Talk Irvine

General => Real Estate => Irvine Real Estate => Topic started by: USCTrojanCPA on March 20, 2021, 08:55:38 PM

Title: Where the market is - Buyer Offers
Post by: USCTrojanCPA on March 20, 2021, 08:55:38 PM
I got some good feedback from some of the folks on here from my post where I listed out the offers that I made on behalf of my buyers.  This should provide some good insight as to what is going on in the market for everyone from a buyer's perspective.

Today I submitted offers on the following 3 properties...

https://www.redfin.com/CA/Irvine/11-Pollena-92602/home/5814724

https://www.redfin.com/CA/Mission-Viejo/26261-Verona-Pl-92692/home/5031784

https://www.redfin.com/CA/Irvine/43-Garden-Ter-92603/home/5901366

Offers on the first 2 homes were materially over the list price while the offer on the last home was under the list price as it's been sitting on the market for a while.  Hopefully I can help all 3 buyers get these homes.
Title: Re: Where the market is - Buyer Offers
Post by: Cornflakes on March 21, 2021, 12:30:15 AM
I got some good feedback from some of the folks on here from my post where I listed out the offers that I made on behalf of my buyers.  This should provide some good insight as to what is going on in the market for everyone from a buyer's perspective.

Today I submitted offers on the following 3 properties...

https://www.redfin.com/CA/Irvine/11-Pollena-92602/home/5814724

https://www.redfin.com/CA/Mission-Viejo/26261-Verona-Pl-92692/home/5031784

https://www.redfin.com/CA/Irvine/43-Garden-Ter-92603/home/5901366

Offers on the first 2 homes were materially over the list price while the offer on the last home was under the list price as it's been sitting on the market for a while.  Hopefully I can help all 3 buyers get these homes.

My guestimate is that Pollena home would go 100k above asking. And if there is serious bidding war, upto 150k above asking.
Title: Re: Where the market is - Buyer Offers
Post by: irvinehomeowner on March 21, 2021, 05:37:34 PM
Oh the Irvine pain!!!! :)
Title: Re: Where the market is - Buyer Offers
Post by: greatname on March 21, 2021, 09:05:39 PM
I got some good feedback from some of the folks on here from my post where I listed out the offers that I made on behalf of my buyers.  This should provide some good insight as to what is going on in the market for everyone from a buyer's perspective.

Today I submitted offers on the following 3 properties...

https://www.redfin.com/CA/Irvine/11-Pollena-92602/home/5814724

https://www.redfin.com/CA/Mission-Viejo/26261-Verona-Pl-92692/home/5031784

https://www.redfin.com/CA/Irvine/43-Garden-Ter-92603/home/5901366

Offers on the first 2 homes were materially over the list price while the offer on the last home was under the list price as it's been sitting on the market for a while.  Hopefully I can help all 3 buyers get these homes.


I saw the last one. it was a hassle to get to see as the selling agent insisted on proof of funds beforehand, which was a turnoff. I thought the house was older than its "biological" age. Maybe with some remodeling  might be ok. I did not put an offer.
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on March 22, 2021, 09:16:21 PM
Quick update on the homes...

Got my buyer the 11 Pollena home with a strong price and aggressive terms (no appraisal and no loan contingency and removal of all contingencies in 9 days) with a 24-hour response deadline.  The seller was supposed to review all offers (they had 9) on Tuesday.  They also wrote a nice letter to the seller that they could really relate to and I've worked with the listing on a few previous transactions which went very smoothly.  Having good working relationships with agents does matter!

Got outbid on the Mission Viejo.  My buyer bid $1.19m on the best and final counter but got outbid with someone offering $1.25m (crazy high for that home).  There were 6 offers on this home.

Also ending up getting the Garden Terrace home for my client after a round of counters with a very stubborn owner/listing agent.  She was going to take the home off the market this coming week to do upgrades and then re-listing it in 2-3 months for $2.75m. 
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on March 22, 2021, 09:19:10 PM
I made an offer above the list price for this Tustin Ranch home earlier tonight for another buyer....

https://www.redfin.com/CA/Tustin/10650-Costello-Dr-92782/home/4774377

They are reviewing offers on Tuesday and we'll probably get a best and final counter unless some motivated cash buyer came in with a high bid.

