This video was shot in mid-April about a red-hot 2,724sf Carmel Valley listing, priced at $765,000.
The agent had a ton of interest, and raised the price twice, first to $778,000 and then to $798,000, and he had three offers over $800,000 immediately.
End result?
The bank foreclosed last week. Their opening bid? $724,956, but no takers.
Jim Klinge
Klinge Realty Group
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CA DRE #01527365, CA DRE #00873197
Trustindex verifies that the original source of the review is Google. We sold a home with Jim and Donna and from beginning to end they were consummate professionals. Their initial walk through the property resulted in a list of items to be repaired or updated. They supplied a list of vendors and job quotes to do the repairs and updates. We originally wanted to sell ‘as is’ and just get it over with. They gave us a selling price for ‘as is’ and options for doing a few updates/repairs to doing it all with the selling price for each option. We agreed to do all they suggested and we sold for the exact price they predicted. For every dollar spent we got back more than $2 back in the selling price. And they got that price in a rising interest rate environment! Donna and Jim are extremely detailed and guide you through ever aspect of the sale. There were no surprises thanks to their guidance. We couldn’t be more pleased with their representation. Thank you Donna and Jim, Jerry and MaryTrustindex verifies that the original source of the review is Google. We have known Jim & Donna Klinge for over a dozen years, having met them in Carlsbad where our children went to the same school. As long time North County residents, it was a no- brainer for us to have the Klinges be our eyes and ears for San Diego real estate in general and North County in particular. As my military career caused our family to move all over the country and overseas to Asia, Europe and the Pacific, we trusted Jim and Donna to help keep our house in Carlsbad rented with reliable and respectful tenants for over 10 years. Naturally, when the time came to sell our beloved Carlsbad home to pursue a rural lifestyle in retirement out of California, we could think of no better team to represent us than Jim and Donna. They immediately went to work to update our house built in 2004 to current-day standards and trends — in 2 short months they transformed it into a literal modern-day masterpiece. We trusted their judgement implicitly and followed 100% of their recommended changes. When our house finally came on the market, there was a blizzard of serious interest, we had multiple offers by the third day and it sold in just 5 days after a frenzied bidding war for 20% above our asking price! The investment we made in upgrades recommended by Jim and Donna yielded a 4-fold return, in the process setting a new high water mark for a house sold in our community. In our view, there are no better real estate professionals in all of San Diego than Jim and Donna Klinge. Buying or selling, you must run and beg Jim and Donna Klinge to represent you! Our family will never forget Jim, Donna, and their whole team at Compass — we are forever grateful to them.Trustindex verifies that the original source of the review is Google. WeI had the pleasure of working with Klinge Realty Group to sell our home in Carmel Valley, and I cannot recommend them highly enough! Jim and Donna demonstrated exceptional professionalism, offering expert guidance on market conditions and pricing strategy, which resulted in a quick and successful sale. Communication was prompt and we were well-informed throughout the entire process. For anyone looking for a dedicated and knowledgeable real estate team, look no further! ---Trustindex verifies that the original source of the review is Google. Donna and Jim Klinge of Klinge Realty Group have our highest possible recommendation. From Donna and Jim’s first visit to our house through closing their advice and counsel was candid and honest in all dealings. They kept us fully informed throughout the process. The house sold less than three days after listing with a two-week closing. My wife and I have sold several houses during our lives. This was by far the best experience. Klinge Reality is a premium service realtor. You can’t make a better choice for someone to sell your home fast and for top dollar.Trustindex verifies that the original source of the review is Google. 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.Trustindex verifies that the original source of the review is Google. 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.Trustindex verifies that the original source of the review is Google. 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!Trustindex verifies that the original source of the review is Google. We first found Jim through his blog at bubbleinfo.com, which really showcased his knowledge of SoCal real estate. Since then we've done three transactions with Jim and Donna, and they are an incredible full service agency, with Jim's deep market insight and Donna's deft contract and project management. We trust them implicitly in their analysis and strategy, which is based on years of experience. They're always available and on top of things, and we strongly recommend them to anyone.Trustindex verifies that the original source of the review is Google. 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 bubbleinfo.com 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...Trustindex verifies that the original source of the review is Google. 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.Load more
$400k
red-hot 2,724sf Carmel Valley listing, priced at $765,000.
The agent had a ton of interest, and raised the price twice, first to $778,000 and then to $798,000, and he had three offers over $800,000 immediately.
With a final result of foreclosure, I wonder if that claimed interest was real. I wonder if it was an unscrupulous agent, trying to apply techniques that worked during the bubble days, to drive the price upwards. Banks opening bids are often greater to or equal to the outstanding on the loans, though that may be changing now.
I wonder if in high priced neighborhoods buyer’s agents are reluctant to show their clients short sales and/or foreclosures. Instead pushing clients to houses that are easier deals to close. Don’t have any evidence, just a guess.
Since it was a short sale, there could also have been issues with the bank.
An “offer” is not the same as a “qualified offer” no matter what the amount offered is.
I have a feeling that some house buyers are so drunk on the cool aid that even in a declining market they’re willing to pay anything just to get in, qualified or not.
Perhaps a 10% discount at the courthouse just wasn’t enought ot overcome concerns about title issues and the need to have cash on the barrelhead. That’s a lot of cash!
