How To Win A Bidding War
Typically, buyers will bid up to 10% over the list price to win.
If you really want it, go higher!
Compass And The Future 2
In the post-settlement world where agents are expected to prove their value, Compass will soon unveil a new client-facing portal that it says will streamline the transaction process for buyers and sellers while also helping its agents build more business.
The new portal is being introduced as Compass continues to push agents and consumers toward its private listings channel — betting on a future where the hotly contested Clear Cooperation Policy is repealed.
An all-in-one interface for buyers and sellers
According to Rory Golod, Compass’ president of growth and communications, the portal — dubbed Compass One — is “the first of its kind” in the industry, allowing an agent and client to work together through the entire transaction. The brokerage has also called the product, which it developed fully in-house, “the #1 most requested piece of technology” for agents and clients. Compass built it out in phases, Golod said, starting with the agent tools and then creating Compass One.
“It’s interesting that in other advisory businesses — whether it’s banking, accounting or other businesses — you log into a portal,” he explained to Real Estate News. “If you work with a private wealth manager, you go to their portal, you see all your assets, your communications, and your documents.”
The platform offers a detailed timeline of the buying and selling process along with the expected timing for each step. Service providers such as mortgage brokers or inspectors “live in here too,” Golod said.
Pushing private listings, helping sellers avoid ‘negative insights’
But bringing the client, agent and other professionals together isn’t the only thing the new platform does. It also integrates the company’s “3-phase marketing strategy” where agents are encouraged to pitch sellers on the Compass Private Exclusives channel first and the Compass Coming Soon channel second before going to the open market. The company formally launched this strategy last November.
“Taking a listing and just throwing it on the MLS and aggregators on the first day you launch it without getting any feedback from the market, understanding if you’re priced right, understanding what the demand is and building up interest — you’re not serving your clients’ best interests,” Golod explained.
Currently, Compass has about 5,500 Private Exclusive listings, a spokesperson said.
One of the first tasks for sellers and their agents in the One Compass portal is to discuss the Compass Private Exclusives channel. Golod said the push toward private listings puts regular home sellers on the same footing as “homebuilders, celebrities and ultra-high-net worth clients” who often sell their homes off the MLS, and it helps sellers avoid “negative insights that hurt their value” such as days on market and price reductions.
Read the full article here:
https://www.realestatenews.com/2025/02/01/compass-launches-client-portal-amid-private-listings-push
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The discussion of the future went a bit further yesterday on Greg’s blog:
https://www.vendoralley.com/2025/02/02/crmls-aint-playing/#comments
All of the listings mentioned above were listed in the MLS and available for buyer-agents to sell. But where are they? Realtors will tolerate the current policy for a while longer, but we don’t like it either – and though the MLS used to be the ideal solution for all involved, those days are behind us now. For many agents, representing buyers is more trouble than its worth.
Remember a couple of years ago when I started predicting that buyer-agents will go away?
This is it – it’s happening right in front of us, and nothing will stop it.
Flood Talk
It never occurs to the experts that higher prices have something to do with the locked-in effect, and that home sellers have to move to where it’s much cheaper to make it worth moving. For those who pay cash for their next home, having a 3% mortgage didn’t keep them from moving today – or any day.
I think my +15% to +20% inventory prediction is looking pretty good:
Some segments of the U.S. residential real estate market started to thaw in January after December’s deep freeze, with a growing number of homeowners listing their homes for sale in a sign that the stubborn “lock-in” effect is finally beginning to ease.
The “lock-in effect” refers to homeowners’ reluctance to sell because they have a low mortgage rate and would have to take out a mortgage at a higher rate when they buy a new home.
Even though the 30-year fixed mortgage rates continue to be high, hovering at just below 7%, homeowners seem to have accepted this new normal and are not letting it stop them.
“While rates remain elevated, it is possible that we might be seeing that chiseling effect starting as sellers may grow tired of waiting for significant changes in rates,” says Realtor.com® Chief Economist Danielle Hale in her January monthly housing report.
“Further, while the lock-in effect remains a factor for many sellers, the strength of the effect is gradually waning,” Hale adds.
Realtor.com projects that home sales will rise by 1.5% in 2025, thanks in large part to the passage of time and slowly decreasing mortgage rates chipping away at the lock-in effect that has been hampering home sales for months.
The latest available data shows that newly listed homes were up 10.8% year-over-year, making it the busiest January in terms of new listing activity since 2021.
What’s more, freshly listed homes shot up 37.5% compared with December, marking the largest month-over-month spike in five years.
“Time and natural turnover could be leading some sellers to make a move this year despite higher rates,” explains Hale.
Looking at the big picture, overall home inventory across the U.S. was up 24.6% compared with the same time last year, a 15th consecutive month of growth. In terms of raw numbers, there were 829,376 active listings in January, plus 314,545 under-contract listings, also known as pending listings.
