They only have six houses left to sell, plus the models, which means they’ve sold nearly 300 houses at an average of about $1,100,000 (guessing) in the last 2-3 years – or about 100 million-dollar-houses per year:
I’ve sold multiple houses across the street from the R-Ranch for less than $200,000. Now that they can get 13x times that money on what was a strawberry field five years ago is mind-boggling.
It took a glaring mistake by a listing agent to expose it, but it makes what Redfin does all the more obvious.
This listing was inputted this morning with three extra zeros attached, and she didn’t notice for a couple of hours. Maybe because the listing agent hasn’t sold anything since 2016?
In the meantime, Redfin calibrated their estimate of value and 5-year history based not on a fancy algorithm or superior knowledge – nope, they just take the list price and bump it up or down a couple of points.
House Hunters is fake, zestimates are a joke, and ethics sound great until a realtor can double their pay by tilting the table.
They had the big meet-up in the desert – where a ‘cohort of startup entrepreneurs; disruptive company founders; top-producing practitioners; owners of brokerages big and small; coaches; executives across new and old franchisors; MLS and association leaders; big data experts; and technology giants’ got together to discuss the future of real estate selling business.
These articles are typically behind a paywall, but here’s the link in case they excluded it and want to reach everyone:
The goals they set out are about what you would expect – simplify the home buying and selling process, be more transparent, enforce ethical standards, insist on diversity, etc.
What wasn’t mentioned was educating the consumer on how to hire the best agent for you. The associations of realtors, big brokerages and other industry types leave it up to the individual agents to do their own advertising, so all you hear about is how great we are just because we listed or sold another house.
Or maybe no one in the industry wants the truth to be told.
This is an excerpt from someone in the comment section:
My firm analyzes MLSs across the entire country, with coverage of 95% of all residential resale transactions and nearly 1.4 Million member agents. In calendar year 2017, these were the grim production statistics: Only 65.4% of MLS member agents closed 1 or more transactions annually. (About one-third of agents did not sell a home in 2017).
Of the active agents, consider that:
The median count of closed transactions annually was only two.
The average of closed transactions annually was 8.8.
The top 1% of active agents (or teams) closed 13.4% of all sales volume.
The bottom 50% of active agents closed only 11.1% of all sales volume.
The consumers get blamed for not investigating their choices more carefully when selecting an agent, but they aren’t getting much help. When was the last time you heard a realtor team or company suggest that you should review an agent’s sales history to learn more about their ability to help you? Or do anything to educate the consumer on how critical it is to Get Good Help?
Driven by frustrated buyers who rolled over from last year and record-breaking lows in housing inventory, the 2018 spring buying season is expected to be one of the most competitive in years—but buyers are still optimistic about getting into their dream home, according to a survey conducted for realtor.com®.
“We’re only a few weeks into March and already seeing the market heat up,” said Danielle Hale, chief economist for realtor.com®, in a statement. “Holdover buyers hoping for greener pastures this spring are likely to find sparse options that require them to pay top dollar or make other concessions.”
And those holdover buyers are driving a large portion of the demand, according to an online survey of more than 1,000 active buyers conducted in early March by Toluna Research.
The home search has dragged on for more than seven months for 40% of respondents, the survey showed, while 34% have been searching for 4-6 months. About a quarter have been in the market for three months or less.
More than one-third, or 35%, of those surveyed indicated they anticipate “a lot of competition” this spring.
Perhaps because of that, buyers are thinking strategically about turbocharging their home search and getting an edge on the competition.
When asked how they are trying to get ahead, 42% of respondents revealed they are checking listing websites every day, while 40% plan to put more than 20% cash down. The survey also revealed that 33% are setting price alerts, 31% plan to put down a larger earnest money deposit, and 26% are willing to offer above asking price. Only 6% indicated they are not planning to use any special tactics to cope with competition.
“The majority of buyers are aware of the tough competition they’re up against this spring. Having been in the market awhile, they’ve likely lost a few homes to better offers, which has given them more time to save and up their bidding strategies,” said Hale.
It is a common want/need these days for buyers to desire a downstairs bedroom, either for guests, or the multi-gen groups. It is a need that is likely to grow, just because it will take more of grandma’s money to afford a house!
But it’s not always clear if a house has a downstairs bedroom.
How can you tell? Check the number of bathrooms.
Here is my guide for knowing when a listing includes a downstairs bedroom:
Two Bathrooms – YES. Most likely a one-story house, but if it is clearly a two-story, then it must have at least one bedroom down because you won’t have two bathrooms upstairs, and none down.
Two-and-a-Half Bathrooms – NO. In a two-story house, you need two full bathrooms upstairs for parents and kids. The remaining half-bath will be downstairs, which is not suitable for a bedroom.
Three Bathrooms – YES. There has to be one bathroom downstairs, and if it is a full bath, there’s a reason for it – there is a bedroom down too.
More than Three Bathrooms – YES. You are getting into the luxury homes now, and they will have at least one bedroom downstairs.
Yes, this is only a guide, and there could be exceptions. But if a floor plan doesn’t conform to these guidelines, then it is one funky house (like the split-level). You probably won’t like it anyway!
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:
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 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?
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.
When you find the right home, don’t lose it. Get Good Help!
NAHB regularly conducts national polls of American adults and home buyers in order to understand new trends and preferences in the housing market. This is the third in a series of posts highlighting poll results, as presented during the 2018 International Builders’ Show in Orlando, FL. See previous posts on tiny homes and driverless cars.
