Our listing in Fire Mountain is back on the market.
The buyers, who according to their agent were in love with the house and the price, decided to cancel because of what they found out about the city restrictions. The City of Oceanside won’t allow short-term rentals because the driveway is only 20 feet wide, instead of 24 feet wide. Long-term rentals are fine.
Though the short-term rentals are controversial and we really can’t predict their future, it was enough for the buyers to say no – they didn’t want any unusual restrictions that could possibly affect their kids’ future once they take over the house. The buyers had planned to live there for the duration.
We are getting an assist from Zillow – their zestimate has gone up nicely since we hit the open market:
Here’s the zestimate from the day before the listing was inputted:
Because Zillow is buying homes in the area, it helps them to keep their zestimates artificially low. If they were legit, and kept the zestimate at the lower amount even though the list price was substantially higher, then fine – that’s your opinion. But when it fluctuates with the list prices, it’s a sham.
Because there is so little information available, the consumers rely on anything they can find, and the zestimates are the best-known valuations available – even though they can change by $400,000 in a day.
We had another 50-60 people stop by the open house yesterday! Over the weekend, we had seven agents showing their buyers, which was a healthy sign because we are priced at the upper-end of homes for sale in Fire Mountain -but it’s worth it, according to our guest commentator Jeff:
You’ll also hear from two new members of the KRG team – I forgot to get comments from a third new member Greg on Saturday – we’ll get his thoughts next time!
The other big ibuyer has begun operations in San Diego County.
How are they doing? The P is for pending sale, and the S is their first sold:
Three of the homes aren’t on the market yet, but let’s look at 14 properties that are.
They are happy to offer you a sales price that is close to the retail book value on paper, but then when they come out to visit in person, they find stuff wrong and have to deduct a big chunk to compensate.
Cash purchases: $9,418,000. Their 8.5% repairs/commissions fee: $800,530.
Net proceeds to sellers: $8,617,470.
How does it compare to selling the old analog way? Let’s assume the sellers Got Good Help, and reap the benefit of the frenzy conditions (instead of the ibuyer) when their sales price gets bid up. Let’s apply the standard 5% over-list premium to the total of the list prices above:
Difference between selling to OD, and selling with me: $1,268,616/14 = average $90,615 more per seller.
How are they selling their properties? The first few were listed with an Orange County broker, but now they have gone in-house and are listed with their Phoenix-based brokerage and agent – who got his California license less than a year ago. Hey, it’s Frenzy-2021 so they don’t have to try too hard to get properties into escrow. They offer 2% commissions with a brief description and boom – off to escrow:
The frenzy is helping to accelerate the dumbing-down of the real estate business.
There are sellers who get a postcard in the mail that offers quick cash and because the price is more than it used to be, they roll over and take it, all in the name of convenience.
The frustration among buyers on how listing agents handle their multiple offers is continuing to mount. Because there isn’t any guidance from the industry, listing agents just make it up as they go – and in most cases, they just pick their favorite without any thought of other solutions available.
Here are more ways I’ve seen sellers leave money on the table lately:
Listing agents selling homes during their Coming Soon period, denying any other buyers.
Counter buyers for their highest-and-best, but then accept one within minutes before other responses are received.
Only countering some of the offers.
Off-market deals, which are great for the winning buyer, but bad for seller and other buyers.
The worst part is that sellers don’t have a clue – they are just happy to sell for more than expected.
When I’ve suggested my method to agents, they have trouble grasping the concept – that’s how deep the current snatch-and-grab mentality is ingrained in agents to make a quick deal.
Peak efficiency in this insane market deserves more examination.
Specifically, the listings that have so many showings that some buyers get shut out, but then only a small minority of them submit an actual offer vs. quality presentation and pricing that gets a better mix:
Every buyer and buyer-agent should get a chance to compete.
Part of the challenge of the low-inventory era is to find the hidden gems. Travel into south Vista just two miles from Carlsbad and look how much further your money goes!
Here’s our new listing that overlooks the private Shadowridge Golf Club for only $699,000!
1990 Spyglass Circle, Vista
3 br/2.5 ba, 1,835sf
HOA fee: $165/mo
The former model home ideally located above the 8th green has been beautifully remodeled and is better than new! Hardwood floors, new carpet and paint, newer kitchen and tuned-up baths! Located in a highly-desirable community with low HOA and no Mello-Roos, plus community pool & spa. Check it out!
It never occurs to agents to properly conduct a bidding war where the market decides the winner.
