fbpx

Hire Jim To Sell Your House

We spent all afternoon with the sellers!

Our multiple-offer process is complete.

List price: $1,795,000

Offers, in order of receipt:

Offer #1: $1,850,000

Offer #2: $1,915,000

Offer #3: $1,945,000

Offer #4: $1,929,000

Offer #5: $1,950,000

Every other agent would have recommended that their seller sign the $1,950,000, which is a whopping $155,000 over list price. Who wouldn’t be happy with that?

My thought? We have five strong offers over list. At least one buyer will probably go higher.

Because I know how to properly handle a bidding war, we gave EVERY buyer a chance to submit their highest-and-best offer (unlike the Redfin agent who told me she only counters the serious offers after I submitted an offer that was $250,000 over list).

Guess who won.

That’s right, the $1,850,000 buyer won it with their highest-and-best offer of $2,100,000:

You should list your house with me!

 

2022 – Year of the Auction?

Word on the street is that Lennar may attempt to sell their new San Marcos homes by utilizing the auction format. They don’t have anything on their website yet, and it may be a bit clumsy to roll out so we may not hear much about it until they complete a few.

They have 700+ people on their interest list, and they have grouped them into sets of 25.  Why discriminate?  Let all 700+ people have a crack at buying every house!

Hopefully the selling of homes by auctions will become more popular in 2022!

Encinitas Ranch Bidding War – Closed!

On February 27, 2019, our seller purchased 1463 Paseo de las Flores for $1,950,000.  At the time, it was one of the top four highest-priced sales EVER in Encinitas Ranch, with two of the higher sales being $1,970,000 and $1,975,000 (plus a $2,100,000 back in 2005).

I have always kept an eye on a house further down the fairway because its first owner was Jill Kammerude, a close friend and fellow realtor.  We had shared her Padres season tickets from 1998 to 2009 when she unfortunately passed away.

Her 4,612sf house on the golf course had sold again on April 8th of this year for $2,405,000:

https://www.compass.com/listing/694-cypress-hills-drive-encinitas-ca-92024/729228750807813929/

I had been to this house a few times, and though it had more of the older look, it was comparable to the home we sold on Paseo de las Flores.  I sent the link to my client, and congratulated him on picking up a cool $500,000 in appreciation in just two years.

I asked if he would consider moving, to which he said, ‘Maybe’.

We began talking regularly about where to move, taxes, repairs, etc., and in mid-September he committed to selling.  We began our 6-week tune-up, and on October 21st, we hit the open market listed for $3,395,000, because there had been a flurry of $3,000,000+ sales nearby.

I told the story previously……that I had received two solid cash offers during the open house, and was telling attendees that I was going to sell it that day. Both buyers were anxious, so once I left the open house, it was time to determine the winner.

I do take pride in utilizing sophisticated high-tech tools, and this day was no exception.

I pulled out my Super-Duper Bidding-War Bonanza sheet, and went to work:

I went back and forth between the agents on the phone, telling them the price to beat – and they filed the bids above.  Buyer #1 delivered the knockout blow with their $3,760,000, and we had a winner – and Buyer #2 went right over to Lynwood and bought it instead.

How I handled the communication was critical – it takes more than a fancy notepad.

In particular, because we did the bidding verbally on the phone, I had to get the buyers to commit to their price in writing before they cooled off – which I did, and it closed today for $3,760,000.

Keeping the buyers happy for a month, helping the seller move, and delivering the house in excellent condition was all part of the process too. Thank you Donna!

It would have been easy to discard the first cash offer of $3,395,000 because the buyers saw the house via FaceTime, and instead taken the $3,500,000 cash offer from the buyer who saw it in person.  Almost all other agents would have done so. But with me at the helm, my seller made an extra $260,000.

It sold for $700,000 more than the model-match that sold on October 25th, one block over.

It sold for $992,100 more than the zestimate!

It sold for $1,360,000 more than its approximate value in April, which is a 56% pop in six months!

It sold for $1,810,000 more than the seller paid, which is a 93% return in 32 months!

Get Good Help – Hire Jim the Realtor!

More on Open Bidding

We are wrapping up our sale in Encinitas Ranch, so I thought it would be a good time to comment more on the unconventional and remarkably transparent open-bidding process I employed to determine the winner.

Here’s where I described how it went down:

https://www.bubbleinfo.com/2021/10/25/bidding-war-part-3-auction/

Because nobody else does open bidding, some may question it’s merits.  Here is why it is so much better than the current blind-bidding used throughout the nation:

  1. Every buyer has a fair chance to win.
  2. Buyers know when losing is imminent, and can raise their offer.
  3. Buyers determine their own fate.
  4. Winners are determined promptly – within hours.
  5. In the end, everyone feels like it was a fair and honest selection method.

Compare my method to the features of blind-bidding:

  1. There’s no specific process.
  2. How the winner will be determined is unknown.
  3. Buyers don’t know anything about the competition – if any.
  4. It always drags on for days with no communication.
  5. Losers walk away feeling like something is wrong with realtors and process.

