Let’s reflect on recent history, because it’s the only history that is relevant.
Flush with equity, how do home sellers react when faced with adverse uncertainty?
We have recent experience….Covid-19!
In the first couple of months after that drastic game-changing event began, the local real estate market froze up. Full paralysis.
I told Donna, “I don’t know if we’re going to sell another home this year!”
In 2008, the recent purchasers had little, if any, equity and felt deceived by their exotic financing choices. They hit the panic button in an effort to recoup any equity that was left!
There won’t be any panic today. Homeowners are more comfortable than they were in 2008 and 2020 – and they’re sitting on piles of equity. Some might give their house away, but not many. It’s too easy to wait until “it’s a better time to sell”!
Home sales will likely slow as sellers and agents wonder what to do.
But risk and reward ride the same elevator!
Be Bold. Take Action!
We are used to the chaos, and are numb to it by now. There will be more chaos tomorrow, next week, and for the next 90 days. Might as well get on with those plans for your life!
We are in Dallas for two days only and we’ll be back home tonight. We came to the inaugural Summit Event here last year and it was jammed packed with great speakers and information, and this year has been similar.
The CEO of the National Association of Realtors, Nykia Wright, was on stage yesterday, and you could hear a pin drop. Donna and I were both impressed with her humble demeanor and steadfast commitment to turning around the NAR and making it relevant. She admitted many mistakes were made, and that it will be a long-term project.
She made reference to the good things about the NAR, like being the ‘first voice of real estate’ by publishing market data, and advocating for realtors with the politicians, which I appreciate.
Towards the end, she made a baseball reference that summed it up.
“You won’t see us hitting home runs. We just want to hit singles every day”.
Baseballers know that when you’re behind, you just want to get men on base.
It’s a metaphor for the struggles ahead and that gaining the confidence of realtors will be the primary challenge.
What she didn’t mention was the Clear Cooperation Policy, which is ok because other speakers aren’t touching it either. The latest change by NAR that turned it into a four-headed snake is probably the best solution available as we wait for the Department of Justice and/or more lawsuits to dismantle it altogether.
Meanwhile, private exclusives are getting hotter as other brokerages go public:
I was chatting it up with some of the old guard and the disdain for Compass and Robert Reffkin was palpable. I tried to make three points:
The last lawsuit forced Compass to pay $52 million. Let’s avoid a repeat.
More lawsuits and/or DOJ action over the CCP are inevitable.
Buyer-agents are going extinct, so how relevant is the MLS?
Yes, we want to expose our listings to the public. The new change to the CCP allows brokerages to input their listings on their own websites prior to MLS input, so there you go.
The revised CCP policy tries to make everyone happy. But it won’t be enough for the DOJ, and when they say quit, brokerages will be tempted to cut a deal to upload listings direct to Zillow.
But there are 500+ MLS companies in America.
It will be up to the NAR to provide guidance on finding a solution.
Nykia – that’s your challenge ahead.
Whatever you do, don’t hire the same bozo attorneys that were on the last case!
Cutting-edge technology was once a de rigueur residential amenity for any eight-figure listing, along with elaborate home gyms, zero-edge swimming pools and 12-car garages. It’s becoming nearly impossible to find a fridge, toaster or LED light that isn’t Wi-Fi-enabled or voice-activated. But the fully loaded tech compound is suddenly falling from favor as high-end homeowners frantically reset the password to escape the $100 billion home-automation industry.
“Just like the arts-and-crafts movement was a reaction against industrialization, we’re now experiencing a reaction against the smart home. People are looking for more manual, less complicated places to live,” says interior designer Jamie Bush, who has worked on some of Los Angeles’ most iconic architectural residences for studio heads, celebrities and tech titans.
While celebrities like Sofía Vergara were once the smart home’s most vocal advocates — the Modern Family actress gushed about how she controlled her home’s security, appliance and media systems from her phone — the honeymoon period with digital domiciles is now facing the reality of unintelligible interfaces, endless updates and forgotten passwords.
