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Jim Klinge
Cell/Text: (858) 997-3801
701 Palomar Airport Road, Suite 300
Carlsbad, CA 92011

Category Archive: ‘The Future’

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

How Far We’ve Come

Hat tip to my father-in-law who sent this in – he wasn’t around then!

  • What a difference a century makes! Here are some statistics for 1918:
    • The average life expectancy for men was 47 years.
    • Fuel for cars was sold in drug stores only.
    • Only 14 percent of the homes had a bathtub.
    • Only 8 percent of the homes had a telephone.
    • The maximum speed limit in most cities was 10 mph.
    • The tallest structure in the world was the Eiffel Tower.
    • The average US wage in 1910 was 22 cents per hour.
    • The average US worker made between $200 and $400 per year.
    • A competent accountant could expect to earn $2000 per year.
    • A dentist $2,500 per year.
    • A veterinarian between $1,500 and $4,000 per year.
    • And, a mechanical engineer about $5,000 per year.
    • More than 95 percent of all births took place at home.
    • Ninety percent of all Doctors had NO COLLEGE EDUCATION!
    • Instead, they attended so-called medical schools, many of which were condemned in the press AND the government as “substandard.”
    • Sugar cost four cents a pound.
    • Eggs were fourteen cents a dozen.
    • Coffee was fifteen cents a pound.
    • Most women only washed their hair once a month, and, used Borax or egg yolks for shampoo.
    • Canada passed a law that prohibited poor people from entering into their country for any reason.
    • The Five leading causes of death were:
      • 1. Pneumonia and influenza.
      •   2. Tuberculosis
      •   3. Diarrhea
      •   4. Heart disease
      •   5. Stroke
    • The American flag had 45 stars.
    • The population of Las Vegas, Nevada was only 30.
    • Crossword puzzles, canned beer, and iced tea hadn’t been invented yet.
    • There was neither a Mother’s Day nor a Father’s Day.
    • Two out of every 10 adults couldn’t read or write.
    • And, only 6 percent of all Americans had graduated from high school.
    • Marijuana, heroin, and morphine were all available over the counter at local corner drugstores.  Back then pharmacists said, “Heroin clears the complexion, gives buoyancy to the mind, regulates the stomach, bowels, and is, in fact, a perfect guardian of health!”
    • Eighteen percent of households had at least one full-time servant or domestic help.
    • There were about 230 reported murders in the ENTIRE U.S.A.!

Posted by on Sep 7, 2018 in Jim's Take on the Market, The Future | 6 comments

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

More Boomers In Debt

Will the current turbulence in the real estate market make boomers drop everything and list their home for sale in the coming months, or just scoot a little closer to the exits?

How many were already counting on every dollar of equity based on their lofty estimates of value that are now in question?  Do they pack it up and wait for a few more years?  Or sell now while they can?

The pressure is coming from many angles too – if it was just up to boomers having to survive on their own, they’d be fine, even if they had to cut back on the current lifestyle.  It’s their parents needing the expensive assisted-living and the kids trying to get ahead that puts the additional strain on boomers, and could make them sell their house.

It’s a curious topic for those around housing – how will it all play out?

These charts and graphs are from this story in the WSJ:


•The percentage of families with any debt headed by people 55 or older has risen steadily for more than two decades, to 68% in 2016 from 54% in 1992, according to the Employee Benefit Research Institute, a nonpartisan public-policy research nonprofit.

•Americans aged 60 through 69 had about $2 trillion in debt in 2017, an 11% increase per capita from 2004, according to New York Federal Reserve data adjusted for inflation. They had $168 billion in outstanding car loans in 2017, 25% more per capita than in 2004. They had more than six times as much student-loan debt in 2017 than they did in 2004, Fed data show.

A combination of economic and demographic forces have left older Americans with bigger bills and less money to pay them.

Tempted by a prolonged era of low interest rates, boomers piled on debt to cope with rising home, health-care and college costs. Interest-rate declines hurt their security blankets. Lower earnings on bonds prompted many insurance firms to increase premiums for the universal-life and long-term-care insurance many Americans bought to help pay expenses. Some public-sector workers are living with uncertainty as cash-strapped governments consider pension cuts.

Gains in life expectancy, combined with the soaring price of education, have left people in their 50s and 60s supporting adult children and older relatives. Some are likely to have to rely on professional caregivers, who are in short supply and are more expensive than informal arrangements of the past.

Read full article here:

Link to WSJ Full Article

Posted by on Aug 29, 2018 in Boomer Liquidations, Boomers, Jim's Take on the Market, The Future | 0 comments

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

Car Living

We’re going to see more of this – from the unfortunate ones to those who deliberately choose to live a life untethered.

Each night at 6 p.m., San Diego’s New Life Assembly church opens its parking lot to dozens of people who will spend the night in their cars. The church is one of three sites in the city where the homeless can park overnight without fear of being ticketed or towed—or worse. It’s part of a citywide safe parking program started in 2010 to confront an increasingly visible face of the state’s homelessness epidemic: Californians sleeping in their cars.

