KOBE AUSTIN - SAN DIEGO LUXURY REAL ESTATE

Waiting For The Market To Get Better? MUST READ!!

2011-04-20T14:50:00.000-07:00

As you can probably imagine, sellers have been telling me that they are, "waiting for the market to get better" for the past 4 years. Unfortunately for many, if not all, the value of their home has fallen lower the longer they wait. It is imperative that potential sellers understand what is happening in "our area" and not follow the national trends. I can tell you that I see three things currently happening:

#1 - Foreclosures are making up a large part of the market (all markets)
#2 - Homes needing to be reduced in price to sell
#3 - Homes selling for less than they did 6 months ago

These are not predictions, rather, three things that are currently happening. When you remove "opinion" and start to deal with "facts", the potential options become very clear.

Is waiting really an option?

Yes - of course it is. Home prices will start to rise at some point, but, please be clear that we are NOT seeing any signs of that happening in the San Diego Metro.
After considering all the market data - I feel there are two "safe" options for sellers and here they are:

#1 - Sell now for what the market will allow in price.
#2 - Be prepared to wait another 6 plus year for prices to come back.

Here's why I am comfortable with this advice. If you are okay with waiting 6-8 years to sell and things get better sooner, you can't loose. I am wanting sellers to stop putting their hopes on unrealistic expectations. Waiting another year or 6 months is a BAD PLAN that is not supported by any reliable data. Please understand that I hear your stories and hardships daily. Real Estate is still in a point of correction and the most important thing you can do is deal with the reality of the situation and make the best choices within the spectrum of reality.

Obviously - each situation is different and we would need to look over your home and what's happening. The best thing you can do is get "realistic" advice.

The good news is that in 2010 - San Diego County sold just over 25000 homes. That means that more homes are selling, but, prices are still declining.

Finally - what does that mean for a buyer? It's simple - if your planning on buying to sell in a few years - bad idea. If you are planning on buying and selling in a decade, you will be okay. Again - the general theme is that the short term is risky.

Just know that I am committed to giving you all straight talk as good or bad as it may be. You'll thank me in the end.

Remember that I have sold 100 homes in the past 3 years and am working this business daily. I just sold my 9th home for the year and am getting great results despite the market. As always - call me if you need me.

Something to consider.

Kobe Austin
www.groupaustin.com

Are You Waiting Until Next Year to Sell?

2010-11-26T09:22:00.000-08:00

I speak to many homeowners in regards to their decisions as far as their homes are concerned. Many homeowners tell me that they are going to wait until the spring or wait a few years to sell. While I completely respect each homeowners decision and understand that is it a hard one, I challenge you to spend a good amount of time researching the risk associated with you decision. From what I can tell, the majority of the reputable sources point to a second wave of declining home prices in San Diego county. If you are planning on waiting to sell, reconsider your "two year plan" and plan for a more conservative outlook. If thing go the way the economists are predicting, you will have planned well. If the market improves faster, you will be sitting in a great situation. This approach is a win-win. Anything less is gambling. Something to consider. See the video below:

KOBE AUSTIN - HOW LONG DOES MY HOME NEED TO BE ON THE MARKET TO SELL?

2010-09-29T15:56:00.000-07:00

I commonly have agents and homeowners ask me how long their home needs to be on the market to get it sold. Please keep in mind that this is not an opinion based question. In other words - you're not looking for one persons opinion versus another. This is information that can be obtained by collecting data and then attempting to attain an average or above average result.

If a home is priced correctly and the marketing is progressive, most homes up to 3 million will sell in less than 45 days. If you have a home priced below 1 million it should sell is less than 30 days. You will see that in some cases homes take months to sell. This happens when a home is overpriced. The price of the home is eventually adjusted and the home sells within days or weeks after it is priced correctly. Here is the data:

Under 500k - Under 20 Days
500k-1 Million - Under 30 Days
1 Million - 2 Million - Under 45 Days
2 Million - 4 Million - Under 70 Days

Data can also be extracted for smaller markets as well and we would be happy to help you if needed. Please don't let anyone tell you that a home in San Diego county needs to sit in the market for months to sell. Not only is this information incorrect - it will most likely cause you to get less for your home.