“They could not find a single light switch in the entire home,” says Beverly Hills-based interior designer Carrie Livingston about a sprawling penthouse she was hired to renovate. Her clients had inherited the previous owner’s Crestron automation system, which controlled all overhead, wall and table lighting in response to movement within rooms. “The wife complained that every time she got up at night, her husband would see her path illuminated as she made her way from bed to bathroom,” says Livingston, who has worked with clients including Ralph Lauren, Gwyneth Paltrow and Dasha Zhukova. “Other times, she’d enter a darkened room where the lights wouldn’t go on no matter how much she flapped her arms.” Result: Livingston took out the entire system and installed manual switches throughout, an intricate overhaul that cost more than $100,000.
Similarly, Bush recounts a recent renovation involving “a kitchen with a built-in dining table that rises and lowers from counter to dining height with hydraulics. But to do so, you need a passcode. Otherwise, the table will not move.”
The whole Klinge family is attending the 1000Watt Brand & Marketing Summit in Dallas this week – yeehaw!
One of today’s speakers dove into AI and how agents can use it to save hours of time doing mundane work. But I think everyone could benefit from these tidbits!
As of right now, I’m not one to use AI too much. I usually just ask some simple questions when I’m not in the mood to scour the internet for answers. Most recently I asked ChatGPT the wattage of my microwave by sending in a photo and I also asked why the red light of my blender was blinking. So that just proves how I’m really using AI to save time in my professional life.
One feature of ChatGPT I learned about from today’s speaker is custom GPTs. If you pay for Chat GPT Plus ($20/month), you unlock the ability to create custom GPTs for tasks and topics you repeatedly need assistance with. For example, the speaker hosts a podcast and he created a custom GPT to prepare him for each episode before filming. So now, instead of spending 30-60 minutes researching his next guest, he simply puts in the name of the guest and it produces all the information he needs based on his customization of the GPT.
I thought this was pretty sweet and could be used for plenty of tasks, both work related and not.
My first project: make a custom GPT to help me make our weekly KRG newsletter. I often include upcoming local events and sometimes it takes an annoying amount of time to find events that seem enjoyable, so hoping this makes it quicker. I just did a few rounds of questions and fine tuned the events it pulled by date, location, audience, etc. – so far so good! I’ll keep using it and see how it goes!
If you’re interested in doing the same, here are the steps:
Let’s compare the start of 2025 to previous years.
The last obvious buyer’s market was in 2009, and in the graph above you can see how the supply swamped the demand.
This year, sales have been strong and the supply is still relatively muted. Cash sales are a major driver, and buyers wouldn’t be paying all cash if they didn’t have faith in the environment.
So we’re fine, at least for now.
There won’t be a major panic either – homeowners have too much equity, and not giving it away will feel like the perfect solution for a ‘soft’ or ‘bad’ market. They will just wait until next year.
There should be some great deals made by those who stay in the game and grind out a lowball deal here and there. But they will be rare.
The last downturn was made worse by the exotic low or no-down financing. Most of those who bought in the 2005-2007 era had no equity by 2009, and walking away was common and encouraged by the unscrupulous agents and lenders.
The environment is completely different now.
Everyone was nervous how the market would respond to the doubling of mortgage rates. Three years later, we have survived better than anyone imagined.
We’ll survive the ‘tariff transitory temporary two-step whoop-de-doo market’ too.
We’re not in a buyer’s market is because sellers have to agree to it AND move down on price – if they don’t, then the market is just loitering.
Sellers have the right to hold out on price and either wait for a lucky sale, or hope that market pricing rises up to meet them and their aspirations. The latter has been working for years!
The selling season will run out of gas at some point.
It may have already.
It sure looks like the second half of 2025 is going to be sluggish. Only the gunslingers and crazy people will have much luck then.
So all we have are the next two months.
Mortgage rates will have some influence on the outcome. But the days-on-market will be the main cause of buyer reluctance to paying the seller’s price.
Three-quarters of the current inventory has been for sale for more than two weeks. If those aren’t sold in the next month or two – and their DOM ends up being 60-90 days or more – the chances of them selling in 2025 are remote at best.
Simple tip for home sellers: Decide how much of a discount you are willing to tolerate. Divide it in half, and reduce your price once in April, and once in May. If not sold by the end of June, pack it up and try again next year!
For a buyer’s market to actually happen, it would take sellers to acknowledge it, and act accordingly. Acknowledging it means lowering their price until they get offers, and then cut a deal with one of them.
We’re a long ways off from that happening.
Instead, let’s call it the ‘tariff transitory whoop-de-doo market’ for now.