Investors are focusing on the lower end/penciled out deals. CV is still overpriced and they also know there are a ton of foreclosure coming. With $725K cash, they would rather have 3 Mira Mesa houses that pencil out.
Yes, putting up that much cash is difficult/risky even for people that buy at auction for a living.
Its different this time.
got me. keep us posted.
The foreclosing bank’s original loan amount was $666,500, so with back payments it might have gotten up to the opening bid of $724,956.
There was a second mortgage, and possibly a third noted on the tax rolls. I guess those lenders might have objected to the paltry low-$800,000 payout, but now they’re left with zip. Smart guys, if that’s what happened.
But the listing agent could have been the culprit. He was a bumbler, and could have sent in a lousy package and didn’t realize the urgency.
I think there may be more aggressive tactics being deployed by banks in foreclosing on the deadbeats today. I’ll have more on that in the following post.
This morning my husband was surmising that when the foreclosure have been mostly concluded, all those lenders who stepped aside on the 2nds and Helocs and who still have the right to pursue course of action, will do so. He thinks the planning is in place and a lot of people are going to be very surprised when they are sued and a judgement is rendered against them.
This one is curious, was it too complicated and the 2nd TD took it to the brink hoping the others would blink?
Or, maybe the bank knows they’ve got a nice property, let it foreclose and take it back to market after wiping out the 2nd & 3rd TD.
Maybe both, maybe some collusion with the bank, and maybe it’s just a bunch of clowns bring everybody down.
Sad situation seeing a family with small kids getting foreclosed on. Yes, I’m a bleeding heart.
It was tenant occupied, so it is not “a family with small kid getting foreclosed on”. It was someone else’s flop.
http://www.members.shaw.ca/gf3/circle-the-cat.html
No fair Jim.
Ok, if anyone wins that stinkin cat game let me know.
Erin- this might sound cocky, but, I cornered the cat 2nd try. First two clicks at opposite sides. Seriously.
Anonymous- thanks for clarifying. I love renters! Nothing like looking forward to the first of the month when you are a landlord.
Erin,
Have won it a couple times (although have tried many more). Most successful I’ve been is when driving the cat towards some of the already shaded areas. That helps you trap it.
Mozart:
That is true, only if your mortgage payment and tax payment is less than the renter’s check. As far as I know, most of accidental landlords in San Diego are still under water.
I don’t understand the landlord mentality, because I just put my money in a good REIT fund and get cash positive right from the moment.
At least, that is what I do with my $200K in O. I got $1400 a month every month, without the hassle.
Isn’t it the case that with recent legislation a foreclosed property makes it harder to kick out the tenants? It certainly would take longer.
Jim,
I think you hit the nail on the head!
“But the listing agent could have been the culprit. He was a bumbler, and could have sent in a lousy package and didn’t realize the urgency.”
I would guess 20% of agents REALLY know how to successfully complete a short sale.
Anonymous- good for you. I’m sure most renters are sticking with large stock market investments and making a killing.
Non traded, non leveraged RIETs are a much easier way to invest in real estate than being a land lord.
Excuse me for asking the obvious question… CA has ~11% official unemployment and effective unemployment approaching 20%. Taxes are about ready to shoot through the roof and the state itself might not last the summer. Oh, and to add insult to injury, rents in Southern CA are falling off a cliff… drastically recalcing the economics of these homes as investment properties.
A) Where are all the buyers coming from; and B) Where are they getting the money?
“I don’t understand the landlord mentality”
They usually want an easy way to make money. They find out tis not so..
One day we will look back at this another CA gold rush. But the mine is going dry real fast. It will take some people a lot longer than others to get it.
I also think that the people who are ‘working’ things out with a bank will be screwed over and very hard when the dust settles.
It will have been far better to go BK and start over than to save a depreciating asset who’s value depends on getting a job.
Non traded, non leveraged RIETs are a much easier way to invest in real estate than being a land lord.
It is a trust/control issue. I don’t trust 3rd parties with my money at this point. Do you really know what is held in your REIT and if the managers are acting in your best interest?
I have a good property manager and so it is pretty worry free, although not 100%.
RE: REITs.
Here is another suggestion and I think a much better one than property owning REITs, Buy a MBS REIT instead like HTS or NLY.
HTS pays 16% – much bigger div than O and takes LESS risk. All of its holdings are guaranteed by the US government. You are a virtual landlord with no credit risk and 100% occupancy. Buy on margin to get 24% or more effective yield. Write covered calls against your position to increase your yield even further.
But then California’s bond rating went to ‘D’ (following the recent downgrade to BBB), and general state services ceased, welfare programs were eliminated, and housing returned to ’91 prices.
Beat the cat first shot out of the bag. Oh well.
p.s.: Tyrone, ’91 was still near the previous bubble high. Homedebtors won’t be that lucky.
mozart:
Why would most of renters have a large investment in stock market ?
Why you think that I am a renter ? Do you must be either a landlord or renter ? How about just being a homeowner ? Why should you be a landlord in order to invest in RE ?
I think some landlords might like the feeling when they think they are higher class when they got their tenant’s check. If that “feeling” is what you want, good for you. For me, I want better return of my money.
‘91 was still near the previous bubble high
DOH!!
People. Are. Nuts.
People. Are. Nuts.
You. Are. Right.