Menu
Menu

OC REALTORS® Blog

News and Information to Keep You a Step Ahead!

Orange County REALTORS® hosts seven weekly marketing meetings throughout Orange County for members to promote their listings and network. Recently our Huntington Beach meeting, led by facilitator Lori Jones with Central Escrow Group, raised money for another great cause. 

“At our annual review to discuss the Preview Meeting, our group voted on numerous non-profits in our community [to contribute to] which included the Huntington Beach Council on Aging,” said Lori Jones. The Huntington Beach meeting previously raised money for donation to the HB Tree Society

Huntington Beach Council on Aging gladly accepted their donation of $2,000. Ed Pinchiff, president of Huntington Beach Council on Aging, expressed his gratitude for the "kind donation." He offered an explanation of what HBCOA does for the community. "The Huntington Beach Council on Aging (HBCOA) is a non-profit 501 (c) 3 organization which seeks to enhance the dignity and quality of life of seniors.  HBCOA supports local seniors and their families through many beneficial programs including those offered at the Senior Center in Central Park.  HBCOA support includes a wide variety of services, classes, activities, and clubs designed to help seniors stay healthy and active.  Our goal is to assist seniors with maintaining self-sufficiency and independence with dignity." 

When asked what organization would be next up for donations, Jones said “We are now raising money for Catarina’s Club which serves meals and housing assistance to underprivileged children.”


To learn more about Orange County REALTORS® weekly marketing meetings, visit the webpage.

Last modified on

Orange County REALTORS® is dedicated to providing members with valuable market data to utilize in the business. In order to provide a quick glance at the housing market, an OC Market Snapshot for both detached and attached homes will be posted online each month. Members can use these graphics for marketing materials and listing presentations. Be sure to also review the Monthly Housing Summary for a more comprehensive look at the County. For a detailed look at over 180 neighborhoods throughout Orange County, use OC FastStats.

b2ap3_thumbnail_OC_Market_Snapshots_July2018_detached.png   b2ap3_thumbnail_OC_Market_Snapshots_July2018_attached.png

The average of inventory for detached homes was 3.7 months. That is up from last year when it was 3.3 months of supply. Attached homes inventory has increased to 3.0 months compared to 2.2 months in July of last year.

The median sales price has risen since last year for detached homes at $832,000 but is slightly lower than last month ($841,000). Attached homes continue to rise with a median sales price of $515,000 which is up 7.8% from $477,700 last year.

Last modified on

Orange County REALTORS® is dedicated to providing members with valuable market data to utilize in the business. In order to provide a quick glance at the housing market, an OC Market Snapshot for both detached and attached homes will be posted online each month. Members can use these graphics for marketing materials and listing presentations. Be sure to also review the Monthly Housing Summary for a more comprehensive look at the County. For a detailed look at over 180 neighborhoods throughout Orange County, use OC FastStats.

b2ap3_thumbnail_OC_Market_Snapshots_June2018_attached.png   b2ap3_thumbnail_OC_Market_Snapshots_June2018_detached.png

The average of inventory for detached homes was 3.6 months. That is up slightly from last year when it was 3.3 months of supply. Attached homes inventory has increased to 2.8 months compared to 2.2 months in June of last year.

The median sales price has risen since last year for detached homes at $841,000 but is slightly lower than last month ($849,450). Attached homes continue to rise with a median sales price of $517,000 which is up 7.9% from $479,000 last year.

Last modified on

The demand for homes in Orange County is strong, and homebuilders are eager to construct; but available land is scarce. Knowledgeable REALTORS® can supplement their income by locating parcels with potential and making builders or developers aware of them. 

By John Kaye
ARGUS COLLEGE

 

What is land brokerage?
Land brokerage is a highly specialized niche in the real estate business which involves locating and marketing parcels of raw land so that it can be developed for residential or commercial use. 

Can REALTORS® be land brokers?
Absolutely! Fifteen to twenty years ago, the opportunities for REALTORS® to broker land were scarce; but today, because there is so little vacant land in California’s coastal counties, developers and builders welcome the opportunity to learn about available land from REALTORS®. 

Why is the opportunity for REALTORS® greater today?
During the late 1990s, multiple master-planned communities provided a plethora of vacant lots for homebuilders. Today, most of these master plans are completely built out and very few lots are available. Nonetheless, the demand for new homes in Orange County is strong, and homebuilders want to construct as many as four hundred homes a year. In the absence of large vacant parcels, these builders are turning to infill sites. During the late 1990s, they would have wanted a minimum of sixty to seventy-five lots for a viable project. Today, a major homebuilder will buy a two-acre parcel that provides as few as twenty lots. 

Aren’t there experienced land brokers who can fill this role?
In the Southern California residential development industry, six or seven boutique land brokerage firms dominate the transactions between land buyers and sellers; however, these firms tend to focus on the obvious larger parcels in Orange County or the Inland Empire. Finding smaller parcels in built-out submarkets is a bit more difficult because (1) they are small and (2) another use already exists on the parcel. Thus, local REALTORS® have an opportunity to broker these smaller parcels if they are able to recognize their potential. 

How much does a land broker need to know about development?
Just enough to recognize whether a parcel has development potential. Developers and homebuilders have land-acquisition experts who thoroughly analyze and vet potential land opportunities. Even with the most seasoned land brokers, I have found that these acquisition managers prefer to do their own analysis after receiving the basic information from a broker.  

