Menu
TwitterRssFacebook
More Links

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’

Wait-And-See in 2017?

It’s easy for me to say our local real estate market should get off to a fast start.

It’s what we do every year!

Let’s theorize why the pricing pops in Spring:

  1.  Demand has been pent-up for 3-6 months; and buyers come out hungry.
  2.  Virtually all sellers come out greedy, and tack on the extra 5% or so.
  3.  But only the spectacular homes sell – those that deserve a price hike.
  4.  The inferior homes don’t sell, and clog the inventory.

You can see in the graph above that in the last two years, the cost-per-sf has jumped early.  But buyers only buy early if they see a spectacular house – it is too tempting to wait-and-see, rather than buy a fixer that’s priced retail-ish.

As the selling season matures, the inventory swells with inferior homes that don’t deserve the new pricing premium.  As buyers keep passing on anything that has been on the market for more than 30 days – figuring there must be something wrong if nobody else bought them – the demand intensifies around each of the occasional creampuffs that come to market

Home Sellers

Creampuffs – You can sell your well-appointed, attractively-priced home for a premium all year round. But this year, waiting until summer didn’t get you any more money than you could have gotten in April, according to the graph above.  The San Diego Case-Shiller Index has risen only a cumulative 1.3% over the last five months, reflecting sales data back to March.

Inferiors – Those selling homes with partial or no remodeling/upgrading, bad locations, hard-to-show, or listed with bad agents will face increasing competition as time goes on – and they’ll be piling up by May-June.  Most importantly, the pricing will be more suspect the longer that yours and others are lingering unsold.  List early, and get it done.

Home Buyers

Creampuffs – Buy early.  The competition for the well-appointed, attractively-priced homes will increase as the season rolls on.

Inferiors – Buy late.  Hope that fixer pricing is crushed by supply overload.

It will probably get harder to tell the difference between the creampuffs and inferiors as the selling commotion starts rumbling down the road.

Get Good Help!

Save

Posted by on Dec 10, 2016 in Jim's Take on the Market, Thinking of Buying?, Thinking of Selling?, Why You Should Hire Jim as your Buyer's Agent, Why You Should List With Jim | 2 comments

Fast Money

We’ve touched on the new disrupter OpenDoor, which is currently operating in Phoenix and Dallas (places where home values might be easier to determine):

https://www.opendoor.com/homepage

They are willing to pay cash for your house and close in three days, which sounds enticing for those sellers looking for instant cash.  But they offer to buy your home at a below-market price based on algorithms, and fees range from 6% to 12%.  They are glorified flippers.

The length of time it takes to close escrow should have improved by now.  It still takes 30-45 days to process a sale, which might be advantageous for sellers who occupy the home – they usually need time to pack it up.

But for those sellers of vacant homes, or those who want to use their proceeds to purchase another home, a quick escrow might be preferred.

Thankfully, there are new alternatives.

Quicken is offering the Rocket Mortgage, and yesterday Caliber Home Loans rolled out their new product that can close a regular sale in 10 days or less:

http://www.housingwire.com/articles/38710-first-look-caliber-home-loans-new-fully-digital-mortgage-will-close-in-10-days-or-less

These options should stop sellers from getting their head tore off just because they want a fast closing. These mortgage products could also really help the move-up market by alleviating the struggle of making offers contingent upon the sale of your current residence.

The regional VP of Caliber told me that their process is very innovative.  They do not require the buyer to bring in the usual documents.  Instead, they are getting them directly from the institutions themselves, which will help ensure accuracy.  The IRS will furnish Caliber with income documentation, and the funds for closing will be verified directly with the banks themselves.  The appraisals will be computer-generated in areas where you have easier valuations, like in Carmel Valley and Carlsbad where there are newer tract houses that are very similar.

We are close to being able to get a mortgage with the swipe of your ID card!  It could invigorate the move-up market in 2017 – and Trump will get the credit!

Posted by on Dec 9, 2016 in Flips, Jim's Take on the Market, Mortgage News, Thinking of Selling?, Why You Should List With Jim | 8 comments

Carmel Valley Wrap-Up

2016-11-17-10-31-16

We did open escrow before Thanksgiving on the sale of the two-bedroom  home in Trilogy 2 in Carmel Valley.

The MLS entry had been on Friday morning, with open house scheduled for 12-3 on Saturday and Sunday. The weather was somewhat overcast, it is a gated community, and it was the week before Thanksgiving – how many would attend?

Being the least-expensive detached-home in the whole zip code probably drove the activity, and we had parades of people both days.  By Tuesday, I had received seven written offers!

Here are my notes:

  1. As what usually happens, the first person who came to Saturday’s open house was probably the most-motivated – and made a great offer, though not right away.  I didn’t get any offers until Sunday, which made me think that buyers were either being very diligent about price, and/or strategic about delaying their offer, knowing that we were doing open house on Sunday (it is better to wait until after Sunday’s open house and get a feel for the action).
  2. Not only were the offers rolling in slowly, but they were also very orderly about price – nobody was going much over list, so it was a real horse race.  The comps were a problem, for a number of reasons; a) All three Trilogy neighborhoods use the same street name, Carmel Creek (making them all sound the same), b) some of the comps backed to busy streets, c) there is a 1,409sf, and a 1,410sf model, but they aren’t that similar.  To help buyers sort it out, I produced a simple map:

comps-map

If I had a chance to do it over, for easier reading I would group 1,3,7,8,10 as the more-valid comps, and those with street noise (2,4,5,6,9) as the inferior group.

