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Listing Agents & Bidding Wars

Let’s review how some listing agents have been handling their bidding wars in 2021.

  1. Ignored a $60,000 non-refundable deposit and took an offer that was $40,000 lower.
  2. Once they get to the highest offer, they insert their own buyer at the same price.
  3. Let an escalation clause determine the winner, and ignore the others.
  4. Counter for highest-and-best, then pick a winner before everyone responds.
  5. Not respond at all.

There are no rules. No guidelines. No laws.

The best our association can do is to issue a spreadsheet form.

Thus, anything goes.

Here’s how I handle it.

The home on Galena Canyon had originally listed for $1,599,000 and had 25 showings and six offers over the first weekend in March.  We had three buyers (one was contingent) who were willing to pay around $1,750,000, so I asked the two non-contingent buyers to make their second highest-and-best offer to determine the winner – which they did, and $1,770,000 won it. I changed the list price in the MLS to $1,770,000, and marked it pending.

Last Friday morning, the buyer had an unforeseen glitch, and we fell out of escrow.  We go back on the open market for Easter weekend, hoping for the best – knowing that the urgency is much higher when the listing is new and fresh.

I had added this to the confidential remarks:

Since we hit the market, these have happened: 16175 Deer Ridge 3,451sf closed for $1,775,000 on March 1st. 15288 Cayenne Creek 3,877sf closed for $1,800,000 on March 30th. 16342 Cayenne Creek 3,446sf pending, listed for $1,825,000. 9716 Wren Bluff 3,780sf pending, listed for $1,835,000. Plus Mark listed one for $2,795,000 around the corner. Built-in equity!

This time, we had six showings and three offers over list, which I thought was pretty good.

I had told the agents to make their highest-and-best offer, and while they were all competitive, I thought there might be more gas in the tank. So I politely asked all three to H&B again, and one emerged from the others by packing another $40,000 onto their first offer.

We are in escrow at $1,840,000, after starting at $1,599,000 a month ago.

Isn’t that the result you’d like to see for yourself, or someone you know?

It is not a given how listing agents handle a bidding war. Most agents just grab their favorite, and turn off their phone.  You deserve better.

If you, or someone you know, is thinking of selling, I’d sure appreciate a call!

When Will the Frenzy End?

Let’s call it the Big Confluence:

  1. Covid concerns keep diminishing over the next few months.
  2. More sellers feel safe to put their home on the market.
  3. More sellers find a way to hurry up and get their home on the market.
  4. Buyer skepticism rises.
  5. Agents get too cocky.
  6. Prices reach their limit.

All the above will cause inventory to increase, and buyers to relax. Then what?

This is my craziest theory of all-time:

Seller Review

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.

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2020 Gratitude

Though last year had many challenges and was the worst year ever for many, it turned out to be a phenomenal year for us, business-wise.  We are very grateful for our clients’ faith and confidence – many of whom found us here at the blog!

The Klinge Realty Group had a record year with 41 sales and just over $50,000,000 in volume!

THANK YOU!!

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Here’s the new year message from my wife Donna:

Yes 2020 was one for the books – a year no one will ever forget.

As we bid adieu, many of us will look back and reflect on the many valuable lessons and gifts this year brought to us. It was a year full of uncertainty, fear, and doubts; but we also bore witness to a year full of love, service, human sacrifice, collaboration, and a sense of belonging to one same world – all of us in this together.

As we walk into the promise of a new year, we are thinking about all of the people who helped us get through so much unexpected change, and we are filled with gratitude and hope for 2021. We appreciate our loyal clients for their faith and confidence in us in helping them buy and sell their homes; our co-workers and team who said “Yes we can” and were beyond inspiring; and our family and friends who loved and supported us along the way. We love making people’s home dreams come true!

Who thought our generation would face a pandemic. But here we are, fighting together as one world.

We wish you a healthy, safe and Happy New Year!

2021, we’re ready for you!

Old Carlsbad

Bressi Ranch

Downtown Encinitas

I save photos during the year to feature here at the end, and I’m sure the Carlsbad Historical Society was a likely source for some of these – thank you S. Gutierrez!

https://www.carlsbadhistoricalsociety.com/

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Century 21 Pacific on Garnet & Cass in PB – where I started in the 1980s

I was sitting on floor duty when an older gentleman in shorts and flip-flops rolled up on his bike. He wanted to buy a condo in an oceanfront building for $100,000 or less (didn’t have to be on the front).  Realtors used the MLS books back then, and I found a condo that could work – but couldn’t get a response from the listing office. A fellow agent figured out why – I was using an old book, and the listing was expired!

I called the sellers direct, and my manager Rex Downing and I went to their house with a written offer for $100,000.  The sellers explained that the reason it had not sold was because the tenant wouldn’t show it, and my buyer – who was a retired broker – said no problem, he’ll see it once they leave. Once the tenants moved, my buyer took a look around and said “Sure, I’ll take it!”

I made a 6% commission on my first sale….and I was hooked!

The location of my 1st sale – at the pool, and right on the alley:

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Best Real Estate Blogs

Bubbleinfo.com made the list of best real estate blogs in the country, as determined by Hooquest.com:

https://hooquest.com/real-estate-blogs/

Thanks Brian for including us!

He is right – I don’t give much thought to SEO, which is probably why we had the lowest number of estimated monthly visits (by far) of the nine blogs included. He mentioned that the view-counter tends to be low, especially for hyperlocal sites.

Here’s our number of viewers this month from Google Analytics:

I’m glad you’re here – thanks for participating!

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Friday Update

Friday Wrap-Up!

Thursday Showings: 5

Friday Showings: 11 (+one no-show)

Total Showings: 16 in first 1.5 days on market.

Two offers.

After the first offer, I suggested to the sellers that we raise the list price which I don’t remember ever doing before – and remember plenty of times when I resisted such an idea. We bumped the list price by $20,000 to $1,399,000 knowing we had a good offer higher than that already. It was intended to give second notice on the hotsheets that this might be worth a look, so I added my update for extra transparency:

It may have worked – I have nine more showings tomorrow, making a total of 25 showings in the first 2.5 days on market.  The demand for these newer neighborhoods makes you think we could be selling 2x or 3x the number of homes if there were just more to sell!

2021 Moving Survey Results 2

There was additional distribution of my moving survey after the previous report last week.

Of the 2,872 visitors who have looked at the survey, 130 (or about 5%), at least answered a question, which is typical.  Here are the final results:

Q1. I liked that 28% of the respondents live outside of San Diego County. Thanks for playing!

Q2. Most people aren’t planning to move (70.34%). But of those who are planning to move, MORE THAN ONE-THIRD ARE LEAVING CALIFORNIA!

Q4. The traditional April-Sept time frame was preferred by 60% of those planning to move. But 23% of those who are moving next year will jump right on it in the first quarter.

Q5. The pandemic didn’t cause 92% to move, mostly because Covid-19 is temporary, and moving is permanent. People might think about moving because of Covid-19, but the pandemic won’t drive the truck up to the house.

Q6. The answer of ‘Getting My Price’ bumped up nicely from its last-place finish previously.  Going Through My Stuff is still a big concern, but Finding Next Home is #1, and rightfully so.

Here are some of the anonymous comments left – thank you for the warm thoughts!

Jim, so sorry I’m late to the survey. I appreciated the results you’ve already shared. I own two properties in OC, (reside in one, rent one) and have been a home owner for 15+ years. I have read your blog for 10+ years, but only check it weekly, rather than daily. I enjoy your video tours, thoughts on home layout and thoughts on how to help increase the value of one’s home. I like learning about the SD area and market through your blog. FYI, the biggest thing keeping my family in CA is our three school-aged children and an older parent who is nearby and will eventually need help. It’s hard to uproot. My own parents, lifelong Californians, retired and left for Arizona two years ago and are very happy. Last year, my husband’s job offered to relocated us to Utah. We seriously considered leaving, but eventually declined and he found another job internally at the same company so that we could stay where we are. When we thought of the pros and cons, we would very much miss the CA weather and strong ties to our community. We are thankful to live in a proudly red city in OC. We are not happy with the direction CA as a state is headed, but will stay for the sake of our kids and the sunshine. Thanks for your blog. I enjoy your expertise and also your levity!

People may be moving because of covid but what I have found more of is people wanting to move because they are trying to get away from far left liberal policies in Cali.

We love Jim & Donna who helped us buy our first home together.

Jim Klinge is an awesome realtor. We love his videos and he’s spot on when looking at local real estate trends. Jim is great to work with and we have already recommended him to our friends.

Best lock pick ever.

You and Donna are the best. Stay healthy so if we decide to sell decades from now we can depend on you!

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