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Are you looking for an experienced agent to help you buy or sell a home? Contact Jim the Realtor!

Carlsbad
(760) 434-5000

Carmel Valley
(858) 560-7700
jim@jimklinge.com


Category Archive: ‘Why You Should List With Jim’

Chances of Selling

I have two RSF listings that are outside the Covenant.

One seller asked me what the chances are of selling.

I said 20%, to which he said, ‘Yikes’.

But any RSF listing only has a 30% or 40% chance of selling.  There were 436 listings, and 127 sales (29%) last year in the 92067.

Here are the detached-home total listings and sold listings from 2014:

Area or City
Zip Code
2014 Listings
2014 Solds
Percentage
Cardiff
92007
130
80
62%
Carlsbad NW
92008
302
214
71%
Carlsbad SE
92009
789
525
67%
Carlsbad NE
92010
201
132
66%
Carlsbad SW
92011
336
209
62%
Del Mar
92014
306
193
63%
Encinitas
92024
646
405
63%
La Jolla
92037
637
321
50%
RSF
92067
436
127
29%
Solana Bch
92075
152
82
54%
Carmel Vly
92130
673
470
70%
All Above
Total
4,608
2,758
60%

Listings in the Ranch are the least likely to sell – by far.

What can a listing agent do to help the cause?  State your case on value.

It’s always tough to estimate the value of unique or custom homes – but those in the Ranch have so many variables it will make your head spin because every property is so different.

As listing agent, it’s my job to justify the value.

If the purchase is financed, then an appraisal needs to be completed.  Even though the sales price will have been given to the appraiser in advance, it’s still the listing agent’s job to make sure they hit the number.

As long as we gathered comps in the beginning to justify our recommended list price, and we have the need to deliver same to appraiser, we might as well include them in the listing to help buyer agents come to the right conclusion.

My case to support the $2,795,000 list price of 7060 Via Del Charro:

7060 Via Del Charro comparable sales

Posted by on Jul 25, 2015 in Jim's Take on the Market, Listing Agent Practices, Rancho Santa Fe, Thinking of Selling?, Why You Should List With Jim | 1 comment

Suspicious Comps

The comps haven’t mattered much during our frenzied market.  But with things settling down a bit, we might see comps matter more.

In March, we discussed who pays more than they should, and why:

http://www.bubbleinfo.com/2015/03/04/verifying-comps/

Today, let’s point out which comps are the most suspicious.  Both sellers and buyers should proceed with caution when using these comps:

1.  Sales prices above list prices.  Bidding wars have been the norm, but the eventual sales price was thrown out there by somebody who was trying to win the contest, not pay market value.  They probably waived the appraisal contingency too, so there aren’t any checks and balances in place.  Just because one crazy nut was willing to pay that price doesn’t mean there will be others willing to do the same.

2.  ‘Sold before processing’.  How can it be considered market value if the market never had a say?  Rarely do they have a full description or ample photos so you don’t even know what was sold, or why.  Sometimes these are high-priced, where you wonder if the seller and listing agent thought they’d never get the same price on the open market.  But usually they are lower-priced.

3.  Dual agency.  When the seller’s agent represents the buyers too, how do you know what happened at the moment of impact?  Be wary of those that closed for a deep discount under list.

4.  Long-timers.  Have you seen those properties that have been on the market for months without lowering their price, then all of a sudden they sell for full price, or close?  Sure, the market can come up to meet them, but it just smells fishy to me that buyers wouldn’t demand to pay less for a property nobody else wanted for months.

5.  Comps that went pending when hottest (Jan-April 2015).  Today’s market is still good, but for the rest of 2015 it won’t be sizzling like it was when rates were 3.67 – 3.77% earlier this year.  Buyers are going to want to pay a little less than before to compensate.

6. Weak buyer’s agent on the sale.  Inexperienced or desperate agents don’t stop their buyer from over-paying.  The inexperienced agents are usually unaware themselves.  The tricky ones are the big teams who just use the leader’s name on every sale – but you suspect it was an assistant who handled the sale.

Tip of the Day: Examine the photos from the buyer’s perspective.

Buyers have never relied less on their agent – they have all the comps at their disposal, and they will interpret as they see fit.  Your accuracy about the comps is only half the battle – understanding the buyers’ position and how to add value to their interpretation is essential too.

Get Good Help!

Call Jim!

Posted by on Jul 13, 2015 in Jim's Take on the Market, Listing Agent Practices, Market Buzz, Market Conditions, Why You Should Hire Jim as your Buyer's Agent, Why You Should List With Jim | 1 comment

Constant Evolution

Rob Dawg said, quoting this latines.com article:

“Regular marketing doesn’t work anymore.”

Seems the RE industry is at a crossroads.  Marketing or facilitating.  One need only read the quote and see which way the wind has shifted.

Houses are worth different prices to different people on different days.  Employing a marketing strategy that exploits the initial urgency will produce the max value.

P. S. If all agents offered all the same services, it would force consumers to examine the agent’s expertise and track record.

Posted by on Jul 12, 2015 in Auctions, Commission War, Jim's Take on the Market, Listing Agent Practices, The Future, Thinking of Selling?, Tips, Advice & Links, Why You Should List With Jim | 4 comments

Home Inspections 2

Some buyers get moving too fast and blow out, and others make offers willy-nilly and cancel for little or no reason.  Those happen – but the deals that cancel because of repairs can almost always be saved in the moment if the buyer’s agent says the right things, the right way, at the right time:

Besides, we live in a desert!

Posted by on Jul 6, 2015 in Bubbleinfo TV, Jim's Take on the Market, Listing Agent Practices, Realtor Training, Repairs/Improvements, Why You Should List With Jim | 0 comments

No Excuses

Recently a seller (through their listing agent) was justifying their full-price counter-offer with a pending model-match that they said was in escrow at $15,000 OVER its list price.

The pending listing was in an inferior location and had no obvious features that would compel someone to pay over list price.  It had been on the market for almost 3 months, was ‘re-freshed’, and then still took another month to find the buyer.

Last week it closed for $42,000 UNDER the list price.

Three thoughts:

1.  If it ain’t closed, it doesn’t count.  There could have been an excited buyer in the beginning who got suckered into paying over list, but when the market is getting a little crumbly around the edges, buyers are more likely to come to their senses a few days later.  However, that seller had likely told his neighbors about his good fortune by then, and the braggadocio spreads quickly.

2.  There are a lot of new agents.  Since the frenzy began, over 50,000 real estate licenses have been issued in the state.  These agents have only known a frenzy condition, and are used to telling their buyers to offer over list.  But they haven’t had much experience with keeping a deal together.

3.  Revelations about the sale are not required to be disclosed in the MLS.  There is a ‘Concessions’ box in the MLS for listing agents to complete when marking a listing sold, but it’s a suggestion, not a requirement.

Regardless of what actually happened, once the sales price is published, it becomes the #1 fact that buyers will use to make decisions about what to pay for the next house.  Zillow and the other portals don’t have an ‘excuse box’ for anyone to clarify what happened in a sale – and if they did, buyers would still want to shrug them off.

Putting a value on an house is an inexact science, and everyone has a different opinion.  Future buyers will always look to skew down the value of the comps – even if there was a good explanation for a low sale, it won’t get full traction.

Get good help!

Posted by on May 18, 2015 in Jim's Take on the Market, Why You Should Hire Jim as your Buyer's Agent, Why You Should List With Jim | 3 comments