Here’s a video tour of our new one-story listing in the 55+ gated resort community of Auberge, next to Santaluz! It’s the former model home that features the dream great room that opens seamlessly via multi-stacking sliding glass doors into the secluded, low-maintenance backyard with the unique fire pit table plus a built-in BBQ station under market lighting. There is also a relaxing outdoor retreat off the master suite with fireplace and TV too. The Compass Concierge program was employed to enhance every upgrade, and this home is in impeccable condition – and ready for you and the grandkids, who will love the upstairs party room for sleepovers!
The ibuyer’s quote will be a curiosity, but unless it is close to the homeowner’s expected value, then selling on the open market will seem like a better option for those who want max money.
Would a homeowner who has found another house to buy be an exception? Rather than trying to convince a seller to take an offer that would be contingent upon them selling their current home, they could sell their house instead to an ibuyer in order to purchase the next home non-contingent.
I just had a case like this, so we tried it out.
The house that needed to be sold was in Los Angeles, and the homeowners were confident about its value being in the low-$900,000s – or at least $900,000. Though it was an older home, it had been updated – and they felt that if it went on the open market that it would sell within two weeks.
The zestimate was $875,000, and when I ran the comps, most were under $900,000.
They pursued a reseller called Fast Offer, and I ran it through my source.
Their guy quoted $830,000, and because they would likely get beat up again once the reseller did a home inspection, they figured their net would be $820,000-ish…..which was insulting!
My automated source processed the address and asked three yes-or-no questions (with my answers):
Have you seen the inside of the property? Yes
Is it a fixer? No
Would you consider a discounted, quick, no-hassle cash offer based on condition? Yes
Their response was immediate:
The home doesn’t qualify.
The ibuyers have to be looking for realistic homeowners with houses that can be flipped easily and for a decent profit. They only have to ask the second question to gauge their chances – unless the homeowner admits that they own a fixer, it’s probable that they would hold out for a retail price…..or higher!
We did discuss that the $820,000 could have been close to the amount that an open-market sale would net. But in this case, the people gave up on buying the next house, rather than be ‘lowballed’ in their mind. Homeowners aren’t going to give it away!
The Compass Bridge Loan will be a better solution – and should be available this month!
I describe the strategy for sellers here, because buyers need to be on alert 12 months out of the year. Why? Because you only care about buying the right house at the right price – which isn’t affected by the general market conditions. You are looking for the one-off.
We saw an example yesterday of a seller who didn’t have a problem finding a cash buyer who was willing to pay 10% below their original list price.
For the homeowners who are fascinated by the idea of selling quick and easy and might take a discount for such a convenience, I can now offer an ibuyer option as well as my retail estimate of value.
The ibuyer quote is from an independent third-party, not from me or Compass, and frankly, I think you should sell using my traditional method because I think you’ll come out ahead in the end. But if you can’t wait, I’ll set you up with an ibuyer who can cash you out right away.
I’m not crazy about the idea, but I think it is inevitable that every realtor will have to offer every option as part of their fiduciary duty to the seller.
I still think it is a conflict of interest for the agent to offer to sell the property traditionally AND make an offer to purchase with their own money.
It’s inevitable that the amount of the commission paid by the seller to the buyer-agent will be made public.
Because the existing rules forbid the MLS companies from disclosing the commission amount to the public, it sounds like the consumer is being wronged. The lawsuits filed against major brokerages are building their case on the lack of transparency about that commission, and when they settle, it’s likely that this will be among the big wins for them – they got the buyer-agent commission disclosed to the public.
Let’s jump ahead.
Once revealed, the public will come to two conclusions about the buyer-agent’s commissions:
The vast majority of sellers offer a 2.5% commission/bounty/reward to buyer-agents to sell their house.
One of the main reasons to set up shop at the La Costa Resort is to help support our efforts in the area.
When my current listing on Segovia came on the market, we were the only house for sale in the area.
But since then, TEN other similar – older one-story – homes have hit the market nearby:
We had listed for $888,000, and with a uniquely large backyard, we thought we had a shot at attracting a buyer who had a vision.
But now that we’re vying with eight others for the next buyer, we had to adjust on price. The house on Cima came on at $899,000, but lowered quickly and found a buyer on Monday – so we did the same thing, and lowered to $859,000.
