Kirsten's Sonoma Real Estate Blog

The best agents in the real estate business will not accept over-priced listings for a number of reasons.  One of them has to do with ethical business practices. 

A seller might think smart agents would never list a property at a ridiculously high price because --- duh --- listings that don't sell are bad for business.  Right?   Unfortunately fo sellers, the opposite is true.  There are agents who focus on taking those overpriced listings because doing so can be very lucrative for them.  If an agent "buys" enough listings he or she can successfully leverage those listings....and use unwitting clients....to make quite a lot of money.

Some agents strategically go after overpriced listings because the more listings they have the more they get from other sellers impressed with their significant listing volume.   What sellers don't understand is they are actually being used by the listing agent who is advertising their properties simply for self-promotion and to pick up buyers.

This practice is a disservice to everyone---the seller who anguishes over the property languishing on the market while losing its value,   the buyer who is misled into thinking the listing agent must be a "Super Agent" due to the number of listings they have, and other agents who are committed to delivering the most accurate and realistic pricing guidance to our valued clients.

Sellers:  Beware of the Agent(s) trying to buy your listing! 

Kirsten Lindquist

Real Estate Sales/Acquisitions

Sotheby's International Realty

25 East Napa Street

Sonoma, Ca  95476

707.337.1182

We all know it's stupid to list a property at a ridiculously high price because --- duh --- listings that don't sell are bad for business.  Right?   Wrong.  If an agent "buys" enough listings he or she can successfully leverage those listings....and use unwitting clients....to make quite a lot of money.

Some agents strategically go after overpriced listings because the more listings they have the more they get from other sellers impressed with their significant listing volume.   What the sellers don't understand is they are actually being used by the listing agent who is advertising their properties simply for self-promotion and to pick up buyers.

This practice is a disservice to everyone---the seller who anguishes over the property languishing on the market while losing its value,   the buyer who is misled into thinking the listing agent must be a "Super Agent" due to the number of listings they have, and those of us in this business who are committed to delivering the most realistic pricing guidance to our sellers.   Isn't that our fiduciary responsibility?

While our market in Sonoma County has slowed down for the holiday season, October sales statistics showed some positive news on prices.  The following information is courtesy of The Sonoma County Real Estate Market Trends Report:

After thirty-nine straight months where the median price was lower than the year before, it actually broke even in October at $360,000. The median price for single-family, re-sale homes gained 2.6% from September. The average price rose 3.8%, but it was down 2.3% compared to last October.

Sales of single-family, re-sale homes in Sonoma County rose 4.3% from September. Year-over-year, home sales were off 18%. Year-to-date, home sales are up 12.4% compared to last year.

Condo sales plunged, for some strange reason, down 42.9%, year-over-year, in October. Year-to-date, condo sales are up 27.5%. The median price for condos gained 6.1% from September, but was off 7.4% year-over-year. The average price gained 9.7% month-over-month, and was up 2.9% compared to last October.

The time it takes from when a home was listed for sale to when it was put under contract fell two days to 101 days. The average days on market for condos was flat at 90 days.

The sales price to list price ratio for single-family home fell 0.2 of a point to 97.3%. The condo ratio rose 0.8 of a point to 100%. This is probably the reason condo sales were so slow, because owners were holding the line.

The tables below break-out the real estate statistics for Sonoma County and towns/cities.

For more detailed information on particular Sonoma County neighborhoods, contact me. 

The Sonoma City Council has taken a stand against parents and other adults who provide teenagers with alcohol at parties.  The Council passed a new ordinance that mimics others in neighboring counties, including Marin, where a fine of up to $750 may be imposed on those who violate the rule.  For the story, click on this link:

http://www.sonomanews.com/articles/2009/11/20/news/doc4b05fe8ccd780526410984.txt

I think this is a great move on the part of Sonoma's elected officials.  Does anyone want to weigh in?

I've worked with a terrific mortgage broker here in Sonoma, Susan Reber of Mission Hills Mortgage,  who has helped lots of buyers obtain financing for their purchases.  She also provides a periodic snapshot of the U-S economy which is generally right on the mark everytime.  Here's Susan Reber's update for Thursday November 19th:

"The markets received three pieces of positive economic data this morning, which has interestingly led to a decline in the stock market and an improvement in bond prices.

• The Labor Department reported first time claims for unemployment held steady last week at 505,000. Yes, it is a high number, but this number has been decreasing over the past few weeks.
• The Conference Board reported Leading Economic Indicators rose for the seventh consecutive month, signaling the U.S. economy will continue to grow into 2010, although growth is expected to be restrained.
• Finally, the Philadelphia Fed reported its measure of manufacturing activity rose in November, again indicating economic growth is taking hold.

The bad news came from the housing sector as the Mortgage Bankers Association reported this morning that FHA and prime loan delinquencies were the highest in 37 years of data. U.S. companies have eliminated 7 million jobs since December of 2007 and the reported unemployment rate is 10.2%. This is really the elephant in the room when it comes to determining the strength of any recovery the U.S. economy may experience." 

Should short sales and sales of bank-owned properties be a significant part of every agent's business these days?  How many of you are still trying to avoid them?

They said it was the home they were going to live in for the rest of their lives!

However, after spending $3,000 for comprehensive inspections on a country property in Sonoma, CA, the buyers I represent announced the price they'd agreed to pay was almost 10-percent higher than they felt it was worth.  The condition of the property had not changed since ratification of the purchase agreement.  The inspections had verified obvious deferred maintenance which the buyers had dismissed as "not surprising."  They had obtained final loan for the at the original purchase price and continued to tell me they "loved the property."  So what happened?  

The Buyers said they had recalculated the value based upon a comp that sold across the street two months earlier.  However, since they were aware of that sale prior to their offer, that rationale had some holes in it.  The buyers and I talked about the very different aspects of that "comparable property" and I basically told them it wasn't a good comp at all.   Despite my logic and statistics, they told me to present the sellers with the lower offer. 

The sellers refused it, the buyers canceled escrow, and the property is back on the market.   The sellers had recently dropped their asking price and my buyers had negotiated their contract with them at a deal that was an additional 8-percent below the reduced price.   Agents who knew I brought the buyers asked why they backed out.   I told them they weren't the right buyers for this particular property.  The universal response from the other agents was, "It's another case of Buyers' Remorse."

In today's market, especially when it comes to non-distressed properties, we are hearing a lot about Buyer's Remorse.   So here's a question:  what are the most common causes of Buyer's Remorse? 

I've been participating in monthly surveys conducted by Campbell Communications, based in Washington,D.C.  The questions are very general and intended to provide a broad overview of home sales in several real estate market categories:

1) Market ready REO's

2) Damaged REO's

3) Non Distressed properties

4) Short Sales

Are other ActiveRain members participating?  If so, which markets are you representing?  (I sell real estate in Sonoma and Napa Counties.)     If you are curious: check out www.campbellsurveys.com.