It’s code for a paused, standoff, you-go-first market.
Previously, buyers hoped for mortgage rates to get under 6% to excite them, but now it’s going to take mid-5s at least to get them to re-engage. It will be too easy for them to pause for at least a week or two to see if the tariff talk scares any sellers to dump on price. Besides, they’ve seen all the current inventory and didn’t like any of it. Not at those prices anyway.
But the drop in rates has stalled. Inflation fears should keep them stalled.
If the rates don’t get the buyers going, then what’s left?
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We sold a home with Jim and Donna and from beginning to end they were consummate professionals. Their initial walk through the property resulted in a list of items to be repaired or updated. They supplied a list of vendors and job quotes to do the repairs and updates. We originally wanted to sell ‘as is’ and just get it over with. They gave us a selling price for ‘as is’ and options for doing a few updates/repairs to doing it all with the selling price for each option. We agreed to do all they suggested and we sold for the exact price they predicted. For every dollar spent we got back more than $2 back in the selling price. And they got that price in a rising interest rate environment! Donna and Jim are extremely detailed and guide you through ever aspect of the sale. There were no surprises thanks to their guidance. We couldn’t be more pleased with their representation.
Thank you Donna and Jim,
Jerry and Mary
Heather Quejada
March 27, 2025
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We have known Jim & Donna Klinge for over a dozen years, having met them in Carlsbad where our children went to the same school. As long time North County residents, it was a no- brainer for us to have the Klinges be our eyes and ears for San Diego real estate in general and North County in particular. As my military career caused our family to move all over the country and overseas to Asia, Europe and the Pacific, we trusted Jim and Donna to help keep our house in Carlsbad rented with reliable and respectful tenants for over 10 years.
Naturally, when the time came to sell our beloved Carlsbad home to pursue a rural lifestyle in retirement out of California, we could think of no better team to represent us than Jim and Donna. They immediately went to work to update our house built in 2004 to current-day standards and trends — in 2 short months they transformed it into a literal modern-day masterpiece. We trusted their judgement implicitly and followed 100% of their recommended changes. When our house finally came on the market, there was a blizzard of serious interest, we had multiple offers by the third day and it sold in just 5 days after a frenzied bidding war for 20% above our asking price! The investment we made in upgrades recommended by Jim and Donna yielded a 4-fold return, in the process setting a new high water mark for a house sold in our community.
In our view, there are no better real estate professionals in all of San Diego than Jim and Donna Klinge. Buying or selling, you must run and beg Jim and Donna Klinge to represent you! Our family will never forget Jim, Donna, and their whole team at Compass — we are forever grateful to them.
Lou F
March 27, 2025
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WeI had the pleasure of working with Klinge Realty Group to sell our home in Carmel Valley, and I cannot recommend them highly enough!
Jim and Donna demonstrated exceptional professionalism, offering expert guidance on market conditions and pricing strategy, which resulted in a quick and successful sale.
Communication was prompt and we were well-informed throughout the entire process.
For anyone looking for a dedicated and knowledgeable real estate team, look no further!
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William Sams
March 25, 2025
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Donna and Jim Klinge of Klinge Realty Group have our highest possible recommendation. From Donna and Jim’s first visit to our house through closing their advice and counsel was candid and honest in all dealings. They kept us fully informed throughout the process. The house sold less than three days after listing with a two-week closing. My wife and I have sold several houses during our lives. This was by far the best experience. Klinge Reality is a premium service realtor. You can’t make a better choice for someone to sell your home fast and for top dollar.
Emily Hernandez
December 29, 2024
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Donna and Jim provided exceptional support and professionalism throughout the entire process. We couldn't have been happier with their efforts. They made our house shine, and thanks to their expertise, it sold above the listing price in the very first weekend! Truly a fantastic experience from start to finish.
