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Category Archive: ‘Thinking of Selling?’

Klinge Realty Goes to China!

shanghai

China’s leading international real estate show is coming up next month.  The 11th Annual Overseas Property & Immigration & Investment Exhibition will be March 5-7 at the Shanghai International Conference Center Natatorium.

It is the #1 real estate exhibition in Mainland China!

Buyers were purchasing properties right off the photos at the display booths last year, and they expect another good year in 2016.

Klinge Realty’s listings will be prominently displayed – join in!

If you want your property to receive direct exposure to Chinese investors, contact Jim the Realtor at (858) 997-3801 or jim@jimklinge.com.

Posted by on Feb 10, 2016 in Jim's Take on the Market, Klinge Realty, The Future, Thinking of Selling?, This Is America, Why You Should List With Jim | 3 comments

3D Home Tour

3D camera

Carlos Hernandez from www.touritnow.com did a 3D home tour of my new listing, using his Matterport camera.  Here’s how it turned out:

http://www.touritnow.com/3d-model/7249-ocotillo-street/skinned/

This technology will be the next step in selling houses from afar – do busy people really need to visit in person after seeing these video presentations? It helps to screen out the actual showings too, because there is no hiding anything – if a viewer sees something they don’t like, they can save themselves a trip.

Big picture?  Eventually, the Matterport company will have a library of every house in America….but wait, it’s my listing, and I paid for the tour!

Here is Carlos describing what he does:

Posted by on Jan 28, 2016 in Bubbleinfo TV, Jim's Take on the Market, Listing Agent Practices, The Future, Thinking of Buying?, Thinking of Selling?, Tips, Advice & Links, Why You Should List With Jim | 6 comments

Downsizing/Multi-Gen

multi-gen

Not only are retirees trying to downsize, but the kids are hanging around longer too.  The excellent research by John Burns has put some numbers on the one obvious outcome – multi-generational living.

Percentages in the 40s and higher are more than a blip – the vast amount of downsizing and multi-gen households is a game-changer:

14% of all US households (16.5 million households!) now live multi-generationally, and the numbers continue to rise for three reasons:

A. Delaying marriage has increased the number of young adults living with parents.
B. Surging retirement has increased the number of retirees living with children.
C. Significant immigration from countries where multigenerational living is the norm has also helped boost the numbers.

Most of the US housing stock was not built for multigenerational living, providing a tremendous opportunity for home builders. According to our Consumer Insights survey of more than 20,000 new home shoppers, 44% would like to accommodate their elderly parents in their next home. Additionally, 42% of today’s shoppers plan on accommodating their 18+ older children in their next home.

This focus on providing housing to extended family or friends may also account for 65% of respondents desiring a bedroom with bath on the ground level and 24% wanting a suite with a kitchenette and small living area.

Click below for full article and designs:

http://realestateconsulting.com/multi-generational-households-on-the-rise/

Posted by on Jan 26, 2016 in Downsizing, Jim's Take on the Market, One-Story, The Future, Thinking of Buying?, Thinking of Selling? | 0 comments

Why Improve to Sell?

why paint

During the radio show I mentioned that in my latest survey of NSDCC sales, 42% of the home sellers had owned their home for 12 years or more.

These long-time owners grapple with improvements to sell – where do you start, and where do you stop?

I suggested beefing up the curb appeal, and new carpet and paint.

Improving the curb appeal is understandable; 1) the first impression is critical, and 2) landscaping and power-washing are quick, easy, and cheap.

But carpet and paint?  Why bother?

A common response is that sellers would rather have the buyers select their own favorites – especially with flooring, because there are so many choices.

Here’s why sellers should consider spending the money:

  1.  Any neutral color will work, and anything is better than the used-up, dingy, 12-year old look you have now.
  2.  Buyers typically don’t have great vision to see past old carpet and paint.
  3.  Many buyers just want – or need – to move in right away, and do improvements over time.  New carpet and paint looks move-in ready.
  4.  You’ll look better than the competition.
  5.  New carpet and paint not only look clean, they smell clean!
  6.  You will sell faster, and for more money!

If you don’t install new carpet and paint, the house will be labeled a ‘fixer’ in the minds of most buyers.  You will lose the buyers who can’t, or won’t, afford the necessary improvements (real and imagined), and those still standing will expect a discount off the sales price.

