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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 Selling?’

“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

California Migration

Lower-income folks are leaving, and affluent people are coming – H/T Richard:

Over a million more people moved out of California from 2006 to 2016 than moved in, according to a new report, due mainly to the high cost of housing that hits lower-income people the hardest.

“A strong economy can also be dysfunctional,” noted the report, a project of Next 10 and Beacon Economics. Housing costs are much higher in California than in other states, yet wages for workers in the lower income brackets aren’t. And the state attracts more highly-educated high-earners who can afford pricey homes.

There are many reasons for the housing crunch, but the lack of new construction may be the most significant. According to the report, from 2008 to 2017, an average of 24.7 new housing permits were filed for every 100 new residents in California. That’s well below the national average of 43.1 permits per 100 people.

If this trend persists, the researchers argued, analysts forecast the state will be about 3 million homes short by 2025.

What does it mean?

California homeowners spend an average of 21.9% of their income on housing costs, the 49th worst in the nation, while renters spend 32.8%, the 48th worst. The median rent statewide in 2016 was $1,375, which is 40.2% higher than the national average. And the median home price was — wait for it — more than double that of the national average.

One coping strategy: California residents are more likely to double up. Nearly 14% of renter households had more than one person per bedroom, the highest reading for this category in the nation.

Coping can also mean leaving.

In a separate analysis, Realtor.com found that the number of people searching real estate listings in the 16 top California markets compared to people living there and searching elsewhere was more than double that of other areas — and growing.

And in those areas — counties including Santa Clara, San Mateo and Los Angeles — the growth in views of listings on Realtor.com was virtually unchanged compared to a year ago this spring, while views of listings in other U.S. areas were 15% higher.

Link to Full Article

 

Posted by on May 4, 2018 in Jim's Take on the Market, Market Buzz, Thinking of Buying?, Thinking of Selling? | 7 comments

Zillow Says To List Now

Hat tip to SM for sending in Zillow’s latest version on the best dates to put your home on the market.  San Diego is the only town in America that gets started this early – let’s go!

https://www.zillow.com/research/best-time-to-list-2018-19215/

Not only is now the best time to hit the market, their research shows it is ideal to sell early in the listing period:

According to earlier research, the largest number of home shoppers will see a given listing within its first week on the market, and it’s important to capture that early interest as quickly as possible in order to boost the chances of a quicker sale.

Posted by on Apr 9, 2018 in Jim's Take on the Market, Thinking of Selling?, Why You Should List With Jim, Zillow | 1 comment

Expert vs. Trainee

We covered in my four-part series that there is a vicious undercurrent of fraud and deceit being imposed upon buyers and sellers alike, and that drastic action is needed to stop it.  But such action is unlikely to happen – at least until the district attorney has a few perp walks to get everybody’s attention.

It means that Brad Inman’s conference needs to come up with a real humdinger of a solution.  In the meantime, maybe we can improve on what we have?

I mentioned that traditional agents are reluctant to say anything in public about how they do their business.  But now that the disrupters are spending millions on advertising, it’s time we step up to the microphone.

The disrupters’ underlying theme is that traditional agents charge 6%, and they will do the same for less.  Here they focus only on saving money on the commission, and never talk about what they actually do to sell your home:

Agents who only talks about their rate, rather than the quality of services they provide, must not have much to offer.  Their website has some data though – this is their main page:

We don’t have to look very far to see how trustworthy they are.  They say Bethany has ’10 YEARS EXP’, but when you go on the DRE website, this is what you’ll see – she has been licensed since 2016 (you can always get a hint from the license numbers, which are issued sequentially):

I’m sure she is a nice person and means well, but to use her as your front person when she barely has two years experience as a licensee probably means that the other agents have less.  Pardon me if I’m skeptical of how ‘intimate’ she, or any of their agents, know their LA/OC territory.

Companies who blatantly lie about the people on their main page will say anything to convince you they are legit. Ask yourself what you are willing to endure – you only have one shot.

Apparently they charge you the $3,200 fee whether they sell your house or not, and they take your credit card number up front.

Rex is another one – they claim to sell your house for 2% by themselves without cooperating with other agents. Here is reality:

Redfin?

You may like their sexy website, but who are the people handling your sale?  I have spoken to both current and ex-Redfin agents, and it sounds like a sweat shop – much like our local IPayOne, which failed twice, or Roxtons.  They are good people, but the employees are being asked to handle a high volume of business with minimal support.

