Seller Instruction to Exclude

by | Dec 18, 2019 | Coming Soon, Listing Agent Practices, Realtor, Realtor Training, Realtors Talking Shop | 3 comments

The new C.A.R. forms for 2020 are available, and the most interesting is the MLS-exclusion form in light of the NAR Clear Cooperation policy that begins on May 1st.

Last year I asked the C.A.R. lead attorney about their stand on Coming-Soon and off-market listings, and Gov said it is up to the brokerages.  Their new form reflects it too – they have left it optional for agents sellers to choose to comply:


The form does a better job disclosing the listing-agent shenanigans, and makes them a choice for the seller.  But will the listing agent discuss the choices?  Or just write it up and send for sigs?  The sellers just want their money – they assume their agent will be implementing the best ideas to achieve top dollar.

On May 1st, the Clear Cooperation policy will be in effect, which was intended to discourage off-market sales.  But in paragraph 9A you will see that office exclusives are permitted, which will legitimize selling properties in-house.  The realtor shops with the most listings will prosper if they pitch them hard to their fellow agents – and most already have an internal marketing system to facilitate.

There is an argument that off-MLS sales are good for the seller because the buyers are pressured to pay all the money before the property goes on the open market.

But off-MLS sales add some uncertainties:

  1. Did the buyers steal it, or did they over-pay?
  2. Were there other buyers that would have paid more?
  3. Are the off-MLS sales legitimate comps for the next guy (seller or buyer)?
  4. Are we still committed to sharing our listings with other agents?

The MLS will still exist, and be the market of last resort because the best properties with the best prices will be sold in-house, or to the aggressive, professional salespeople.

Richard just procured a new sale for his investor client by calling agents who had sold similar properties recently. One told him that he did have a Coming-Soon that was a 6-cap, and gave him the address. Richard hustled his buyer over to the property and promptly submitted an offer, which got accepted yesterday!

Why are Coming-Soon/off-market sales attractive to listing agents?  Because they can save time and money on marketing, and hurry up to the next deal.  But that selfishness will change the landscape for buyers and buyer-agents, and both will need to be well-connected to succeed.

Bigger Bomber in the OC!

by | Dec 17, 2019 | Historic Homes, Interesting Houses, Jim's Take on the Market | 1 comment

Hat tip to SM for sending in this article:

Out with the big, in with the bigger.

Bulldozers were seen recently reducing the walls of a standout hilltop mansion in Yorba Linda to rubble as a demolition team makes room for a larger estate.

The nine-bedroom, 19,700-square-foot home was recognizable to 91 Freeway commuters with its brilliant white walls and two-story windows.

The property, which was completed in 2004 and named Satsang for an Indian philosophy, was purchased earlier this year for $9.8 million by consumer product entrepreneur Loksarang D. Hardas.

He plans to demolish 80% of the structure and transform the property into a seven-bedroom, 29,300-square-foot residence with a new two-bedroom, 1,200-square foot guest house, according to documents filed with the city.

Hardas, chief executive of Awesome Products, a household chemicals maker based in Buena Park, bought the home early this year for $9.8 million. The sale price broke a record for Yorba Linda real estate, but was less than half of the $20 million asked when the property hit the market five years ago.

The previous owners were Mahesh Vyas, an allergy and immunology specialist, and his wife Jayshree Vyas, an obstetrician and gynecologist.

They raised their family in the home, but the property also entertained some big names.

Jennifer Lopez starred in a shampoo commercial at Satsang. Cincinnati Bengals wide receiver Marvin Jones had his wedding reception there.

Bob Dylan

by | Dec 17, 2019 | Jim's Take on the Market, Wednesday Rock Blogging

I wasn’t much of a Dylan fan until I saw him live.  I got to see him play at Pechanga (in 2008), at Humphrey’s in 2016, and at Harrah’s in 2017. Zimmy is known for having great players in his band, and the shows were fantastic – though they are strict about no photos or video taken.  His guards wanted to throw me out!

As a result, there aren’t many youtubes of Dylan live!

I have four more favorite concerts of the decade, and only two more Wednesdays!

NAR Top 10 Outperforming Markets

by | Dec 17, 2019 | Forecasts, Jim's Take on the Market, Real Estate Investing, Realtor, Where to Move

Whether you move there or just buy rental properties, these are NAR’s hotspots:

In offering its list, NAR tracked ongoing data including domestic migration, housing affordability for new residents, consistent job growth relative to the national average, population age structure, attractiveness for retirees and home price appreciation.

The 10 markets that made the cut were, in alphabetical order: Charleston, S.C.; Charlotte, N.C.; Colorado Springs, Colo.; Columbus, Ohio; Dallas-Fort Worth; Fort Collins, Colo.; Las Vegas; Ogden, Utah; Raleigh-Durham-Chapel Hill, N.C.; and Tampa-St. Petersburg, Fla.

“Some markets are clearly positioned for exceptional longer term performance due to their relative housing affordability combined with solid local economic expansion,” said NAR’s Chief Economist Lawrence Yun. “Drawing new residents from other states will also further stimulate housing demand in these markets, but this will create upward price pressures as well, especially if demand is not met by increasing supply.”

“Potential buyers in these 10 markets will find conditions especially favorable to purchase a home going into the next decade,” added NAR President Vince Malta, broker at Malta & Co. Inc. in San Francisco. “The dream of owning a home appears even more attainable for those who move to or are currently living in these markets.”

Link to Article

Inventory Watch

by | Dec 16, 2019 | Inventory, Jim's Take on the Market

We’re entering the new decade in better shape than last year when higher rates were putting buyers to sleep.  It shouldn’t take as long to get rolling next year, and 1Q20 could be red hot if buyers and sellers want to get ‘er done before the election!

But today we have 12% fewer active listings than at this time in 2018, so it will be up to the sellers. List early if you want less competition – which is when you want to sell!

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