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

Jim Klinge
Cell/Text: (858) 997-3801
klingerealty@gmail.com
701 Palomar Airport Road, Suite 300
Carlsbad, CA 92011


Category Archive: ‘Why You Should List With Jim’

Should Buyers Wait?

Should buyers wait a while to see what happens to the housing market?

Are we just seeing the usual end-of-selling-season malaise when where all of the motivated sellers have succeeded, and just the OPTs are stacking up?

Or has the market shifted…..for good? Is this the peak?

I think it depends on your needs:

  1. Only buying a premium property – then stay in the hunt. In the last downturn, the prices of the premium properties held up well – most had less than a 10% decline in value, and that’s before people started hoarding real estate (not selling for any reason).
  2. Only buying a single story – then stay in the hunt.  The one-story market is red-hot, with demand far out-stripping supply, especially in the newer-home or view categories.
  3. Willing to buy a fixer – be patient.  Buy when you see the appropriate gap of 5% to 10% between the creampuffs and the ones that bark at traffic.  If the home is in original condition, the gap should be larger.
  4. Only want to steal a property – very unlikely in the near-term.  Sellers aren’t that motivated, and only a small minority might consider selling for less than 5% of list.

We should be in a stagnant state for months, as everyone waits to see what happens next spring.  But I think buyers will be similarly picky then too.

We’ll see the same or similar psychology take over the whole country at the same time – which is the way it always happens.  What needs to adjust is the sellers’ trend to expect more than what the last guy got.

Here is a discussion guided by our friend and realtor Tom Stone about the market in Sonoma County (follow the link) – and check the comment section too, where Tom mentions the solution. Hat tip Eddie89!

Link to Full Article on Wolf Street

 

Posted by on Aug 16, 2018 in Jim's Take on the Market, Market Buzz, Thinking of Buying?, Thinking of Selling?, Why You Should Hire Jim as your Buyer's Agent, Why You Should List With Jim | 1 comment

List-Price Increments

 

We see people changing their price by $1,000 or $5,000, and it makes you wonder what they are doing.  They can’t actually believe that it will do any good, can they?

Here’s why they do it. Realtors tend to live off their MLS hotsheet, which is the day’s summary of listing activity.  Every time a listing has a price change, it gets back onto the hotsheet, which reminds agents that it’s still for sale, and to consider showing it again.

But that’s the only reason.  Nobody will be too impressed with a price change unless it is substantial, like 5% of the list price.

Back when houses sold in the $100,000s and $200,000s, a price change of $5,000 or $10,000 was 5% or more. But now that 94% of the NSDCC houses for sale are listed over $900,000, buyers get annoyed if you only change the price by a couple of bucks.

I used to think of pricing in easy-to-digest quarters.  For example:

$999,000,

$1,029,000,

$1,049,000,

$1,079,000

$1,099,000.

But now that we have fewer comps, more listings not selling, and overall buyer exhaustion, we might as well cut to the chase. Besides, it’s hard to know where the values are when they can change +/- $50,000 in an afternoon.

Let’s make it simple and just use two price points (half and full million):

$999,000

$1,049,000

$1,099,000

Today’s pricing is slushy enough that moving in $50,000 increments is a good way to keep a listing fresh and compelling!

Posted by on Aug 15, 2018 in Jim's Take on the Market, Listing Agent Practices, Thinking of Selling?, Why You Should List With Jim | 2 comments

Sell Your Home Now, or Later?

So you’ve heard that the market is a little uncertain right now, and you’re wondering if you should just wait a year or two before selling your residence.

If you don’t mind keeping the home forever, then fine, the value will probably go up in the long run. But if you’d rather get your hands on your tax-free equity in the next couple of years, consider this.

In the strong seller’s market we’ve enjoyed over the last nine years, buyers had to pay the price.  There was enough competition that if you didn’t pay the seller’s price, somebody else would.

But lately we’ve seen the competition dwindle.

Let’s don’t call it a buyer’s market just yet.  Let’s call it neutral.

If buyers feel they have more negotiating power, they are going to use it.  They wait more patiently now, critique the comps more closely, and skip the fixers unless the price gap is appropriate.  Sellers of the fixers got away with selling for just a little under the superior homes, but now the 5% to 10% gap is back.

Once the market has turned that corner, it probably won’t just bounce back to being a seller’s market the next spring.

How do you know if you should sell now, or take a chance?

Sell now if you have good comps.

You’re not going to have better comps next year.  Why?

Because once buyers they recognize a slower market, they are going to dig in on price and only pay the same as the comps, or less.  They will wait patiently for the more-motivated sellers who price close to the comps or just under.  Those are the sales that will be setting the market.

So the best-case scenario is to have next-year’s prices be about the same as today.  So you should sell now while you have the certainty.