Because buyers aren’t that familiar with the cost of improvements, their idea of a discount will be larger than yours!

(Here is a link to the whole radio show)

http://livestream.com/espn1700/the-lunch-hour

Posted by on Jan 23, 2016 in Jim's Take on the Market, Listing Agent Practices, Remodel Projects, Thinking of Selling?, Tips, Advice & Links, Why You Should List With Jim | 2 comments

Pride-of-Ownership Test

PoH

Anyone who has looked at homes lately can attest to the surprising conditions in which people live.  The lack of maintenance transcends all price points too.

But it’s nothing money won’t fix.

Buyers should surrender early on……and expect to spend at least $25,000 to $50,000 on any house they buy.  It’s easier than trying to find the perfect house that doesn’t need anything.

But looking at houses then turns into a job of making lists of the repairs required. Is there a way to short-cut that process, and just use one simple gauge to know if the house could be a money pit?

When I enter a house, I still walk straight to the backyard first.  It is there that you will find the items that are hard or impossible to fix; yard too small, road noise, neighbors looking in, over-sized pools, etc.

Once we’re past that test, and everyone is getting comfortable with the interior layout, I make my way to the place where you can find the most clues about the seller’s pride of ownership.

The Master Bath – a place where the sellers spend time every day.  The most extreme conditions exist too – high use of hot and cold water, steam and mold conditions, multiple plumbing functions, venting, several appliances in use, laundry processing, etc.  There’s a lot of action going on in the master bath!

With all the action, is somebody keeping up with repairs?

If any room is going to be well-maintained, it is the master bath.  It’s not that big, and the moving parts are simple – a towel rack, a toilet-paper roller, lighting, fan, grout, window, sinks – easy stuff.

Plus, every guy wants to keep his wife happy – so if he is going to fix anything, it will be here.

No need to get into any personal items – just checking the hardware:

  1.  Are the towel racks secure?
  2.  Toilet-paper roller intact?
  3.  Drywall outside the shower or tub wet or damaged?
  4.  Adequate electrical outlets?
  5.  Toilet secured tightly to floor?
  6.  Toilet works properly?
  7.  Sinks drain normally? (two sinks are a must)
  8.  Adequate water pressure at sinks and shower?
  9.  Fan is quiet? Window works well?
  10.  Any sign of biological discoloration?
  11.  Baseboards are dry and tight?
  12.  Mirrors look good?
  13.  Ample lighting?
  14.  Mineral deposits on glass doors?
  15.  Shampoo bottles have a home?
  16.  Solid coat of semi-gloss paint?
  17.  Crisply-applied caulk, especially around the shower faucet?
  18.  Solid and tight grout lines?
  19.  Door that locks easily?
  20.  Is the floor of the sink cabinet dry?

If you are in a hurry or tend to get caught up in the excitement of looking at houses, then just concentrate on what you see in the master bath.

If you check off every item above, then the rest of the house should be in good shape too.  But if the sellers aren’t maintaining this room that has complex features but simple fixes – especially when on the market – then they probably haven’t done much to keep up the rest of the house either.

Posted by on Jan 19, 2016 in Jim's Take on the Market, Repairs/Improvements, Thinking of Buying?, Thinking of Selling?, Tips, Advice & Links | 4 comments

Real Estate Tips for 2016

moving tips

Happy New Year!

Are you thinking of selling and/or buying this year?

Here are some ideas to hopefully give you an edge in conquering what usually ends up being the 1% to 2% difference between the thrill of victory and the agony of defeat!

Home Sellers

  1.  The new listing agreement suggests getting a home inspection prior to hitting the market. It’s a good idea; fix what’s wrong in advance, and then give buyers a copy to demonstrate your pride of ownership.
  2.  Know where you are going to move, and only hit the open market when you are 100% committed to selling. You might get an offer the first day.
  3.  Showing the house is inconvenient but necessary – the more you do it, the better your chances.  Be ready to show the house on the day it hits the open market – and expect dozens of lookers to visit in the first 7-10 days.
  4.  Do two things to make a great first impression; spruce up the curb appeal and insist on top-quality photos.
  5.  Be smart about price.
  6.  Ask agents about bidding war strategies, and recent experiences.  Spreading out the offers on your coffee table and picking one isn’t a strategy.
  7.  Avoid gimmicks like range pricing or ‘coming soon’.  A clean, straight-forward approach is attractive to buyers.
  8.  Determine if a company brand name is a benefit or a crutch.
  9.  Real estate ‘teams’ means you get passed around. Make sure to identify who handles the buyer inquiries, and that they are top-notch sales people.
  10. The buyers you want to attract – the ones that pay too much – are represented by lousy agents who don’t know the difference.  Get Good Help – hire a listing agent who can carry any agent to the finish line.

