

For those who might think an auction format would only work for lower-priced properties, let’s note that there have been three sales in Rancho Santa Fe that utilized the no-reserve auction process, and closed for more than $10,000,000.

Those three are the ONLY sales over $10 million in the last five years in the Ranch, and there are 30 for sale today.  Let’s give auctions a try!

Of course, I would be happy to answer any questions that you may have.

Thanks, David

JtR: David, if a trusted name-brand company brought a slick and easy auction process to home sales and advertised it properly, do you think they could succeed?  Do you think they could change everything, and potentially eliminate realtors as we know them today?

Save

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Posted by on Feb 21, 2017 in Auctions, Jim's Take on the Market, Listing Agent Practices, Realtor, Realtor Training, Realtors Talking Shop, Why You Should List With Jim | 6 comments

Disturbing Realtor Stories

Want to know what it’s like being a realtor?

There’s more to it than just driving around!

Walking in on people having sex, or discovering a body is part of life. But if you want to get a feel for some of the sickos out there, click on the link below!

https://www.reddit.com/r/AskReddit/comments/5lt1ae/realtors_of_reddit_whats_the_most_disturbing/

Not for the faint of heart!

Posted by on Jan 6, 2017 in Jim's Take on the Market, Realtor, Realtors Talking Shop | 0 comments

Most Realtors Don’t Sell

failure-rate

There are 80,000 realtors in CRMLS – Art Carter is the CEO. 

Here’s what he had to say about agent productivity:

But many of the MLS’s 14,000 or so member firms have no listings, he added. The vast majority of the firms are one-man offices.

“Typically, only about 48 percent of our members in any four quarters participate on one side of a deal,” Carter said.

“Historically since I’ve been here at CRMLS, that has been about the average.”

Get Good Help!

Save

Posted by on Dec 4, 2016 in Jim's Take on the Market, Realtor, Realtor Training, Realtors Talking Shop | 0 comments

Flippant

t-day

I agree with the author about answering questions casually – agents look like idiots when they make a flippant remarks about work. The condition of the ‘market’ is relative to your own personal situation – it could be good or bad.

http://www.bestrealestateblog.com/6-things-shouldnt-ask-real-estate-agent-thanksgiving-dinner

#5 “How’s the market?”

This is too broad of a question.

The market is never entirely good, bad, or somewhere in between. It’s always good for some people, bad for others. How the market is depends entirely upon you and your needs and circumstances.

Not a bad question really. But it certainly isn’t one that an agent can or should just answer flippantly. So if you ask it, maybe you should be prepared to get into your specific scenario so they can accurately answer it.

Too many people get flippant answers from agents and base their perspective on the real estate market, and overall economy, on off-handed answers to questions like this.

Posted by on Nov 22, 2016 in Jim's Take on the Market, Realtor, Realtor Training, Realtors Talking Shop | 0 comments

Dual Agency Case

cz

On the surface, this case seems unusual – the seller’s agent owes both the buyer and seller a fiduciary duty if the buyer’s agent works at the same brokerage.  It’s because the agents are working on behalf of the broker – hopefully this will cause better broker supervision of dual agency cases.

The big kahuna of cases will be when a class-action suit is filed against a brokerage for all of the ‘Sold Before Processing’ sales, where the sellers didn’t get open-market exposure.

http://www.sfchronicle.com/business/networth/article/California-high-court-decision-favors-real-estate-10629057.php

In a closely watched case involving dual agency, the California Supreme Court ruled unanimously Monday that a real estate agent representing the seller of a property owes a fiduciary duty to both the seller and the buyer if the buyer’s agent works for the same brokerage firm.

The case involved the sale of a luxury home overlooking the Pacific Ocean in Malibu where the square footage was in dispute. The buyer and seller were represented by agents from different Coldwell Banker offices.

Under California law, a broker may act as a dual agent for both the seller and the buyer in a real estate transaction, provided both parties consent to the arrangement after full disclosure that the broker owes a fiduciary duty to both.

What was at dispute in the case was whether that duty extends to “associate licensees,” who are the individual agents/salespeople who operate under that broker’s license. The court ruled 7-0 that it does.

Read full article here:

http://www.sfchronicle.com/business/networth/article/California-high-court-decision-favors-real-estate-10629057.php

Posted by on Nov 22, 2016 in Jim's Take on the Market, Listing Agent Practices, Realtor, Realtor Training, Realtors Talking Shop | 2 comments