If he signed an agreement to represent both parties, he’s got some explaining to do (H/T daytrip):
The owners of a historic Hollywood Hills home have sued “Million Dollar Listing” star agent Josh Altman for fraud and breach of contract for allegedly duping them into a deal to sell the home at a steep discount to one of his friends.
The sale never went through, but the homeowners, Gigi and Paul Shepherd, contend that Altman conspired with his friend, Nicholas Keros, with whom he has worked on previous real estate deals.
Keros filed his own lawsuit against the Shepherds, which the homeowners say has left them “hundreds of thousands of dollars” in debt and forced to declare bankruptcy, according to their suit, filed in LA County Superior Court last month.
Named as defendants are Altman and Douglas Elliman, where he is an agent. Keros is not a named defendant.
The Shepherds inherited the Richard Neutra-designed home on Sunset Plaza Drive from Gigi’s aunt, Josephine, in the mid-2000s. It was was listed for $10.5 million last fall. The property is 1.2 acres and marketed as “a truly unique development opportunity.”
They met with Altman to list the home early last year, and agreed that he would represent both parties if he was able to bring a seller to the table.
A few weeks later, Altman introduced Keros to the Shepherds as a potential buyer, but the suit claims he did not disclose Keros was a close friend.
Shortly after, Altman called the Shepherds and said Keros was a serious buyer, but would walk away if they didn’t meet with him immediately. The Shepherds agreed and met without their lawyers present.
The Shepherds claim that during the meeting Altman “did absolutely no negotiations” on their behalf and instead “forced terms desired by [Keros]” on them. Altman and Keros presented the Shepherds with what they called a “draft” agreement that the couple continually “marked-up and revised” over the course of the meeting. Keros again said he would walk away if they didn’t sign, so they did, the Shepherds claim in the suit.
The couple also claim Altman ignored their requests for copies of the documents and then altered the papers after securing their signatures. At that point, Altman and Keros contend the so-called draft documents were binding.
The Shepherds also signed a “contingency” document with Keros regarding an easement dispute the couple had with their neighbor. The couple say that Altman and Keros misrepresented that document, which Keros later used to sue them.
Altman did not return a request for comment. A spokesperson for Elliman said that the firm does not comment on pending litigation.
Representatives for the Shepherds could not be reached for comment.
Another reason for the industry to commit to full transparency and the auction method of selling homes – our Code of Ethics doesn’t help much:
Q: I submitted an offer for a buyer client that was near the full listing price and asked the listing broker if any other offers existed. The listing broker said no. The next day the broker called me and told me the property sold to a different buyer. Shouldn’t the broker have told us that there were multiple offers when the other offer came in and given my client the opportunity to modify the offer?
A: This is one of many misconceptions about handling multiple offers. The primary provision in the Code of Ethics related to multiple offers is Standard of Practice 1-15, which says “REALTORS®, in response to inquiries from buyers or cooperating brokers, shall, with the sellers’ approval, disclose the existence of offers on the property.” You asked if there were any existing offers at the time you submitted and the answer was, apparently, no. Nothing in Standard of Practice 1-15 or any other part of the Code requires the listing broker to go back to any or all other buyers who made an offer should one or more additional offers come in after your offer was submitted.
While it might seem that listing brokers should be required to go back to all those other buyers if other offers come in, a seller may choose not to take that action and may choose another direction to negotiate a sale. It may also seem that going back to previous offers would always be in the best interest of a seller. But, from the seller’s perspective, there might be both price and non-price terms of the other offers that are more attractive. The seller might not want to risk that the later, better offer may be withdrawn in the time it could take to reinform the other buyers and allow them to change their offers.
One tip for cooperating brokers in multiple-offer situations is to ask the listing broker about other offers on more than one occasion during the negotiations. It’s no guarantee that you will hit the right time, but it might give you more information for your buyer client in the negotiation on high-demand properties.
Here is a bunch of happy talk by three ivory-tower guys, but they never considered the consequences. Preventing foreclosures and pushing down mortgage rates helped to create a safety net that caused buyers to rush back into the market. Prices went up too quickly, trapping homeowners into their existing homes, rather than being able to move up, down, and around. Now only the affluent can afford a house, rents are skyrocketing, and homelessness is running rampant.
Hat tip to daytrip for sending this in:
The subprime mortgage crisis that broke out a decade ago is widely recalled as an uncontrolled and destructive plunge in housing prices. New research suggests, however, that at least one effort to halt the plunge was in fact quite effective. UCLA Anderson’s Stuart Gabriel, the Federal Reserve Board’s Matteo Iacoviello and Copenhagen Business School’s Chandler Lutz found that California’s 2008 anti-foreclosure law prevented the loss of some $470 billion in home value wealth.
