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Category Archive: ‘Why You Should List With Jim’

Broker Preview

After I pitched it at two different sales meetings, we had 30+ people come to the broker’s open house today.  All we need to do is find the buyer who needs multiple master suites, and appreciates the location/view.

Prediction: Someone from Klinge Realty finds the buyer at open house – we’ll be there every weekend until sold!

Posted by on May 25, 2016 in Bubbleinfo TV, Jim's Take on the Market, Listing Agent Practices, Why You Should List With Jim | 0 comments

Open House Report

2016-05-22 15.23.57

The weather was fantastic this weekend, and we had good traffic – 40+ people each day.  You know you have a specialty product in a mostly custom area when the zestimates are bouncing around.

Here is our zestimate history since Thursday.

BEFORE ZILLOW INPUT on Thursday night:

327

AFTER ZILLOW INPUT, THE ZESTIMATE INCREASED $249,754:

327 27

It has since come back to earth a bit:

zest may 23

I think buyers are putting more stock in the zestimates for a number of reasons – easy-to-find data point, it is somewhat reliable in tract neighborhoods, and it’s been around the longest.  Yet, I found myself having to explain to one visitor why was so far under our zestimate.

When the zestimate is within 10% of the list price, people might give it some credence. But when it is off by over 20%, buyers aren’t going to consider it as a reliable source.

In this case, the Z team used an oceanfront 2,000sf attached-home as a comp:

par

 

This is a recent sale nearby that is a better comp:

http://www.sdlookup.com/MLS-160008484-437_Hillcrest_Dr_Encinitas_CA_92024

But Zillow doesn’t show it as a closed sale, thanks to the dispute between them and our MLS (it wasn’t uploaded manually).

Hence, their zestimate is only $2,142,343:

http://www.zillow.com/homedetails/437-Hillcrest-Dr-Encinitas-CA-92024/81774561_zpid/

The Sandicor MLS people think they are doing us a favor by not negotiating with Zillow, but this is what we get – zestimates that are more unreliable than ever!

Posted by on May 23, 2016 in Jim's Take on the Market, Listing Agent Practices, Open House, View, Why You Should List With Jim | 0 comments

Open-House Report

59

Today, we conducted our first open examination of what the market will bear for our new listing of 1051 Denise Ct. at the top of the hill in San Marcos.

1051-denise-ct-073_web

Everyone loves the view!

For buyers who have been used to looking at standard tract houses, it comes with a new set of variables that take some digestion.

Most people rarely see this big of a view, and many don’t know what to make of it – plus living on 3.59 acres with septic and solar electric (no gas) can sound a little too adventurous!

But for the view-lovers who desire a specialty property that is ready for move-in, this is a fantastic opportunity!

http://www.zillow.com/homedetails/1051-Denise-Ct-San-Marcos-CA-92078/48180100_zpid/

Open Sunday 12-3pm!

DCIM100MEDIADJI_0012.JPG

2016-05-11 19.14.17

1051-denise-ct-011_web

1051-denise-ct-004_web

zz zzz

Posted by on May 14, 2016 in Bubbleinfo TV, Jim's Take on the Market, Open House, Why You Should List With Jim | 1 comment

Handling Multiple Offers

offers

 

Our listing on Cherokee closed yesterday.

It was the 2,527sf three-story house that backed to the I-15 freeway – the one where we had 200+ people attend the open house.

The final tally at the Zillow page was 3,745 views, and 77 people had saved it as a favorite home, which are both extremely-high counts. (Josh was the seller)

2022-cherokee-ln-004_web

Yesterday, we marveled at how the bidding war ended up.  The listing had hit the MLS on a Saturday, we had the open house on Sunday, and by Monday we had six offers.

Because not every bidder knew there was competition, we gave everyone the chance to submit their highest and best offer by Tuesday at noon.  I like to keep a tight timeline and promise buyers that we’ll select a winner promptly in order to retain as much urgency as possible.

The list price was $549,000.

At the end of the highest-and-best round, we had a $565,000 financed offer, a $570,000 cash offer, and a verbal $571,000 cash offer (the other three stuck with their $549,000 or $550,000 original offers).

The agent who wrote the $570,000 offer was 80 years old, and was using forms from five years ago.  I actually had to hand-write his original offer for him, but thankfully he was able to scratch out a one-sentence H&B.