Title: Re: Where the market is - Buyer Offers
Post by: HMart on March 23, 2021, 02:00:36 AM
Enjoying this thread and seeing your thought process, as well as the deal terms (to the extent you feel comfortable sharing). Thanks!
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on March 23, 2021, 09:44:58 AM
Enjoying this thread and seeing your thought process, as well as the deal terms (to the extent you feel comfortable sharing). Thanks!

Yeah, I got some really positive feedback from a few folks on here when I posted about the offers that I made on 4 homes in the other thread so I figured it'd be informative to everyone to see home by home on how competitive the market really is and what it takes to get my buyers into escrow.  Obviously I'll share as much information without putting my buyer's offer at a disadvantage.  I will share more information on each of the homes as we get closer to the finish line. 
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on March 23, 2021, 09:51:47 AM
I made an offer for another buyer on this home back on March 3rd and it was interesting on it played out.

https://www.redfin.com/CA/Irvine/104-Summer-Lilac-92620/home/112721589

I told my buyer that a fair range price for this home was $1.475m to $1.5m.  So we started with an initial offer of $1.475m with no appraisal contingency and removing all contingencies in 14 days along with a 40% down payment.  My clients were ready to potentially go up to $1.5m on a best & final counter.  The listing agent texts me the next morning and apologizes to me saying that his seller accepted a slightly higher offer than ours despite him strongly recommending that they at least do a seller multiple counter to the top 2-3 buyers (we had the 2nd highest offer).  I think the home will close right around $1.5m.  The takeaway from this experience is don't hold back too much on your initial offer because you may not get another chance to bid higher. 
Title: Re: Where the market is - Buyer Offers
Post by: talkirvine on March 23, 2021, 11:40:32 AM
I made an offer for another buyer on this home back on March 3rd and it was interesting on it played out.

https://www.redfin.com/CA/Irvine/104-Summer-Lilac-92620/home/112721589

I told my buyer that a fair range price for this home was $1.475m to $1.5m.  So we started with an initial offer of $1.475m with no appraisal contingency and removing all contingencies in 14 days along with a 40% down payment.  My clients were ready to potentially go up to $1.5m on a best & final counter.  The listing agent texts me the next morning and apologizes to me saying that his seller accepted a slightly higher offer than ours despite him strongly recommending that they at least do a seller multiple counter to the top 2-3 buyers (we had the 2nd highest offer).  I think the home will close right around $1.5m.  The takeaway from this experience is don't hold back too much on your initial offer because you may not get another chance to bid higher.

How about this strategy for buyers. The first day, search online and narrow down to 10 houses to visit in person the second day. On the second day, visit all 10 houses. If there are 8 houses the buyer likes, then submit 8 offers for all 8 houses, and negotiate with all 8 sellers at the same time. If eventually one offer works out and is accepted, then cancel the other 7 offers right away. 
Title: Re: Where the market is - Buyer Offers
Post by: irvinehomeowner on March 23, 2021, 11:44:04 AM
Me like this thread too.

I can live vicariously through this thread since I am off the market. :)
Title: Re: Where the market is - Buyer Offers
Post by: hurijo on March 23, 2021, 11:51:48 AM
Appreciate all the info being shared in this thread. Very interesting read.
Title: Re: Where the market is - Buyer Offers
Post by: Soylent Green Is People on March 23, 2021, 01:45:50 PM
Amazingly difficult out there.

A buyer I'm working with hoped to purchase this $900k listing. They offered 11% over list - just past the $1m mark from the get go but did not succeed.

https://www.redfin.com/CA/Santa-Ana/18622-Beachmont-Ave-92705/home/4450222 (https://www.redfin.com/CA/Santa-Ana/18622-Beachmont-Ave-92705/home/4450222)

It closed at a 30% over list at an " unsupported by closed comparables" price of $1.2m.

Someone must see greater potential in this property than others. 
Title: Re: Where the market is - Buyer Offers
Post by: talkirvine on March 23, 2021, 02:46:56 PM
Amazingly difficult out there.