The California law, examined against other anti-foreclosure efforts, stands as a potential model for future housing crisis interventions. The researchers found that the passage and implementation of the California Foreclosure Prevention Laws (CFPLs) simply and effectively made foreclosures more difficult and more expensive for lenders to initiate, slowing what could have been a more calamitous spiral in housing prices.
Limiting foreclosures is key to containing a housing panic. If foreclosures go unchecked in a crisis, they can spread. Because foreclosed-on houses are “priced to sell,” the first wave of foreclosures depresses the prices of all homes in the area. Additional borrowers who can’t make their payments then cannot sell without taking a loss, causing a second wave of foreclosures, further depressing prices. And a downward spiral has begun.
A wave of foreclosures seems to also produce a “disamenity effect”: someone who defaults on her mortgage slacks on maintaining the house, and its appearance of disrepair drags down the desirability of the neighborhood.
In some states, the law requires that lenders process foreclosures in state courts. Judicial foreclosure laws result in foreclosures costing much more time and money than they do in states like California, which does not have judicial foreclosure laws. The upside to not having judicial foreclosure laws is efficiency — for both the lenders and the government.
The downside is that, following market shocks, foreclosures are in danger of spiraling out of control, as they seemed to be in California in 2008. In the midst of the crisis, hundreds of thousands of people lost their homes to foreclosure, and it emerged that banks were “robo signing” on the procedural documents: They were pushing foreclosures through at an unreasonable rate, often without justification or authority to do so.
In 2008, California state senator Don Perata of Oakland authored SB-1137, the first of the California Foreclosure Prevention Laws. SB-1137, and the 2009 California Foreclosure Prevention Act after it, both increased the time and the monetary cost of foreclosing on property in California.
“The mortgage crisis is taking a terrible toll on Oakland and the rest of California,” said Perata, as quoted in the SB-1137 analysis. “It is crucial that we give homeowners the tools they need to avoid foreclosure when possible because that’s the best outcome for everybody.” Gabriel, Lutz and Iacoviello’s research suggests these laws saved the state hundreds of billions of dollars.
The sales count is dropping between La Jolla and Carlsbad, but it’s not surprising when you consider how much higher the pricing is, and the fewer homes being listed:
NSDCC 1st Quarter Stats
# of Sales
# Houses Listed in 1Q
In 2017, we had 25 closings over the last two days of March, so if we add that same number to this year’s count plus late reporters, we should end up with around 550 sales for 1Q18 – which is incredible, given the bump in pricing AND the record-low number of houses listed.
The only year between 2007 and 2012 that didn’t have 1,400+ listings in the first quarter was 2012, which still had 1,270. We’re going to be lucky to get up to 1,200 this year.
The Dils were probably the most famous band to come out of Carlsbad – Chip and Tony Kinman went to Carlsbad High School! The Dils morfed into Rank and File, who played at CSUF when I was the director in 1983 (photo above).
Yeah the Dils was our first band. We got started in 1977 playing in Carlsbad, California. At the time we had musical tastes that not too many people in our high school shared. We liked the New York Dolls and The Ramones and things like that. When we started playing together and writing songs, it all started happening. We started reading magazines, and buying singles by bands. We were reading about the Sex Pistols and realized, “hey this is Punk Rock! That’s what this stuff is called!” When we first heard the Sex Pistols, that sounded like the New York Dolls to us — a band we loved. So we realized that there was a kind of outsider movement happening that wasn’t like anything else that was happening at the time. And there it was, it had a name, it was Punk Rock.
Chip and his new band is playing at the Casbah on April 21st – he is also appearing at Spin Records in Carlsbad that afternoon:
Long-time reader and commenter here, gameagent, is involved with the upcoming car show in La Jolla. They need a few more volunteers – click here if interested in helping out, and getting a plate of snails:
Yes, sometimes. California Penal Code, Section 632, (the “eavesdropping statute”) provides that a person may not use a recording device to eavesdrop upon or record a confidential communication without the consent of all parties to that communication.
What is a confidential communication?
Any communication carried on in circumstances that reasonably indicate that any party to the communication expects? it to be confined to the parties thereto. For example, in most cases a communication between people within their own home would reasonably be interpreted as begin a confidential communication confined to those in the home.
What are the penalties for recording a confidential communication?
A fine of up to $2,500 per violation
Imprisonment for up to one year
Possibly both a fine and imprisonment
What is NOT a confidential communication?
Any communication (1) made in a public gathering or (2) in which the parties may reasonably expect that the communication may be overheard or recorded.
Are there any other exceptions to the eavesdropping statute?
Yes, a person who records another is not subject to the law if that person is known by all parties to the confidential communication to be overhearing or recording the communication.
What other laws might apply to privacy concerns?
