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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: ‘Thinking of Buying?’

Sorrento Valley East $649,000

For those who work in Sorrento Valley and always wanted the convenience of living close – but Carmel Valley was always more than you wanted to spend – then you may want to consider my new listing!

Sought-after Summerset Court home conveniently located on the edge of Sorrento Valley where you can walk/bike to Qualcomm and Green Flash Brewery! Remodeled kitchen with quartz counters and new appliances, open floorplan, vaulted ceilings, and dual-pane windows/doors. Garage has epoxy floor and storage cabinets too, and no Mello-Roos! Bring your lawnmower for the extra-large grass backyard in a VERY quiet neighborhood overlooking the canyon – great value!

List price is $649,000.  Zestimate is $694,235!

Open house 12-3pm Saturday and Sunday August 25 & 26.

https://www.zillow.com/homes/10651-Glendover,-SAN-DIEGO-California_rb/

Posted by on Aug 23, 2018 in Jim's Take on the Market, Open House, Thinking of Buying?, Why You Should List With Jim | 4 comments

Should Buyers Wait?

Should buyers wait a while to see what happens to the housing market?

Are we just seeing the usual end-of-selling-season malaise when where all of the motivated sellers have succeeded, and just the OPTs are stacking up?

Or has the market shifted…..for good? Is this the peak?

I think it depends on your needs:

  1. Only buying a premium property – then stay in the hunt. In the last downturn, the prices of the premium properties held up well – most had less than a 10% decline in value, and that’s before people started hoarding real estate (not selling for any reason).
  2. Only buying a single story – then stay in the hunt.  The one-story market is red-hot, with demand far out-stripping supply, especially in the newer-home or view categories.
  3. Willing to buy a fixer – be patient.  Buy when you see the appropriate gap of 5% to 10% between the creampuffs and the ones that bark at traffic.  If the home is in original condition, the gap should be larger.
  4. Only want to steal a property – very unlikely in the near-term.  Sellers aren’t that motivated, and only a small minority might consider selling for less than 5% of list.

We should be in a stagnant state for months, as everyone waits to see what happens next spring.  But I think buyers will be similarly picky then too.

We’ll see the same or similar psychology take over the whole country at the same time – which is the way it always happens.  What needs to adjust is the sellers’ trend to expect more than what the last guy got.

Here is a discussion guided by our friend and realtor Tom Stone about the market in Sonoma County (follow the link) – and check the comment section too, where Tom mentions the solution. Hat tip Eddie89!

Link to Full Article on Wolf Street

 

Posted by on Aug 16, 2018 in Jim's Take on the Market, Market Buzz, Thinking of Buying?, Thinking of Selling?, Why You Should Hire Jim as your Buyer's Agent, Why You Should List With Jim | 3 comments

NSDCC Annual Sales History

When I first saw this graph, I thought it was the perfect way to sum up the changes in the marketplace since the 2000-2009 era.  Back then, people were younger, there were plenty of homes for sale, and prices were relatively affordable, so we always had a very fluid move-up and move-down market.

But to see that average tenure has doubled between 2009 and 2017 is striking.

Have the number of sales changed?

NSDCC Annual Sales of Detached Homes

Year
Number of Sales
Median SP
Annual % Chg in MSP
1999
3,236
$475,000
2000
3,285
$555,000
+17%
2001
2,926
$570,000
+3%
2002
3,717
$630,000
+11%
2003
3,932
$732,500
+16%
2004
3,363
$948,000
+29%
2005
3,014
$1,000,000
+5%
2006
2,626
$985,000
-2%
2007
2,479
$1,000,000
+2%
2008
2,037
$890,000
-11%
2009
2,223
$817,000
-8%
2010
2,461
$830,000
+2%
2011
2,562
$825,000
-1%
2012
3,154
$830,000
+1%
2013
3,218
$952,250
+15%
2014
2,850
$1,025,000
+8%
2015
3,079
$1,090,000
+6%
2016
3,103
$1,160,000
+6%
2017
3,084
$1,225,000
+6%
Medians
3,079
$890,000
+6%

Given the huge change in price and that more people are staying put than ever, it is shocking to see that sales have been relatively consistent in recent years.

