Ready2Downsize
Well-known member
USCTrojanCPA said:
Is an escalation clause something like we will match or beat by x the best offer up to y amt?
Where the market is - Buyer Offers
- Thread starter usctrojancpa
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Is an escalation clause something like we will match or beat by x the best offer up to y amt?
Are FCB in the equation here? I mean in general, not just for this home.
Initial offer X, will beat the other best bona fide offer by Y amount up to Z. Usually ask seller to show proof of the bona fide offer.
However, unethical sellers or agents can easily create these bona fide offers to force escalation to maximum. So might as well as offer maximum without escalation clause.
Unless you want to do a escalation clause with all cash and without cap, waive all contingencies. Then you are very likely to win.
In my transactions I would say very very few. Specially for China it is near impossible to get money out without a tremendous amount of fees and illegal activity. At this point too, I'm not sure any Chinese people want to buy in the US with COVID etc.
I've seen a handful of offers from FCBs on my listings but the money was already sitting in Chinese friendly US banks (Cathy Bank, Sterling Bank, East West Bank, etc).
I would say it would be even more strict if you're trying to transfer from mainland China to the US. It's already hard right now so I don't see this changing in the near future.
There are ways around those limits but it costs money and takes effort...think Hong Kong and/or HSBC. Also, many FCBs use those chinese US banks to get asset based loan (LTV < 50%) with 3-5 ARM loans with interest rates around 2% higher than market. My guess is that within that time period they can transfer over enough cash to pay off the loan in full.
Oh come on! That Kingsford Ter situation really sucks. I love that tract too. Maybe you'll find another one up there!
Just wasn't meant to be. I will keep an eye out open for any other interesting listings in Quail Hill, Turtle Rock, and Turtle Ridge.
The listing agent definitely underpriced it given that 64 Rising Sun recently closed for $1.132m. Not sure it's $100k under priced but I guess we'll find out soon enough.
https://www.redfin.com/CA/Irvine/64-Rising-Sun-92620/home/5958994
Wow, it went for $1.132M even with a .5% BAC! The problem with this Portisol model is that it feels really small and cramped inside (2 stories @ 1785 sq ft). The outdoor space is well above average though. The Plan 2s have a much nicer feeling to them.
Well, my client didn't get the home. We offered $1,161,000 with an escalation clause up to $1,181,000 as an Addendum to the offer as I've been seeing more sellers just taking the top offer off the bat with no counter (which is dumb because best & final counters can result in a higher sales price).
Is an escalation clause something like we will match or beat by x the best offer up to y amt?
Ready2Downsize
Well-known member
Sidehussle said:
Are FCB in the equation here? I mean in general, not just for this home.
Ready2Downsize said:
Initial offer X, will beat the other best bona fide offer by Y amount up to Z. Usually ask seller to show proof of the bona fide offer.
However, unethical sellers or agents can easily create these bona fide offers to force escalation to maximum. So might as well as offer maximum without escalation clause.
Unless you want to do a escalation clause with all cash and without cap, waive all contingencies. Then you are very likely to win.
Ready2Downsize said:
In my transactions I would say very very few. Specially for China it is near impossible to get money out without a tremendous amount of fees and illegal activity. At this point too, I'm not sure any Chinese people want to buy in the US with COVID etc.
usctrojancpa
Well-known member
Cares said:
I've seen a handful of offers from FCBs on my listings but the money was already sitting in Chinese friendly US banks (Cathy Bank, Sterling Bank, East West Bank, etc).
Ready2Downsize
Well-known member
I was wondering if they were even here due to Covid. So do you think it will be hard in the future to get the cash here after they return post covid? Could REALLY make the market difficult for others.
sleepy5136
Well-known member
I can speak from my relatives experiences who bought a home recently and have outside $$ from China. But keep in mind this is only related to $$ from Macau and not mainland China. In a nutshell, depending on what bank you have, they have different rules/policies. For example, one bank only allowed deposits of < 50k. If it exceeds, one will need to provide proof on what the funds will be used for. If it's to buy a home, they will need a letter from escrow. So as you can see, it wouldn't be possible to do that in this market. You could probably do multiple transfers of increments of $45k or something but it could look suspicious and the donors accounts may be flagged. Bank of China also had a 50k limit before needing to provide proof of purchase.Ready2Downsize said:
I would say it would be even more strict if you're trying to transfer from mainland China to the US. It's already hard right now so I don't see this changing in the near future.
usctrojancpa
Well-known member
sleepy5136 said:
There are ways around those limits but it costs money and takes effort...think Hong Kong and/or HSBC. Also, many FCBs use those chinese US banks to get asset based loan (LTV < 50%) with 3-5 ARM loans with interest rates around 2% higher than market. My guess is that within that time period they can transfer over enough cash to pay off the loan in full.