Article I, Section 1 of the California Constitution provides that all people have inalienable rights, including pursuing and obtaining privacy. However, not every act which impacts privacy results in a violation of the California Constitution – there must be an act that constitutes an egregious breach of social norms. And while privacy rights are high in one’s own home, the law is not necessarily applied the same when in someone else’s home.
Cielo isn’t for everyone, but offers a good value to those who do match. The downsides here? It’s not the Covenant, and at this house it means Escondido schools. These are on top of the hill, which is approximately 1,000 feet higher than the gated entrance and the hill drive could be harrowing for some. T-M is down to their two model homes for sale – here’s a tour of the one-story:
This is currently something my mother and I are putting together so why not discuss it with all of YOU?!
A lot of people work from home, which definitely has some pros but also some cons. Pros – NO COMMUTE (for SD no sitting in traffic – ugh), you can wear whatever you want, get things done around the house while on a break, etc. Cons – LOTS OF DISTRACTIONS aka kids, TV, a refrigerator with endless amount of food…. yeah, you get the picture.
Creating the perfect home office is clutch. You are planning on spending countless hours/days in this space, so it is extremely important to create the perfect environment based on your wants and needs. Here are some ideas you can incorporate into creating your perfect home office!
1. Invest in a chair – if you are not comfortable, you will not get anything done. Spend money on a good one! Some people might also consider getting a stand up desk due to back issues. Both my parents have one!
2. Function > Form – before you go crazy and spend thousands on pretty furniture, really think about it. What do you need at your fingertips? What is your workflow like? The shelving and storage spaces are there to serve YOU! The furniture should not only look nice and compliment the rest of your home, but it should also help you to be more efficient!
3. Add color – nothing is less motivating than being stuck in a gray or beige room. Colors can help make someone get their work motor running or get that creativity flowing. You can either paint a wall your favorite color, add some colorful artwork/photos, or a beautiful arrangement of flowers!
4. View – we all will wonder off and just stare into space for 5 min (or like 20 LOL) but it’s refreshing to stare into something more interesting than a blank wall. A window is ideal, but if that’s not possible in your space then hang a pretty picture!
5. ORGANIZATION – realize what you are. Stacker or a filer? If you stack, get some baskets to organize notes, mail, etc. If you file, get vertical file folders to put on your desk. Most spaces don’t have a lot of square footage, so take advantage of those walls! There are so many places that now sell floating cubes/shelves – SHOO random knickknacks!
6. Inspire yourself – for me this is a photo of my best friends. Seeing them gets me motivated, makes me want to get stuff done so I can go visit them or go on a vacation with them! It is nice to have a mini-shrine to help you get inspired or to remind you why you do this everyday.
Jim the Realtor is legit - I interviewed three brokers; he said list price should be $100,000 higher than the other two brokers; listed it with him and had all cash (no financing) offer in two days, five day contingency period, closing in two weeks - and it closed at his recommended list price. I could not recommend anyone more than I recommend Jim the Realtor.
When we moved to San Diego in 2005 we rented a big house on Mt. Soledad (La Jolla) with 180 degree ocean views for the same payment as a mortgage on a dump in Chula Vista. Clearly something was wrong. Yet, the media was full of the usual happy-talk nonsense, so I was glad to find Jim's blog. I've followed his honest assessments and data since.
We decided to sell and move to AZ at Thanksgiving. Dec. 1st we met with Jim to sell our home. We closed today (29 days later). Jim orchestrated a feeding frenzy -- we had 25 showings in 2-1/2 days, multiple offers, and sold for well over asking price. I'd say he earned his commission! We have owned and sold homes in 5 different States always using experienced, productive, full-time realtors. Jim outshines them all.
You don't decide to sell and close 29 days later over Christmas (with COVID lockdown) without some miracles. Donna was amazing at performing lots of those miracles and ensuring that everything was done right and on time. They are a terrific team with a very responsive and professional network.
Where do we begin..2020 has been a year for everyone. When COVID hit and shut down both my husband and my businesses, we were left with a mortgage and very little income coming in. We were stressed, scared and felt stuck. We made the hard decision to sell our home and move out of state. We contacted the Klinges' and spent a good hour going over what we hoped we could accomplish. Jim and Donna came over with comps in hand and suggestions on improvements to get our house ready for the market. It was overwhelming to think about, but Donna was there and one step ahead in every scenario. Basically we just approved what they suggested and Donna handled literally everything. We placed our house on the market and within the first day we had multiple offers well above asking price! We couldn't believe it. We were overjoyed! Jim countered the offers to weed through them, and everyone came back with way more. It was amazing, and we are ?? sure it was because of the staging and repairs the Klinges suggested we do.
