New Listing - Talise Plan 4 detached condo in Portola Spring (116 Soaring Eagle)

NEW -> Contingent Buyer Assistance Program
usctrojancpa

usctrojancpa

Well-known member
I listed the Talise Plan 4 home in Portola Springs earlier this afternoon on MLS. The home was built by California Pacific Homes in 2018 and features 4 bedrooms and 3.5 bathrooms (along with a downstairs bedroom and en-suite bathroom) along with an upstairs loft and 2,119sf of living space.

The home is situated on one of the largest view lots with spectacular city lights and ocean views with a listing price of $2,000,000.

First showings will begin on Monday, May 16th with the open houses next weekend on Saturday, May 21st and Sunday, May 22nd from 1-4pm for both days. PM or email me if you are interested in seeing it. The seller will review all offers on Monday, May 23rd at 8pm.

Here is the Redfin link:
https://www.redfin.com/CA/Irvine/116-Soaring-Eagle-92618/home/169484665

Pictures and the virtual tour are in the link below:

https://my.matterport.com/show/?m=5X5MAU2ZYJ1&hl=0&play=1

If you guys are in the area, drop by to say hello and check out the awesome views.  :)
 
USCTrojanCPA said:
After a few counters, buyer and seller came to terms and we have opened escrow.
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good agents shine in tough markets - well done fellow Trojan.

Can I ask if it went into escrow above or below the asking price?
 
OCtoSV said:
USCTrojanCPA said:
After a few counters, buyer and seller came to terms and we have opened escrow.
Click to expand...

good agents shine in tough markets - well done fellow Trojan.

Can I ask if it went into escrow above or below the asking price?
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It went into escrow below asking price.  The asking price add cushion to negotiate down built into it because there's too much risk in under pricing homes right now.
 
USCTrojanCPA said:
It went into escrow below asking price.  The asking price add cushion to negotiate down built into it because there's too much risk in under pricing homes right now.
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what's the risk in underpricing homes? people assuming they can buy for the lower price and not willing to bid significantly higher?
 
jomama229 said:
USCTrojanCPA said:
It went into escrow below asking price.  The asking price add cushion to negotiate down built into it because there's too much risk in under pricing homes right now.
Click to expand...
what's the risk in underpricing homes? people assuming they can buy for the lower price and not willing to bid significantly higher?
Click to expand...

There are now fewer buyers, so they won't be trying to outbid each other like several months ago. At best, they might bid at asking price. At worse, a lot lower.
 
jomama229 said:
USCTrojanCPA said:
It went into escrow below asking price.  The asking price add cushion to negotiate down built into it because there's too much risk in under pricing homes right now.
Click to expand...
what's the risk in underpricing homes? people assuming they can buy for the lower price and not willing to bid significantly higher?
Click to expand...

Because the market has softened and there may not be enough buyers to push the price back up to the true market price. Better to list around where the home will sell or price with some cushion to negotiate down when dealing negotiating with one buyer.
 
CalBears96 said:
jomama229 said:
USCTrojanCPA said:
It went into escrow below asking price.  The asking price add cushion to negotiate down built into it because there's too much risk in under pricing homes right now.
Click to expand...
what's the risk in underpricing homes? people assuming they can buy for the lower price and not willing to bid significantly higher?
Click to expand...

There are now fewer buyers, so they won't be trying to outbid each other like several months ago. At best, they might bid at asking price. At worse, a lot lower.
Click to expand...

There's more risk in under pricing a more expensive home like this one as the buyer pool is significantly smaller than one around $1m.
 
Buyer's wife got laid off so the buyer won't be able to qualify for the loan to purchase the home so it's back on the market.
 
USCTrojanCPA said:
Buyer's wife got laid off so the buyer won't be able to qualify for the loan to purchase the home so it's back on the market.
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Bank of Martin can't loan them the money?
 
USCTrojanCPA said:
Buyer's wife got laid off so the buyer won't be able to qualify for the loan to purchase the home so it's back on the market.
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Interesting that $2 mill home buyer doesnt have enough cushion to withstand loss of 1 income. I rather not having a home than being home poor.
 
Danimal said:
USCTrojanCPA said:
Buyer's wife got laid off so the buyer won't be able to qualify for the loan to purchase the home so it's back on the market.
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Interesting that $2 mill home buyer doesnt have enough cushion to withstand loss of 1 income. I rather not having a home than being home poor.
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They have enough for the downpayment, the issue is that they don't qualify from a 43% DTI perspective with only one income.
 
I was not working with Martin's buyers, so this IS NOT HIS BUYERS SCENARIO. I'm answering the post by @Danimal

A $2m home with 30% down is about $9,000 per month (PITIHOA) assuming an average 4.5% rate.

Two buyers each with $150kpy incomes, assuming 40% tax burden, brings home about $15,000 net per month. After the mortgage, that leaves $6,000 to spend on utilities, car, car insurance, gas, streaming services, food, etc. It's not a thin margin by any means, but it's not wide enough to give room for error. There may be some RSU or bonus income that comes into play but it can't be relied upon.

If one of two buyers has the rug pulled out from under them, yes it's a pretty risky scenario.

Lenders unfortunately will focus on "Gross Income" for qualifying. It's the Net Income that needs to be the real decision driver. I ask my buyer clients who are just starting to look at their home purchase plans to start "paying" their mortgage now to build financial muscle memory. Example - if rent is $5,000 and Mortgage is $7,000, every time a $5,000 rent check is paid, also put $2,000 in the bank. This does help a buyer get used to the new payment, it builds savings, and demonstrates to an Underwriter that indeed a buyer with tight ratios can make the payment.

My .02c
 
WTTCHMN said:
USCTrojanCPA said:
Buyer's wife got laid off so the buyer won't be able to qualify for the loan to purchase the home so it's back on the market.
Click to expand...

Bank of Martin can't loan them the money?
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Haha  I have already committed capital to help 2 other clients and I only provide short term liquidity plus my interest rates if I were to be a lender would be very high.
 
Seller owns the home free and clear and will just rent it for a few years if they don't get the price they want so not a hugely motivated seller that needs to sell.
 
msuum said:
I am sure Martin will sell it again.
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Definitely house will be sold w/o any issue under Martin. It just amazes me that some buyers are pushing the envelop to get a home they can barely afford especially paying a premium for home with views.
 
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