sleepy5136
Well-known member
Not trying to defend them, but since I bought a property from them, that saying is for whats in the home. Not necessarily the price haha.aquabliss said:
Serrano Summit | Lake Forest
- Thread starter eddieuclabruin
- Start date
NEW -> Contingent Buyer Assistance Program
I definitely do see homes with good prices in Irvine go into escrow very quickly for resales so I guess it is somewhat warm to hot for the sellers' side. There are very few homes listed also so that kind of might give buyers some urgency with slight going up trend of interest rates before it goes too high again. I don't think it'll go high like 4% territory again like 2 years ago, but we'll see.
BTW, I checked Serrano Summit community just to see how they do and they looked very nice. Baker Ranch reminds me of TIC feel and Serrano Summit more like GP hood.
It won't be impacted much at all unless we get a crash.
Rates having gone up as only affected those buyers there were on the margin/stretching. So instead of 10 offers on a house now there is only 7-8. Rates will have to hit at least the high 3s or low 4s before we see any material impact. There's still a lot of FOMO out there.
Not surprised, other builders have cut their commissions by 1/3% to 1/2% already. I remember in Feb of this year I was still able to get a slight discount on an Amara home along with the $33k commission, how times have changed. But things have a way of leveling out and as soon as things calm down builders will start increasing their commission, it's not a matter of IF but WHEN.
Question - If builder was paying 33K commission in Feb at the time of contract signing but now reduced to 5K, will the agent get 33K or 5k when the transaction closes now?
The commission is based upon what the commission is at the time that the buyer goes into contract with the builder, not what it is when they close or when the agent registered the buyer. In your example, the commission would be $33k even though the current commission is $5k.
Thank you for the clarification!!
They are testing the limits of price hikes to buyers (all the builders are doing this) since there is a lack of inventory and most resale homes fly into escrow in days with multiple offers. Look at Baker Ranch SFR homes, they are trading mid-to-high $500/sf on average.
sleepy5136
Well-known member
I can only speak for serrano summit. The Arieta & Covera properties are selling well. They are even lowering the realtor commission from 3% to 2-2.5% from what I heard.Mety said:
sleepy5136 said:
I definitely do see homes with good prices in Irvine go into escrow very quickly for resales so I guess it is somewhat warm to hot for the sellers' side. There are very few homes listed also so that kind of might give buyers some urgency with slight going up trend of interest rates before it goes too high again. I don't think it'll go high like 4% territory again like 2 years ago, but we'll see.
BTW, I checked Serrano Summit community just to see how they do and they looked very nice. Baker Ranch reminds me of TIC feel and Serrano Summit more like GP hood.
sleepy5136
Well-known member
It'll be interesting to see how the RE market will be impacted due to the correction in the stock market this week.
usctrojancpa
Well-known member
sleepy5136 said:
It won't be impacted much at all unless we get a crash.
sleepy5136
Well-known member
what about interest rates going up?USCTrojanCPA said:
usctrojancpa
Well-known member
sleepy5136 said:
Rates having gone up as only affected those buyers there were on the margin/stretching. So instead of 10 offers on a house now there is only 7-8. Rates will have to hit at least the high 3s or low 4s before we see any material impact. There's still a lot of FOMO out there.
I predict rates are hitting 4s by May/June time frame. Economic report on inflation will come out around May and will probably have inflation at 2.5% or so. Investors are not going to buy mortgage securities that earn them maybe only 1%. They would need a minimum of 4% for it to make sense otherwise they are going to just keep buying T-bills or other investments.
sleepy5136
Well-known member
Probably not a popular community but inquired about Amara residence today and was told commission is now a flat 5k?. Builders getting pretty damn greedy.
usctrojancpa
Well-known member
sleepy5136 said:
Not surprised, other builders have cut their commissions by 1/3% to 1/2% already. I remember in Feb of this year I was still able to get a slight discount on an Amara home along with the $33k commission, how times have changed. But things have a way of leveling out and as soon as things calm down builders will start increasing their commission, it's not a matter of IF but WHEN.
Irvinehomeseeker
Active member
USCTrojanCPA said:
Question - If builder was paying 33K commission in Feb at the time of contract signing but now reduced to 5K, will the agent get 33K or 5k when the transaction closes now?
usctrojancpa
Well-known member
Irvinehomeseeker said:
The commission is based upon what the commission is at the time that the buyer goes into contract with the builder, not what it is when they close or when the agent registered the buyer. In your example, the commission would be $33k even though the current commission is $5k.
Irvinehomeseeker
Active member
USCTrojanCPA said:
Thank you for the clarification!!
sleepy5136
Well-known member
I was initially wondering why there aren?t as many agents bringing buyers to Serrano Summit. Now I see why haha.
sleepy5136
Well-known member
Wanted to ask what people think of Amara now selling for 1.3m non view lot? Anyone thinks it?s going to have issues selling in this market? Builder raised base prices by 30k in one single phase.
usctrojancpa
Well-known member
sleepy5136 said:
They are testing the limits of price hikes to buyers (all the builders are doing this) since there is a lack of inventory and most resale homes fly into escrow in days with multiple offers. Look at Baker Ranch SFR homes, they are trading mid-to-high $500/sf on average.
sleepy5136
Well-known member
thanks for the insight. they didn't have a release for over a month. they also did mention that they are testing the markets. considering it's still < $500 sqft I think it might actually sell. They are also selling what they call "view" lots. But those view lots are all covered by trees and I don't think they have plans to cut them off since the trees are not part of the land they own. Will be interesting if all those view lots are sold despite that.USCTrojanCPA said: