[quote author="graphrix"]
[quote author="USCTrojanCPA"]As much as I'd like to agree with you graph, I'm thinking that the numbers on that list are probably well above 1,000 today. Two of my buyers are anxiously awaiting a call from the sales offices of Monecito. The fact of the matter is that the lack of real inventory is frustrating the hell out of people who are focused on buying in Irvine and TIC knows this. Think about why they aren't giving any type of buyer's agent commission on these new homes. Compared to buying some of the WTF overpriced resales in the $375-$400/sf range these Woodbury homes are a decent deal in the minds of many Irvine buyers. Perception becomes reality in a market that has less than 2.5 months worth of supply.[/quote]
I don't know if that is the best advice I would be telling people, but to each there own and we will see.
There is more to know about why they aren't offering a co-op commission to agents. They never really needed to, but they offered it out of desperation, and not for the right reasons. They don't need to sell off the entire project in bulk, because, well, they are selling. So no offense, but they don't need you, and they certainly shouldn't be paying you for a job they do themselves. You can give me some spiel about how your buyers get back part of your commission, but your buyers are paying for it.
And even if that list has tripled or quadrupled, it is still pathetic for an entire community. It would be good if it were for one project, but it is not. TIC knows this, and they still aren't offering a co-op, what does that tell you?
I think this community will sell fairly well, but only out of desperation of buyers who believe the hype and RE scare tactics of low inventory. There are only so many buyers in this buyer pool, and once they are gone and have bought homes, they will be gone forever until the next pool gets off the fence when the economics make more sense. And many will regret buying in this community if 5-10 years (sorry Steve), because the resale value will suck when a better product begins selling at the same price point. Think about it, if a better and bigger product isn't selling then that price point only has one way to go... D O W N. Unless TIC changes all their future projects to this product type, there will be no way this price point holds. So they have that option or the option to bring the price point down to the buyer. How many buyers out there for $800k and above? Uh huh, that is what I thought. [/quote]
It's common sense why TIC isn't offering any buyer co-op on these projects, they know they can sell out the projects via their marketing and brand name (not to mention the lack of competing re-sale inventory) without pain of having to pay 2-3% to agents to bring them buyers. They see the same thing that I do...that inventory levels are in the low 400s for resales and new listings are swarmed with potential buyers within days of the properties hitting the market. I too think that their projects will sell out because there is a lot of pent up demand for newer homes in Irvine, especially from the Asian community. You would be surprised at how many buyers there are out there looking to buy a $700k-$900k home, especially in Irvine. Both of my buyers want to buy into the Monetico project and I hope they get the home/lot they want because at the end of the day I want them to be happy with the home that they buy. They are the ones that feel bad for me that after working with them for several months I won't earn any commission, I just want them to be happy. So I don't know where you think I'm sour about TIC not offering any buyer's co-op commish.
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