The number of views has been incredible – there is no shortage of lookers:
Note that there are twice as many views on Zillow as there are on the MLS!
The auto-valuations are close too, so it shouldn’t be long now:
When a flood happens, adjust early and often, because you don’t want to get left behind.
Aisling Swindell was paying so much for rent last year—$2,100 per month to live in a studio in Downtown LA—she figured she might as well buy a place.
“The house I ended up buying was $440,000, which is insane, right?” says Swindell, who works for an online fashion company.
That price tag, which is $178,000 below the median in LA County, sounds unbelievable, especially for what she bought: 870 square feet in the city, plus a little yard, lots of natural light, some stylish updates, and charming, 1930s-era details, like wainscoting and solid wood doors.
But while she’s no longer a renter, she still doesn’t, technically, own a house.
Her $440,000 bought her a share of a larger property: a triplex on an 8,344-square-foot lot in Jefferson Park. Her right to occupy the unit, and her responsibility for maintaining it, are spelled out in a contract with her neighbors, who live in the triplex and, with her, are its joint owners.
It became obvious at the open houses that people didn’t feel the need to explore the backyard – they just looked out from the house to get their feel. But the hedge in the middle blocked some of the view, and to fully appreciate the size of the backyard, you need to see past it.
It’s common that buyers are in a hurry and may not fully explore the potential, so let’s help them with the vision of what’s possible:
One of the main positives about this property is how suitable it is for adding a granny flat, and still have big yards for both. Originally, we thought the hedge might help to differentiate the two possible locations, but if buyers aren’t going to walk out for a look, let’s make sure the extra-large yard is visible from the house!
The other concern is that buyers aren’t used to seeing homes built in the 1970s.
These are literally the oldest houses in South Carlsbad, and $800,000 is the entry-level. The 2019 median sales price within a half-mile of my listing is $1,072,500, so for those who want a larger, newer home with more upgrades (but smaller yard + HOA), they are certainly available – you just have to pay more.
Here’s another example of the 1978 variety – and this is probably our main competition. It has upgrades, but the fancy stuff doesn’t change the floor plan and the yard is almost 5,000sf smaller:
Entry level means sacrifices, and the temporary inconveniences at my listing can all be fixed with money!
People almost instantly separate themselves into posers or players by their comments at open houses, and the remarks today ranged from “you’re nuts” to “this will sell in a week”.
Those who are following the market closely will recognize that the entry-level house in the Encinitas School District today starts around $800,000. Add in the popularity of one-story homes and the general resistance to HOA and Mello-Roos and my listing has many positives.
Here is another comparable home that closed this week that happens to be in the Carlsbad school district (vs the preferred Encinitas school district). For buyers who can live with an funky one-story floor plan on a larger (though multi-level) lot with no HOA or Mello-Roos, this would have been a potential candidate – and it closed for $995,000 (my listing is priced at $880,000):
Segovia Way is in an area of mostly long-time owners and low turnover – people love the area! It makes it harder on buyers though because the comps are few and far between.
I mention in this video tour (with special guest!) that the house is worth $800,000, and the double-sized lot is worth a premium – I say 10%:
Here are my comps that suggest the house alone is worth $800,000:
The last model-match closed for $795,000 and went pending the first week of January, 2017 – two-and-a-half years ago. The San Diego Case-Shiller Index has gone up 10% since:
The last model-match sale was actually this house, but they had added a fourth bedroom without permits. It has the same formica kitchen and dirt backyard, but backed to a very busy six-lane Rancho Santa Fe Rd.
This larger 3br needed work (though everyone should have a toilet near their bed) and was on the main feeder street for the neighborhood – it closed six months ago for $833,000:
This was in original condition and had an old pool that took up most of the backyard. They had multiple offers, and it closed for $850,000 a month ago:
If the house at 3022 Segovia Way is valued around $800,000 in its current condition, how much is the premium for a double-sized lot? Five to ten percent should be reasonable.
Want to compare the other homes currently for sale?
A. Older kitchen, pool takes up most of the backyard. Listed for $925,000:
My listing is the classic case of buyers expecting a discount just because the house is older – but every house is older in this neighborhood! Richard and I will be there 12-3pm this weekend!
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