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Bidding War! Part 2

The seller of our new listing in Encinitas Ranch has been discussing a move for six months.  He contributed his decision to sell now primarily to what he read here on the blog.

Specifically, that what appears to be a frenzy slowdown is NOT reflective of the market normalizing – instead, it’s due to just the opposite; a continuing decline of inventory.

What’s my #1 tip for sellers? Sell when everyone else isn’t!

The Encinitas market is starved for higher-end luxury homes, especially those sexy, turn-key ready homes that can be occupied within 30 days (a dearth made worse by most listing agents demanding 60-days free rent after closing for their sellers).

We thought if we went on the market in October and appeal to the buyers who wanted to close and occupy by Thanksgiving, we’d have a special niche all to ourselves.

But we had work to do to maximize the appeal, so we spent the last two months and $50,000 to get the home in tip-top condition. By yesterday, it was perfect – thank you Donna!

What happened next wasn’t luck or happenstance.

It was a planned strategy to maximize the opportunity for buyers to not only purchase a home yesterday, but to also have the process be a fair and clear competition utilizing full transparency. I made sure that everyone knew the rules of engagement, and how to win.

Today, I get to go back in the jungle.

We made a cash offer with different clients yesterday who are hoping to buy a home in Carlsbad, and got the usual routine. Agent doesn’t answer his phone, doesn’t call back, doesn’t acknowledge receipt of the offer until today and leaves a cryptic email suggesting that he might have multiple offers but no other game plan on how the winner will be determined. You know, the normal way agents handle their business.

Full transparency is the best way to achieve top dollar, and you can only find it here!

Our New Listing in Encinitas Ranch!

Sometimes it’s easy for homeowners to make the decision to move, and for others it takes careful deliberation to come to the right conclusion – and it’s relative to how much they love their home, and if they can do better. It took months of discussion to decide to let this one go – it’s a trophy property!

1463 Paseo De Las Flores, Encinitas 92024

4 br + den/4.5 ba, 4,318sf

YB: 2003

$3,395,000

Breathtaking ocean & golf course views from this former model home that has been extensively remodeled and upgraded! Newer kitchen has polished quartzite counters, Wolf appliances, built-in Sub-Zero fridge and dual dishwashers too! Gorgeous bleached-oak hardwood floors throughout the home, including the four en-suite bedrooms plus office and theater room – and just wait until you see the richly appointed primary suite! Live the coastal lifestyle right on the golf course!

https://www.compass.com/listing/1463-paseo-de-las-flores-encinitas-ca-92024/897812950230112937/








Open house this weekend, 12-3pm!

JC Is Lord Apartments

The developer paid $4,900,000 cash for this site in 2020, so he must have had some assurance from the Encinitas City Council/Planning Commission that he could build his 72-unit apartment house here.

It appears that expanding La Costa Avenue to four lanes will be required – though there aren’t plans or money to do so – yet the Encinitas City Council approved the development:

https://thecoastnews.com/encinitas-council-approves-new-plans-for-vulcan-avenue-project/

An excerpt:

The site of the project is 1967 N. Vulcan Avenue in the northernmost part of Leucadia near La Costa Avenue. The intersection of Vulcan and La Costa is a major concern to residents who oppose the development.

Wermers said the updated project plans now include changes to Vulcan Avenue that are meant to make the area safer for pedestrians and bicyclists.

“When we do this it also promotes vehicle safety,” Wermers said.

Wermers also made a commitment to pay his company’s fair share in whatever changes the city decides to make at the Vulcan and La Costa intersection.

“Whatever you guys decide, we want to pay our fair share,” Wermers added.

There was more support for the newly redesigned project, some pointing to the need for low-income housing in the area and the project will boast 12 units designated as low-income.

“We need more roofs over our heads. This housing project is the perfect one to bookend Vulcan Avenue and Leucadia,” resident Kevin Daniels said. “I can’t express this enough, this project is a perfect fit.”

https://thecoastnews.com/encinitas-council-approves-new-plans-for-vulcan-avenue-project/

NSDCC Over List, March

The trend of paying over the list price is increasing.

NSDCC Detached-Home Sales, % Closed Over List Price

January: 38%

February: 43%

March: 53%

Most sellers and agents are happy just to get 1% to 5% over list which will cover some or all of the commission. There were 22 of 244 (9%) that went double-digit over list. The big winners:

Most % Over List Price

List Price
Sales Price
Percentage Over List Price
$1,299,000
$1,655,000
27%
$989,000
$1,200,000
21%
$749,000
$900,000
20%
$1,325,000
$1,580,000
19%
$1,900,000
$2,255,551
19%
$1,535,000
$1,800,000
17%
$2,800,000
$3,200,000
16%
$2,198,000
$2,510,000
14%
$2,695,000
$3,075,000
14%

NSDCC Sales, March: 244 

Average List Price: $2,285,792

Average Sales Price: $2,252,883 (99%)

Median List Price: $1,788,500

Median Sales Price: $1,810,000 (101%)

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Over List By Price Point:

Under $1.0M: 6

$1.0M – $1.5M: 44

$1.5M – $2.0M: 39

$2.0M – $3.0M: 32

Over $3.0M: 8

A real bell curve there!

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The most sales over list are happening right where you’d expect:

Most Sales Over List By Area:

SE Carlsbad, 92009: 32 of 41 sales were over list (78%).

Carmel Valley, 92130: 22 of 32 sales were over list (69%).

Encinitas, 92024: 24 of 41 sales were over list (59%).

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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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Encinitas One-Story

This home looks great on paper. It’s a single-level 3,057sf home on an 0.39-acre lot in a secluded part of Encinitas, listed for $1,600,000.  It drew a crowd too – the agent had appointments to show on Friday, Saturday, and Sunday and was fully booked for three days (I got the last appointment on Sunday afternoon, and there were still a few parties milling around then).

By the time we got there, she already had multiple offers.

But it closed under list price at $1,595,500.

Do some forensic viewing and see if you can tell why it didn’t sell for more:


https://www.compass.com/listing/2222-silver-peak-place-encinitas-ca-92024/635047271721032977/
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Post-Election Market

The election season is over (even if the election is not), and the vaccine news today is positive – which should bring more certainty, and relief, to the real estate market.  If we just had more homes to sell!

What’s hot these days?

Yesterday, I got the last appointment to show this one-story home in Encinitas, listed for $1,600,000:

https://www.compass.com/listing/2222-silver-peak-place-encinitas-ca-92024/635047271721032977/

It must have been shown at least 20 times between Fri-Sun, and the agent said she had received multiple offers before we arrived.  All in the November rain during the week of a heavily-contested election!

Here are the NSDCC counts for the last six weeks:

New SFR listings: 408

New SFR pendings: 509

Median list price of pendings: $1,595,000

SFR closed sales: 500

Median list price of solds: $1,605,000

These numbers are staggering for ANY six-week period!

For the market to be this red-hot leading up to the election, during a raging pandemic, is truly remarkable.  These conditions should continue too, as long as new listings keep coming!

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