The San Diego Real Estate Insider Blog

An old scam has raised it's ugly head again in the ever popular La Jolla, Pacific Beach, Mission Beach and Ocean Beach rental markets.

The target: unwary renters.

The bait: vacant property advertised on craigslist, usually at below market rates that generate a lot of interest.

The scam: advertise a property for rent on craigslist at below market rent. Set up staggered appointments to show the property to prospective renters. Collect a deposit check to "take the property off the market" and give the renter a move-in date. Cash the check. Wash, rinse and repeat.

The problem: the property is not for rent. It is a vacant property listed for sale where the listing agent has placed a combination lockbox on the property and disclosed the combination in the MLS. As a result, the scammer has a vacant property to advertise, easy access to the property, and decent odds that the scam can be worked without the owner or listing agent aware of what is happening until it's to late.

The scammed renters often don't know that they have been taken until they show up on the move-in date promised and can't get in, at which point they call the number on the for sale sign that wasn't on the property when they met the scammer, and then learn the truth.

The solution: This is a tough one for renters. Sometimes there are rental deals in this market that seem too good to be true but are legitimate because the owner needs the property rented ASAP. However, if there is a combo lockbox on the property without a sign from a real estate brokerage or property management company, then be aware.

If you are asked to provide either a deposit or a rental application with personal information, ALWAYS ask for ID first. A legitimate landlord, property manager or real estate agent will not object, and will most likely appreciate your concern. We recommend Goin2Travel.com for San Diego beach rentals.

Property owners and real estate agents should avoid using combo lockboxes, but if absolutely necessary, DO NOT disclose the combination in the MLS.

Feel free to search all San Diego homes for sale throughout the county.

With that trademark call, Del Mar race track announcer Trevor Denman, the 2nd most popular Trevor in Del Mar, officially opened racing season at one of the country's premier racetracks.

A record Opening Day crowd of 42,842 was party to the annual 'The One and Only Truly Fabulous Hats Contest' and the debut of the new $9 million Polytrack all-weather synthetic track, designed to be equine friendly and reduce the injuries suffered by horses such as Barbaro. The new surface got high marks, even though the first race run on it was close to 3 seconds slower than average for a six furlough race.

In the midst of the tourist season, which is welcomed by local businesses and disdained by many residents, the racing season also coincides with another high dollar season in Del Mar - the rental season, when rates for San Diego vacation rentals increase by as much as 4 times.

While the fourth parcel of the $50 million Del Mar beach front estate of San Diego money manager Arthur Nicholas closed escrow on May 30 as expected, the name of the buyer caught some by surprise.

When the four parcel beach front compound was originally listed for sale in July 2005 for $50 million, it was done with the condition that all four lots were to be sold together. So with the recent purchase of three of the parcels for $13.15 by Gary Jacobs, son of Qualcomm founder Irwin Jacobs, it was thought by more than a few that it would be a Jacobs on the grant deed for the crown jewel.

Instead it was Rancho Santa Fe’s Madeleine Pickens, widow of race horse owner Allen E. Paulson and wife of corporate raider turned trader T. Boone Pickens. According to The Union-Tribune, Pickens paid $35 million for the property on Ocean Front in Del Mar that features a 5,204 square foot home with 120 feet of prime beach footage and an 800 square foot guest house. It is the highest sale price of any home sold in San Diego County, breaking the 2000 record of $25 million for another Del Mar property just up the beach.

Mrs. Pickens has placed two of her other properties on the market. A home overlooking the Del Mar Racetrack is on the market for $5.5 million and her five acre Rancho Santa Fe estate is listed for sale at $26.9 million.

On CBS the other night, 60 Minutes ran a story that featured a real estate company called Redfin. Redfin is not the traditional real estate brokerage business model and the focus of the story keyed on how commissions are charged by different models. Needless to say, it didn't go over very well with many Realtors who believe that you can't possibly pay enough for their services.

In NAR's May 14th response to the CBS 60 Minutes story, they listed a few issues where NAR felt that the "facts" presented by 60 Minutes were less than accurate.

Here is one such example:

Error: The six percent commission is "sacrosanct."
Fact: All commissions are negotiable. The average commission rate is not 6 percent, but 5.1 percent, according to Real Trends.

After playing Point/Counter Point, NAR then hits on some other points that they believe 60 Minutes misrepresented or overlooked:

NAR supports all business models and favors none. Our 1.3 million members include REALTORS® who work on a full-service basis, as well as those who consider themselves to be limited service, fee-for-service, minimum service, and discounters. We think it's great that consumers have a choice today.

The used the following labels:

• full service
• limited service
• fee-for-service
• minimum service
• discounters

All but the last one, 'discounters', refers to service. 'Discounters' refers strictly to commission. Why even have it on that list?

When you state that all commissions are negotiable, but then use the label 'discounter', just what do you think is implied?

Feel free to search all San Diego homes for sale throughout the county.

It appears that the previous record sale of $25 million for a San Diego County property is about to be shattered.

According to the Union Tribune’s Roger Showley, Gary and Jerri-Ann Jacobs have closed escrow on three of the four parcels that make up the beach front estate on Ocean Front in Del Mar for $13.15 million. The fourth parcel is the most valuable and is scheduled to close at the end of the month. While the main home boasts only 5,204 square feet, it does enjoy 120 feet of ocean frontage.

Previously part of the Scripps estate, Arthur Nicholas, of San Diego based money management firm Nicholas Applegate, who bought the property from the Scripps family, put the property up for sale in July of 2005 for $50 million with the condition that all four parcels be purchased together.

Local real estate industry speculation put the total sale in the mid $40 million range, which would easily surpasses the previous record set in 2000 for another Del Mar ocean front property.