Kobe Austin

Luxury Real Estate Agent
858-371-1700

Del Mar, La Jolla, Point Loma, Pacific Beach, San Diego, Carlsbad, Encinitas and all San Diego County

DO HOMES SELL IN THE FALL AND WINTER?

2010-09-24T15:35:00.000-07:00

I often have people tell me,"Kobe, we will wait until the first of the year to list the home because nothing is selling this time of year". People usually think that April and May are when most of the yearly real estate is sold and I want to take a moment and address this concept. First off - this theory comes to us from the colder states and here's why. In places like upstate New York, cities virtually shut down as they become covered in snow. In these types of climates, homes sales do tend to drop substantially. In San Diego county, this is NOT the case. Below you will see the number of home sales as they compare from the perceived busy months to the perceived slow months.

April Sales 2009 : 2057
May Sales 2009 : 2033
October Sales 2009 : 1969 Homes
November Sales 2009 : 1561 Homes
December Sales 2009: 1465 Homes

As you can see, the fluctuation in number is virtually insignificant. Even more important is the ratios and how they work to a sellers favor. Statistically - the number of homes on the market does in fact drop which is of significant value to the seller. Would you rather list your home when there are 7 competing properties or 2?

Finally - these home sales are in all price points and show no favor to high or low end homes. Please keep this in mind when considering selling your home. There are 47 homes selling per day in San Diego county in the month of December. Something to consider!

Kobe Austin
Luxury Real Estate Agent

Del Mar, La Jolla, Point Loma, Pacific Beach, San Diego, Carlsbad, Encinitas and all San Diego County

DEL MAR, CA - AUGUST 2010 KOBE AUSTIN MARKET UPDATE

2010-09-23T10:09:00.000-07:00

July sales in Southern California fell to the volume of July 2007 sales. This came as a big surprise as most of us were hoping we had seen the last of the market slow down. Please take note of the main points of interest:

#1 – 2009 “Detached” Sales from January 1st – August 31st
a. Number of “Detached” Homes Sold: 71
b. Average Price of a Detached Home: $1,926,526.00

#2 - 2010 “Detached” Sales from January 1st – August 31st
a. Number of “Detached” Homes Sold: 59 (17% Drop)
b. Average Price of a Detached Home: $1,746,406.00 (10% Drop)

#3 - There are currently 60 homes in various stages of foreclosure in Del Mar

TORREY HILLS KOBE AUSTIN MARKET UPDATE - August 2010

2010-09-23T10:07:00.000-07:00

As most of you know I am passionate about keeping my clients informed as to the market conditions. Below you will find the results from the research done from January 2009 - August 2009 compared with January 2010 - August 2010.

#1 – 2009 “Detached” Sales from January 1st – August 31st
        a. Number of “Detached” Homes Sold: 79
        b. Average Price of a Detached Home: $1,046,266.00

#2 - 2010 “Detached” Sales from January 1st – August 31st
       a. Number of “Detached” Homes Sold: 113 (31% increase)
       b. Average Price of a Detached Home: $1,042,359.00 (1% Decrease)

#3 - There are currently 245 homes in various stages of foreclosure in Carmel Valley

Luxury Homes - Are They Selling?

2010-09-23T09:23:00.001-07:00

I am commonly asked if luxury homes are selling. I am also commonly told (by inexperienced agents) that luxury homes take 6-8 months to sell. As a luxury agent and someone who sells 30 plus homes per year, I am very focused on actual data rather than opinions. The actual data is very clear. If a luxury home (priced between 1 and 2.5 million) is marketed and priced appropriately, it will sell in less than 60 days and in many cases less than 20 days. Selling high priced homes is not a task for the average agent. The buyer pool is much smaller and the reputation of your home is very important. Remember - luxury home purchases are 98% emotion based.