The messy non-transparency of blind-bidding makes you want to go take a shower.

Unlike the black hole that is usually presented by listing agents, I explain rules of engagement in advance to the agents involved – specifically, that they will always have a fair chance to win, which is welcomed!

Will I change the real estate world with my method?

Maybe – if enough sellers list their home with me.  I’m available – contact me today and we’ll get started!

Bidding War! Part 5 – Beat This Price

You know there are agents out there thinking, “Jim, you sniveling little baby – why don’t you just get your buyers to offer more money so they can win the bidding war?”

First off, a bidding war is when participants are bidding against each other.

What is practiced around here is blind bidding, where buyers just guess at what offer might win.

Nobody wants to pay more than they have to, or more than they should. With no other influence, buyers will submit their bid based on the comps, or their comfort level.

But when presented with a price to beat, emotion takes over. With the fear of losing the property being a real possibility, buyers are much more likely to go higher than they originally thought, in order to win.

It becomes more about winning and losing, than paying a comfortable price.

There will be an occasional blind bid that swamps the boat, and produces a sales price that others wouldn’t have touched. But how do you know? You don’t.

Conducting an auction-like process where bidders are pitted against each other and know the number they have to beat is the most reliable way to reach top dollar.  The fear of loss is real, and motivates people to do things they wouldn’t have done on their own.

Yet, realtors around here won’t consider! Why not?

Most everyone thinks it’s against the rules, but this is in the contract:

Offers not necessarily confidential: Buyer is advised that seller or listing agent may disclose the existence, terms, or conditions of buyer’s offer unless all parties and their agent have signed a written confidentiality agreement. Whether any such information is actually disclosed depends on many factors, such as current market conditions, the prevailing practice in the real estate community, the listing agent’s marketing strategy and the instructions of the seller.

Agents can include the confidentiality agreement but it doesn’t mean anything unless all parties agree.

In my bidding war on Saturday, the agents were happy to participate.  They enjoyed the transparency, and the chance for their buyers to determine their own fate!

Bidding War! Part 4 – LMOTT

I mentioned the cash offer we made on Saturday on behalf of buyers hoping to purchase a home in Carlsbad. It finally came to a conclusion last night.

It went the same way all of the other multiple-offer situations have gone:

  • It dragged on for days.
  • Little or no communication.
  • No transparency about the process or how a buyer will be selected.
  • No open bidding.

After a day of being kept in the dark, I suggested to my buyers that we should improve our offer and just hope for the best. We submitted a new offer above the list price, 14-day closing, and free 30-day rentback. A worthy offer!

I got the call late yesterday – Sorry, we’ve gone in a different direction.

I appreciated the call because they usually come by text so the listing agent doesn’t have to offer any explanations. Because I had the agent on the phone, I pleaded with him to give me the winning sales price, which he did.

When I told my buyer about the winning bid, he said,

“I would have paid that.”

“IN FACT, I WOULD HAVE PAID MORE THAN THAT.”

It’s not just about treating all buyers and buyer-agents fairly (part of the Code of Ethics).

It’s about LEAVING MONEY ON THE TABLE, which is happening everywhere because listing agents are too lazy or inexperienced to conduct a proper bidding war. Even if you don’t have the guts to do open bidding like I do, then at least give every buyer a chance to make their highest-and-best offer, which used to be the standard up until this year.

Now, the listing agents only worry about grabbing their favorite offer, and going back to sleep.

Bidding War! Part 3 – Auction

You say ‘full transparency’ and blah, blah, Jim – what do you mean?  What happened? Give us the dets!!

We received two cash offers during the open house on Saturday, one from the first people who saw it on Friday, and the other from a buyer who attended the open house – which was a quick turnaround because I told her that we already had a cash offer.

Each buyer had their own agent, and the terms were similar.  It was going to come down to price.

They are called ‘bidding wars’ in this business, but the way the vast majority of agents handle them, it’s really just a collection of offers.  The listing agent might use a spreadsheet to organize them, but in the end, they are presented to the sellers who then just picks a winner – usually after the listing agent chimes in with their preference.

It’s not right that the listing agents get to play God and decide the outcome.  I want the market to decide it, because that’s what is fair to all buyers, all buyer-agents, and especially the sellers.

Plus, I don’t want to delay the outcome for hours or days and risk that the buyers might cool off – which is what usually happens as listing agents let days go by after their first offer is received, thinking it might get better, later.

I started my bidding war as soon as I got in my car to leave the open house.

I called the agent for the first buyer and told him he’d been outbid, THEN I TOLD HIM BY HOW MUCH, and asked if he wanted to go higher.

He called back in ten minutes with his new bid.

I went back to the agent for the second buyer and told her that SHE HAD BEEN OUTBID BY X AMOUNT, and asked if they wanted to improve their offer.

My slow-motion auction lasted until one of the buyers ran out of gas about 90 minutes later.