While home sellers are eager to sell, it seems that homebuyers are still hesitant to buy.
The average home lingered unsold for 73 days, making this January the slowest since 2020. Homes spent five days more on the market than last year and three days more than last month.
https://www.realtor.com/news/trends/mortgage-lock-in-effect-january-housing-report/
Bedroom Closet Myth
Somehow I got on email list of this Bay Area appraiser – and he has good tips:
Debunking the Bedroom Closet Myth
There’s a widespread belief that a room must have a closet to be called a bedroom. Let me clear that up: in 99% of cases, that’s simply not true. So, let’s break down what really qualifies a room as a bedroom according to the International Residential Code (IRC).
What Makes a Room a Bedroom?
Under the IRC, a room needs to meet these key criteria:
- Two exits for emergencies (e.g., a door and a window)
- At least 70 square feet of floor space, with no wall shorter than 7 feet
- Heating or ventilation (HVAC or another system)
- Two or more electrical outlets
- Access from a hallway or common area, not through another bedroom
- Ceiling height: At least 50% of the room must be 7 feet tall, with no section lower than 5 feet
Do Bedrooms Need Closets?
Nope! The IRC doesn’t mention closets at all. While some places, like San Bruno, CA, might have local rules requiring a closet, most areas don’t. It’s a common myth, but not the reality.
Common Exceptions to Keep in Mind
- Rural Areas – Some places with septic systems may impose additional requirements for bedrooms.
- Special City Rules – Always check with your local building department, as certain cities may have unique criteria like closet inclusion.
- Neighborhood Trends – In 55+ communities, if most homes are two-bedrooms with a den, your “third bedroom” might just be playing dress-up. Even if you’re calling it a bedroom, the rest of the neighborhood is sticking to the two-bedroom theme. So, congratulations! You’re part of the “den club,” whether you like it or not!
Lithium-Battery Fires
This is the third garage fire I’ve seen that was started by lithium batteries!
Why are lithium-ion batteries flammable?
Lithium-ion batteries store a lot of energy in a small amount of space. When that energy is released in an uncontrolled manner, it generates heat, which can turn certain internal battery components into flammable and toxic gases.
How do fires from lithium-ion batteries start?
Lithium-ion battery fires happen for a variety of reasons, such as physical damage (e.g., the battery is penetrated or crushed or exposed to water), electrical damage (e.g., overcharging or using charging equipment not designed for the battery), exposure to extreme temperatures, and product defects.
What are some unique dangers of lithium-ion battery fires?
Heat, smoke, the release of toxic gases, and the potential for explosions are the dangers associated with lithium-ion battery fires.
What are some safety tips for buying, charging, storing, and using lithium-ion batteries in devices like laptops, phones, tools, and more?
- Purchase batteries that are only listed by a nationally recognized testing laboratory and labeled accordingly.
- Stop charging a battery once it is full.
- Use charging equipment that is only compatible with your device. To be safe, use only the charging equipment that is supplied with your device.
- Stop using your device if the battery shows signs of damage, such as an unusual odor, excessive heat, popping sounds, swelling, or change in color.
- Have all repairs performed by a qualified professional.
Where is the safest place to charge batteries in e-bikes and electric vehicles?
When it comes to e-bikes, e-scooters, and electric vehicles, the safest place to charge these devices is outdoors away from any structure or enclosure and not in direct sunlight. Do not charge a battery when either the charger or the battery is damaged. Do not store batteries in extremely hot or cold locations or in an area that blocks the only exit out of to a room. And do not attempt to modify the battery or charger.
https://www.nfpa.org/education-and-research/home-fire-safety/lithium-ion-batteries
Kitchen Ideas
Newer Agents
It’s going to be tough on the newer agents going forward.
The commission lawsuit stuff isn’t the big concern. Sales are likely to keep dropping, and at the same time the better agents are picking up market share. There aren’t enough sales to go around for every realtor to pick up an occasional sale, let alone make a living.
If you’re an agent and you find yourself saying to prospects, “Let me know if you have any questions”, then there are things you can do to up your game.
The best thing you can do is immerse yourself in the Dale Carnegie Sales Course. I completed it early on, and it made all the difference.
Embrace your only job, which is to say the right things, the right way, at the right time.
It never fails when I’m doing open house, and I’m talking it up with attendees.
When I ask them, “Would you like to buy it”, it gets a chuckle every time because they have never heard that before at an open house. We are supposed to be professional sales people, yet consumers have never heard an agent ask them if they want to take action.
If you catch yourself wanting to say, “Let me know if you have any questions”, just know you need to be more creative. Try out my two favorite open-house questions, and use them early on, not once they have seen the house and are heading for the door:
- Have you been looking around much lately?
- Have you seen anything you liked?
Their answers to those questions will send you down a natural path of other questions that reveal where they are in the process.
