An example of a buyer who took a lowball shot at a listing that had some tell-tale signs:
1. A number of other active listings nearby that weren’t selling,
2. Out-of-town REO listing agent,
3. A World Savings/Wachovia/Wells Fargo original loan amount of $687,000,
4. A newer tract house that was unattractive enough that it probably wasn’t getting any offers.
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
Low ball is the way to go as prices are still way too high unless one wins lottery or is a trust fund baby.
Those $400K to $700K houses in OC should come down at least $200K to $100K before they are “REAL” estate. It is still full of air… no matter what real estate agents or Obama tell me.
It never hurts to try! 🙂
I wish more realtors would have the balls to advise clients to lowball the mispriced garbage, but JtR seems to be a minority of one within the cabal of realtors, who all seem to mistakenly believe that it is better for them to operate in a stable or inflating market of overpriced turkeys and low transaction volume, instead of aggressive pricing, even if it’s declining, which might result in more transactions instead of a standoff.
Let’s see. 5% of 1 sale at 115% versus 2 sales at 90%. I must not get the new math. 😉
Keep up the good work JtR!
“It’s a great time to look” – JtR. I agree with that. It only takes one as this person proved.
Jim,
In a buyers market, doesn’t the $650k closed sale become the comparable (new price level) for other homes in close proximity?
This low ball transaction is a perfect example of my two favorite quotes as they apply to real estate:
(1) “Be quick, but never in a hurry”
(2) “If you don’t ask, the answer is already no”
a call to the buyer’s agent would be interesting. i’m curious if they started at $650k and it was a simple acceptance. or did they start lower and get countered. or higher and use inspections to rengotiate lower?
you don’t have an old video of the interior do you?
Interior tour:
http://www.youtube.com/watch?v=WHKtICbBb5U
No answer at realtor’s office, she is an independent that I’ve never heard of before. The listing agent had a link in remarks for agents to submit offers, that’s another tell-tale sign that a lowball might work, when the listing agent is so lazy that negotiations are on-line only.
My favorite quote, though I hate it when my buyers throw it back at me:
“If your offer price doesn’t make you cringe, it’s not low enough.”
The $650,000 is a valid comp to me and every buyer in the marketplace, just not to sellers.
And I’m just curious, JtR, how many times has a listing agent come back to you in the last couple years with: “Your buyer’s offer has insulted my seller!”?
Just my 2 cents, Jim, but I think you could write a terrific book with your real estate adventures over 25 years (and include a lot of awesome info too). You just have to think of a catchy title!
Original sales price was $792,000 in 2004.
Agents are regularly insulted, that’s how ridiculous the business is – they think it’s all about them, instead of getting out of the way and selling the house.
Jim, your comments in the video are pure gold!
How true: Its how I got my own personal starter mansion (ok, I kid slightly, but)…
The out of area real estate agent was so lazy she didn’t count the bedrooms & bathrooms, or check the square footage after the PERMITTED addition on the tax roles!
Listed a 4bd/4ba, 3000 sq ft, single-story house as 3bd/2ba, 2000 sq feet! And she was in there because she took some (bad) photos). Her lazyness easily cost the bank $50K.
Basically, out of area real-estate agent is a huge flag for a smart buyer. Jim, do you have the ability to search for such things?
JtR,
“9.The $650,000 is a valid comp to me and every buyer in the marketplace, just not to sellers.”
And why should this be considered a valid comp to the organic sellers of the neighborhood? The IRS definition of fair-market value is the price something would have for a buyer that doesn’t need to buy and a seller that doesn’t need to sell.
From my POV this house has a seller that has no use for the home besides to dump it. Add to this that have a out-of-town realtor. Doesn’t sound like holding out for ‘fair-market value’ was in the interest for any of the parties involved in selling.
Low balling is great for these types of properties, as long as people don’t get caught up in it and think that they are entitled to apply this method to all properties. One also must remember there is a lot more risk involved in buying a REO or short sale than a normal organic sale.
There is a lot of money to be made in RE in the coming years. Good luck to all out there.
Either way, unless one digs this up down the road a ways to get the *true* story behind it, if someone else on the road is selling and a buyer comes along, all they have to do is point at this one and say what it sold at, and there’s your argument.
Even if this one ends up being flipped for a bit more…it’ll still be well below what these other idiots paid for theirs.
True stories are easily a click away, including list dates, delist dates, tax values, bank foreclosures, and all previous sales data. Any home owner with internet access can find all the history they need to make an informed decision about the price they are willing to accept for their property.