Due to unforeseen dishonesty from the buyers lender, we hit a big hurdle when trying to close. We had already moved out of state and were shocked when three days before closing the lender dropped a bombshell on the buyers and us. However, Jim and Donna handled it like veterans, not afraid to play hard ball and represent their clients. After a few phone calls with us, and several between Donna and the lender, they had a plan B-Z to make sure we were taken care of. In the end we closed with even more money than we ever thought possible and with very little work from us. The Klinges handled this entire "2020" worthy event with the utmost professionalism and did everything in their power to not only make this as smooth as possible for us, but we also walked away with more money from the sale of the house than we ever hoped for. After working with Jim and Donna, you don't ever use anyone else. They are hands down the best team to represent you in any scenario.
Working with Klinge Realty Group was a great experience! They are very responsive, professional and knowledgable about the real estate market! I would definitely recommend Klinge Realty Group.
Jim and Donna Klinge made the sale of our condo extraordinarily easy. They know the market and gave us sound advice backed by details and very considerable experience, reflected both in the initial pricing and subsequent negotiations. They work together as a team and are always available to talk. We had a few challenges with our property and they were able to coordinate the resolution to everything, including items that I would not think would ordinarily be their responsibility to handle. They made the whole process effortless on our part. They are folks with high integrity and we cannot recommend them highly enough.
Review for Member: Donna Klinge
I cannot believe there are no reviews of Donna yet, ugh!! She is the secret sauce of the Jim Klinge/Donna Klinge combo! I will touch on Jim here, but Donna is why I'm so totally loyal to these two (no offense to Jim :)).
I consider myself a rather savvy buyer/seller. I've bought/sold 7 times in about 15 years. On the buy side, Jim is the PERFECT combo of: completely digitally savvy (he will pull data all day long until you feel comfortable with your chosen house, area, school district, anticipated appreciation rate...anything!), he's super well respected and known in the area by other agents, an amazingly cool but strategic negotiator, is totally devoid of desperation for a sale/commission, and more.
Then once you get into contract phase, Donna literally handles every last and final detail in a concierge-like manner -- totally shielding you from the daily back and forth, noodling and annoyances of the buyer's requests. She solves it ALL; it's miraculous what that woman accomplishes over and above what is even expected in a buy/sell transaction.
On the sell side, Jim and Donna do the same, but even moreso. Donna in particular truly takes everything off your plate: she'll manage getting the house painted, the carpets replaced, she'll go on site (as she Jim both did for me when selling our rental properties) to work with the renters and make sure the house is ready to show -- freeing me to have to take time off of work to do so. They work with A+ integrity, too, so you know you are serving all parties fairly and lawfully throughout.
A home purchase/sale is the most considered you'll ever make. HIRE A SAVVY AGENT, not a friend!, and get what you need out of the transaction. Jim and Donna are our agents for life.
Jim and Donna Klinge are by far the most professional, personable and responsive realtors I have ever worked with. They provide VIP concierge level service in every area of the process of selling your home. My home was marketed so successfully that we received an offer the day after our first and only open house. Thanks to Jim's pricing and negotiating, our house is now the highest sold in our community. Jim's vast experience means he has worked with several realtors and knows the market all over north county. Donna is AMAZING in processing everything in the transaction. She scheduled trades people to work on the house in preparation for the sale as well as the repairs needed before closing. She communicated clearly every step of the way about what would be happening. She took the weight off my shoulders for the whole process. I will always use Jim and Donna for my future real estate needs and I whole heartedly recommend them to anyone buying or selling a home.
Jim and the team at Klinge Reality are without a doubt the best in the business! Not only was Jim helpful and extremely knowledgeable, he was patient and determined to help me find my first home. Jim and his team have been in the business for many years, and it shows. Jim is a wealth of knowledge and was my biggest proponent despite the temperature of the competitive market. I ended up getting the perfect property in my dream neighborhood all thanks to Jim. From the day my offer was accepted, Donna was a real lifesaver. She was extremely helpful, responsive, and knowledgeable when it came to every minute detail, and held my hand through the process. As a first time home buyer I had no idea what the process would entail, but Donna curtailed every concern I came across and made the escrow process feel seamless. Jim and Donna provided me the best home buying experience, and I am very grateful for all they did for me. It was truly a pleasure to work with Jim and Donna and I am already looking forward to the next time we work together!
Review for Member: Richard Morgan
Richard is an amazing realtor! He has high integrity and genuinely cares about his clients and their needs. Richard paid close attention to what I was seeking in a home and was very patient in our search to find it. I would highly recommend Richard and will use him for future transactions. Truly a different kind of realtor experience!
Could not be happier with my experience with Jim and his team. He helped me sell a very unique and challenging property. Throughout the entire process he was always available, honest, transparent, trustworthy, and always put my interests as a seller first. A (rare) true professional! During close of escrow Jim went above and beyond to complete the deal. It would not have been possible without his experience, fantastic team, and pure dedication. Highly recommended!
Thanks Jim and Donna Klinge!