Laguna Niguel Real Estate Blog

In the next few months it may be time to retire my current vehicle, my SAAB 9-3. Retirement has a few different options, it doesn't mean to totally mothball the vehicle. It simply means that the car will most likely become part of "the beach fleet". Putting a vehicle into beach fleet service is a process that involves the permanent feature of surf racks.


Also, it means that sand will be welcomed onto the floormats. Imagine your favorite airliner being converted into a cargo plane, you get the idea.

That means that before this process is totally complete, I'll be in the market for a new Real Estate G-Ride. I checked out yahoo's list of the new 2008 luxury cars just for fun. Another agent in our area, Lori McGuire, offers an over-the-top promotion with the use of her Lamborghini. She did mention that a totally seperate car is required to transport any luggage.


For the purposes of showing properties and the real estate G-Ride, I'm going to opt for something a little more practical, but it does look fun.

Drop your G-Ride recommendations in the comments section:

Posted by Rory at 6:19 PM | Permalink | Comments | links to this post

Giving points to the OC Register, the recent interview with Real Estate Guru, Phil Immel.


Phil's sentiments shed new light on the market from a top producer standpoint. In the interview, Phil says, "..only one-third of sellers are serious; one-third are testing the market; and one-third are delusional..". The question is, how does Phil draw that conclusion? Here's how, Phil and his team currently have 23-28 active listings. That means that Phil himself talks to a TON of sellers. He has the opportunity to interview them during part of his interview process to win the listing. Part of a good agent's job is to be part counselor, part marketeer, part economist, and part therapist. When he says that 1/3 of his potential clients are delusional, I believe him.

Perhaps the best way to interview the starry-eyed is in comfort, Phil I can tell you where I found this one:

Posted by Rory at 11:47 AM | Permalink | Comments | links to this post

US News and Wold Report Called and Interviewed me about my feelings on Zillow:

I relayed to the journalist that I was previously very critical of Zillow, but that I was starting to change my tune. Ever since the conversation of Zillow's Zestimates becoming more accurate and relevant in the discussion of what a home should sell for; in the ever hard to peg market of Laguna Beach. It's great for me to win back some karma points for Zillow.



I still maintain the view that Zillow is a first step for potential home sellers and buyers. That Zillow's model has an inherent limitation regarding pricing of homes. I believe that the genre filled by Zillow is the AVM. Automated Valuation Models such as Zillow, in my view represent an entry point to the question, "What's My Home Worth?"

That entry point, being automated in all fairness is less accurate on the continuum of the real question on a home value.

Consider a dartboard, with the bullseye being the price tfor which the home actually sells. Ultimately a home seller wants to know what that bullseye price is going to end up being. Let's say that Zillow, and other AVMs sometimes make the mark of hitting the dartboard itself. Pegging a dart into the board is great, because at least the dart is moving in the right direction.

Imagine that actual Comps, or a CMA, from the local MLS without the benefit of a Real Estate Agent's expertise represents a huge leap forward, because these numbers are no longer cloaked behind the algorithm upon which Zillow or other AVMs rely. Some progress can be yielded on the part of a consumer alone, but a Real Estate Agent's assistance in interpreting the numbers within the CMA is extremely valuable. For example, there is a better chance that the Real Estate Agent involved will have some background information on why a home in the neighborhood sold for a lower price. Full time agents are "In The Know" because they do real estate 7 days a week, most of the time that can be the difference between a solid piece of information and a wild guess.

As the Sellsius guys point out all the way from New York; our own OC Register has even helped confuse consumers about Zillow.

Without a Real Estate Agent, home price values are still just guesswork.

Posted by Rory at 7:01 AM | Permalink | Comments | links to this post

When the market gets tough the home builders don't only work with Real Estate Brokers, they embrace them.

If I were to profile a place where someone could move to the beach and get a deal, I'd definitely have to mention the new construction at Saratoga Cove.





Saratoga Cove is in the Capo Beach district of San Clemente, surrounded not only by San Clemente, but San Juan Capistrano, and Dana Point. These homes are on the top of the bluff overlooking Capo Beach.