Posted by on Aug 14, 2018 in Jim's Take on the Market, Listing Agent Practices, Market Buzz, Thinking of Selling?, Why You Should List With Jim | 3 comments

San Diego Slowdown

Should we be discussing this in front of everyone? YES! Let’s deal with reality – we can handle the truth!

  1. Sellers who need to sell can adjust, if needed.
  2. Buyers looking for a better deal will stay engaged.
  3. New agents (since 2009) will build new skills.

Here are observations from a public FB real estate group. Let’s note the reports of solid business here too – houses are still selling:



Posted by on Jul 31, 2018 in Jim's Take on the Market, Market Buzz, Market Conditions, Why You Should List With Jim | 5 comments

Compass, Day One

The discussion about affiliating with Compass included trying to predict the future of the market, and realtors in general.

Historically, there has been a lack of widespread advertising because the realtor business was mostly mom-and-pop operations.  But now that big money is here, the advertising has grown.  Zillow has nailed it with their heart-felt messaging, which is appreciated by all.

But Purplebricks is running ads like this, and I think they are starting to have a negative impact on the industry in general:

Unfortunately we don’t have a truth meter or quality checker in this country, so people can say whatever they want, no matter how harmful to the consumer.

The problems with this series of commercials – they try to make you think:

  1. All realtors are the same.
  2. All houses sell for the same price, regardless of agent.
  3. You should shop for an agent based on cost.

These lies have been around for years, but this is the first time we’ve seen millions of dollars spent on TV ads to spread them.

I doubt they are going to make many consumers go to Purplebricks and pay up front for service (which is not mentioned in ad), but the damage to the consumer’s subconscious mind is being done.

The truth:

  1. Realtors, and the services they provide, are all different.
  2. The sales price of a house depends on who is selling it.
  3. Consumers should investigate what they are getting for the money.

I’m hoping that Compass will assist us with spreading the truth about selling homes.  Klinge Realty having a bigger corporate presence is a start, but some institutional advertising to re-affirm the truth would be helpful too.  I haven’t seen any Compass TV ads yet, but an educational advertising campaign would be very helpful for us, and the industry.

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

Two things I found impressive in my first day at Compass:

  1. Compass has recruited 168 top San Diego agents since opening in January.
  2. The Compass CEO, Robert Reffkin, called me to welcome us aboard.

Selling homes is an individual sport, so I know that the benefits of being with Compass will be determined by what I do with them.  Stay tuned!

Posted by on Jul 24, 2018 in Compass, Jim's Take on the Market, Market Conditions, Realtor, Why You Should Hire Jim as your Buyer's Agent, Why You Should List With Jim | 16 comments

Klinge Realty Powered By Compass

When I first started selling homes, most brokerages were mom & pop offices on the local corner.  Man, how times have changed.

Now, venture capital is flooding the industry, and some outsiders flush with cash are trying to convince you that cheaper is better – without describing the services provided, other than to call it ‘full service’, making it sound sufficient.

Consumers deserve a legitimate full-service option.

They deserve the option to choose a company who hires full-service agents and then supports them with modern, high-tech resources to deliver an unparalleled consumer experience.

Compass is committed to full-service realtors – and is working with $800 million in venture capital to build the team, and provide the high-tech support.

Starting today, we are affiliating with Compass to improve our services and build our presence using their agent resources.

I did not sell my company to Compass; instead we are a branch office with our same address, phone numbers, blog, etc.

The reasons:

  1. The Compass resources will help us expand and better define our services.
  2. Having a luxury brand name will help me attract new clients who are unfamiliar with us.
  3. We want to grow as a team, and being affiliated with Compass will help us attract better people.
  4. With Kayla moving to NYC, I’m hoping that the marketing support from Compass will help bridge the gap.
  5. I want plenty of distance between me and the discounters – not sure I’ll get that without a bigger and better corporate presence backed with VC.

Compass is backed by Goldman Sachs, SoftBank and others, and is hiring full-service realtors and brokerages throughout the country.  The goal is to have 20% market share in the top 20 cities by 2020.

My ultimate goal has always been to create a full-service brokerage that the kids can take over.  Teaming up with Compass looks like the best way to improve our brand and build a practice for the future!

Posted by on Jul 23, 2018 in About the author, Bubbleinfo Readers, Compass, Jim's Take on the Market, Realtor, The Future, Why You Should List With Jim | 9 comments

The Difference Realtors Can Make

Donna Klinge

Here are examples of some of the wacky stuff that happens in this business, and why it’s important to get good help:

We represented the buyers of House B, whose sellers were buying their listing agent’s personal residence (House A).

They had included in their listing agreement that the sale of House B would be contingent upon the successful purchasing of House A – but the listing agent forgot to include the contingency form in our documents.  As a result, the sellers were locked into selling their House B to my buyers.

