Assigning the Contract

by | Mar 18, 2023 | Realtor Training, Realtors Talking Shop | 3 comments

Agents are supposed to maintain a good working knowledge of the purchase contract, and every year we go to the C.A.R. review to keep up with the changes. But I don’t remember discussing this paragraph that was added in 2021, and expanded in the most recent version of the contract.

We had an interesting test case on it recently.

The buyer wanted to cancel their purchase, but they knew someone who was also interested in buying the property too. They claimed that Paragraph 23 gives them permission to plug in the new buyer, and the seller can’t ‘unreasonably’ withhold consent.

The way that paragrah reads, they might have a case. If they were able to provide a pre-qual letter and properly notify the seller and listing agent, it looks like they would have complied with the criteria expressed in this paragraph.

Do I want to get into a battle over it?

Luckily, they did not produce the documentation, and instead bowed out gracefully. But for a minute, I thought we might be stuck with the assignee, who had said that he flipped homes in the past. I cringed at the thought of the usual discount that flippers demand after their home inspection.

From now on, we’re going to counter out #23 before we enter into an agreement.

Dogs Are People Too

by | Mar 17, 2023 | Jim's Take on the Market | 1 comment

Not mentioned are the conversations people have with their dogs. I just want equal time with all decision-makers!

Given the increased share of pets in households and the increased time and resources spent on pets, it is no surprise some home buyers consider their pets the most important factor when making home buying decisions. Factors such as proximity to the vet and outdoor space for pets is important for buyers with pets.

Among all unmarried couples, nearly one-third of buyers considered their pet when deciding their neighborhood to purchase in compared to 14% of married couples. One-quarter of single women considered factored their pet into their neighborhood choice in comparison to 16% of single men. This trend is similar to the BLS Time Use Survey which found women are more likely to spend time with pets on a daily basis.

Among those who considered their pet to be very important to their neighborhood choice, they were also more likely to factor in a pet for other neighborhood features than those who did not.

Pet lovers also purchased a home in an area with availability of larger lots or acreage and were more interested in convenience to parks and recreation areas and in walkability. This is not a surprise as it is likely not just the human who desires these neighborhood features but the pet themselves who need room to run and play.

https://www.nar.realtor/blogs/economists-outlook/a-stunning-stat-there-are-more-american-households-with-pets-than-children

Frenzy Monitor

by | Mar 16, 2023 | 2023, Frenzy, Frenzy Monitor, Jim's Take on the Market, North County Coastal

The reason for breaking down the active and pending listings by zip code is to give the readers a closer look at their neighborhood stats.

Four areas have MORE pendings than active listings, which is a sign of a red-hot market, and all areas except Rancho Santa Fe are around the healthy 2:1 ratio. But the most interesting datapoint is how the number of active listings has been skidding downward ever since rates went up:

The demand may have dropped off, but the supply is shrinking just as fast, or faster.  Virtually everyone who is thinking about selling their house this year is going to be on the market in the next 2-3 months, and so far, it doesn’t look like the number of springtime sellers will be anywhere close to what we’ve had in the past.

The number of 2023 NSDCC listings is already 20% behind last year’s count – which was the lowest ever.

Precursors

by | Mar 14, 2023 | Jim's Take on the Market, North County Coastal, Sales and Price Check | 5 comments

When it comes to anticipating the direction of the real estate market, the median pricing isn’t nearly as informative as these indicators – Number of Sales and SP:LP.

We are used to seeing the sales increase early in the year, but it could have been different if higher rates had broken the market. But it looks like we’re going to survive, especially when you see the SP:LP rising:

NSDCC Monthly Sales

Last February, March, and April were scorching hot, and the market’s about-face in the second half of 2022 looks very orderly, in hindsight. Both the number of sales and SP:LP ratios were declining until recently, and now they make the rest of spring look promising.

Pin It on Pinterest