(Prices Upon Request)
What would you do if you lived here, you ask? Well, last weekend you would most likely be going to Doheny Blues Festival in the Doheny State Beach Park.

Now the developer, NDC the builder of this project has take spiffs to a whole new level with their latest offering. As it turns out, they now are offering the Buyers of the last 5 remaining homes (as well as their agents) a 1 year membership to the very exclusive upscale Monarch Bay Club, in case you're wondering, these are the folks who brought us the St. Regis Resort in Monarch Beach.

Posted by Rory at 4:39 PM | Permalink | Comments | links to this post

If you found the perfect home only to be completely turned off because it was previously occupied by smokers, fear not here is a way to solve the problem from top to bottom. The best defense against smoke residual smoke odor is a good offense.

There are several different methods to remove, purify, or change the environment to neutralize or destroy the smoke smell and nicotine residue clinging to the walls. After doing some research, it appears that a 3 sided strategy may work best.

Part One: The Deep Cleaning:
This forum has a bunch of great ideas first, a common truth is that the smoke residue will tend to collect around small fixtures such as outlets, and also within the air ducts. The Maids is a cleaning service that offers regular home cleaning service, but they also have a deep cleaning service that is designed to root out allergy causing irritants from a house including smoke residue. They also have a move-in move-out cleaning service, as well as furnace filter changing.

Also under the cleaning strategy, should be listed the professional duct cleaners for a given area. I found this one that serves San Clemente. Price quotes that I have found online seem to show that this service can cost a few $200 or $300, but you'll want to get an estimate from a local professional who handles it in your area.

Part Two: Remove and Replace the Smell:
We're fortunate that being by the ocean, it is easy to open up the windows and get some incoming salt air ocean breeze. That's exactly what most of my research suggests. Open the windows often, and keep the fresh air circulating, in time the smoke smell dissipates.

Next, identify any areas that have absorbed and retained extra amounts of smoke. Common suspects include carpet, wood, and drywall. While it isn't necessary to replace all of the drywall or wood in the house, replacing the carpet is a great idea.

The next major and key strategy is to purify the air with an ionizer. Other real estate agents my office use the "Sharper Image Ionic Breeze" and it has been surprisingly effective for them with removing odor.

The final stage of this step is to use candles, air fresheners, and tasty smelling baked goods to replace the smell. Apple pie anyone?

Part Three The Cover Up:
Using baked goods to replace the smell is a crossover technique to the important step, which is to literally cover up any remaining odors. Most of the research that I have read suggests using a product like Febreeze, but more importantly to paint the walls. The key thing is not to just paint over the walls only to have the smoke oder come seeping back through the paint. So for this, use a damp washcloth with some soapy water to treat "problem areas". Then after that dries, use a heavy coat of base primer. Home Depot or Lowes can help you select the right one. There are special interior primers that have that thicker consistency. Then paint with as many coats an colors you desire.

Remember, if the house if perfect don't let the odor bother you, because offensive odor can be eliminated with some effort and time.

Posted by Rory at 7:54 AM | Permalink | Comments | links to this post

Orange County has been buzzing about a rash of ID theft recently. Though I don't like that crime happens, it is a fact of life. This type of crime can effect your credit as well as your ability to buy a home, thus it lands as part of the discussion on the Laguna Niguel Real Estate Blog.

In a previous life, I worked for a company overseeing credit card security. I was part of the team of people who would shut off credit cards if a pattern showed that there was likely fraudulent spending activity. If your last known location was in Laguna, and at the same time someone charged a surfboard to your credit card in Brazil, there would be a problem.

The other day a staff member from my office told me about how her debit card and pin number had both recently been compromised. Though she had her card in her possession, her card had been cloned by ID Thieves who then used it for fraudulent activities connected to ATM machines in LA.

So while this group appeared to use these cloned cards at Fashion Island in Newport Beach, they then went on to resell the merchandise that they bought on eBay.
.

