Keeping it Real…

CABear

It. Just. Got. Real. Welcome to Real Broker! Specifically, welcome to Real Broker CA. So who is Real?

Your success is Real’s mission.

Real is a technology-powered brokerage for agents who believe innovation is the key to serving clients better & reaching goals faster. In essence, Real is YOU, powered by tech.

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What makes Real different than other tech-based brokerages? I get asked that a lot! Simply, our vision and mission is to, “Always look for ways to make agents lives better”. In other words, unlike other brokers, we built the Real platform for our agents. They are our clients. While we deliver an awesome app for buyers and sellers to find homes, complete valuations, learn about neighborhoods and schools, our tech was built to help our agents deliver these services at the highest level possible.

Now here’s the twist. We also have a platform for independent brokers who may be looking for an exit strategy. Maybe you want to focus on selling and not managing your agents. Perhaps you want to give up the back office admin, compliance, and oversight. Oh, and just maybe you want the best tech platform for your agents. Well I present, “Powered by Real“.

Give your agents a better platform. High-powered tech. 24/7 support and E&O. Better commission splits. Or, if you want to grow your business, consider a branch office operation. Maintain your local branding and autonomy. Offload your agent support to Real. Let us help you recruit the best agents. Earn 100% commission AND overrides on your agents.

No matter what your current business set up is, Real is ready to help. We operate in 26 states, and are up and running throughout the CA market. If you would like more info, want to demo our tech, or just have questions, please do not hesitate to contact me. I’d love the opportunity to share our platform and business model with you. Thanks…and keep it Real!

Jason Lopez
CA Broker of Record
Real Broker
CalBRE #01180851
619-248-6434
JoinReal.com

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San Diego Real Estate Snapshot

Here we are in Q4 of 2017 and the holidays are upon us. Although with temperatures soaring, 90 degrees at the beach and over 100 inland, it feels more like summer in Palm Springs than fall in San Diego. So are real estate prices keeping pace with temps? Let’s take  a look.


As you can see the median price in San Diego is near the 5 year high, currently standing at $539,000. This data represent all property types, areas, and price points. There are a few other data points I like to track as they represent the actual activity that is happening. Whenever I’m asked, “How’s the market”, this is what I think about first, closed units.


Look at that “heart rate monitor” vibe! Over the past 5 years you can see the trend, right? Sales building up on the front end of the year and then sliding back in the second half. What jumps out to me is since 2015 the drop was slightly less then the prior year. In January of 2015 sales bottomed out at 2029. January 2016 was 2113, and January 2017 was 2199. We’ll see what happens this year, but don’t be surprised if the bottom is up a bit.

One of the major challenges facing San Diego, and really all of CA, is the low inventory levels. This has led to rising prices and more competition among buyers. In fact the recent CA Association of Realtors economic report showed that 60% of all sales had multiple offers. Here is the current Active Inventory level.

OK, as you can see it’s been a downhill roll the past 5 years. At the end of Sept. inventory stood at 6101, which represents a 1.9 month supply of inventory, making this a very strong sellers market. Typically our inventory is around 12-15 thousand homes. If you have been thinking of selling, we are at or near the top of the market. One question you might ask yourself is, “Where will I go if I sell and how much will it cost me?” Great question. Affordability in the market right now is in the still historically low interest rates, not prices. Meaning more than likely you will have a lower monthly payment which will save you money over the long run.

New listings coming to the market and the next slide, pending sales, or homes that go under contract are interesting. In Sept. there were 3899 new listings that came on the market. Remember there were 6101 total actives, so new listings made up over half of that! That means homes are selling fast, so as a buyer you must be ready to move when something that meets your needs comes on the market. A strong agent will know about these newest listings first and a really strong agent will know before they hit the market.

Pending sales stood at 3072 at the end of Sept. There were 3899 new listing that hit the market and over 3000 went under contract. Again, this demonstrates how fast things are moving. As a buyer it can be frustrating if you don’t have that great agent out there hunting down that perfect home. Sellers, be prepared to deal with multiple offers, and think about your purchase side as well. I’d be happy to assist or answer any questions, just reach out anytime.

I get asked about this all the time!

Maybe the most asked question I get is, “What are the crime stats in this area?”  That’s a tough one because perception is not always reality.  However, the San Diego Union tribune releases this handy interactive map that shows exactly what is happening and where.  Simply click here to access the map.

 

How would making $100,000 in 7 weeks make your life different?