As housing costs soar in major cities, more Americans are living behind the wheel. The U.S. Department of Housing and Urban Development doesn’t collect national data on vehicle residency, but unsheltered homelessness—a category that includes people sleeping in vehicles—is on the rise.

In 2016, HUD counted 176,357 unsheltered people nationwide on a single night; last year, that number jumped to 192,875. In King County, Washington (which includes Seattle), about 3,372 people—more than half of the county’s unsheltered population—are living in vehicles. And in Greater Los Angeles, which has the largest unsheltered homeless population in the country, more than 15,000 people live in cars, vans, and RVs.

The car has become “a new form of affordable housing,” says Graham Pruss, a researcher and former outreach worker for Seattle’s Road to Housing program, a city initiative that helped residents living in cars find more stable housing.

In the tight housing markets of West Coast cities, it’s not just the destitute or the unemployed who see their cars as their best option. “I have met people who are working at Amazon and rent an RV to live on the streets of Seattle while they’re saving enough to get into their own place,” Pruss said.

After years of crackdowns, cities from Santa Barbara, California, to Kirkland, Washington, are trying a new strategy: safe parking programs.

San Diego’s program, run by the nonprofit Dreams for Change, has three lots with 150 spaces. The program has 325 residents—more than two people share a car, in some cases—ranging from families to retirees to tech workers making nearly $100,000 a year. And they sleep in models ranging from a Honda Civic to a Lexus. “Most of the time you walk through the parking lot, you wouldn’t know that they are a parking lot full of individuals living in their cars,” said Teresa Smith, CEO of Dreams for Change.

Link to Article

Posted by on Aug 22, 2018 in Jim's Take on the Market, The Future | 11 comments

Housing and Household Formation

This work by the Fannie Mae Research team suggests that there is further divide between the affluent, and everyone else.

Their trend shows that people who are having families are those who can afford a house too.  Renters are having to choose, or are going with neither.

Posted by on Aug 21, 2018 in Jim's Take on the Market, Market Conditions, The Future, This Is America | 2 comments

City of Carlsbad Moving Up!

People wonder how a sleepy little beach town will ever be able to keep the housing bubble afloat.  But Carlsbad isn’t just a bunch of flower fields and surf shops any more!

Carlsbad Top Employers:

  1. ViaSat, Inc. – communications
  2. Thermo Fisher Scientific – biotechnology
  3. LEGOLAND California – family theme park
  4. Carlsbad Unified School District – government
  5. Omni La Costa Resort & Spa – resort
  6. TaylorMade-Adidas – golf equipment
  7. SGN Nutrition – nutrition
  8. Gemological Institute of America – training/laboratory
  9. City of Carlsbad – government
  10. OptumRx – biotechnology
  11. Genoptix, Inc. – biotechnology
  12. Park Hyatt Aviara – resort
  13. Zimmer Dental – biotechnology
  14. Nordson Corporation – precision manufacturing
  15. Legend3D – visual effects
  16. Callaway Golf – golf equipment
  17. Costco Wholesale Corporation – retail
  18. Continuing Life Communities – retirement
  19. ISIS Pharmaceuticals – biotechnology
  20. Great Call/Jitterbug – communications

Carlsbad businesses are not only diverse, but prospering too.  For example, Great Call was just sold to Best Buy for $800 million this week!  Plus, there is a new company moving into the old floral mart in October:

Posted by on Aug 19, 2018 in Carlsbad, Jim's Take on the Market, The Future | 0 comments

Instant Agent

At least you get to choose the realtor, instead of getting stuck with whoever shows up. I was able to install the mobile app from the Play Store but couldn’t get it to work (I’m rocking the Pixel 2 now). Hat tip Eddie89!

You’ve hailed rides using a mobile app before, but have you hailed real estate agents on one? If not, a new tool called ArriveHome seeks to change that.

A new app called ArriveHome is looking to streamline the real estate market. Designed for buyers who don’t yet have an agent or those who want to browse a home ASAP, ArriveHome makes finding a Realtor and scheduling a showing instant and easy.

Upon seeing a home they like, buyers log onto the app, browse the many “live” agents listed in the area and choose one they want to work with based on their profile and details. Next, they can click to text or call the agent and schedule a showing on the spot.

According to Jeff Narlinger, co-founder of ArriveHome, the app will help speed up the often slow showing process.

“[We are] melding the ‘on-demand/Amazon effect‘ into real estate, giving the consumer faster, easier access to properties,” Narlinger said. “No more sign calls or long e-mail threads that do not get returned quickly enough.”

The app isn’t just for the buyer, though, Narlinger said.

“Basically, what Uber did for the Taxi Industry, in providing efficiencies and advantages that both providers and consumers never knew they needed, that’s the impact we believe ArriveHome will have on the residential real estate industry in its benefits to the home search process for both agents and consumers alike,” he said.

ArriveHome is currently available in Colorado, California and Arizona on both iOS and Android devices. The company plans to expand to Nevada and Texas next.

Link to Article

Posted by on Aug 13, 2018 in Jim's Take on the Market, The Future, Tips, Advice & Links | 0 comments