For more information on Real Estate visit, Laguna Niguel Real Estate

Posted by Rory at 5:24 PM | Permalink

The recent 60 Minutes episode about Redfin came across as is was supposed to be some sort of revelation that there is competition in the real estate brokerage space. There have been discount business models and full service business models in so many sectors of business for a very long time. This is no revelation. It is interesting to see that people who use the internet to research their real estate are somehow "in the know".

I think that the latest stats from NAR tell us that 80% or better starts their search for real estate online.

There is a big difference between starting the real estate buying or selling process online; and completing and closing an escrow. Namely, if you were buying a home, wouldn't you like to set foot in the home, and possibly see it several times before you agree to buy it? What about the whole phase of conducting inspections and due diligence?

My point is, that the internet can provide information, but ultimately that information is 2 dimensional at best. To get the feeling, sound, and smell of your new home, you will have to get out from behind the computer.

Likewise, it seems that a real estate agents job can come in several different sizes and flavors as well. I prefer to offer my clients the 3 dimensional approach. I happen to think that it requires several layers of talent, knowledge, and service to deal in the realm of multi-million dollar real estate. I also know that competition makes the consumer win. A fair market of service will ultimately yield several options for the consumer. They will be able to tell the difference of quality vs economy.

The question isn't whether the internet makes real estate agents less relevant, but whether the internet makes 60 Minutes less relevant. Real Estate agents have lately evolved into a rather tech-savvy species, can the same be said for Andy Rooney?

Maybe if more traditional agents were better at showing their value, as Ardell mentions that the dollars apart can go further to grease the wheels of the deal.

How about who is to blame for the woes of poor Redfin?

Posted by Rory at 2:20 PM | Permalink | Comments | links to this post

Forbes.com lists the top 10 overpriced real estate markets. Much to the chagrin of the OC Bubble Bloggers, Orange County did not make the list. Could it be that homes are priced within fair market range in Orange County? Logic says that if you're not overpriced, you're either well priced or under priced. Which one is it?

Posted by Rory at 4:10 PM | Permalink | Comments | links to this post

It may be time to suspend your disbelief for a moment because I'm here to tell you that the Real Estate Market is not only hot, it's on FIRE. Let's look at some examples of how and in what price ranges the inventory is really moving.

Myth #1 The market is soft and slowing for everything except high end listings.
Here are some examples of well priced properties that have flown of the shelves of inventory within the last 3 months:


Sold Price $332,000
Rancho Niguel 760* Sq Ft Condo
On The Market: 37 Days



Sold Price $389,000
Rancho Niguel 908* Sq Ft Condo
On The Market: 11 Days



Sold Price $475,000
Laguna Niguel
3 Bedroom Townhome 1100*+ Sq Ft Condo
On The Market: 18 Days



Sold Price $527,599
Marina Hills, Laguna Niguel Condo 1200* Sq Ft Condo
On The Market: 23 Days

How about homes over 1 Million? Yep, there are plenty that have been snapped up right away.

I can go on and on, for every price bracket there are literally deals being made on constant basis. This really indicates that when listings are priced right, the buyers come out of the woodwork. The number one thing that will convince people to hire an agent is that they think that agent will get them the best price for their listing. At the same time, the number one thing that encourages buyers to make an offer even on a new listing is the idea that they could get a deal.

I can cite examples of these "short time on the market" listings all day. There are handfulls in each price range, and that is just in Laguna Niguel.

While many consumer and agents alike are sitting scratching their heads wondering what kind of market we're all in, the savvy ones are finding deals and putting them together. Perception can be 180 degrees off of reality.

Look at the case of another agent and colleague of mine, Jake Snavely. His goal is to always have a sale in escrow, and right now he has two. One of which was his listing that sold in 5 days.

How about on higher end properties? Of course, it is happening there too. Take for instance in Niguel Shores, on the Ocean Side of PCH, a home that was only on the market 2 days. There the first offer was being submitted within 24 hours of the listing coming onto the market. The listing price was more than 2.1 Million.

