Market Relist

[CardiffBaseball]

Zip is pretty cool I see one house in Cardiff, (2068 Bullrush Lane) at 2 days on the market for a range of $979k-1,179k.

Trouble is I happen to have visited that home 2 months back. A quick google of that address found an open house scheduled for August, 2005 $1,150k to 1,250k. Remember to use the cached version because the links are often outdated. Another link showed an asking price of 1,350k at one time. Zillow shows the home as being sold in 2003 for 630k. In any case this is an example of market manipulation, by switching agents or something. I’ll speak to some friends a couple of houses down, but if that thing has been on and off the market for a year, the owner is holding out. I was told by a realtor during open house, you could get this house into the 800’s so who knows.

[JJGittes]

I-5 roar for a mill?

[sdappraiser]

How is this ‘market manipulation’? What is being manipulated and what’s wrong with switching brokers if the job is not getting done or your listing agreement expires?

You obviously have incomplete information using zip realty. You are correct, this has been on and off the market several times over the last year and brokers have been switched. It was tenant occupied the first 7 months, which should also be taken into consideration. As far as the price is concerned, the seller may be delusinal but that is their right.

Any serious buyer would be working with a R/E professional who would give them the correct scoop on this. What gets manipulated?

[ocrenter]

what is being manipulated is the Days on Market statistics. Now if Realtors DO NOT use the DOM as an assessment of market health, then this would be a non-issue. However, the great majority of them do. You see it in almost every newspaper article: “DOM remains stable,” “there’s only a slight increase in DOM from 42 to 45 days.” it isn’t as if these Realtors quoting these numbers don’t know how common the practice of relisting is.

one example of a realtor that toss out the DOM as a market indicator is Jim the Realtor from Carlsbad.

But that’s only one realtor out of many! So as long as the majority of the realtors out there still use DOM as an indicator that everything is ok, any re-listing is market manipulation.

[sdrealtor]

Any realtor worth a grain of salt knows DOM is a joke not just Jim. The main reason DOM stats are out there is because people ask for them. Calculating them accurately is nearly impossible. When people ask me I usually say I dont know followed by the statistics say about 50 to 60 days but I beleive 90 to 100 days is probably more accurate.

As far as manipulation goes, relisting may or may not be manipulation. The DOM is representative of how long the home has been on the market under the current listing contract. It’s a legal issue. When the contract expires and the property is unsold a few things can happen.

Extend listing and DOM keeps ticking (no manipulation).

Immediately relist with another agent (No manipulation)

Immediately relist with another agent that is part of the same team(manipulation- one very prominent Carlsbad husband, wife & child team is notorious in this practice)

Immediately relist with same agent (depends- some agents intentionally take short listings 45 to 60 days so they can do this. This is done by a great many of the high volume high profile agents so they can advertise that all their listings sell in 30 days.)

Take off market for at least 30 days and then relist with any agent (no manipulation)

I may have missed a few but it is not a clear cut issue.

[ocrenter]

Any realtor worth a grain of salt knows DOM is a joke not just Jim. The main reason DOM stats are out there is because people ask for them. Calculating them accurately is nearly impossible.

so why is it that when newspapers quote realtors about the DOM, none of them ever qualify it with: “btw, the DOM is a joke because of freq re-list” or “accurate DOM is nearly impossible to obtain.” But instead, it is fed to the newspapers as “a sign of stability.”

[sdrealtor]

To my point, you generally dont hear a Realtor quoted as saying “the market is fine just check out the avg DOM”. The statistic is put out in response to a question. Frankly, I suspect many realtors arent worth a grain of salt and dont realize how bad the stats are.

[Blissful Ignoramus]

Both DOM and price reductions are being played around with. I saw the house I grew up in in Orange County up for $1,089K about a month ago. Now it’s on ziprealty as having been on the market since June 11 (weeks after I saw it listed before), with a price reduction of $999,990 to…get this…$999,980.

[powayseller]

Does it seem like sellers are almost urged to do a price reduction, just so their house gets a “hit” when the search is for houses with price reductions?

[CardiffBaseball]

Well since I am watching Cardiff, which isn't a very big community, it's kind of nice to do this sort of thing with new listings but I am not going to go into the historical listings. <p>

Anyway the latest listing where I see this:
2485 San Elijo Ave. Price: 2,750,000 DOM: 3 (June 22nd List) MLS #:064053577

Google Cache: MLS: 51089400 – 2,900,000
Not sure about this MLS number, here is the link: http://72.14.203.104/search?q=cache:JimLSM4IxGoJ:www.realestatesandiegohomes.com/directory/real-estate/Cardiff_By_The_Sea/51089400/Cardiff_By_The_Sea_51089400.php+2485+san+elijo+ave.&hl=en&gl=us&ct=clnk&cd=5&client=firefox-a

MLS: 051025275 – 3,300,000
http://72.14.203.104/search?q=cache:q_4wx_V36rwJ:www.christie4re.com/MyHomeDtl.asp%3FHomeID%3D233573+2485+san+elijo+ave.&hl=en&gl=us&ct=clnk&cd=1&client=firefox-a

[sdrealtor]

That property has been on the market over 1 year. Most of the time it was in the MLS as an Open Listing which is essentially a FSBO posted in the MLS. It is now listed with a realtor at a lower but probably still over inflated price.

92007BSBL, If you have questions about a property just post it and I’ll answer it for you. It is one of my market areas.

[CardiffBaseball]

I should title this Cardiff info but in any case I see a new one ZipRealty.

1837 Dora Dr.
$799,000-$847,000

This one is particularly painful for the owner because it was FSBO at $847. Now he has not only given up FSBO but listed it with the price dropping around $50k. Add in the costs of the realtor of 4-6% and the shave looks worse.

Zillow shows last purchase in 1995 at $207,000 so the owner can easily afford to wait it out if there is no immediate need to sell. As long as they didn’t go nuts with upgrades and helocs. This is assuming Zillow is correct on the last sale.

I am watching another FSBO on craigslist for 755,000, and he seems pretty anxious to sell.

[sdrealtor]

I dont know whether I would say its painful for the owner of Dora. They tried to beat the system by going FSBO and failed. Their expectations were unrealistic and they have realized they are not going to be successful going it alone. Comps for this 1200 sq ft home are around 750K, if they get anything near that they will have done fine.

The other FSBO you mentioned looks to be a nicely remodelled home the owners have been in for about 5 years. It’s only 1000 sq ft and is on a very noisy street. The highest comps are about 680K. If they were truly anxious to sell they would be priced $50 to 100K lower.

As a buyer the lesson here is that FSBO’s are generally the worst deals on the market. Typically unrealistic sellers with mispriced properties and no experienced licensee to protect both buyer and seller from themselves. The sale in Escondido for Hidden Meadows model home was a perfect example of this. Get good professional help.

[rankandfile]

Is there any way to obtain the cumulative DOM stats, such as how long it was listed and when? The latest DOM do seem like a joke if past listings aren’t considered.

[powayseller]

I agree with that assessment, and would avoid a FSBO. The people who go this route don’t have an impartial person to assist with the negotiation, and in RE deals, emotions get in the way at least once. The first emotion to get in the way is the seller’s ego, and he thinks his house is worth 20% more than it really is, because he feels he is special and thus his house is special, and someone will come along who sees the real value of this unique home and will pay much more than it is worth. Without a realtor to bring in some reality, the first mistake is made: a high price which prevents any showings. Without showings: no offers.

The other emotions that get in the way would be negotiation to fix things, compromises on dates and so on.

I like talking with the seller directly, but I have my doubts as to their ability to make a clean deal on their own home.

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