Agents get solicited 3-10 times a day by flippers who promise to pay cash for our fixer listings and pay us 3x commissions for the favor.
But they all want a 30% discount.
This new company has advertised a lot of TV so you’ve probably seen Dr. Phil offering to pay cash for your house – no commissions, no repairs, no showings, etc. They will even clean your house out, no charge!
But look how it has eroded already. They used to send emails to local agents to flip their recently-purchased properties to their buyers, but now they are just ‘wholesaling’.
Apparently they have taken advantage of an agent here who got her license in 1976 and convinced her to sell this home built in 1975 that backs to the I-5 freeway for enough under the list price that they think they can plug in a buyer to take their place and make a buyer-side commission on the deal.
What happened to them buying properties for cash?
Why are they sending this email to agents to find buyers that they can represent?
Seller beware!
The flippers provide a floor for the market, and it is very competitive between them. You may only have to discount a hot property by 20%, but it would be better to have me sell it for retail or retail-plus!
Although the auction format is a terrific way to sell homes, they haven’t caught on around here much. It’s more work (for the agent); they’re risky; they might backfire on you; and just the general unfamiliarity with the concept keeps them from happening much locally.
But in the one area where agents deliberately low-price homes and let the animal spirits take over is still booming. It’s probably not an accident that it’s still the most-expensive area in the country:
Generally speaking, each of the 2025 quartiles is lower today than they were last year, and the median list price is down to $4,000,000 – which is 11% lower than it was at the start of the year.
It’s because the lower end has been cooking, and the higher-end not so much.
There have been 309 homes sell or go pending since January 1st that were priced under $4,000,000, and only 69 homes priced above $4,000,000 have found a buyer.
Who cares – find the right house for you, and make the best deal you can.
NSDCC Number of Active Listings by Price Range
0 – $2,000,000: 52
$2,000,000 – $4,000,000: 156
$4,000,000 – $6,000,000: 87
$6,000,000 – $8,000,000: 39
$8,000,000 – $10,000,000: 24
$10,000,000 and up: 58
This is an area (La Jolla to Carlsbad) where the median sales price in 2024 was $2,400,000.
One year after the National Association of Realtors agreed, as part of a legal settlement, to change a key rule on real estate commissions — a rule that had long upheld a tradition of commissions between 5 and 6 percent, little has changed.
What was hailed as a watershed has so far produced a mere drizzle.
Some economists predicted the rule change would upend the business model and bring competition to a long-stilted marketplace, breaking the standard 6 percent rate — one of the highest rates in the world — and forcing down home prices as a result.
Though average commissions appear to be slipping, industry watchdogs say that Realtors and their brokerages have used workarounds and pressure on sellers like Mr. Chambers to subvert the settlement. So far, they’re finding success.
“The industry understood the threat to 5 or 6 percent rates right away, so looked for opportunities to discourage negotiation,” said Stephen Brobeck, a senior fellow at the Washington, D.C.-based Consumer Policy Center, who has been vocal about the need for greater consumer awareness in the real estate industry.
The climb in the number of active listings between La Jolla and Carlsbad took a break and only rose by two. Here’s how the actives and pendings compare to the last two years in mid-March:
NSDCC Actives and Pendings, Mid-March
The 25% YoY increase in the number of actives doesn’t seem to bother the buyers!
All that matters is what will the sellers do who are left out of the party? Will they bang the door down with a big price reduction?
Or pack it up and wait for the market to ‘pick up’?
When $2,000,000 is the entry level for a decent home in Carlsbad, home buyers should really consider what that money will get them just 20-25 minutes away.
The sellers agreed to a proper price reduction yesterday (-11%), and I feel like selling it today!
Ok, ok – I know you don’t want to leave San Diego.
But for those who gotta do something, check this out.
Toll Brothers, one of the best tract builders around – maybe the best around.
Brand new one-story homes in the $400,000s
Below-market mortgage rates.
Yes, you will have a lot of $$ once I’m done selling your house here. But if you only want to use $100,000 of it and finance the rest, your payment at 5.49% is only $2,087/month! Your social security will cover that!