When the discussions of repairs and termite work of House A got testy, it was revealed that the contingency form had been omitted from our House B deal.  The client called their listing-agent/owner, ‘unprofessional’, which set her off and she refused to do any repairs to her house.  The clients backed out of the purchase – but she was still their listing agent on our sale of House B, and the sellers only had two weeks left to get out of their house.

The listing agent went quiet, so the seller of House B called me directly for help.  Sorry, but my buyers wanted the house, and wanted to close on time.  He offered us $20,000 to cancel, but because the house and timing was such a good fit, we declined.

But I came up with a package deal. We would give him a rentback for up to 60 days at market rate plus deposit, if he gave us a credit for $7,000 for repairs on House B.  He took the deal.

2. When I’m the listing agent, I always meet the appraiser – no exceptions.  If you don’t, you’re just asking for trouble.  Another one where I had the buyers for a listing agent selling her own primary residence, and she doesn’t show up for the appraisal of the house she lives in!  The appraisal came in $12,000 under the sales price.

3. We are experienced at handling difficult situations, many of which are regarding repairs.  As the market slows down, the buyers will be more demanding about the condition of the home, and want things done their way (or the way their agent wants them done).

We sold a tenant-occupied condo that had a regular attic – how often does a tenant go into the attic?  In this case, the answer was ‘never’, and even if he had, he might not have noticed that lint was building up because the dryer vent did not extend through to the exterior.

The buyer had a logical concern about it being a fire hazard, and because we were happy with the price he was paying, Donna went to work on getting it resolved. We needed HOA approval to go through the roof, and they insisted on having a longer warranty.  Our roofer gives extended warranties because he has pride in his work, and the HOA was impressed.  Our roofer will be getting more work there!  The buyer’s agent appreciated the effort, and said most listing agents would offer a credit or shrug it off, which isn’t smart with fire hazards.

4. I was holding open house and a couple arrived who had been sent by their agent.  I had received a phone from the agent that her buyers would be attending, and would I mind showing them around? As always, I said I wouldn’t mind at all, as long as you don’t mind if I talk them into buying the house!  Not only did they buy it, they also told me that it was the first time in the five years they had been looking for a home that they thought they got real help.

5. I represented the sellers of a home that had undergone extensive foundation repairs.  The buyer had concerns which were understandable, and he arranged for thorough inspections.  Then we had the contractor who did the work come out for an on-site explanation, and discuss the one-year warranty.  At the end, the buyer’s father came over to me and stuck his finger in my face and said, “What do you think?”  Most agents can’t handle confrontations, and think their job is to dodge liability and be responsible for nothing.  Not me, and not when the sale is probably riding on me delivering a solid response.  I told the father that I had several previous experiences with the engineer and foundation contractor, and found them reliable and trustworthy.  I also said that because the house had been extensively remodeled, the overall package was a good deal.  They closed escrow (with 95% financing).

6. The first day on the MLS, a buyer’s agent asked what it would take to purchase a new listing of mine.  Most agents would be satisfied with full price, and hurry off to their next deal.  I told her $50,000 over list – and her buyer paid it.

7. Our seller moved out, and the buyer came to complete their final walk-through the day before closing.  They discovered a water leak, and a dis-functional garage-door opener. We handled all of the above on behalf of the seller for less than $500, and closed as expected the next day – with no inconvenience to the seller, who kept their focus on their new home.  While the event seemed minor, it was only because we were readily available and jumped right on it that no momentum was lost.

Every sale has hitches – some are smaller, and others can kill the sale.  Your agent’s commitment to full service makes the difference on which is which!

Posted by on Jul 21, 2018 in Jim's Take on the Market, Listing Agent Practices, Market Conditions, Realtor, Why You Should Hire Jim as your Buyer's Agent, Why You Should List With Jim | 2 comments

Sold Before Processing – The Impact

People question how big of a problem it is that listing agents withhold their listings and sell them before inputting them onto the MLS – which denies their own sellers the benefit of open-market exposure, and potentially a better offer.

Above is a sample from today’s MLS hotsheet.

There were a total of 51 properties that were marked either pending or sold, and of those, eight were sold prior to MLS input.

  1. Sellers don’t get open-market exposure.
  2. Buyers get robbed of a chance to purchase the home that might be the perfect fit, AND then wonder why their current buyer’s agent isn’t getting those deals for them.
  3. Other agents are denied the opportunity to earn a living.

But the listing agents get to double-end the commission, so it’s allowed – at least by broker management, NAR, CAR, and the MLS itself; the entities who could do something about it – but who look the other way instead.

Posted by on Jul 17, 2018 in Jim's Take on the Market, Listing Agent Practices, Realtor, Scams, Why You Should List With Jim | 0 comments