Sellers should wonder if that will equate to a top-dollar sale.

An ex-Redfin senior agent told me that he quit when upper management insisted that he get ‘five more deals out of every agent’ this year.

Here are other opinions:

https://www.indeed.com/cmp/Redfin/reviews

Here is what one ex-Redfin senior agent from Florida said last year:

I worked for Redfin for two and a half years. First as a transaction / hybrid coordinator then as a senior agent in the field. The concept is amazing but the reality will drown you. As a licensed broker who has over a decade of experience my base salary was $20,000 after “bonuses” paid (only after a glowing review from the client) my W-2 showed $42,000 income. Keep in mind I closed over $7 million dollars in real estate transactions last year. If you can’t close minimum of 3 transactions in a given month you are promptly let go for poor performance. With no cushion or savings because again top pay was 42k in the year. Your expected to have your schedule open for tours 7 days a week. Ready to meet a new customer not vetted not approved within a 3 hour window. Vacation is offered but is never approved. And in my market we were required to span over 300 Mile radius covering 4 counties. You are paid for each tour but it’s $35 and again you’re expected to drive 3 counties away at no notice just to be stood up. You will need to have knowledge of that area as well. Because your clients will review per tour and they will not appreciate an agent who is not knowledgeable. Please please please if you are considering joining this company be ready to give away all of your commission and time and learn from my experience. I’ve never written a review before but I’m passionate about getting this out there. Don’t believe their hype. Thank you for reading and considering.

How do they handle the critical points of engagement?

Want to see a house? A trainee gets paid $35 to $50 to open the door.

Sellers hoping for top dollar?  Trainees do the open houses.

The good agents there make around $3,000 per sale between salary and bonuses, while dealing with outside agents who make substantially more.  If you were a great agent, wouldn’t you work somewhere else to make more money selling fewer houses?

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Bottom-line:

Sellers have one chance to hire a great agent to sell their house for top dollar.  Every agent can sell your house, and heck, you don’t even need an agent – just stick a sign in the front yard and you’ll get calls.

But houses don’t sell for the same price – there is a 5% to 10% range, depending on who is handling the sale.  You’ll hear that the market is hot, and that houses sell themselves – but for how much? Will your agent do everything it takes, AND have the expert salesmanship to get you top dollar?

If not, you are going to feel like a chump for falling for their BS advertising.

Posted by on Feb 20, 2018 in Jim's Take on the Market, Realtor, The Future, Thinking of Selling?, Tips, Advice & Links, Why You Should Hire Jim as your Buyer's Agent, Why You Should List With Jim | 7 comments

Why A House Isn’t Selling

Even though our market has been red hot, less than 70% of the homes listed for sale actually sell.  Hat tip to Charles for authoring this list of reasons why:

When you first put your house on the market, you might be hopeful for a quick sale—especially if you’ve put a lot of money into improving the house over the years and if the neighborhood is one that has historically attracted a lot of buyers.

While you shouldn’t panic if the house doesn’t sell the moment you list it, you should begin to worry if the months start flying by without any real offers. If this is the case, here are 11 reasons why your house may not be selling.