Instead, they choose the easy route and just collect offers, itemize them on a spreadsheet, and then point out a winner to the sellers. It is an ego-boosting choice that fares well around the brokerage’s water cooler, but is likely to leave loads of money on the table.
Agents who deny open bidding and just process one round of blind offers are clerks, not salesmen.
By the time they got the last offer, Quinn and Daryn Shapurji had received 54 bids on their four-bedroom, single-family house in Fishers, Ind., in just three days. Ms. Shapurji said they felt totally overwhelmed — and a bit melancholy.
“We felt bad that we had to say no to so many people, because we got a lot of beautiful letters from buyers saying how much they loved our house and why they wanted to live in the area,” said Ms. Shapurji, 32, a closing coordinator for a home builder. “Some buyers had already struck out on five or six homes.”
Chris Dossman, the couple’s real estate agent, suggested they take a cash offer that was $25,000 above their home’s list price of $220,000. “It wasn’t the highest offer they received, but the cash buyer waived the appraisal, so we knew that we weren’t going to have an issue with the home closing from a financing perspective,” said Ms. Dossman, an agent with Century 21 Scheetz based in Indianapolis.
“Fifty-four offers is by far the highest number of offers that I’ve ever received for a listing,” added Ms. Dossman, who has been an agent for 15 years.
“We’re seeing an inventory crisis,” said Katie Wethman, a Washington, D.C.-based real estate agent at Keller Williams Realty. Indeed, total home supply at the end of March sat at only 1.07 million units, down 28.2 percent from a year ago, according to the National Association of Realtors. The association’s data also found that homes typically sold in a record-low time of just 18 days in March, down from a 29-day average in March 2020.
Still, sellers face a challenge: “Getting inundated with offers can be overwhelming, and it can make it harder for sellers to choose the best offer,” said Alicia Stoughton, a real estate agent and designer at Keller Williams Advisors in Cincinnati, Ohio.
Why? Because “the highest offer isn’t always the best offer,” Ms. Stoughton said.
Here are the factors sellers should consider, in addition to purchase price, when evaluating multiple offers.
“Cash is king,” according to Nancy Newquist-Nolan, a real estate agent at Coldwell Banker in Santa Barbara, Calif. “I often recommend sellers take a cash offer, even if it’s not the highest offer.”
Still, mortgage buyers aren’t completely out of the running, said Ms. Wethman. “If you’re confident in the buyer’s lender and their ability to get approved for a mortgage, there’s not a lot of risk taking an offer from a buyer who’s getting a loan,” she said. Her advice to sellers? “Do your due diligence on the lender who is providing the funds,” she recommends.
This is a step where sellers can lean on their listing agent, Ms. Newquist-Nolan said. “I call up the lender and ask how qualified the buyer is for their loan,” she said. Moreover, “some lenders are notorious for dragging their feet and missing key deadlines.”
The best approach that sellers can take when weighing offers, Mr. Lejeune said, is to compare them side-by-side. His strategy: “I present offers to my clients in an Excel spreadsheet that specifics the offer price, loan amount, type of loan, contingencies, and other important metrics,” he said. “It’s basically a cheat sheet for sellers.”
Ms. Dossman is also a fan of presenting offers in a spreadsheet. As she puts it, “You want to have all the information in front of you when you’re making a decision.”
Many buyers attach personal letters with their offers to try to sway the sellers in their favor. But some real estate agents don’t even show sellers these letters when they present offers to avoid the possibility of unlawful bias against a buyer. But Ms. Dossman said she will share letters after vetting them to make sure there isn’t any information that could raise the potential for fair housing violations.
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"Where do we begin..2020 has been a year for everyone. When COVID hit and shut down both my husband and my businesses, we were left with a mortgage and very little income coming in. We were stressed, scared and felt stuck. We made the hard decision to sell our home and move out of state. We contacted the Klinges' and spent a good hour going over what we hoped we could accomplish. Jim and Donna came over with comps in hand and suggestions on improvements to get our house ready for the market. It was overwhelming to think about, but Donna was there and one step ahead in every scenario. more "
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I consider myself a rather savvy buyer/seller. I've bought/sold 7 times in more "
"Jim and Donna Klinge are by far the most professional, personable and responsive realtors I have ever worked with. They provide VIP concierge level service in every area of the process of selling your home. My home was marketed so successfully that we received an offer the day after our first and only open house. Thanks to Jim's pricing and negotiating, our house is now the highest sold in our community... more "
by Ann Romanello
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