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’

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

This Week’s Disrupter

This start-up has the right ingredients, but their auctions do have a reserve amount and no buyer-agent commissions, which cuts out other agents.  They say  “No Double Ending’, but when the buyers are unrepresented it puts the listing agent in an agency position – if the buyers ask a question, and the agent replies, an agency relationship has been created. 

Every start-up wants to beat out realtors, and think that the consumers will trust their faceless, unproven venture instead:

LINK

TORONTO, Oct. 18, 2017 — There is a new way to buy and sell real estate in Ontario. With today’s official launch of On The Block Realty, the uncertain and often frustrating process of trying to navigate the home market has taken an innovative step forward. This brand new real estate brokerage based in Toronto, has opened its doors to the public, offering new unique approaches to the industry.

Chief among these advancements is the development of a cutting edge online auction platform that is aimed at bringing much needed transparency to buyers and sellers. The home buying process has been protected by silent bids in many situations, leaving buyers confused about what price to pay, and sellers concerned that some buyers may not have offered their best price. Inspired by the successful practice of real estate auctions in countries like Australia and the UK, this new system offers an exciting alternative for sellers who want to be certain they have maximized every bid from prospective buyers. It also ensures that every buyer has an equal opportunity to buy without any secrecy guarding the process.

“This isn’t about changing or fixing anything, it’s about evolving,” says CEO Daniel Steinfeld. He adds, “People deserve a choice when they make the biggest financial decision of their life. They also deserve clarity about every aspect of the transaction. We provide that.”

While the auction platform is the most distinguishing feature of this premium brokerage, there are several other features that the company believes will set it apart from the traditional brokerages in Ontario.

There is a ‘No Double Ending’ policy that ensures both sides of a transaction are never represented by the same Realtor. President and Broker of Record Katie Steinfeld says, “It is impossible to fathom that people with perfectly opposite financial objectives could have their best interest adequately represented by the same person.” She continues, “This is especially so when that individual stands to make more money by being on both sides of the transaction.” While the Ontario government and real estate industry have diverted from the point of protecting the consumer’s best interest, On The Block has done what makes the most sense – disallow the concept from their business model.

Prospective buyers without representation can still fully participate in a purchase or bidding process, but will not have a client relationship with On The Block – and if they choose to purchase without representation, there is no additional commission payable by either the buyer or the seller. “Buyers are entitled to an understanding of how commissions work. Just because it is widely positioned that the sellers ‘pay’ commissions, that cost is directly coming out of the sale proceeds, and ultimately a cost to the buyer,” Mrs. Steinfeld explains. On The Block’s Transparent Commission Policy explains that buyers should only pay for the service they receive, and so purchasing without representation shouldn’t cost them the extra 2.5% that often get baked into the purchase price.

Beyond the increase in transparency, the company provides a first of its kind ‘all inclusive’ approach to selling a home. One of the most unique included features is that homeowners are given a week in a partner hotel during the selling process to take away the stresses of cleaning and constant vacating that come with showings of the property. This is in addition to perks including professional photography, home inspections, and one of a kind custom signage for every property. “We are trying to sell a home, not ourselves,” Mr. Steinfeld says. “The high end signage is the largest legally allowed, and it is completely focused on the property it is trying to sell, not the brokerage or the name of the sales representative.”

Interested sellers are invited to use the platform at an introductory rate that includes all the bells and whistles, but costs less than half of what traditional Realtors charge.

It has been well documented that the real estate market could use a new approach. Perhaps this is the big change everyone has been waiting for.

About On The Block

On The Block is a premium real estate brokerage and auction house offering prospective home sellers the option to sell by auction or traditionally. As platforms like Uber and Airbnb have disrupted their spaces, On The Block is positioned to challenge a real estate process that for too long hasn’t seen significant change. With home prices continuing to fluctuate widely, and affordability diminishing, it’s more important than ever to give people some choice and power in the biggest selling and purchasing decisions of their lives.