Home Buyers

  1. See more houses in person.  You have to keep your chops up, because low inventory causes complacency.  If all you do is shop online, you’ll look for any reason NOT to buy, and stay home. But there are no perfect houses.
  2.  Start looking at least six months before your lease is up.
  3. There aren’t many rules, and every listing agent is different.  Work with an agent who has a track record getting buyers to the finish line.
  4.  Don’t expect much from sellers regarding repairs.
  5.  Be open to fixers. To get more comfortable, line up contractors in advance and ask for a sample quote so you know what to expect.
  6.  Expand the target zone, but buy in a great school district.
  7.  If affordability is an issue, compromise on size before location. You can always add on later.
  8.  Properly evaluate the negatives, and the appropriate discounts.
  9.  Know what to do in a bidding war.
  10.  Your agent should suggest an offer price, and a strategy behind it.

These are some basic, general tips, but the best thing you can do is to get an experienced agent on your side – someone who is closing at least a sale per month (check at zillow).  I am available, and would love to assist you!

Posted by on Jan 1, 2016 in Bidding Wars, Jim's Take on the Market, Listing Agent Practices, Thinking of Buying?, Thinking of Selling?, Tips, Advice & Links | 4 comments

Rich Says No Bubble

zsurvey

After the recent article by Zillow on whether the San Diego market is in a bubble, the UT conducted their own investigation. Thankfully, they talked to our old friend Rich Toscano:

An excerpt:

The San Diego man who predicted the housing crash on his blog Professor Piggington’s Econo-Almanac, Rich Toscano, agrees that San Diego is not in a housing bubble, although he was not part of the Zillow survey.

Toscano, a partner at Pacific Capital Associates, said overvaluation can best be tracked by looking at rent, income and home prices together. In mid-2005, home prices shot up 75 percent over historic median levels. Today, they are 19 percent over those historic median levels.

“Valuations (now) are like prior cyclical peaks but nothing like the bubble,” he said. “A lot of people say prices are like the bubble so that means it’s just like the bubble. So they kind of ignore we’ve had 10 years of rents and incomes going up.”

He said the mood back in 2005 was “you’re a complete idiot if you don’t buy” because housing can only ever go up. An example of the psychology changing is that people are asking all of the time if housing is in a bubble.

“What you really care about is if you are way overpaying,” Toscano said. “Sure, housing is expensive but it is nothing like it was during the bubble.”

The Zillow survey, conducted by Massachusetts-based Pulsenomics, listed the St. Louis market as the least likely to face a bubble with 34 out of 36 analysts saying there was no significant risk in the next five years.

Pulsenomics interviews more than 100 economists, investment strategists and housing market analysts in quarterly surveys. Not all respondents answer every question so the number of analysts responding to the bubble question varies.

Read full article here:

http://www.sandiegouniontribune.com/news/2015/dec/10/housing-bubble-zillow-study/

sdpricetrend

Posted by on Dec 11, 2015 in Jim's Take on the Market, Market Conditions, Thinking of Buying?, Thinking of Selling? | 5 comments

NSDCC November Sales

Last week we saw that there was a 17% surge in the number of new listings towards the end of this year, compared to 2014.

What is the effect on closed sales?  The impact could go either way.

More well-priced listings could energize the market, and sales increase. Or a bunch of OPTs could cause buyers to wait and see.

It looks like a mix of both so far – November sales are up 6% year-over-year, and a few late-reporters could bump that a little higher:

Year
# of Sales
Avg. SF
Median SP
Avg. $/sf
Avg. DOM
2012
241
3,015
$885,000
$415/sf
80
2013
187
2,960
$1,030,000
$474/sf
58
2014
172
3,069
$1,007,450
$491/sf
57
2015
183
3,024
$1,187,500
$544/sf
54

The median sales price for November increased 34% since 2012, and the average cost-per-sf is up 31%.