  1. You overvalued your property. If your house is overpriced, it’s simply not going to sell. Compare your property to similar properties that recently sold within your area to get a better idea of its true value. An experienced real estate agent can give you an accurate value of your home. Additionally, don’t make the mistake of tacking on the cost of any renovations you made. You can’t just assume that the cost of a renovation translates to added value.
  1. Your listing is poor. If the listing of your home includes a poorly written description without any images, a lot of buyers are going to skip over it. Make sure you and your REALTOR® put an effort into creating a listing that attracts the attention of buyers. Make sure to add high quality photographs of both the interior and exterior of your home. Don’t forget to highlight unique features as well.
  1. You’re always present at showings. Let your agent handle your showings. Buyers don’t want to have the seller lurking over their shoulder during showings, especially during an open house. This puts unwanted pressure on the buyer, which will make them uncomfortable and likely chase them away.
  1. You’re too attached. If you refuse to negotiate even a penny off your price, then there’s a good chance that you’ve become too attached to your home. If a part of you doesn’t want to sell it, or you think your house is the best house in the world, odds are you’re going to have a lot of difficulties coming to an agreement with a potential buyer.
  1. You haven’t had your home professionally cleaned. A dirty house is going to leave a bad impression on buyers. Make sure you have a professional clean your carpeting and windows before you begin showing your house.
  1. You haven’t staged your home. If you’ve already moved out, then don’t show an empty house. This makes it difficult for buyers to imagine living in it. Stage your house with furniture and decor to give buyers a better idea of how big every room is and how it can be used. You want the buyer to feel at home when they are taking the tour.
  1. You kept up all of your personal décor. Buyers are going to feel uncomfortable touring your house if you keep all of your family portraits up. Take down your personal décor so that buyers can have an easier time imagining themselves living there.
  1. Your home improvements are too personalized. You might think that the comic book mural you painted for your child’s room is absolutely incredible, but that doesn’t mean potential buyers will agree. If your home improvements are too personalized, it can scare off buyers who don’t want to pay for features they don’t want.
  1. Your home is too cluttered. Even if your home is clean, clutter can still be an issue. For example, maybe you simply have too much furniture in one of your rooms. This can make the house feel smaller than it is.
  1. Your home is in need of too many repairs. The more repairs that are needed, the less likely a buyer will want your house. Many buyers simply don’t want to deal with the cost or effort of doing repair work, even if it’s just a bunch of small repairs, such as tightening a handrail or replacing a broken tile.
  1. You chose the wrong real agent. In my opinion, choosing the right real estate agent is simply the most important decision you make in selling your home.  A good REALTOR® makes all the difference in selling your home within a reasonable time.

All these things can be fixed once you realize your mistake; however, the longer your property stays on the market, the less likely it will sell at listing price. One of the best ways to avoid making these common mistakes is by working with a professional real estate agent.

Link to article

Posted by on Jan 17, 2018 in Jim's Take on the Market, Thinking of Selling?, Tips, Advice & Links, Why You Should List With Jim | 3 comments

Selling Strategies That Can Backfire

Good tips from realtor.com:

When you’re selling your home, you might imagine you hold all the cards. And you do—sort of. But it’s easy to become overconfident in a seller’s market. If  you don’t do a reality checkpronto, you could end up sabotaging your sale. So much for that straight flush!

Here are six common home seller negotiation tactics that can totally backfire if you don’t approach them carefully.

1. Starting a bidding war

Bidding wars are the stuff of home sellers’ dreams. And there’s nothing wrong with fueling a little competition among buyers in order to get the best deal for you. But this tactic can easily backfire if you bungle it.

“If mishandled, people may assume the worst, and the best offer may walk away,” says Sep Niakan, owner/broker at Miami-based HB Roswell Realty.

Common bidding war bungles include the following:

  • Not clearly explaining upfront how you intend to handle multiple offers.
  • Giving an offer deadline that is too many days away. Some buyers might not want to wait for you to make a decision, especially if other homes are in contention.
  • Already having a strong offer on the table, but then insisting that all potential buyers come back with their highest and best bid. There’s no guarantee buyers will play ball and, if that strong offer walks, you’re stuck with lower offers to choose from.

Bottom line: Proceed with caution before turning up the heat on the competition, lest you risk losing out on a dream deal.

2. Haggling over repairs

What if the buyer completes an inspection and comes back with a long list of requested repairs? If sellers get too tough here, they might send a buyer walking.

The sellers should consider how good the overall package is for them before refusing to do repairs, says Lucas Machado, president of House Heroes in Miami. “When the buyer’s offer is high, and the seller tries to negotiate away from legitimate repairs, the buyer may feel the seller is taking advantage of them.”

3. Threatening to put your home back on the market

If negotiations aren’t quite going your way, you might be tempted to call the buyer’s bluff. Hey, if they don’t want to ante up, you can always put your home back on the market and find another eager buyer to squeeze.Right?

Yes, you might find another taker quickly. But beware of this move—it might not go according to plan.

That’s because there’s often a stigma associated with putting a home back on the market, and it might be harder to get buyers to take a second look, says Realtor® Michael Hottman, associate broker at Keller Williams Richmond West in Richmond, VA.

“Exercise caution with this tactic, because real estate markets can change quickly from hot to cold, leaving you without all those buyers you were expecting,” Hottman says. “And the ones who you had initially thought were legitimate prospects may have moved on to other homes in the time between your property originally going under contract and now coming back on the market.”

4. Being stubborn on the closing date

You’ve decided you’re not going to allow the new people to move in until (insert future date) because that’s when the closing date is on your new home. Or, they can’t possibly take possession this spring because your kids are still finishing school.