If you have a high priced home and need to sell, should you call a friend or hire an expert?

Kobe Austin

MARKET UPDATE - APRIL 2010

2010-03-31T09:35:00.000-07:00

The market is doing more of the same. Prices are stable in some areas and reseting in other areas. I am seeing high end (800k plus) homes correcting in price and lower priced homes closer or already at the bottom. There are still over 2000 homes selling in San Diego county each month. Each area (Carmel Valley, Rancho Bernardo, ect) has it's own micro climate and I would be more than happy to explain and give you specific data. Call me!

More than a house!

2010-01-30T10:52:00.000-08:00

I met with one of my clients this week. I am selling his house for him. If you only knew all that is happening behind the scenes. I think that real estate agents often forget that behind each sale is a major life change for the client - in progress. Is it good to appreciate this? Yes - however that is not my point. You can appreciate this fact, and, at the same time completely misguide your client. My point is this: real estate needs to be the your agents brain surgery. Your agent needs to be selling 20 plus homes each year in order for them to give families sound guidance and counsel. Giving sound counsel, guidance and keeping clients out of court is just not possible if they are not entrenched in this business. They need to be selling house after house. This is important because the real estate scene is an ever evolving climate. The rules are constantly changing. The means by which buyers buy and seller sell is also changing constantly. At the end of the day, why is this so very important for the person hiring a real estate agent?

The answer: because in this business, in this county, wrong choices can cost you tens of thousands of dollars. I am aware that most agents will never take this business this seriously and although it is sad, it is what it is.

People often say, "why don't you smile in your picture?" I say, "I take this job and the responsibility set before me very seriously. I'll smile after I protect my clients and safely get their home sold".

ETHICS PUT TO THE TEST

2010-01-21T10:12:00.001-08:00

One thing I have learned from selling so many homes is that you are constantly presented with situations that test your ethics and standards. I recently had a short sale that I was selling and also representing the buyer as well. The seller was receiving no monetary gain from the sale of his home (as is the case with all short selling sellers) and because of this was not all that motivated to sell versus letting the home go to foreclosure. The asset manager recommended that I pay this client money out of escrow as a "gift" if it would get him to move forward with the sale. (Keep that I had a large commission on the line). I checked into it and as I suspected, I would need to disclose this amount to all parties and the bank would need to agree in writing to allow this to happen. I asked the asset manager if she could put this in writing and she told me no and that it would need to be done on the side. I did some research on what this all meant and found out that although it happens VERY OFTEN, it is wrong. The bank requires both the agent and the seller to sign an acknowledgement stating that no money was paid to the seller from the agent's commissions. Wow - I was confused. Why was the asset manager telling me to do one thing and sign a document stating that I was doing something else? This is what they call the "gray" area in real estate. For me, it served as a defining moment in my career. I am happy to say that I walked away from a potential 20,000.00 plus in commissions and did the right thing. I chose to post this as a chance for anyone who reads this to learn about how I conduct business. Character is a key factor in selecting an agent and something your should think about when making your decision.

WHY 35% OF ESCROWS FALL OUT AND DON'T CLOSE

2010-01-07T10:23:00.000-08:00

When I speak to a potential client that had previously tried to sell their home and it has fallen out of escrow, they often will tell me that people are having trouble getting loans and the economy is just so bad right now. I can completely understand why they think that and where their perspective comes from. At the same time, the reality is that "economy and loan issues" most likley have nothing to do with the fact that the home fell out of escrow. Is this my opinion? Of course not. I try to not have opinions about most things as opinions are much to subjective.

Here is where I come up with my conclusion:

#1 - In the year 2009, San Diego County averaged 2500 homes sold each and every month (including December)
#2 - These sales represent a wide price point. In other words, the bulk of the sales do not represent a specific price point and not others.
#3 - Most any borrower with a FICO above a 600 FICO can obtain financing.

