usctrojancpa
Well-known member
incrediblehau said:
I showed that to the same buyer who put an offer in on Comet. The home needed a full remodel and the enclosed sunroom made the yard feel tiny. My buyer had no interest in it.
How to know where value lies today
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NEW -> Contingent Buyer Assistance Program
I showed that to the same buyer who put an offer in on Comet. The home needed a full remodel and the enclosed sunroom made the yard feel tiny. My buyer had no interest in it.
Good luck, USC!
I put in an offer for a friend/client this weekend for a completely flipped home in Placentia. We initially offered $60k over ask and got a best and final counter. The sellers were actually reasonable...only asking for waived appraisal and highest price. We went back with a final offer of $831k ($70k over ask), no appraisal, 10 day inspection contingency, 17 day loan contingency. It's an outstanding offer, but with 30 other offers on the table, you just never know what extent other buyers will go to.
Thanks, good luck to you as well. No word back yet on Comet, my buyers are on pins and needles.
Just got the news that my buyers were outbid. The seller's got $96k over ask and a quick close. Crazy, crazy market!
Yeah, it's not hold and does need remodeling. It probably went slightly over $1m given that my buyer is the first back-up buyer.
Do not be misled by the listing price. At today's market, many seller agents list over $50-$100k below market value to attract interest and create bid wars. That's just a marketing strategy. So $96k over asking is fairly normal and becomes a new trend now.
In this case, the listing agent priced it at 10% over the most recent comp that sold in January. So, they did list at market value, but the market dynamics (low supply, high demand) drove the price up.
I've worked with 4 FTHB's last year and am working with 2 right now. Generally, they're double-income, no kids with around $200k combined gross earnings. At that level, you're not wanting to live in a shit hole, but renting a nice 2bd at $3k/mo doesn't make a lot of financial sense. These buyers are putting 10%-15% down with conventional loans - None have gotten help from their parents. Some have purchased new construction, others have bought older condos and have done light remodeling (floors and painting).
Yes, a couple of them had student loans and car loans! No doubt, it's a tight budget. In this market, it's extremely tough for a FTHB to compete. It's often times easier to buy a new construction home where it's first come, first serve rather than trying to bid against multiple offers.
In today's market, even experienced developers can not predict how high the market could be, so they just let the market play by itself. They used to be price-setter and market maker, making it easier and more convenient for buyers. But now, they want to be a market follower.
First I've heard of this in Orange County as I just got a buyer into a quicker move-in Irvine Pacific home in Orchard Hills, I know it's happening in Las Vegas where the builders open up a phase of 4-8 homes and ask buyers for their best and final offers on the home (sometimes not giving them any kind of price sheet).
What builders should do is do auctions similar to Ebay where the bidding is transparent to get to price discovery (HUD and auction properties are sold in this manner, with buyer premiums).
I showed that to the same buyer who put an offer in on Comet. The home needed a full remodel and the enclosed sunroom made the yard feel tiny. My buyer had no interest in it.
potsticker
Active member
USCTrojanCPA said:
Good luck, USC!
I put in an offer for a friend/client this weekend for a completely flipped home in Placentia. We initially offered $60k over ask and got a best and final counter. The sellers were actually reasonable...only asking for waived appraisal and highest price. We went back with a final offer of $831k ($70k over ask), no appraisal, 10 day inspection contingency, 17 day loan contingency. It's an outstanding offer, but with 30 other offers on the table, you just never know what extent other buyers will go to.
usctrojancpa
Well-known member
best_potsticker_in_town said:
Thanks, good luck to you as well. No word back yet on Comet, my buyers are on pins and needles.
potsticker
Active member
USCTrojanCPA said:
Just got the news that my buyers were outbid. The seller's got $96k over ask and a quick close. Crazy, crazy market!
usctrojancpa
Well-known member
My buyer didn't get Comet, another buyer went higher and removed loan contingency right off the bat. Boy that's risky.
nosuchreality
Well-known member
Did they take down the listing or is that actually a 3/2 1600sf stud gut job for over $1 million that?s 500 feet from Interstate 5?
Okay, it is a one story, but ...