I overhead a realtor comment that their manager thinks that people want to buy now before the new president gets elected. It made me think of the surprise surge of sales we saw during the last election at the end of 2012 that led to the Great Frenzy of 2013. The market could keep going – especially if we get a load of new listings that are well-priced!

Posted by on Dec 8, 2015 in Jim's Take on the Market, North County Coastal, Sales and Price Check, Thinking of Buying?, Thinking of Selling? | 0 comments

Millennials Top 10

Mtop10

San Diego is the highest-priced in the Top 10 – we want affluent millennials!

From realtor.com:

http://www.realtor.com/news/trends/where-the-millennials-move-to-in-2016/

Is there any part of U.S. life that hasn’t been dramatically altered by the millennial invasion? This vast group of young Americans has already altered general perceptions of job place behavior, pop culture, media consumption, self-entitlement, and acceptable facial hair. But nowhere is its impact greater felt than in the housing market—and that impact is getting bigger all the time. Numbering 43.5 million, the older group of millennials (aged 25 to 34) makes up 13.6% of the U.S. population but fully 30% of the current population of existing-home buyers.

In 2016, millennials have the power to remake the real estate landscape wherever they choose to settle. But where will that be?

You might assume that young people are naturally drawn to the nation’s largest and most renowned metropolises such as New York City and Los Angeles to jump-start their careers and enjoy the full-throttle excitement of big-city life. And you’d be right—at least partly. But here’s the rub: Increasingly, they can’t afford to live in these places. Sure, Brooklyn may be a notorious hipster/millennial mecca, but how many 30-year-olds can afford $1.75 million one-bedroom co-ops? No wonder shrewd young home buyers are increasingly turning to cities that are relatively affordable and have lots of jobs and maybe even a trendy atmosphere all their own.

As part of the realtor.com® 2016 real estate forecast, we’ve pulled out our ironic Magic 8 Ball to prognosticate the top 10 markets likely to see a surge of millennial buyers. Get ready for an incursion of Sriracha, artisanal doughnut shops, and upscale tattoo parlors! And just to be fair, we also spotlight five places that seem to have lost their charm with the young generation and are likely to see the biggest exodus this coming year.

The ranking takes into our proprietary 2016 Sales & Price projections the representation of millennial users among viewers of “for sale” listing pages on realtor.com from July to October, and the share of head of households aged 25 to 34 relative to all heads of households, from 2015 Nielsen Pop-Facts.

6. San Diego, CA

Median list price: $585,000

Population share of older millennials: 15.5%

A strong economy led by the biotech industry, high-quality universities, year-round mild weather, gorgeous beaches with rich wildlife—do young people need more reasons to move to San Diego? No? OK.

http://www.realtor.com/news/trends/where-the-millennials-move-to-in-2016/

Posted by on Dec 7, 2015 in Boomers, Jim's Take on the Market, Local Flavor, Thinking of Buying?, Thinking of Selling? | 2 comments

Best Days for Online Home Looking

home lokking days

Sundays are the favorite day to look at homes online.  From realtor.com:

So what is the true Black Friday of the housing business? Here’s a holiday shocker: Dec. 28 was actually one of the busiest days for real estate searches in the entire year, despite the fact that Dec. 24 was the single slowest.

The reason: When we’re over the holiday hump but still on break, it’s a great time to look for our dream home. The same reason explains the surge of activity on New Year’s Day. And, perhaps buying a house is a popular New Year’s resolution?

Another surprising, best-performing day on a holiday weekend: the other side of the year, July 6. Instead of traveling, many buyers apparently use the long weekend in the height of the buying season to search for homes and go to open houses.

Overall, the spring market typically has the best combination of inventory and value—more homes go onto the market, but prices have not yet thawed. If you miss out on that sweet spot, the second-best opportunity is in fall. Sept. 1, on Labor Day weekend, was another top performer—it’s all part of a seasonal pattern that buyers and sellers can use to their advantage if they are not constrained by school schedules or job transfers.

Besides family-oriented holidays, there’s one more holiday that significantly slows down home-searching activity. Nope, not Mother’s Day, not Father’s Day, but … Valentine’s Day. Think about it: Your significant other wants to take you out for a romantic dinner. Are you gonna say no because you want to stay at home to browse photos of fixer-uppers?

Posted by on Nov 30, 2015 in Jim's Take on the Market, Market Conditions, Thinking of Buying?, Thinking of Selling? | 1 comment