They have standing inventory – six homes are available for quick move-in. Get yourself one today!
Since October, I’ve been blabbing on and on how there were several reasons why the pent-up supply was finally going to bust loose in 2025.
If you want to sell your house this year, you better get on it.
It’s more than just an isolated or local thing. Look at the stats above – there is a cultural/communal thing where there are more homes for sale everywhere.
The cheerleaders will be bantering about how the locked-in effect is loosening and we’re just getting back to normal. But they will shut up in another couple of months when they don’t know what to make of it.
Even if the total number of listings isn’t much higher than last year (NSDCC total listings = +9% YoY for first two months), more are not selling. The unsold listings will be stacking up by June. Or May. It will probably cause buyers to be more hesitant, and that’s saying a lot because they are already being fairly cautious.
We have four listings to roll out over the next month, and while we would never launch before we’re absolutely ready, I’m encouraging everyone to expedite!
Though it will be years before Natalie officially takes over, the succession plans are being actively discussed and this is the group who will usher her into the next generation of the KRG! Kayla will run the Manhattan version of the Klinge Realty Group, and once Natalie’s dance career winds up, she will take over here!
What’s new around here? Yesterday, I authorized a new look for the blog – coming soon!
Donna and Jim provided exceptional support and professionalism throughout the entire process. We couldn't have been happier with their efforts. They made our house shine, and thanks to their expertise, it sold above the listing price in the very first weekend! Truly a fantastic experience from start to finish.
jesus a sahagun
2024-11-10
Verified
This year has been difficult on our family, mainly due to having to sell our home. Thankfully we knew God had a plan for us and working with the Klinge team was a key part of it. It was an obvious decision to work with them again after such an amazing experience when purchasing the same home we needed to sell. The challenge was, how will we do this in so little time with so much going on? Jim and Donna held our hand every step of the way. Whenever an unexpected issue arose they found and provided a solution. Never once did we feel pressured to make a decision and the Klinges were always reassuring after providing the information that the decision was ours to make. Despite the curve balls, they never panicked and exemplified the “can do” attitude, making us feel optimistic and taken care of. Their expertise and professionalism was superb. But of all the reasons to work with the Klinges, the most impactful and valuable is their compassion and genuine care for their clients. We pray that we can one day purchase our forever home and you better believe that Jim and Donna will be representing us - as long as they will have us of course. Thank you again Klinge team! Your execution, experience, and care are unmatched.
SabihaPasha
2024-07-22
Verified
Jim and Donna were fantastic! Jim understanding my needs, recommending potential places, pointing out the pros and cons of each property was invaluable. Then when the offer was accepted Donna’s organized guidance through the inspections, paperwork etc made the whole process seem effortless.
So grateful that I had them on my side!
dodyfrancis
2024-07-10
Verified
I appreciate Jim & Donna's great teamwork, sound advice, and guidance that eased the stress of selling our Carlsbad home. Their professional input and assistance throughout the process was very helpful. Highly recommended!
sbisachsen
2024-07-10
Verified
The Good
The Klinge Realty Group operates like a finely tuned machine, with a very personal touch. We contacted them on a Sunday and they were talking to us about our family and our needs on our living room couch the following day. They carefully listened to us and worked with us to identify the best and quickest path to listing within 2 weeks to take advantage of the low inventory conditions in our South Carlsbad neighborhood. They knew our tract specifically and had many previous sales there over the years - they came prepared with a thorough analysis of comparative sales and recommended a pricing strategy that they felt confident would yield offers the first weekend on the market.
The Great
Over the next two weeks Donna coordinated a range of vendors who she knew from experience could get the preparation to list work we needed done on time and with high quality. Our light tune-up involved excellent experiences with their stagers, landscapers, contractors, electricians, and plumbers. Throughout this period Donna's daily communication was clear, concise, and responsive. Any time we had questions Donna picked up the phone or texted immediately - but almost always, she answered our questions before we even knew we had them.
The Outstanding
We had a tricky situation with a shared fence that could have delayed our escrow. Donna used superb mediation skills to negotiate the terms of replacement and was personally on site with the fence contractor to make sure everything went smoothly. The fence looks great and escrow closed on time.