3. We issued requests to every buyer for their highest-and-best offer, which helps to make it a fair race – the early offerors may not have known how competitive it is, and they deserve a chance to re-bid. Another benefit of requesting highest-and-best offers is that it buys time for other buyers to get in the game. In this case, the winner saw the house on Monday, and made offer right away.

4. I was working the phones all weekend, so once we opened escrow on Tuesday, I thought the action might die down.  But I got another handful of calls from people who saw a rental ad in Craigslist – and it’s not the first time it’s has happened. Somebody took my pro photos and remarks off my listing and created a Craigslist rental ad for $1,975 per month, which is well under market.  It is a scam that has been running for years – the guy on the phone tries to convince people that the rent is so attractive that you won’t mind sending the first and last month’s rent to a faraway address and wait by your mailbox for the keys.  But they never come.

I notified Craigslist immediately, and they are quick to take these scam ads down, but you feel sorry for anyone who gets duped.

Save

Posted by on Nov 29, 2016 in Carmel Valley, Jim's Take on the Market, Listing Agent Practices, Scams, Why You Should List With Jim | 0 comments

Order-Taking?

mult-offer-form

Have you ever been frustrated with a bidding war?

Don’t despair – we have a new form!

I hope every broker has been using some version of this for the last 6-7 years.

What struck me was how this could perpetuate the belief that all we do is fill out forms.  Ask what your potential listing agent does besides the paperwork – because salesmanship is what gets top dollar.

Here’s what I do for my sellers:

  1.  Handle all inquiries personally, and encourage offers.
  2.  Give you a written summary of offers.
  3.  Suggest how we can pit them against each other.
  4.  Pit them against each other.
  5.  Work the phones until we reach top dollar.
  6.  Have wifey make sure it closes on time.

Salesmanship is pursuing the desired result – top dollar. Not taking orders.

Posted by on Nov 28, 2016 in Jim's Take on the Market, Listing Agent Practices, Why You Should List With Jim | 0 comments

Carmel Valley New Listing

11311-carmel-creek-rd-004_web
11311-carmel-creek-rd-011_web

Holy cow – only $729,000 for a spectacular detached-home in gated Trilogy!

This is one of the premium locations high up the hill and away from road noise. The kitchen has been updated with new stove, refrigerator, dishwasher and backsplash, plus there is new carpet, new paint inside and out, hardwood floors, and the backyard is a tropical oasis with privacy!

Located in the coveted Del Mar school district too – where the least-expensive detached home for sale today is $899,000 – WOW!  Close to the I-5 Bypass/Carmel Mountain Rd. exit – skip the traffic jams – and only 3 miles to the beautiful Torrey Pines State Beach!

http://www.zillow.com/homedetails/11311-Carmel-Creek-Rd-San-Diego-CA-92130/16777923_zpid/

cc-yard

Open 12-3pm Saturday and Sunday!

Save

Save

Save

Posted by on Nov 17, 2016 in Bubbleinfo TV, Carmel Valley, Jim's Take on the Market, Why You Should List With Jim | 0 comments

Bidding-War Report

2016-11-09-12-20-55

We received 16 written offers on the Bluff Ct. property – here are notes:

Five agents were from the LA/OC area.  Because their MLS (CRMLS) covers most of the rest of Southern California, they were used to traveling to sell a house.  San Diego home sellers want these LA/OC buyers to come here, because our prices look cheap to them.

The first three offers were all below list price. When it came time for the highest-and-best round, all three withdrew.  I would have thought that the first offers submitted would be from the most motivated buyers?

The average down payment was 33%.  There was one cash offer, and four that had less than a 20% down payment.

Five of the financed offers didn’t include a pre-qual letter.

Five buyers increased their offer during the highest-and-best round, by an average of $21,000.

List price was $749,000 – three H&B offers came in at $799,000 and higher.

My youtube video of the home’s defects is up to 335 views!

Posted by on Nov 10, 2016 in Bidding Wars, Frenzy, Jim's Take on the Market, Why You Should List With Jim | 1 comment

Disclosing Up Front

ocean

The real estate industry is famous for pushing only the positives – and poo-pooing the negatives.  Under frenzy conditions, buyers get caught up in the hustle, but these days they are paying close attention – and being more demanding about what they get for their money.

Most want a turn-key home, with little or no work required, and most will pass on a house like Bluff in spite of the attractive price.  But for those who don’t mind doing some work, the disclosing of the issues up front is appreciated.  They feel more comfortable making an offer, and they are more likely to stick once the home inspection confirms what they already know, instead of being full of surprises.

Posted by on Nov 6, 2016 in Bubbleinfo TV, Jim's Take on the Market, Listing Agent Practices, Open House, View, Why You Should List With Jim | 1 comment