It worked great, and maybe even better than a live auction because bidders don’t feel rushed to make an instant decision.  They were able to confer with their agent and make a deliberate new bid.

Both buyers had a fair and clear chance to purchase the home, which is missing with the Offer Collection method. When listing agents just pick their favorite offer, instead of requesting higher bids, it leaves money on the table and it makes the remaining buyers wonder what happened – most of which would have made a better offer, if they were only given the chance.

Get Good Help!

 

Successful Auctions

Nicolas Berggruen, a real estate investor who earned the moniker “homeless billionaire” through his jet-setting lifestyle and lack of a permanent address, just shelled out $63.1 million for the Hearst estate in Beverly Hills, winning the prized property in a bankruptcy auction that was more competitive than some expected.

The co-founder of the Berggruen Institute think tank beat out five other bidders at the Edward R. Roybal Federal Building and U.S. Courthouse in downtown Los Angeles on Tuesday in a heated auction that lasted around 45 minutes.

Twenty-four people — the bidders along with attorneys and agents — crowded into the courtroom, and a few others watched the action on a monitor in an overflow room, said Anthony Marguleas of Amalfi Estates, who held the listing on the estate.

The bidding began at $48 million — $1 million more than Berggruen’s original offer, which was accepted by the seller, attorney Leonard Ross, in August. The accepted offer triggered a Chapter 7 bankruptcy sale through auction, the proceeds of which will go toward paying off the roughly $50-million debt Ross has accumulated on the property after years of failing to sell the home.

With bids increasing in $100,000 increments, all but two bidders dropped out around the $52-million mark: Berggruen and MBRG Investors, a West Hollywood real estate investment company, records show.
Berrgruen’s winning bid of $63.1 million is the most ever paid for a home at an auction, beating out an Italian-inspired mansion in Beverly Park that sold for $51 million this year.

It’s a record-setting sale, but still far shy of the $195 million Ross originally wanted for the property . He set the ambitious price tag after the Playboy Mansion sold for $100 million in 2016, but years of relists and price cuts brought it down to $69.95 million earlier this year.

Like William Randolph Hearst’s other home — the famous castle in San Simeon — the Beverly Hills Hearst estate’s reputation precedes it.

In addition to being tied to the newspaper magnate, it was also said to be the honeymoon spot for President John F. Kennedy and Jacqueline Kennedy in the 1950s. Its myriad film credits include “The Godfather” and “The Bodyguard,” as well as Beyoncé’s 2020 visual album “Black Is King.”

Built in 1926, the salmon-colored showplace was designed by Gordon Kaufmann, the prolific architect behind the Hoover Dam, Greystone Mansion and the Hollywood Palladium. He designed it for banker Milton Getz.

The 29,000-square-foot Mediterranean mansion captures the spirit of Old Hollywood glitz and glamour with 22-foot-high hand-painted ceilings, a two-story paneled library, two screening rooms and an Art Deco nightclub with a bar salvaged from Hugh Hefner’s now-defunct nightclub Touch. In the billiards room is a stone fireplace moved down from Hearst Castle.

Elsewhere are nine bedrooms, 15 bathrooms and grand public spaces with room for 1,000 guests. The 3.5-acre compound also includes two guest apartments, a pool house, tennis pavilion and five-bedroom gatehouse set among terraces, lawns, waterfalls and an Olympic-size pool lighted by vintage lampposts.

“You can’t build a house this big in Beverly Hills anymore, and getting 3.5 acres is very rare,” listing agent Gary Gold of Hilton & Hyland told The Times in August.

Since the property surfaced for sale in April for $89.75 million, there were 71 inquiries, 41 private showings and 12 written offers. Marguleas and Gold held the listing with Zizi Pak and John Gould of Rodeo Realty.

Berggruen, who was born in France, founded his private investment company Berggruen Holdings in 1984 and also created the independent think tank Berggruen Institute in 2010.

No stranger to Southern California real estate, he bought 450 acres in the Santa Monica Mountains in 2015 with the goal of building a headquarters for the think tank. Forbes puts his net worth at $1.7 billion.
The institute annually awards a $1-million prize “for major achievements in advancing ideas that shape the world.”

The estate is the latest prized property to hit the auction block because of bankruptcy. The owners of the Mountain, a 157-acre parcel in Beverly Hills touted as the city’s finest piece of undeveloped land, racked up a $200-million debt on the property, which led to it being sold for $100,000 at a foreclosure auction in Pomona.

Two more high-profile bankruptcy sales are coming from Bel-Air.

Bids are being accepted through Sept. 27 for Mohamed Hadid’s infamous hillside home , which was ordered to be torn down by a judge who declared the 30,000-square-foot mansion a “danger to the public.” Proceeds of the sale will go toward the home’s destruction, and the winning bidder will get the raw land.

Just across the hill from Hadid’s place, Nile Niami faces a debt of more than $110 million on “The One,” a 100,000-square-foot mega- mansion that he’s been trying to sell for $500 million. A court-appointed receiver is preparing it for sale.

Pin It on Pinterest