Keep in mind that these land-acquisition managers are very busy. They may be actively pursuing as many as ten parcels and have another forty opportunities on their watch list. They will consider the process successful if they close two or three of these transactions. Developers and builders will look at many, many land opportunities just to find one transaction that is economically viable. 

When I say that a land broker should know “just enough,” I mean that he or she should be sufficiently familiar with the basic characteristics of the parcel to provide essential information quickly and not waste anyone’s time, particularly that of the land-acquisition manager. A land buyer will gladly look through ten to twenty prospective parcels if there is some semblance of potential.  

Are land transactions similar to home sales?
Yes, but only in the sense that you have a buyer, seller, and an escrow process. Beyond that, the land brokerage game tends to be played in a much different manner. Typically, land brokers do not cooperate with one another in any type of Multiple Listing Service (MLS) system. All seasoned land brokers know most of the potential land buyers in their market. And, while some land sellers will have a formal listing with a land broker, many land commissions are paid by the buyers without any land listing agreement. 

How much are land brokerage commissions?
Commissions are negotiable. As an example, for a $5 million land transaction, a 3 percent commission would be right in the ballpark. I have seen aggressive land buyers offer higher commissions to land brokers to ensure that they get first shot at an opportunity. I have also seen what I would consider more narrow-minded land buyers who try to gouge or stiff a land broker.  Once a land broker understands the market and the value of a potential land parcel, commissions can to be protected with written agreements. 

Land brokerage commissions can widely vary. I have seen commissions in the seven-figure range for huge land transactions, or as low as $10,000 for a small parcel. But for the most part, land commissions can be quite substantial. I would not count on closing a land transaction every month; however, closing one or two a year can be quite rewarding. 

How would a REALTOR® get started in the land brokerage business?
For the most part, all you need is a computer, telephone, and persistence; but some knowledge of development will help a land broker be more time efficient and get the attention of land buyers. Argus College has been providing some land brokerage courses at Orange County REALTORS®, including a free session titled Intro to Land Brokerage. We have a five-course online certification program for land brokerage, which provides much of the essential training and knowledge you need to get started in land brokerage. The idea is that you, as the land broker, know what you are looking for and that you also have a sense of what developers and builders want.


Land Brokerage Training

Live Classes:
EXCLUSIVE OFFER: Intro to Land Brokerage - July 30, 10:00 A.M. - 12:00 P.M. in Laguna Hills office (FREE for Members)

Online On-Demand Courses:
Overview of Home Building - FREE
Intro to Land Brokerage - $95
Intro to Land Development - $95
Intro to Entitlements - $95
Intro to Land Acquisition - $95
Intro to Pro Formas (Land Valuation) - $95
Land Brokerage Certification (5 Courses) - $375

 

Last modified on

Glide, a provider of real estate software solutions that empower agents with easy-to-use, secure, and convenient new ways to complete real estate transactions online, today announced a partnership with the Orange County REALTORS® that immediately enables Orange County REALTORS® members to use the company’s popular Glide Forms application. Glide Forms is distributed through a partnership with zipLogix™ and is embedded within the zipForm® Plus transaction management system. Beginning today, agents who are Orange County REALTORS® members can access Glide Forms free of charge via zipForm® Plus

When a real estate agent’s client sells their home, the owner is required to accurately complete and submit a number of deal-critical disclosure forms. As agents know, this means that sellers are presented with forms containing complex legal language that often proves confusing and challenging to complete. As a result, these documents are commonly submitted with incomplete or inaccurate information, causing frustration and needless delays in the transaction process. 

Glide Forms addresses these legacy issues through its TurboTax-style wizard that home sellers can use to accurately, quickly, and painlessly complete required paperwork – such as the Transfer Disclosure Statement and other California disclosure forms – through an intuitive all-digital interface. The wizard asks home sellers questions about their properties in plain language, making it clear how to disclose important details through user-friendly, conversational interactions. In addition to eliminating the frustration of often-confusing forms and delays due to missed questions, unreadable handwriting, and other common issues, Glide Forms allows agents to track their clients’ progress and digitally receive the finished forms as soon as they are completed. The purpose-built solution is also optimized for mobile use. 

“I tried Glide Forms and it was so easy!” said Rita Tayenaka, REALTOR® at Coast to Canyon Real Estate. “I notified my client that she would be getting an email and to complete the forms when she had time. She had previously filled out the paper form but mistakenly answered some questions incorrectly and her writing was hard to read. With Glide Forms the process was much smoother for both her and me.” 

“In our digital age, there shouldn’t be any reason for agents and home sellers to be slowed down by the difficulties of complex and cumbersome forms,” said Sebastian Tonkin, CEO, Glide. “We’re proud of our partnership with Orange County REALTORS® and look forward to its members seeing what Glide Forms has to offer them and their clients.” 

Learn more about Glide Forms

About Glide
Glide provides software solutions that helps real estate agents simplify their transaction process, reduce risk, and close more deals with less effort. The company’s first release, Glide Forms, is integrated into zipForm® Plus and allows California home sellers to complete required disclosure forms electronically for the first time ever.

Last modified on