So - considering these two facts, why has the fall out rate of real estate closings increased? There are a couple reasons. First, because it has become much more dificult to "close" a transction. By that I mean that Fannie Mae, Freddie Mac and FHA tend to require much more documentation and are doing much more in their research prior to funding and closing a loan. Take this and couple it with the emotions that buyers and sellers experience and it usually equals chaos. I wish you could see the craziness that goes on behind the scenes of a closing. My wife often tells me, "It seems like your escrows fall apart 2 times before they close" and she is very right. Now let's play out a typical scenario:

Sally Smith decided after the kids were grown that she wants to make some extra income and she decides to get her real estate license. Flash forward 15 months; if Sally gets average results, she will sell around 2 homes per year. At this point, Sally has sold 2 homes and now she is handling your sale. In the middle of the transaction, she is delaing with all these issues. She is very inexperienced and is getting very flustered and stressed out. When agents get flustered and stressed out, the transaction becomes stressed. The buyers start to get negative feelings about the home and that is precisely when things start to fall apart.

You see buyers buy 80% based on emotion. If the agent cannot handle issues with ease and keep all parties at bay, THE TRANSACTION WILL FALL APART. TRUST ME. I SEE IT EVERYDAY!

I am both proud and thankful for the fact that at the time of this writing, I have closed 100% of the escrows I have opened. Has it been easy, no. Have they fallen apart and then I salvaged them, yes.

Real estate transactions are not easy. They are not basic and they are not simple. I hope I have caused you to think about this "fall out" issue and you will take it very seriously. Your home and capital is at stake!

THE NEIGHBORHOOD EXPERT

2009-08-26T19:49:00.000-07:00

I was recently speaking with a nice man about possibly listing his home. He said to me, "Kobe, it's great that you sell so many homes, but, how many homes have you sold in my neighborhood?" He then preceded to tell me that the last time the home was listed (and didn't sell) it was listed with the neighborhood expert (I won't mention their name). He was convinced that he should re list with this agent because this agent really knew the area. He told me that this agents signs were everywhere. As our conversation progressed, he agreed to meet with me. Prior to the appointment, I jumped in my car and headed to his neighborhood. Upon arriving, I saw one particular agent's glamour shot and slogan on three bus benches . I then headed into the neighborhood and saw that this agent had four signs on the surrounding 3 streets. Wow - I thought, this agent really IS everywhere. I jotted their name down and headed back to the office and ran their numbers. Here's what I found:

3 active listings (houses for sale)
0 Pending (in escrow)
(The fourth sign was a listing that had expired)

In the past 12 months, this agent had sold 3 homes. They had listed 9. That meant that they were selling 33% of the houses that they listed - 3 out of 10. Hmmmm.... Can you see the problem? If I told you that I had a 33% chance of selling your home if you list with me, would you give me the listing? I hope not.

At the same time, in the past 16 months, I had sold 53 homes. I had also sold 96% of all the homes I listed. I won't mention the fact that of those homes, I sold almost all of them for over 95% of the asking price. How many had I sold in that neighborhood (that consisted of 4 streets) - none. The listings I sell range from Carlsbad to Clairemont to Rancho Bernardo. I recently just sold a home 35 miles from my office in 32 days for over 95% of the asking price. I had never sold a home in the general area before. My point is this: when you select an agent, ask the right questions:

How many homes did you sell in the past year?
How many were listings?
What is your average days on market?
What percentage of the listed price did it sell for?

If you get the right answers to these questions, you will get your home sold fast and for top dollar. In closing, I will leave you with this question: How hard is it to buy advertising on a bus bench?

Be careful! You have a lot to loose! Call me if you need to talk or have any questions.