Okay, it is a one story, but ...
usctrojancpa
Well-known member
nosuchreality said:
Yeah, it's not hold and does need remodeling. It probably went slightly over $1m given that my buyer is the first back-up buyer.
talkirvine
Member
best_potsticker_in_town said:
Do not be misled by the listing price. At today's market, many seller agents list over $50-$100k below market value to attract interest and create bid wars. That's just a marketing strategy. So $96k over asking is fairly normal and becomes a new trend now.
sleepy5136
Well-known member
It?s ridiculous what?s happening in the housing market right now. Unless one needs to buy a house immediately, I don?t see the point in bidding percentages over asking. It?s a stupid game and the only winners of this are the agents and the seller. Interest rates at record lows is a great reason to buy now but not a good reason to bid percentages over asking. Hopefully these buyers are planning to stay there for ten years. But there are unfortunately tons of buyers having second thoughts.eyephone said:
qwerty
Well-known member
This market does have all of the makings of a bubble/peak. I would hate to be a first time buyer right now. Presumably this doesn?t impact existing move up sellers as much since they are reaping the benefits on the sell side and just moving those gains to their new home.
sleepy5136
Well-known member
Yeah, FTHB are constantly being outbid by move up/cash buyers. Surprisingly the amount of FTHB is unchanged from last year which is roughly ~30%. I?m actually surprised since my initial thoughts when I graduated would be that millennials wouldn?t be able to buy homes due to student loan balances. But I guess I underestimated their parents financial abilities to help with the down payment.qwerty said:
potsticker
Active member
talkirvine said:
In this case, the listing agent priced it at 10% over the most recent comp that sold in January. So, they did list at market value, but the market dynamics (low supply, high demand) drove the price up.
sleepy5136 said:
I've worked with 4 FTHB's last year and am working with 2 right now. Generally, they're double-income, no kids with around $200k combined gross earnings. At that level, you're not wanting to live in a shit hole, but renting a nice 2bd at $3k/mo doesn't make a lot of financial sense. These buyers are putting 10%-15% down with conventional loans - None have gotten help from their parents. Some have purchased new construction, others have bought older condos and have done light remodeling (floors and painting).
sleepy5136
Well-known member
Do they have student loans? It makes a difference. Regardless if they did or not, a lot of millennials do have student loans after graduation and depending on the amount, it can be very difficult to buy a home and if they were able to do it, they would be on a tighter budget than other buyers. I am a millennial myself and I have a lot of friends who bought homes did receive help from their parents.best_potsticker_in_town said:
potsticker
Active member
sleepy5136 said:
Yes, a couple of them had student loans and car loans! No doubt, it's a tight budget. In this market, it's extremely tough for a FTHB to compete. It's often times easier to buy a new construction home where it's first come, first serve rather than trying to bid against multiple offers.
sleepy5136
Well-known member
I'm not sure with other builders but Lennar recently implemented a bidding process for homes. But the thing with new construction is their sales may be impacted because rates are looking to go up. So you are taking quite a risk unless you can lock in your interest rate well in advance which generally speaking isn't possible for most banks.best_potsticker_in_town said:
talkirvine
Member
sleepy5136 said:
In today's market, even experienced developers can not predict how high the market could be, so they just let the market play by itself. They used to be price-setter and market maker, making it easier and more convenient for buyers. But now, they want to be a market follower.
usctrojancpa
Well-known member
sleepy5136 said:
First I've heard of this in Orange County as I just got a buyer into a quicker move-in Irvine Pacific home in Orchard Hills, I know it's happening in Las Vegas where the builders open up a phase of 4-8 homes and ask buyers for their best and final offers on the home (sometimes not giving them any kind of price sheet).
usctrojancpa
Well-known member
USCTrojanCPA said:
What builders should do is do auctions similar to Ebay where the bidding is transparent to get to price discovery (HUD and auction properties are sold in this manner, with buyer premiums).
sleepy5136
Well-known member
i wish bidding wars were live. so whoever is interested attends and with covid be 6 ft apart. As a buyer, I would hate to give my "best" offer knowing I am only competing against myself. The fact that there is no transparency in this I feel is quite shady.