How do you explain it?

It must mean that the demand is fueled by those who don’t have a house yet – first-timers, and those coming from out of town. It explains why they jump at buying when they see a good one – they don’t have one yet.  Those who already have a house here aren’t as impressed.

The population has grown 25% in San Diego County since 2000, and 30yr-fixed mortgage rates are about half of what they were then.  But for sales to be this strong when repeat movers are so scarce, is remarkable!

P.S. We’ve had 1,620 closings this year, with a median SP = $1,321,500.

Link to Attom article

Posted by on Jul 27, 2018 in North County Coastal, Sales and Price Check, Thinking of Buying?, Thinking of Selling? | 2 comments

Millennials Have Regrets

We might be seeing some whipsaw effect with today’s buyers being overly cautious. Either that, or we’ve ran out of the buyers who jump in too fast or too high, and just the deliberate ones are left:

Millennials aren’t exactly jumping for joy after purchasing their homes.

About four in 10 millennials are already homeowners, according to a new survey of over 600 millennials (age 21-34) by Bank of the West.

Yet it turns out that 68 percent of them are feeling buyer’s remorse — almost double the amount of Baby Boomers who say they have regrets.

“Millennials are so eager to become homeowners that some may be inadvertently cutting off their nose to spite their face,” says Ryan Bailey, head of Bank of the West’s retail banking.

Here are the biggest areas of remorse.

Overspending on the down payment

Roughly four in 10 millennials felt they made poor financial choices when it came to purchasing their home. Part of the problem seems to revolve around the down payment. The survey found one in three millennials dipped into their retirement accounts to pay for their homes — a trend Bailey calls “alarming.”

“Borrowing from your retirement may make sense in special circumstances, but it’s definitely not a recommendation,” Bailey tells CNBC Make It.

To keep from getting squeezed, think about what you can afford as a monthly payment, and don’t forget to include taxes and insurance in your calculations, Danielle Hale, chief economist for Realtor.com, tells CNBC Make It.

Use filters on home search sites and price alerts to make sure you’re not shopping for a home above your budget. “Don’t fall in love with something that’s already out of your price range,” Hale says.

Underestimating ongoing costs

When you buy a home, the expenses don’t stop once you move in.

Millennials understand basic costs, such heating and electric bills, but Bailey recommends also considering how much time and money it could take to mow the lawn, clean the house or deal with leaky faucet.

“When you’re a homeowner, you can’t call your landlord to fix things, so you want to make sure you have a little extra cash in the bank,” Hale says.

It’s a big transition going from renter to homeowner, so make sure to take some time to learn about the maintenance costs associated with potential homes.

Settling for something that’s not quite right

Finding the right fit is as important as having the right budget when it comes to home ownership. The survey found that about half of millennials had regrets about the home itself.

One in five said they were frustrated by damages they found after moving in, while others said they discovered the house didn’t end up working well for their family.

To avoid unexpected expenses, experts recommend getting a home inspection before finalizing the sale. “Especially if you’re a first-time buyer or new to home ownership, you may not even know what to look for, so you definitely want to have the expert on your side,” Hale says.

It can also help to nail down what you really need in a home. Make a list of your must-haves before you start looking and know what you’re willing to compromise on, Hale says. It’s currently a very competitive market, so chances are, you’re going to have to make compromises.

In fact, about two-thirds of home buyers reported compromising on some sort of home characteristic, according to a survey from the National Association of Realtors.