Because I had concerns whether he could make it to the finish line, I pressed the $571,000 agent to get his deal in writing.  But he called back with bad news – his buyer, a savvy, multiple-property owner, decided it was too rich.

I called back the $570,000 agent, knowing that I’d be carrying his luggage for the next three weeks.  But he had more bad news – he took his buyer’s family to the house, and they vetoed the sale.

With the other three bidders unwilling to budge, we signed the $565,000 financed offer…..before they changed their mind!

Most people would have been tempted to hold out.  Yes, it would have been sexier to close escrow in 2-3 weeks with a cash buyer. But after 200+ open-house attendees and 50+ showings, are there two in the bush?

Though my phone hasn’t rang like this since back in the REO days, there was no disputing the facts – most people didn’t make any offer, and those that did weren’t in love enough to go crazy.  It was a trend that was likely to continue.

In spite of casual observers telling me we were giving it away, or it was too cheap, the actual results were telling.  The duty of the listing agent is to check the ego at the door, and focus on the facts.

We made the deal at $565,000, and it stuck.

Posted by on May 10, 2016 in About the author, Bidding Wars, Frenzy, Jim's Take on the Market, Listing Agent Practices, Market Conditions, Thinking of Selling?, Why You Should List With Jim | 3 comments

Real Estate Disclosures

asis

The finer points about disclosures.  An excerpt:

When preparing the Transfer Disclosure Statement, the seller sets forth any property defects they know or suspect to exist. Defects to be disclosed in the TDS include any conditions known to the seller which might negatively affect the value and desirability of the property for a prospective buyer, even though they may not be an item listed on the TDS. Thus, disclosures to the buyer are not limited to classic conditions preprinted for comment on the form. [CC §1102.8]

Further, the buyer cannot waive the seller’s delivery of the statutorily-mandated TDS. Any attempted waiver, such as the use of an “as-is” clause in the purchase agreement, is unenforceable as against public policy. The words “as is” are never to be used in the context of real estate transactions.

“As is” implies a failure to disclose something adverse known to the seller or their agent, a prohibited activity. In contrast, “as disclosed” is the condition of the property as known by the buyer when the seller accepts their purchase agreement offer. [CC §1102.1(a)]

Thus, all buyers purchase property:

“as disclosed” by the seller, the seller’s broker and the broker’s agents; and

“as actually observed” by the buyer prior to entering into the purchase agreement.

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

Brokers and their agents who list one-to-four unit residential property have a duty to all prospective buyers, separate from the seller’s, to timely disclose any physical aspects of a property:

– observable by the broker or their agent on a reasonable inspection of the property; and

– affecting the property’s market value.

A buyer of a one-to-four unit residential property has two years from the close of escrow to pursue the seller’s broker and agent to recover losses caused by the broker’s or agent’s negligent failure to disclose observable and known defects affecting the property’s physical condition and value. Undisclosed and unknown defects permitting recovery by a buyer for the cost to cure the defect or loss of value are those observable by a reasonably competent broker during a visual on-site inspection. A seller’s agent is expected to be as competent as their broker in an inspection. [CC §2079.4]

However, the buyer is unable to recover their losses from the seller’s broker if the seller’s broker or agent inspected the property as a reasonable competent broker, did not observe the defect and did not actually know it existed. [CC §1102.4(a)]

For more on seller disclosures and case law, click here:

http://journal.firsttuesday.us/brokerage-reminder-the-as-is-clause-instigating-negligent-failure-to-disclose/52170/

Posted by on Apr 26, 2016 in Jim's Take on the Market, Listing Agent Practices, Why You Should Hire Jim as your Buyer's Agent, Why You Should List With Jim | 7 comments

How Many are Planning to Buy?

yes

Look at this trend of home-buying plans – roughly 6% of consumers are planning to buy a home in the next six months.  Look how it bumped up at the start of the year – and settled down since.

It also suggests that 94.1% of consumers have no plans to buy a home in the next six months.  How would you like to be a realtor, and face those odds every day!  A lot of striking out!

http://www.builderonline.com/money/economics/consumers-remain-hesitant-on-home-buying-decisions_o

Posted by on Apr 23, 2016 in Jim's Take on the Market, Why You Should List With Jim | 0 comments