Guess what? Your buyers have scheduling issues of their own, says John Powell, chief development officer at Help-U-Sell Real Estate in Tucson, AZ.

“Sellers need to understand that they may have to move twice, since buyer and seller schedules seldom work out perfectly.”

5. Getting greedy over what comes with the house

Planning to take your beautiful custom light fixtures with you? Not so fast, Hottman warns. Often, he finds that sellers have expensive fixtures in place to show the home, but plan on taking them when they move. And that can cause trouble at the negotiating table.

The buyer “might have decided to buy the ceiling fan, and the house happens to come with it, or they get so upset that a fixture they fell in love with is now missing that they won’t buy the home,” Hottman says.

Avoid this confusion by replacing anything that won’t be staying with the house before you show it. If that’s not possible, be prepared to leave the prized fixture behind, or negotiate a comparable replacement.

6. Refusing to pay closing costs

So, you’re coming down the home stretch and this deal is almost done. Congratulations! But the buyer asked you to cover their closing costs.

Before you say “no way,” consider it this way: Buyers sometimes roll the amount of those closing costs into their offer. For instance, let’s say your home is listed for $200,000. A buyer might then submit an offer for $204,000, but ask you to cover the $4,000 in closing costs.

“Some sellers will hold firm at the $204,000 offer and refuse to pay the closing costs because they want this higher price the buyer offered,” Hottman says. “Some sellers can’t see the net is nearly identical between a $200,000 offer with no closing costs and $204,000 with $4,000 in seller-paid closing costs, and they miss out.”

A good deal comes down to doing the math, keeping your ego in check, and putting yourself in the buyer’s shoes. After all, when you sell your house, you’ll probably be buying one, too.

Posted by on Nov 3, 2017 in Jim's Take on the Market, Listing Agent Practices, Thinking of Selling?, Tips, Advice & Links, Why You Should List With Jim | 0 comments

Baby-Boomer Housing

These responses point to a massive downsizing trend!

From realtor.com:

LINK

It’s all about millennials these days. Everything seems to center around these special snowflakes. But what about the original “me” generation? We’re talking about baby boomers, of course. What do these roughly 76 million Americans want when it comes to housing?

Well, they want multicar garages, for one thing. According to a recent survey by national homebuilder PulteGroup, they were the top feature boomers were looking for in a new home, followed by open decks or patios; eat-in kitchens; and a private yard.

About 38% of boomers plan to buy a home within the next three years, according to the report. About 11% expect to purchase a residence within the year.

The survey was of 1,043 folks between the ages of 50 and 65 who plan to buy a home in the next decade.

“Retirement marks a new phase in a baby boomer’s life, and it only seems natural to relocate or move to a new home when transitioning away from their primary career, or from the day-to-day rearing of school-aged children,” Jay Mason, vice president of market intelligence for PulteGroup, said in a statement. “It’s not surprising that the 55+ buyer wants a variety of options and choices in their homes.”

According to the survey, 39% of respondents said the main reason they’re moving is because they want to retire, 33% want to downsize, and 30% want to move to a more desirable location.

“One thing we know about boomers is they are not done yet,” says Amy Lynch, president of Generational Edge, a Nashville, TN–based company that consults with companies on generational differences in employees. “As a group, they are starting encore careers and also going back to school. And they often move to be near their millennial kids, who are having kids.” They also start new families of their own, through divorce or remarriage.

All of these situations may require a move. About 26% of boomers plan to stay in their current cities, but just move to a different home, while 34% want to remain in the state, but in a different city or town. Also, 38% hope to cross state lines.

Their top retirement destination? You guessed it: Florida. It seems you just can’t beat all of that year-round sunshine. The state was followed by fellow warm-weather states Arizona, North Carolina, and South Carolina. The cost of living is lower in these states than on the pricier West Coast or in the Northeast.

About 82% of boomers wanted to be someplace affordable, and 74% want to be close to their preferred health care programs.

But boomers don’t want to just pack up and leave their grandchildren. Being close to kids was their top consideration when choosing a new community. They also want to be near the water and park or other green space.

“We are in a period in this country where family life and family connections are very strong,” says Lynch. “There’s a lot of regret among boomers because they worked so many long hours when their kids were young. With grandkids, there’s a chance to make up for that.”

Posted by on Oct 26, 2017 in Boomer Liquidations, Boomers, Jim's Take on the Market, Market Buzz, Market Conditions, The Future, Thinking of Buying?, Thinking of Selling?, This Is America | 11 comments