Posted by on Oct 18, 2017 in Auctions, Jim's Take on the Market, Listing Agent Practices, Why You Should List With Jim | 1 comment

14 Staging Tips for Smaller Homes

These days it seems like everybody wants a tiny house. But what if your home isn’t adorably tiny? What if it’s just sadly small?

Don’t worry—it’s not your square footage that matters most; it’s how you present it. Even if you’re tight on space, you can fool buyers into thinking things are bigger than they appear—you just have to have some smart tricks up your sleeve. Keep reading for our experts’ savviest and sneakiest tips for seeing big returns on the petite place you currently call home.

1. Throw a reverse housewarming party

The less clutter, the bigger your home will look and feel to potential buyers. To get rid of your unwanted items, throw a party before your first open house, suggests Laura McHolm, co-founder of NorthStar Moving.

“Instead of having your friends bring a gift, have them pick one of your items and take it home with them.”

2. Go down to the bare minimum

Still feel like your home is full of stuff?

“Box up everything you don’t need on a daily basis and anything that’s smaller than a football,” suggests home staging expert Lori Matzke.

Sift through your glass cupboards and built-ins, and clean off your countertops.

“Leaving just the bare minimum will create the feeling of more space,” she says.

That goes for your beloved tchotchkes, too.

“A smaller space tends to favor a more minimalist design, so having all of your collectible figurines on display on the shelves, side and console tables will bring the room in rather than opening it up,” says Bee Heinemann, marketing director and interior decorating expert at Vänt Wall Panels.

3. Take your doors off their hinges

Remove all your interior doors, besides those that lead to bedrooms, bathrooms, and closets, suggests G. Brian Davis, director of education for SparkRental. “The farther the eye can see, the better.”

Read More

Posted by on Sep 11, 2017 in Jim's Take on the Market, Staging, Thinking of Selling?, Tips, Advice & Links, Why You Should List With Jim | 1 comment

Seller & Buyer Testimonial

A key point here is that the local neighborhood experts gave them no chance of selling for the price they wanted, even after making improvements.

It sold for full price, on the first day:

Many thanks to our clients for doing this!

Posted by on Sep 3, 2017 in About the author, Bubbleinfo Readers, Bubbleinfo TV, Jim's Buyer Representation, Jim's Take on the Market, Remodel Projects, Repairs/Improvements, Thinking of Buying?, Thinking of Selling?, Why You Should Hire Jim as your Buyer's Agent, Why You Should List With Jim | 3 comments

The Big Stagnation

 

On the Facebook bubbleinfo, in response to the idea that the bubble won’t be bursting, Matt asked ‘what constitutes the big stagnation when it happens’.

My response:

The Big Stagnation? You’ll know it when you see it.

We used to consider 6 months’ of inventory to be normal, but the new norm is probably 3 months with most of San Diego being 1-2 months today. Rancho Santa Fe is our exception, and has 8 months’ of inventory currently (only because there was a slew of sales last month). I think we can consider stagnation being any market with more than 6 months’ worth of inventory, and/or 100+ average days on market (Avg. DOM in RSF now 129 days).

When the market slows, most of the homes not selling can be explained – bad locations, inferior condition, etc.  Start worrying when you see houses that have it all, including a decent price, not selling.

Other outside influences that might cause the market to stagnate include:

  1. Mortgage rates get back into the 5s. Rates have been under 5% since the end of 2009, which seems like a million miles ago.  Buyers would want to stall their plans for at least six months to see if sellers would compensate by lowering their price.
  2. An occasional bad comp.  This happens today when a lowball sale occurs (usually an inside job), and buyers and sellers wonder if it is real.  Because there is usually scant information about it, the bad comp ends up being a mystery, and we forget after a few months, but another seller has to go first to prove it was an anomaly.
  3. Immigration is halted.  This would have seemed impossible up until a few months ago, but if it happened, we could feel a significant impact on the demand side.
  4. Recession hits locally.  An economic slowdown may not bring more supply right away because those out of work would wait 1-2 years before they believed they couldn’t get another job, and decide to move.  A more immediate impact would be felt on the demand side – we’d be losing buyers right away.