I know.  I know.  Sounds to good to be true, right?  Well that’s the beauty of selling real estate in S. California.  It only takes a handful of transactions to make great money.  You probably think real estate agents make money hand over fist.  Some do.  But the average agent in California, regardless of experience, sells about 4 homes per year.  Think about that.  How would you feel if you only got paid 4 times each year?  Frustrated, anxious, nervous?  I’ve always said, “If you are only going to sell 4 homes per year, do it as fast as possible and take the rest of the year off”.

So back to my question.  If there was a way you could make $100,000 in 7 weeks, would that interest you?  I sure hope so!  Here’s the answer, it’s called BOLD.  What is BOLD?  Well it’s an intense 7 week course conducted by MAPS Coaching, the coaching company for Keller Williams.  BOLD delivers accountability, and mindset strategies that top agents use to close more transactions.

Here’s what the Maps BOLD website says, “Written by Dianna Kokoszka, BOLD teaches techniques that propelled Kokoszka’s million-dollar real estate career and secured her place as the industry’s “queen of systems and scripts.  BOLD conditions agents with powerful mindset exercises, language techniques, and lead generation activities. This trans-formative program increases sales through the relentless pursuit of leads and business-building activities. Discover the results BOLD will have on your life and career. Choose abundance for your life. Last year, BOLD graduates INCREASED their CLOSED TRANSACTIONS by 50% and INCREASED their INCOME by 114%.”

Let’s have some fun.  The average sales price in my office is right around $450,000.  Using a 3% commission rate that is $13,500 gross commission per closing.  On average agents write 14 contracts during BOLD.  That comes to $189,000 in written business during the 7 weeks of BOLD.  What if you did half that?  Would that be OK?  If so, and you are an agent in San Diego that would like to attend the FREE First Step to BOLD, please register here.  This is open to agents from any office without obligation.

What if my appraisal comes in low?

appraisal2It has been known to happen.  A seller puts their house on the market.  A prospective buyer makes an offer.  The seller accepts it.  Now the real work begins.  Next come the inspections, physical, pest, HVAC, roof, pool, etc.  And if the buyer is getting a loan, the most important one of all…the appraisal!

What is an appraisal?  Well it is basically how the lender determines if the home is worth what they are being asked to loan.  But it’s more than that.  The appraisal is an opinion of value at the given moment.  Huh?  You see, appraisals can change on the fly based on what the market is doing.  As an example, let’s say your appraisal came it at a value of $480,000, and that is what the accepted offer was.  Great we have a deal.  Now let’s say the next day the exact same floor plan closes at  $500,000.  There is a new baseline established and the buyers just benefited by having the equity rise by $20,000.

But what happens if the appraisal on that $480,000 offer came in at $460,000?  The lender is not going to loan on a property that they feel is not valued at the agreed upon sales price.  In essence the seller has to sell the home twice, once to a buyer and then to the lender.  So now a renegotiation between the buyer and seller takes place and typically there are a few outcomes that happen.

  1. The seller can lower the price to the appraised value.
  2. The buyer can agree to pay the difference and bring in more cash.
  3. The buyer and seller can split the difference.
  4. The deal can be cancelled and everyone goes their separate ways.

If an agreement cannot be reached, and the contract included an appraisal contingency, meaning the home had to appraise at the agreed upon price or higher, the buyer can cancel and get their deposit, if any, returned in full without penalty.  It’s also important to remember that an appraisal is an opinion of value in a given moment.  So if a seller had an appraisal done say 3 months ago, the lender will not accept that and will still have an independent appraiser go out.

The last thing to consider is that depending on the type of financing the buyer is getting, the appraisal could be more detailed.  As an example, if the  buyer is getting an FHA or VA loan, the appraiser may “call out” things like chipped paint, structural issues, mold and the systems in the home.  If you are thinking about selling, you need to understand how the financing terms you will consider could affect the appraisal and ultimately the sale.  So it’s not just about price, consider what types of terms will be acceptable to you.

 

Proud to serve

The Pacific Southwest Association of REALTORS (PSAR) recently announced the 2018 Board of Directors.  I was honored to be nominated and elected to serve our members for 2018.  PSAR is an organization that is dedicated to serving our REALTOR and affiliate members and provides a much needed voice to local and statewide matters affecting real estate and home ownership.

According the the PSAR website, “The Pacific Southwest Association of REALTORS® exists to enhance the real estate profession, to protect private property rights and improve the regulatory environment. The Association maintains a leadership role today assuring each REALTOR® member the opportunity to seek new heights in their professional lives. Being a REALTOR® is a source of pride and prestige.

Congrats to all the incoming Board.  For more information please visit PSAR here.