The Truly Exceptional
Our house came on the market on a Wednesday and between then and Monday morning Jim was personally at all three open houses. He was in constant communication explaining potential buyer reaction and strength. As he predicted offers began to come in on Saturday and each one was incrementally higher than the last. At the end we had 5 offers, 4 of which were over list, and the final accepted offer was $100,000 over list. In addition to being over list it included rent back terms that met our needs.
The Recommendation
For all of these reasons we would strongly recommend The Klinge Team to anyone wanting to sell in North County Coastal San Diego. I had been reading Jim's blog for 15 years and knew when the time came to sell that he would be our first call. Jim Klinge is not your standard realtor. He is keenly aware of market conditions and sales strategies. And, works his tail off - though not as hard as Donna . At this point he's gone from realtor to friend and I plan to have him over to grill and chill at our new place to talk real estate, but also just about life and raising kids in San Diego. He's more interested in relationships than his sales numbers - and that's why his sales numbers are so high. We have already recommended the Klinge's to some close friends and another successful sale is on deck right around the corner...
user19164788
2024-06-21
Verified
We recently had the pleasure of working with Jim and Donna from Klinge Realty Group to sell our house, and we couldn't be more satisfied with the experience. From the initial meeting, they listened attentively to our needs and provided invaluable guidance on specific improvements to get our home market ready.
Their responsiveness throughout the entire process was truly impressive. Anytime we had questions or concerns, they were quick to address them, ensuring we felt comfortable and informed every step of the way. What stood out the most was their team and extensive network of tradespeople, which made addressing any necessary repairs or updates seamless and stress-free.
Thanks to their expertise and dedication, our house sold quickly and at a great price. We highly recommend Jim and Donna to anyone looking to buy or sell a home. They are a fantastic team who truly care about their clients and deliver exceptional results.
cali4neal
2024-05-07
Verified
We had a wonderful experience buying our home with Donna and Jim! In particular I was very impressed with their efficiency and support through the purchase process. As we were doing the walk through, Donna started contacting roofers, plumbers, aircon, electricians, etc for all the areas we needed potential repairs - by the time we were done with the walk through appointments were already set up to get estimates for all the major services. When we had to change an appointment, or couldn't make one, Donna was there to arrange things to fit our schedule. Even after we closed on our home, Donna helped set up the repairs we needed before move in day. They truly went above and beyond to deliver exceptional service. I'll be calling them for our next home!
zuser20160809095816651
2024-03-16
Verified
The sale of our home exceeded our expectations - Jim and Donna Klinge are the best!
We’ve followed Jim’s Bubbleinfo blog since the 2006 housing bubble. After he helped us buy in 2017 we stayed in touch and Team Klinge were the obvious choice when it came time to move. They guided us through the preparation of the house, including a kitchen refresh - Donna and Lisa skillfully managed the various contractors for us after we had moved out of state. Donna’s excellent attention to detail and regular communication made the whole process run smoothly from a distance.
Jim’s market knowledge, expert negotiating skills and candid opinions, together with Donna’s responsive communications and problem solving, set them in a league of their own.
Highly recommended!
bourmakin
2024-02-09
Verified
Jim and Donna have exceeded my expectations with sale of my house. It was best experience with house sale. Professional, responsive, superior negotiating skills. I would recommend them with 5 star (I would give them even more than max) rating. Sale of my house was closed for really good price in 10 days. Jim and Donna perfectly handled house preparation for sale. Thanks a lot!!!
user1916779
2023-11-17
Verified
Jim and Donna have exceeded my expectations and made my most recent move back to California go so much more smoothly than I expected. Jim’s Bubbleinfo blog was full of useful information about the current market conditions. His experience helped us make a successful offer for the home we wanted in a desirable neighborhood. After the purchase Donna organized the work we needed done in the house without us having to make an additional trip. We were pretty worried when we started searching for real estate that not being in the area was going to makes things really difficult but Jim and Donna made the process so much easier. I enthusiastically recommend them.
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