Put in offers for
https://www.redfin.com/CA/Irvine/28-Fanpalm-92620/home/28931864
Rejected off the bat because sellers are looking for asking price or higher. This is a vacant vacation home for them and they are pretty wealthy and don't need to sell. They are holding out for the right price.
https://www.redfin.com/CA/Irvine/29-Cassidy-92620/home/28931872
Working on counters right now.
https://www.redfin.com/CA/Irvine/75-Crater-92618/home/167386296
House is well maintained and tastefully upgraded but highly overpriced. Offered under asking, let's see how it goes.
20 Gazebo is still sitting there on the market with the agent stubbornly telling everyone to raise their price but never went into escrow for 1 month now.
https://www.redfin.com/CA/Irvine/28-Fanpalm-92620/home/28931864
Rejected off the bat because sellers are looking for asking price or higher. This is a vacant vacation home for them and they are pretty wealthy and don't need to sell. They are holding out for the right price.
https://www.redfin.com/CA/Irvine/29-Cassidy-92620/home/28931872
Working on counters right now.
https://www.redfin.com/CA/Irvine/75-Crater-92618/home/167386296
House is well maintained and tastefully upgraded but highly overpriced. Offered under asking, let's see how it goes.
20 Gazebo is still sitting there on the market with the agent stubbornly telling everyone to raise their price but never went into escrow for 1 month now.
irviniteeee
Active member
USCTrojanCPA said:
Oh come on! That Kingsford Ter situation really sucks. I love that tract too. Maybe you'll find another one up there!
usctrojancpa
Well-known member
irviniteeee said:
Just wasn't meant to be. I will keep an eye out open for any other interesting listings in Quail Hill, Turtle Rock, and Turtle Ridge.
usctrojancpa
Well-known member
I made an offer for one of my buyers on this listing tonight...
https://www.redfin.com/CA/Irvine/22-Rising-Sun-92620/home/5959132
https://www.redfin.com/CA/Irvine/22-Rising-Sun-92620/home/5959132
usctrojancpa
Well-known member
akula1488 said:
akula1488 said:
The listing agent definitely underpriced it given that 64 Rising Sun recently closed for $1.132m. Not sure it's $100k under priced but I guess we'll find out soon enough.
https://www.redfin.com/CA/Irvine/64-Rising-Sun-92620/home/5958994
iacrenter
Well-known member
All these listings on Rising Sun gave me flashbacks from 2007 and IHB:
https://www.irvinehousingblog.com/2007/03/30/land-of-the-rising-sun/
https://www.irvinehousingblog.com/2007/03/30/land-of-the-rising-sun/
woodburyowner
Well-known member
USCTrojanCPA said:
Wow, it went for $1.132M even with a .5% BAC! The problem with this Portisol model is that it feels really small and cramped inside (2 stories @ 1785 sq ft). The outdoor space is well above average though. The Plan 2s have a much nicer feeling to them.
usctrojancpa
Well-known member
USCTrojanCPA said:
Well, my client didn't get the home. We offered $1,161,000 with an escalation clause up to $1,181,000 as an Addendum to the offer as I've been seeing more sellers just taking the top offer off the bat with no counter (which is dumb because best & final counters can result in a higher sales price).
Offered $1.02m on this:https://www.redfin.com/CA/Irvine/101-Island-Coral-92620/home/112723630?2093706699and it sold for $1.1m
Really hard second guessing if my goal of getting a newer (2010+) property with a medium yard (not a tiny patch of concrete) under $1.05m is realistic.
Looking at:https://www.redfin.com/CA/Irvine/274-Crescent-Moon-92602/home/167412428?2093706699this weekend and think this is probably going to go even higher.
Really hard second guessing if my goal of getting a newer (2010+) property with a medium yard (not a tiny patch of concrete) under $1.05m is realistic.
Looking at:https://www.redfin.com/CA/Irvine/274-Crescent-Moon-92602/home/167412428?2093706699this weekend and think this is probably going to go even higher.
Opening escrow on:https://www.redfin.com/CA/Irvine/28-Fanpalm-92620/home/28931864
Closed escrow on:https://www.redfin.com/CA/Irvine/23-Shellbark-92618/home/39976841
$860,000 for a 2BR attached condo. Quite crazy but the identical model match sold for $870,000 the same week.
Closed escrow on:https://www.redfin.com/CA/Irvine/23-Shellbark-92618/home/39976841
$860,000 for a 2BR attached condo. Quite crazy but the identical model match sold for $870,000 the same week.