Kobe Austin : CEO : Realtor
The Austin Group
12265 El Camino Real #180
San Diego, CA 92130
858.371.1700
kobe@groupaustin.com

ENOUGH IS ENOUGH

2009-08-24T09:59:00.000-07:00

Agents that give poor service and cost their clients tens of thousands of dollars not only give a bad name to real estate agents, they also make the first two weeks of a relationship with my potential or new clients purely "cath up". People have such a poor image of real estate agents and rightfully so. I know of a woman who has fallen behind on her payments and is locked into a contract with an agent who won't release her from the contract or even call her back. I helped her call an attorney and the time it would take for her to get legally released from the contract is longer than the foreclosure process. Please - STOP USING THESE TYPES OF AGENTS. Be clear that not all agents are even close to being the same. This is the case with all things in life. Most professionals are lazy and don't know how to work hard. If we ever work together, I will always give you the opportunity to fire me at ANYTIME at no cost to you. Please keep reading my blogs and send your friends and family my way. It's time you get the service you deserve and pay for. www.groupaustin.com

CLOSING ON YOUR HOME :

2009-08-23T08:22:00.000-07:00

I recently closed on a property that I had in escrow. The agent that was representing the buyer hadn't sold a home in 7 months and it became apparent during the transaction that this particular agent was desperately in need of getting paid. As the transaction progressed she made comments to me about how she just wanted to close this and get paid. Here this poor buyer is trying to negotiate and get a great deal and they're working with an agent that has no experience in this market and just needs a paycheck. Would you feel good in this situation? When I meet a new prospect or am talking to someone about using my services, I often wish they could see what happens behind the scene as I do. Picking an agent because their your "friend" or for any other reason than your confidence in their abilities is a recipe for disaster. Do your research and read my other blogs. Also - log onto my website and read, "what does an agent really do". You will get clear on some key issues that will help you sell your home for top dollar or buy a home at a great deal.

SAN DIEGO COUNTY : REAL ESTATE MARKET : AUGUST

2009-08-22T19:23:00.000-07:00

The real estate market continues to show signs of improvement. The inventory levels have fallen below four months and have stayed there for a while. The big question at hand is: what is happening with all of the "secret" bank owned inventory that the government is supposedly keeping the banks from putting on the market? I can say this for sure: as soon as the government imposed the "halt" on banks listing their property, things started to get better quickly. As you can imagine, it is easier to sell your home if there aren't ten bank owned properties also on the market at the same time. No one really knows what is happening with the bank owned property. If you know me, you know that I like to deal in "what is", not, "what if". Can you sell your home in this market? Not with a typical part time agent. There are about 5-10 agents in the entire county that I would recommend anyone doing business with. All others are usually part time and sell homes a couple times a year. It's just not possible to provide a valuable service if you only sell a home every six months. Selling real estate is not easy and I am reminded of that everyday. I do know that in the past 6 months, my staff and I have sold 100% of the property we have put on the market. We have also sold it in less than 30 days in ALL cases. In the past 18 months, we have sold 53 homes. Not one has fallen out of escrow - which means I have closed ALL the transactions I have been involved in. Real estate agents are like anything else is life, only a few are worth anything. Call me if you have any questions about the market or what it would take to sell your home.

The TRUTH about the Market!

2008-08-05T09:44:00.000-07:00

Welcome to www.groupaustin.com and I appreciate you taking the time to listen to my thoughts on the current market conditions and how it will affect you. For those of you who don't know, prior to working in real estate I was a host of many radio shows in major cities such as Dallas, Boston, and Los Angeles to name a few. One if the things that I learned from over 10 years in that industry was that there is no regulation over what broadcasters say. This directly relates to the real estate industry because people get 100% of their information about market conditions from the media. I am here to set the record straight. So far this year, I have sold just over 30 homes and the Austin Group is set to sell between 60-70 homes this year. My question to you is how can a team of 5 people sell this many homes with an average days on market of around 45 days if the market is so bad? This market is purging the "get rich quick" real estate agents and those left remaining are the true professionals that get the job done. In my opinion, my ultimate job is to provide sound council to you with the buying or selling of a home. With the economy in dire straits, you need to have a real estate professional in your tool box that you can trust has a brain and will look out for your best interest. We do! I am passionate about bringing back repsect, professionalism and dignity to my industry. I hope this helps clear up and questions you may have about the market in general. If you need more information, call me, not your local news broadcaster. 858.371.1700. Kobe Austin a top ranked real estate agent that services ALL of San Diego County.