Jesus Adrian Sahagun
November 11, 2024
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This year has been difficult on our family, mainly due to having to sell our home. Thankfully we knew God had a plan for us and working with the Klinge team was a key part of it. It was an obvious decision to work with them again after such an amazing experience when purchasing the same home we needed to sell. The challenge was, how will we do this in so little time with so much going on? Jim and Donna held our hand every step of the way. Whenever an unexpected issue arose they found and provided a solution. Never once did we feel pressured to make a decision and the Klinges were always reassuring after providing the information that the decision was ours to make. Despite the curve balls, they never panicked and exemplified the “can do” attitude, making us feel optimistic and taken care of. Their expertise and professionalism was superb. But of all the reasons to work with the Klinges, the most impactful and valuable is their compassion and genuine care for their clients. We pray that we can one day purchase our forever home and you better believe that Jim and Donna will be representing us - as long as they will have us of course. Thank you again Klinge team! Your execution, experience, and care are unmatched.
SABIHA PASHA
July 23, 2024
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Jim and Donna were fantastic! Jim understanding my needs, recommending potential places, pointing out the pros and cons of each property was invaluable. Then when the offer was accepted Donna’s organized guidance through the inspections, paperwork etc made the whole process seem effortless.
So grateful that I had them on my side!
Anu Koberg
July 13, 2024
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We first found Jim through his blog at bubbleinfo.com, which really showcased his knowledge of SoCal real estate. Since then we've done three transactions with Jim and Donna, and they are an incredible full service agency, with Jim's deep market insight and Donna's deft contract and project management. We trust them implicitly in their analysis and strategy, which is based on years of experience. They're always available and on top of things, and we strongly recommend them to anyone.
Bjorn Isachsen
July 10, 2024
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The Good
The Klinge Realty Group operates like a finely tuned machine, with a very personal touch. We contacted them on a Sunday and they were talking to us about our family and our needs on our living room couch the following day. They carefully listened to us and worked with us to identify the best and quickest path to listing within 2 weeks to take advantage of the low inventory conditions in our South Carlsbad neighborhood. They knew our tract specifically and had many previous sales there over the years - they came prepared with a thorough analysis of comparative sales and recommended a pricing strategy that they felt confident would yield offers the first weekend on the market.
The Great
Over the next two weeks Donna coordinated a range of vendors who she knew from experience could get the preparation to list work we needed done on time and with high quality. Our light tune-up involved excellent experiences with their stagers, landscapers, contractors, electricians, and plumbers. Throughout this period Donna's daily communication was clear, concise, and responsive. Any time we had questions Donna picked up the phone or texted immediately - but almost always, she answered our questions before we even knew we had them.
The Outstanding
We had a tricky situation with a shared fence that could have delayed our escrow. Donna used superb mediation skills to negotiate the terms of replacement and was personally on site with the fence contractor to make sure everything went smoothly. The fence looks great and escrow closed on time.
The Truly Exceptional
Our house came on the market on a Wednesday and between then and Monday morning Jim was personally at all three open houses. He was in constant communication explaining potential buyer reaction and strength. As he predicted offers began to come in on Saturday and each one was incrementally higher than the last. At the end we had 5 offers, 4 of which were over list, and the final accepted offer was $100,000 over list. In addition to being over list it included rent back terms that met our needs.
The Recommendation
For all of these reasons we would strongly recommend The Klinge Team to anyone wanting to sell in North County Coastal San Diego. I had been reading Jim's bubbleinfo.com blog for 15 years and knew when the time came to sell that he would be our first call. Jim Klinge is not your standard realtor. He is keenly aware of market conditions and sales strategies. And, works his tail off - though not as hard as Donna . At this point he's gone from realtor to friend and I plan to have him over to grill and chill at our new place to talk real estate, but also just about life and raising kids in San Diego. He's more interested in relationships than his sales numbers - and that's why his sales numbers are so high. We have already recommended the Klinge's to some close friends and another successful sale is on deck right around the corner...
Chris Shea
June 21, 2024
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We recently had the pleasure of working with Jim and Donna from Klinge Realty Group to sell our house, and we couldn't be more satisfied with the experience. From the initial meeting, they listened attentively to our needs and provided invaluable guidance on specific improvements to get our home market ready.
Their responsiveness throughout the entire process was truly impressive. Anytime we had questions or concerns, they were quick to address them, ensuring we felt comfortable and informed every step of the way. What stood out the most was their team and extensive network of tradespeople, which made addressing any necessary repairs or updates seamless and stress-free.
Thanks to their expertise and dedication, our house sold quickly and at a great price. We highly recommend Jim and Donna to anyone looking to buy or sell a home. They are a fantastic team who truly care about their clients and deliver exceptional results.
