Your San Diego Real Estate Resource
Jennifer St.Clair

Baby can you spare a 3% commission?

In the San Diego Real Esate market we are faced with multiple offer situtations with all our our buyers in the below 500K price range unless there i something really wrong with the home. This creates a dynamic where agents and buyers are frantically rushing from one new listing to another as soon as they pop up writing offers on anything that closely resembles their requirements even sight unseen.

This also has created a dynamic where listing agents and their clients, due to the demand, have decided that they are cutting their commissions so it is not uncommon to see 2% to 2.5% CBB.  At the higher price points this is not as challanging but when you have a 100% VA 1st time home buyer that fell in love with a $200K home paying 2% CBB after you have taken them to view 70 homes and written offers on 10 properties this quickly becomes a huge issue! We buyer’s agents ought to be paid more in this crazy market! At the very least we ought to be earning the standard commission!

Through my networking I have access to investors with pre-MLS listings that only pay 2%CBB and I require my buyers to bring 1/2% if they want to shop these homes.  This is a solution that has been accepted by every buyer and, though it still isn’t 3%, it is only a 16% redution in CM instead of a 33%.  I have one investor client who pays only 3.5% total CM because he can!  That’s 1-1.5% to listing agent and 2-2.5% to the selling agent.  I’ve never been one in all my 25 years of sales to cut my commissions, yet in this crazy marketplace who

Personally, I have focused as much time and energy into developing relationships with asset managers, top agenicies and investors as I do prospecting because it doesn’t help to have 20 qualified buyers if there is no home to sell them. This has been a successfull strategy with my last wo buyers getting their first offer accepted.

San Diego may not be a unique marketplace right now but we sure have to get creative to service out clients needs these days.  It’s about adaptation and change, creativity and perseverance.  Baby can you spare a 3% commission?

Games People Play in the wild, wild West!

Have you heard what is going on in the San Diego housing market?  A feeding frenzy of frantic investors and first time home buyers all trying to get their little slice of heaven before the market turns and the tax credit expires.   It is common to see 50 or more offers on any bank owned property within two days of listing on the MLS.  Even short sales are getting multiple offers in record time.   Open houses are drawing people by the scores!   We are down to only 2 months worth of housing inventory compared to over 10 months worth one year ago!  It can only get crazier as we near the deadline unless a wave of foreclosores hits the market.

So we San Diego Buyers Realtors find ourselves in the uncomfortable position of competing with dozens of other offers, making offers well above what the home could ever possibly appraise for just to get ours client’s offer accepted. In this marketplace it’s who you know and to be an agent with a reputation of getting the deal done. I have been networking with investors and that has opened up opportunities for my buyers to bid on properties pre-MLS.  One other deals I call and have a frank discussion with the listing agents and let them know I am not interested in making frivolously high offers that will not appraise, but I AM interested in bringing them a solid buyer that will perform. Those flowery cover letters of yesteryear do not work in the San Diego market right now. This frank talk has worked very well getting my offers accepted but I still had to offer 30K above the nearest comp (100% VA financing). Let the games begin!

It’s the wild wild west out here right now and you’ve got to saddle up and get creative, riding with guns blazing!  Folks are staking their claim to their little slice of heaven and who wouldn’t want to live in America’s Finest City.  And BTW, the Mythical Green Flash is real! I saw it myself for the first time recently while enjoying a La Jolla Sunset. Life sure is sweet!