If they say, “Oh, we’re just neighbors”, that’s fine.
Resist the urge to hit them with, “Are you thinking of selling?”
A consultant would say, “Have you thought about moving?
Every homeowner has thought about selling, and getting their hands on the money they have tied up in the home’s equity. But when they think about moving, it thrusts them into the Big Three: Going through all the stuff, fixing up the house, and where to go.
Listen carefully to their response, and then say, “If you could get assistance with all three of those things, would it be helpful?”
Come work with us – I’ll teach you the ropes.
More Pets Than Children
It was International Cat Day last week!
Did you know there are more households with pets than children? These beloved pets are a driver of a major facet of economic activity: home buying. About one-fifth of recent home buyers considered their pet in their neighborhood choice—a share that increases among unmarried couples and single women buyers. Let’s dive in!
According to the U.S. Census, the share of families with children under the age of 18 living in their homes has continued to decline. That share, in 2023, stands at 39%, down from 52% in 1950. This is likely due to two factors: birthrates overall have been declining, and there is a large share of Baby Boomer households whose children may have already left the nest.
This trend is mirrored among home buyers. In 1985, 58% of home buyers had children under the age of 18 in their home. In 2023, just 30% of home buyers had a child under the age of 18 in their home—an all-time record low.
While the number of children in U.S. households has declined in the last twenty years, pet ownership has risen. According to the American Pet Products Association, 66% of American households own a pet, up from 56% in 1988.
Hacks to Help Sell Your Home
These are great tips – curb appeal and staging make the best visual impression AND they send the message that the sellers care.
While the process of trying to sell your home can feel daunting, there are some simple yet highly effective hacks that can reel in buyers quickly.
Every seller wants to increase their chances of an offer to avoid having their home on the market for longer than expected, and while making big upgrades can improve your home’s appeal, these can be costly and time-consuming. Fortunately, small details can make a significant difference. The key is to appeal to potential buyers when finding ways to sell a house fast.
We asked property experts what were the simple tricks that they have found make houses sell much quicker. These are the seven techniques and tweaks you can make to ensure selling your home is a smooth and speedy process.
https://www.homesandgardens.com/solved/easy-hacks-to-speed-up-the-selling-of-your-home
‘When someone looks at your property online you have only eight seconds to capture their attention before they move on to the next one. A well-staged home will make for incredible photos and show in its best possible light.’
Evaluating The Kitchen
If you are spending $2,000,000+ for a home, you deserve a built-in refrigerator! Check its age though, because they are expensive to replace. Sub-Zero and Thermador refrigerators will last for 20 years and are made in America. GE fridges are American-made too, but they don’t carry the same swagger. If you’re selling your home and don’t want to spend the money, then at least buy a counter-depth fridge that will partially disguise your thriftiness.
Here are thoughts on evaluating the kitchen:
Kirsten Jordan knows to look out for signs that a home is priced too high based on the current state of the kitchen — even if it looks brand new.
“When a home has a brand new, on-trend kitchen and is priced at the top of the market, I make sure to read that kitchen closely,” she said. “Did they renovate to sell? You can tell by the quality of the materials and construction. Maybe it’s because of social media but Americans have become too focused on what’s trendy. Quality should be your first priority. Quality retains value.”
One area to pay close attention to is the cabinets.
“Look at the kitchen cabinet’s quality,” Jordan said. “Is there dovetailing? Are the drawers soft-close? Is there a maker’s mark? If not, they’re probably builder’s grade — that means particle board construction and wood veneer cabinet faces, which don’t wear well. The kitchen might look great today, but in four years you’ll need upgrades and if it’s not your aesthetic there’s no way to refinish — you’ll need to rip it all out. That kitchen could cost you thousands more in the not-so-distant future.”
Another thing to take into account is the appliances.
“You can tell a lot about a seller from the quality of appliances they’ve selected,” Jordan said.
She recommends using AI to determine the quality of the kitchen appliances.
“Your phone now has a visual look-up feature where you can snap a photo and search it using AI,” Jordan said. “Use this tool to look up the appliance, quickly find reviews and see if there’s a Reddit thread about issues with the components. If you want to go really deep, search in Google News for information about any recalls. You can also buy a $30 subscription to Consumer Reports. Their expert team tests all the appliance brands for you and then provides unbiased reviews.”
Sometimes the kitchen upgrades needed are relatively minor, so it’s still worth buying the home with a negotiated sales price. Other times, it’s better to just walk away.
Jim Klinge
Klinge Realty Group
Broker-Associate, Compass
Are you looking for an experienced agent to help you buy or sell a home?
Contact Jim the Realtor!
- 682 S. Coast Hwy 101, Suite #110
Encinitas, CA 92024 - (858) 997-3801 call or text
- klingerealty@gmail.com
CA DRE #01527365, CA DRE #00873197