The prime reason for a market stagnation is the resistance that sellers and agents have about lowering their price – they would rather wait and see if it will be different tomorrow.

We might see a 5% or 10% drop without much fanfare, because most every seller around here has gained more than 30% appreciation since 2009 and wouldn’t feel it much.  They might give up a couple of bucks, but if a heavy discount is needed to sell, they will dig in.  It is very likely that the only reason they are selling is to hit the big-money jackpot.

A stagnant market could last for months or years – they tend to last until people subscribe to the fact that price will fix anything!

Save

Posted by on Sep 2, 2017 in Jim's Take on the Market, Market Conditions, Thinking of Buying?, Thinking of Selling?, Tips, Advice & Links, Why You Should Hire Jim as your Buyer's Agent, Why You Should List With Jim | 2 comments

No Chance of Bubble Bursting

I was asked yesterday about the chances of the bubble bursting.

My answer was, “No chance”.

But these things run in cycles, and eventually won’t the market will cool off?

Yes…..some day…..and when it happens, our market will stagnate, rather than see prices decline.  Sellers would need to be desperate to sell for less, and there are too many other alternatives and stop-gaps in place now to prevent desperation.

A. Reverse mortgages – The H.U.D. backed down the loan-to-value last week, but for anyone who is 62 or older, the reverse mortgage will be a viable – though costly – alternative to selling and moving. The average borrower at current interest rates will be able to borrow roughly 58% of the value of their home, down from 64%, and allows them to take the equity out of the house through lump-sum withdrawals, regular payments, or a line of credit.  The loan does not need to be paid off until the borrower dies, sells the house, or moves.

What about the younger, working folks who don’t qualify for a reverse mortgage and could be impacted by the next recession?

B. The foreclosure rules have changed, and the banks would rather let you slide, than kick you to the curb.  Don’t feel like making your payments for months or years?  No problem, just send in what you can, and they will kick around your loan-mod application until things get better.

Want to sell quick?

C. Discount your price 20% to 30%, and a flipper will cash you out in a week.  But that doesn’t tank prices, because the flipper will apply some lipstick and sell it for retail in the next 2-3 months, keeping the neighborhood values afloat.  Could flippers get stuck with some dogs?  Yes, but they are flush and full of ego – how many do you see already who just keep re-freshing their listing at the same price, and holding out for those six-figure gains?  Plenty.

Don’t want to discount?

D.  There are thousands of realtors who will take your listing at any price and hope for the best.  This is how the market will go stagnant – and Rancho Santa Fe is the example, where today there are 213 houses for sale.  They just wait for someone to come around and pay the seller’s price.

The best reason of all for why our housing market won’t burst are the high rents.  If the next recession hits hard, and distressed homeowners think about cashing out, they need to leave town to make it worth it.  If they want to stay in the same neighborhood, the rents are so high that it makes more sense to stay put.  Remember how the layoffs at Qualcomm caused a big concern around Carmel Valley?  Yet prices haven’t tanked – and the 92130 has 85 active listings and 61 pendings today.

Everyone who financed a purchase in the last few years had to qualify through strict guidelines, and, as a result, the affluent have ruled the market.  They won’t get the jitters if the ride gets bumpy; no, they are in for the long haul.

Stagnant City is the worst that will happen.

Save

Posted by on Aug 31, 2017 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 | 12 comments

Off-Season Selling

The pricing triangle above demonstrates the importance of an attractive list price.  These percentages are probably cut in half during the off-season, but there are still buyers – I’ve run into two bidding wars this week!

https://www.keepingcurrentmatters.com/2016/02/29/how-to-get-the-most-money-when-selling-your-house/

Excerpted:

Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price it so that demand for the home is maximized. In that way, the seller will not be fighting with a buyer over the price, but instead will have multiple buyers fighting with each other over the house.

Realtor.com, gives this advice:

“Aim to price your property at or just slightly below the going rate. Today’s buyers are highly informed, so if they sense they’re getting a deal, they’re likely to bid up a property that’s slightly underpriced, especially in areas with low inventory.”

Get Good Help!

Posted by on Aug 30, 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