We’ve only had 136 new NSDCC listings this month (including the Coming Soons), so matching last year’s count of 353 listings in January looks unlikely. Those with the lower guesses are looking good:
234 – REOAndre
270 – lifeisradincbad
289 – Derek
305 – Joe
311 – Old Man
318 – Doughboy
325 – Haile
333 – Kris K.
347 – Big Crazy
353 – TominLaCosta
What’s not looking good is the idea that buyers will have plenty of choices this spring!
Thanks to the new fan-favorite Instagram page “Zillow Gone Wild,” we now have this hand-picked collection of seriously odd real estate findings that’ll make you look twice, thrice, and think of something nice to say about it. Because many times, money can get you a mansion, but it won’t buy you taste.
We are grateful for the opportunity to assist our blog readers! From a recent seller:
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.
The days of wondering how much of a discount you could get off the list price have been replaced with hoping to limit how much OVER the list price you are willing to pay. For buyers, how much to pay is relative to how well the home fits all of your needs, and how much you love it.
Here’s a gauge of how to determine how much to offer:
For home you only like a lot, try to keep the premium-above-list to 5% or less.
The average winner pays 6% to 7% over the asking price.
The top-rated masterpieces are fetching 10% (or more) above list price!
Any decent property that’s fixed up and priced right should go pending in 7-10 days.
If you are a dare-devil, one strategy to consider is waiting a couple of weeks after a home is listed for sale. If it hasn’t gone pending, then the condition, price, or agent was a problem and by then, the herd has cleared out so you should have a little more negotiating power.
But if you think the new listing is a hot one, then you better get over there right away for a look.
Tips:
Ask if the listing agent has a strategy for determining the winner. Most agents will spread the offers out on the coffee table, and let the sellers pick one. If that’s the case, the terms of price, down payment, waived contingencies, and escrow time will probably be what determines the winner – with influence from #2:
Any compliments you can bestow on the sellers and listing agent in person or with a love letter can go a long way. The love letters have come under scrutiny lately, and I totally agree that sellers and agents will discriminate consciously, or sub-consciously. Just use your first names and no photos.
Know what you are looking at, and don’t overpay for fixers. You may see crowds, but almost all buyers will pass on the fixers. If you aren’t that familiar with spotting needed repairs and identifying costs, then work with someone who is.
Waiving contingencies. It’s uncomfortable, but your competitors are doing it. All four of the Crater Rim buyers who were willing to pay $90,000+ over the list price waived their appraisal contingency.
If you know you are going to buy the house regardless, make your deposit non-refundable and release it to the sellers within seven days after acceptance.
Have your mortgage pre-approved by a well-known and respected lender who will call the listing agent to sell them on your qualifications. If there are cash offers, this is about your only hope to compete.
The listing agent has influence on the selection, and prefers a buyer’s agent they know and trust. The buyer’s agent is smart to provide their own qualifications that demonstrate they can close a deal.
If all else is equal, the homeowners want to sell to someone who will close on time with minimal problems. Someone who makes it easy. Somebody they like. Buyers are smart to make a lasting impression on the sellers or listing agent, because in a close race, how the sellers feel about the buyers will decide it.
Since 2017, there have been 15 RSF sales over $10,000,000, and this house accounts for three of them! It’s a remarkable record that is unlikely to be broken:
Have you been thinking about getting a great realtor to help you buy a home, but feel loyal to your Aunt Bea or a friend who just started in the business? This story is for you.
We received five offers on our new listing over the weekend. The lowest offer was written by a new agent who is in her brokerage’s mentor program, and even her mentor attended the showing which made me feel like this was important. Typically, the mentors are has-beens who can’t hack it any more on the front lines, and instead want to be pseudo-coaches for new agents and get a chunk of their commissions.
I told both the agent and the mentor that we had already received multiple offers over list price, and to make their highest-and-best offer. Once received, I asked specifically, “is this your highest-and-best offer?”
They never responded.
We had three buyers who were willing to pay at least $90,000 over the list price, so I engaged them in a second round to determine the winner.
We accepted an offer that was $100,000+ over the $1,100,000 list price.
Yesterday, the new agent got back to me and said her buyers are willing to match our high offer.
Even though her buyers must have been extremely interested in the house, the advice they received didn’t even put them in contention at the time. And now it’s too late.
Immediate buyer demand requires, and deserves, immediate great advice.
I regularly meet people for the first time at a house in which they have interest – and I proceed to discuss the state of the market, evaluate the condition of the house and repair costs, and then pinpoint the value of the home based on comps and suggest a strategy to win it. There’s a handful of my clients who bought the first house they saw.
Get Good Help!
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For the skeptical who want proof of the demand, here’s the turnout over the weekend:
