Granny Flat Rent-Sharing

These guys are only operating in the Bay Area, but this is an idea that could spread, especially if they could buy the granny flats for less than $100,000.  They mention the company Node, who is charging $200,000 for a ready-built and installed 600sf ADU if you were to buy direct from them.

https://www.rentthebackyard.com/

If you are looking for a reasonably-priced granny flat, Amazon has dozens of kits for sale if you don’t mind assembling it yourself – the House-in-a-Box:

Link to Amazon Granny Flats

Inventory Watch

This is an interactive graph that compares the number of higher-end new listings per month.

We had a little uptick in July, but we settled back down in August. We only had five more listings last month than we did in August, 2018:

Here’s how it looks over ten years – we sure have more high-enders than we used to!


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NSDCC August Sales

You may remember that July’s numbers were all negative when I reported them on August 11th.

However, we had a slew of late-reporters, and July wasn’t as bad as I thought – the closings over $2,000,000 were only down 14% YoY (instead of -38%).

LINK HERE for corrected July report.

Last month was better – the number of sales over $2,000,000 were +13% year-over-year!

NSDCC Detached-Home Sales, August:

Year
# Closed Sales
Avg $$/sf
Median $$/sf
Median SP
# of $2M Sales
2017
279
$549/sf
$452/sf
$1,245,000
63
2018
276
$534/sf
$467/sf
$1,320,000
60
2019
261
$589/sf
$500/sf
$1,360,000
68
Latest YoY
-5%
+10%
+7%
+3%
+13%

Get Good Help!

Lower Hermosa – SOLD

Rare Lower Hermosa gem! Tom Shepherd-designed one level traditional U-shaped ranch with quintessential California indoor outdoor flow from spacious kitchen into tranquil and charming enclosed garden in a truly FABULOUS location! Featuring high ceiling living room, 2 large master en suite bedrooms plus an additional bathroom in the garage, 2 fireplaces, this charmer has a separate dining room with private tiled side patio eating area. Central heat & air, plus storage galore! Great bones, prime locale!

$2,720,000 Jim and Donna represented the buyer.

Back to the Wall?

The way this is going, Realogy is going to get stripped down and sold for parts:

With his back against the mats, Realogy CEO Ryan Schneider considered selling the brokerage to its chief rival: Compass.

In a statement Friday, the SoftBank-backed brokerage said Schneider even proposed a plan where the arch enemies would form a joint venture — a proposal Compass said it declined.

The statement was made in conjunction with Compass’ motion to dismiss an explosive lawsuit filed by Realogy earlier this summer. In the suit, Realogy accused Compass of illegal business practices, including “predatory” poaching and attempts at collusion.

“The motion reveals the lawsuit for what it is: an act of desperation in response to Realogy’s rapidly eroding market share,” a Compass spokesperson said in a statement Friday.

In the statement, Compass said if Realogy’s suit is not dismissed, Compass intends to file counterclaims against the New Jersey-based conglomerate, the parent company of the Corcoran Group and Coldwell Banker.

Link to Full Article

ibuyer Example

The ibuyer’s quote will be a curiosity, but unless it is close to the homeowner’s expected value, then selling on the open market will seem like a better option for those who want max money.

Would a homeowner who has found another house to buy be an exception?  Rather than trying to convince a seller to take an offer that would be contingent upon them selling their current home, they could sell their house instead to an ibuyer in order to purchase the next home non-contingent.

I just had a case like this, so we tried it out.

The house that needed to be sold was in Los Angeles, and the homeowners were confident about its value being in the low-$900,000s – or at least $900,000.  Though it was an older home, it had been updated – and they felt that if it went on the open market that it would sell within two weeks.

The zestimate was $875,000, and when I ran the comps, most were under $900,000.

They pursued a reseller called Fast Offer, and I ran it through my source.

Their guy quoted $830,000, and because they would likely get beat up again once the reseller did a home inspection, they figured their net would be $820,000-ish…..which was insulting!

My automated source processed the address and asked three yes-or-no questions (with my answers):

  1. Have you seen the inside of the property? Yes
  2. Is it a fixer? No
  3. Would you consider a discounted, quick, no-hassle cash offer based on condition? Yes

Their response was immediate:

The home doesn’t qualify.

The ibuyers have to be looking for realistic homeowners with houses that can be flipped easily and for a decent profit.  They only have to ask the second question to gauge their chances – unless the homeowner admits that they own a fixer, it’s probable that they would hold out for a retail price…..or higher!

We did discuss that the $820,000 could have been close to the amount that an open-market sale would net. But in this case, the people gave up on buying the next house, rather than be ‘lowballed’ in their mind. Homeowners aren’t going to give it away!

The Compass Bridge Loan will be a better solution – and should be available this month!

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Wow – this has to be the lowest jumbo rates with no points ever!

Marshall Tucker Band

The Allman Brothers, Lynyrd Skynyrd, and the Marshall Tucker Band dominated southern rock in the 1970s.  If you had an 8-track, you knew the MTB. They are playing at the Belly Up next Thursday:

In the early fall of 1973, The Marshall Tucker Band was still a young and hungry group out to prove themselves every time they hit the stage. “We were a bunch of young guys who didn’t know any boundaries,” says founding member and longtime lead singer Doug Gray. As it turned out, the collective talents of The Marshall Tucker Band took them very far indeed.

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