“The more targeted your search is,” Hale says, “the more chance you won’t waste your time or get distracted by homes that ultimately aren’t a good fit for you.” Follow this advice, and you can avoid purchasing a home that you regret.

https://www.cnbc.com/2018/07/18/most-millennials-regret-buying-home.html

Posted by on Jul 26, 2018 in Jim's Take on the Market, Market Buzz, Thinking of Buying?, Tips, Advice & Links, Why You Should Hire Jim as your Buyer's Agent | 1 comment

Local Predictions for 2018 – Update

We’re halfway through 2018 – let’s check on the predictions.  Here is where Rob Dawg, Franklin Jones, Ash, and myself guessed what would happen this year:

http://www.bubbleinfo.com/2017/12/27/2018-predictions/

My thoughts in December for 2018, plus extra stats:

I guessed earlier that NSDCC detached-home sales will drop 5% in 2018 – but that would still give us around 3,000 houses sold, which is a healthy amount, given that rates and prices are both expected to be higher.  The median sales price, full of imperfections, should keep rising, and I’ll guess +5% in 2018.

Those same factors, plus a few more boomer liquidations, could also create a bull rush frenzy, with intense wrangling for decently-priced houses listed under $1,500,000.  With more inventory, we could approach 3,200 sales again (3,084 NSDCC houses sold in 2017) .

The higher-end market is challenging too, but in the opposite direction.  Today there are 374 NSDCC houses for sale listed over $2,000,000, and we sold about 50 per month in 2017.

We ended the year with 62% of the houses for sale between La Jolla and Carlsbad being priced over $2,000,000, with a median list price of $2,495,000 overall.

We had 10% fewer listings in 2017 than in 2016, but 2% more sales!

Where are we now?

First-half NSDCC sales are down 11% year-over-year.

Median list price today is $2,295,000, which is down 9%, compared to December 27, 2017.  Of the 935 houses for sale, 55% of them are priced over $2,000,000.

The 2017 NSDCC median sales price was $1,225,000, and the median sales price has been $1,325,000 for the first half of 2018, an 8% increase.

We’ve sold 317 houses over $2,000,000 in 2018, or about 53 per month.

Although we had 10% fewer listings last year than we had in 2016, we have had 9% more listings this year than in the first half of 2017.

Nine percent more listings, but 11% fewer sales?  Expect that buyers will become increasingly picky – there are plenty of houses to go around!

Posted by on Jul 5, 2018 in Inventory, Jim's Take on the Market, Market Buzz, Market Conditions, North County Coastal, Sales and Price Check, Thinking of Buying?, Thinking of Selling? | 3 comments

Tips For Homebuyers

A recent client who moved to the Bay Area asked for advice on finding a good agent for assistance in buying a home in a hotly-contested area.  My thoughts:

Zillow is your best tool – it shows every agent’s sales over the last 12 months.  Lately a realtor’s goal is to build a big team of agents which helps to boost the number of sales and reviews on Zillow, so having the most sales & reviews isn’t necessarily the best for a buyer.

Here are my tips for homebuyers:

1. It helps if you know the area where you want to purchase, and get an agent who has recent buyer-side sales in that area and price point.

2. Anyone who is reporting more than 50 sales has a team of agents working under them. You will be passed off to one of the less-experienced buyer’s agents, so go through the reviews to see if you can get a read on the underlings.

3. Any agent who has less than 12 sales doesn’t have as much to offer, and may get snuffed out in a bidding war.  But you will get their full attention.

4. Agents who have the bulk of their sales on the lower-end aren’t as much help to buyers in the middle-to-higher end.

5. The Zillow reviews are always 5-star amazing because agents determine which clients get featured there.

6. An agent who has a mix of buyer and seller sales is well-rounded.

7. In San Diego, Zillow doesn’t include pending listings under the listing agent any more. Some areas do, some don’t.

8. Bigger teams who have many listings in your area could slip you an insider deal before it hits the open market.

9. Big realtor teams have hundreds of buyers – you will compete for the agent’s attention, so at least pre-qual with their lender, and be pro-active (kiss butt).

10. You need to keep looking for homes for sale, and bring them to your agent’s attention. They will be using auto-notification systems, and usually not screening/evaluating the new listings as much.

11. Make quick decisions on houses you see, and give your agent feedback on what features you don’t like.

12. Prepare your ‘love letter’ in advance, and the sappier, the better.  Specifically mention the features of this house and why it is such a good match for you.  Include a family photo with a dog – even if you don’t have one. The agent should have copies of other love letters that worked in the past.