It is almost as if by reading the newspaper, you get the sense that they are in an alternate universe. There are deals happening all over South Orange County, and it just takes a little research to find them.

*All Square Footage Numbers are Estimates
**All Pricing, Square Footage, and Days on Market Data Provided by SoCal MLS

Labels: market update

Posted by Rory at 9:12 AM | Permalink | Comments | links to this post

Once again out to spread the fable that real estate agents are useless is Mr. Stephen Dubner, co-author of the unoriginal piece of fiction called "Freakanomics". His claim is that Real Estate agents will go the same way as Travel Agents, and that eventually websites like Zillow will replace us, just as Expedia or Hotwire have replaced travel agents.

Let's look at his fundamentally flawed logic once again, shall we?

First, he bases his conclusion that there is only a need for Real Estate agent, or REALTOR because the sales comps are kept secret in the MLS.

His next assertion comes from the idea that once consumers are empowered with the MLS data, that they can buy and sell their own real estate without the need for a silly real estate agent. Hint: (MLS Data comes from public records)

He essentially tries to make real estate agents seem one-dimensional in their function, that they keep the data secret in the MLS, and they are only good for giving you the comps. After all, when you sell your home on your own, you're perfectly capable of doing an open house yourself, right?

Real Estate Agent VS Travel Agent
Let's look at the function of a Travel Agent:

Use a computer network to assemble a package of travel needs, price quotes, and book the customer's travel itinerary. Also optimize this search to give the client the best possible prices or options. The Travel Agent could book the entire travel and accommodation via the computer network with the client's credit card.

Now Let's Examine the Role of a Real Estate Agent:

For a Buyer:
Use a computer network to assemble the homes in the area, price range, location, square footage, view orientation, including neighborhood and property amenities that meet the client's needs.

Call and arrange appointments to show all of the properties that fit the client's criteria. Assist the client with a critique of the subject properties with respect to other recently sold properties, or active listings currently on the market.

After locating the perfect property, the agent will draft a purchase agreement (offer to purchase the property). In California, this contract is 8 pages long. The purchase agreement is only the beginning, there are a handful of addendums, disclosures, and agreements that are components to the main agreement. This could mean interpreting and navigating the legalese of nearly 20 documents, and that is just to get the process started.

Once the offer is accepted by the sellers, then escrow opens. This means that for a period of several weeks the real estate agent then becomes an advisor to the client, and a legal layer of protection with a fiduciary duty to represent the best interests of the client.
But I digress.

Let's for a moment work from the theory that Mr. Dubner proposes, and pretend that some software comes along that advises a person exactly what choices to make in the decisions of a real estate transaction. It seems that there is already software that offers to help people complete the fairly complex task of completing and filing tax returns.

Did the invention of TurboTax and Tax Cut put CPAs out of business forever? No not at all. CPAs are constantly correcting the tax returns that the software has gotten wrong.

Mr. Dubner assumes that the release of the MLS data, will put Real Estate Agents out of business because buying real estate will essentially turn into a Do-It-Yourself task. This is highly implausible. Even on the East Coast of the US, where the contracts can be much more simple in nature, the Real Estate agent's role is still clearly needed.

For Sellers representation by a Real Estate Agent is more critical than ever.
The idea that selling a home "By Owner" is going to get the top dollar is unlikely if for no other reason than the fact that the For Sale By Owner listing has a mountain of competition going against it. Real Estate Agents are spending big dollars marketing their client's properties.

The key dimension that Mr. Dubner ignores, is the most overlooked fact that sustains his myth. He never mentions that in most cases Real Estate Agents are Full Time networkers. Meaning that they are constantly looking for buyers and sellers. The catalyst in real estate is the real estate agent. The real estate agent connects the buyers and sellers, and navigates the highly complex, logical, legal, and emotional transaction on behalf of his clients.

On the other hand, anyone can write a book.
Right Mr. Dubner?

Posted by Rory at 4:14 PM | Permalink | Comments | links to this post