A recent poll revealed that most prospective home buyers actively involved in the search for a home have been looking for a significant amount of time. In fact, 61% have been trying to find a home to buy for three months or more, while the other 39% have been looking for less than three months.
The natural follow-up question to those who have been unable to find a home after searching for three months or longer is why?
Forty-two percent say they ‘can’t find a home at a price I can afford,’ 36% ‘can’t find a home with the features I want,’ 34% ‘can’t find a home in the neighborhood I want,’ and 27% were able to overcome all these obstacles but ‘continue to get outbid whenever I make an offer.’
This result shows there are several important reasons why prospective buyers haven’t been able to pull the trigger, but the most important one is lack of affordability – not being able to find a home at a price point they can afford.
We first encountered Jim back in 2010 when we were looking to move from Pismo Beach, CA to to San Diego area. We had been having a difficult time finding (1) finding a realtor and (2) being able to see a home since we were so far away. Then we found Jim. He made the process really easy – he was able to take incredible video tours of the homes and it was as if we were there touring the homes ourselves. once we found homes we really liked, we took a trip to see it in person. One of the things we really liked about Jim was that he was honest with us about the homes and advised us weather a home was a good buy or not. He was not just out to quickly sell us a house just to make a commission. He really cared about ensuring we found the right one. more “
I have followed Jim’s BubbleInfo blog from the early days of the bubble when “real estate could only go up in value” and I knew him to be a straight shooter who would not sugar coat properties nor gloss over their faults.
So when we decided to move back to California after 7 years in the more “
Jim met with us prior to listing – provided guidance on preparation, detailed information and stats regarding local market conditions. He was invaluable for providing contacts for repair and improvements that would provide return on investment. Our combined efforts, strategy and his attentativeness more “
Jim and Donna Klinge are an impressive team. They work extremely well together and back each other up, as well as their clients, along every step of the way. Their expert guidance made a tremendous difference in the experience we had, both buying a new home and selling our previous home of 40 more “
Since Zillow only allows me to write 1 review per real estate transaction, per team of agents we worked with, this is going to be a super long review.Review on Jim Klinge:
Jim Klinge is the quintessential real estate agent, the “broker’s, broker” of real estate agents. My husband and I reached more “
by Louie and Tim Cook
Jim and Donna are the BEST of the BEST! Their knowledge, professionalism, work ethic, and devotion to their trade are unrivaled. It was refreshing to have worked with a pair of professionals who truly understand the meaning of customer service, a lost art in our opinion. Despite living over 3,000 miles away on the opposite coast, Jim and Donna were with us every step of more “
Jim found me a multi family property that we purchased as an investment (Please see my review of Donna Klinge for details on how it went). But the bottom line is this: I never would have found this property, which cash flows right out of the gate, if it weren’t for Jim pointing me toward that house. It just was not on my radar, even though I consider myself a savvy real estate troll. Jim is giving of his time, and his intelligence. And he is also transparent and truthful. And I think he is funny, which is helpful in stressful situations like RE transactions. Jim and Donna have earned every last penny they made from our deal — and in fact they deserve more. And that is why I will use them for my RE transactions the rest of my life. Thank you, Jim and Donna! more “
I can’t say enough about Jim and Donna. Jim got a great price for us and negotiated well. Donna walked us through escrow, handling vendors, and negotiating everything we asked for in the request for repairs. They are know exactly what they are doing and I’ve already recommended them to two other people. more “
I followed Jim’s blog for several years and decided to contact him (along with several other realtors) when an out-of-state work relocation required me to sell my home in San Marcos, Ca. At our initially meeting, Jim spent a significant amount of time discussing pricing options, strategy, as well… more “
Honesty. Integrity. Professionalism. Dedication. Commitment. Jim and Donna Klinge hold these attributes in abundance. They have acted as both our buyer agent and our seller agent delivering highly relevant insight into local market conditions, spot-on advice to maximize the home’s value, and unparalleled management of the transaction process… more “
I cannot imagine a better experience! Jim was our broker when my husband and I bought our first house. Jim never pressured us or glossed over anything. He was patient, knowledgeable, and helped us buy our dream home. His office was detail-oriented, always responsive and we closed in 30 days! The excellent service didn’t end when we bought our house, either, the Klinges have given us excellent and fast referrals along the way. We feel privileged to have worked with such a consummate professional and appreciate how rare this level of skill is. Jim is simply the best in the field. more “
Jim and his team are top flight. He knows the market better than anyone, and his team ensures the deal goes through without a hitch. There’s always something at the last minute, but you’d never know it with Jim and his crew. I’ve bought and sold houses with Jim as my agent over the years, and I wouldn’t use anyone else. Save yourself the headaches and potential costly mistakes… more “
Buying a house is one of the most emotional,exciting, and sometimes confusing milestones you’ll reach for in your life! Being a buyer in this market can make it even more interesting! My husband and I have been looking to buy for a year, and when the time came we wanted a realtor team that would be on our team! Being that I’m a business woman and was 7 months pregnant, I wanted, NEEDED, communication, dependability, and consistency! The Klinges went so far above and beyond … more “
Jim was recommended to me when I bought my first house here in the US five years ago. He and Donna explained the whole process and it was a great experience to work with them. Not surprisingly, when my company asked me to relocate my first choice was to work with them again… more “
I have followed Jim’s real estate blog for years and by the time I got ready to sell my townhouse I felt I knew him both personally and professionally. At our first meeting he was prepared with recent comps and listings for the area… more “
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