13. Your agent should be able to tell you how much to offer on each house, based on personal knowledge of comps and market time.  If an agent recommends, “well it’s up to you”, it’s because they don’t know the market – get a new agent.

14. A tricky question for a good agent is, “What’s it worth?”, because most houses don’t have a boatload of comps to make an easy and obvious valuation, plus we know sellers are always pushing for a price that’s higher than comps.  Can the agent at least make a decent case on valuation?

15. A fresh new listing on the market becomes more about winning and losing, than buying at the right price. If getting a ‘deal’ is more important, then spend your time trolling the older listings.

16. Will your agent make a compelling case on your behalf when submitting your offer?  Most agents just email the signed forms to the listing agent with little, if any, introduction – let alone a sales pitch.

17. Does your agent evaluate the condition of the home while you are there?  This is a big problem with Redfin – they pay their new agents $50 to open the door, and learn on the job.  With them and many others, you have to do your own on-site assessment of the condition of the home, and assign repairs costs.

18. Will the agent go to bat for you on repair requests? Ask them how they’ve done on the last few deals.  I usually find a way to get $5,000 to $10,000 in seller credits for my buyers.

19. Should you ask agents to fill out a questionnaire? Personally, I love clients who do it, though it is rare and most agents will think you are a pain and blow you off.  But if you find one who will answer thoroughly, then you have found an analytical agent and someone who has something to say.

20. Here’s a blog post with an example of searching out an agent using Zillow:

http://www.bubbleinfo.com/2014/08/03/homebuyer-tips-2014/

Good luck!

Posted by on Jun 11, 2018 in Jim's Take on the Market, Thinking of Buying?, Why You Should Hire Jim as your Buyer's Agent | 6 comments

“Bizarro Desert Wonderland”

Were you thinking you could always move to the desert? H/T daytrip:

Link to Full Article

Mark Grden was looking for peace and quiet when he bought his house a half-mile from the main entrance to Joshua Tree National Monument in 1998. And for years, he found it.

“I used to sit out on the porch and watch bobcats creep past under skies filled with stars, bats and owls,” he said. “Neighbors knew each other and kept an eye on each other’s property.”

But over the past two decades, this otherworldly landscape has gone from a destination for hikers and rock climbers to an international attraction luring 3 million visitors per year — overwhelming the area’s craggy campsites, low-slung motels and Grden’s once-sleepy community.

“Now, I’m surrounded by Airbnbs filled with vacationing strangers who seem to think anything goes out here,” he said, shaking his head.

Read More

Posted by on Jun 5, 2018 in Jim's Take on the Market, Market Buzz, Real Estate Investing, Thinking of Buying?, Thinking of Selling?, This Is America | 6 comments

Zillow’s First Home Purchase

They paid $410,000 and are listing for $425,000? Are they expecting a bidding war?  By the way, OpenDoor has 300 listings in Phoenix already!

Hat tip to daytrip for sending this in – an excerpt:

Noel Levine, a freelance IT consultant and self-described geek, said he looked into other online services like OfferPad and OpenDoor, which the new Zillow program competes against. He was thinking about listing the house with a broker when he saw an article about the Zillow Instant Offers expansion in the local newspaper. Zillow was able to accommodate the quick turnaround. The deal started with a request for an offer on May 3 and closed 15 days later, at a purchase price of $410,000.

“So in two weeks I went from having a house to put on the market to being out of the house with money in the bank,” Levine wrote in a thank you note to Zillow that he shared with GeekWire. “It spared me from having to go thru the trials and tribulations of wondering how many showings it was getting, then wondering if I should accept an offer, to dealing with the inspection deductions to worrying about what could go wrong with the closing.”

The home is now listed on Zillow with a priced at $425,000 (the Zestimate is $414,233). It boasts “real wood flooring, travertine tile, and stacked stone accents,” according to the listing. The company bets that buyers will love the “cozy gas fireplace” and “master retreat.”

Link to Full Article

Posted by on May 24, 2018 in ibuyer, Jim's Take on the Market, Listing Agent Practices, Thinking of Buying?, Thinking of Selling?, Zillow | 8 comments