A buyer I'm working with hoped to purchase this $900k listing. They offered 11% over list - just past the $1m mark from the get go but did not succeed.

https://www.redfin.com/CA/Santa-Ana/18622-Beachmont-Ave-92705/home/4450222 (https://www.redfin.com/CA/Santa-Ana/18622-Beachmont-Ave-92705/home/4450222)

It closed at a 30% over list at an " unsupported by closed comparables" price of $1.2m.

Someone must see greater potential in this property than others.

Just from the pictures of the kitchen, I think it is purchased by a flipper. This property needs major renovation. No ordinary homeowners would like to cook in that kitchen.
Title: Re: Where the market is - Buyer Offers
Post by: Soylent Green Is People on March 23, 2021, 03:04:13 PM
Even with the $150-$200k of work needed, it's still not a $1.5 valued home given nearby comparables. Methinks it's going to be flattened and subdivided. Who knows!
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on March 23, 2021, 03:38:30 PM
I made an offer for another buyer on this home back on March 3rd and it was interesting on it played out.

https://www.redfin.com/CA/Irvine/104-Summer-Lilac-92620/home/112721589

I told my buyer that a fair range price for this home was $1.475m to $1.5m.  So we started with an initial offer of $1.475m with no appraisal contingency and removing all contingencies in 14 days along with a 40% down payment.  My clients were ready to potentially go up to $1.5m on a best & final counter.  The listing agent texts me the next morning and apologizes to me saying that his seller accepted a slightly higher offer than ours despite him strongly recommending that they at least do a seller multiple counter to the top 2-3 buyers (we had the 2nd highest offer).  I think the home will close right around $1.5m.  The takeaway from this experience is don't hold back too much on your initial offer because you may not get another chance to bid higher.

How about this strategy for buyers. The first day, search online and narrow down to 10 houses to visit in person the second day. On the second day, visit all 10 houses. If there are 8 houses the buyer likes, then submit 8 offers for all 8 houses, and negotiate with all 8 sellers at the same time. If eventually one offer works out and is accepted, then cancel the other 7 offers right away. 

That's a good strategy but many times now there aren't more than 2-3 homes that one buyer may want to look at given how low inventory levels are.  But yes, if my buyer likes more than one home we made offers on all the homes that they like because there's no guarantee that we'll get one of them.
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on March 23, 2021, 03:46:19 PM
Amazingly difficult out there.

A buyer I'm working with hoped to purchase this $900k listing. They offered 11% over list - just past the $1m mark from the get go but did not succeed.

https://www.redfin.com/CA/Santa-Ana/18622-Beachmont-Ave-92705/home/4450222 (https://www.redfin.com/CA/Santa-Ana/18622-Beachmont-Ave-92705/home/4450222)

It closed at a 30% over list at an " unsupported by closed comparables" price of $1.2m.

Someone must see greater potential in this property than others. 

Wow, that's a big number for a home that needs a full renovation of this size. It does have a very large lot though.
Title: Re: Where the market is - Buyer Offers
Post by: Cornflakes on March 23, 2021, 07:24:58 PM
Even with the $150-$200k of work needed, it's still not a $1.5 valued home given nearby comparables. Methinks it's going to be flattened and subdivided. Who knows!

Methink so too on flattened. Not likely subdivided but build something nicer, bigger, contemporary on a 15k sqft lot. Used to happen a lot in silicone valley. May be that's the next wave for socal?
Title: Re: Where the market is - Buyer Offers
Post by: OCtoSV on March 24, 2021, 08:57:50 AM
With new zoning regulations being phased in up here in SV to bridge the housing shortage subdividing large residential lots into 4-plexes will be very profitable, and will likely lead to some angry neighbors throughout some very ice neighborhoods.
Title: Re: Where the market is - Buyer Offers
Post by: Bullsback on March 24, 2021, 02:35:17 PM
I made an offer for another buyer on this home back on March 3rd and it was interesting on it played out.

https://www.redfin.com/CA/Irvine/104-Summer-Lilac-92620/home/112721589

I told my buyer that a fair range price for this home was $1.475m to $1.5m.  So we started with an initial offer of $1.475m with no appraisal contingency and removing all contingencies in 14 days along with a 40% down payment.  My clients were ready to potentially go up to $1.5m on a best & final counter.  The listing agent texts me the next morning and apologizes to me saying that his seller accepted a slightly higher offer than ours despite him strongly recommending that they at least do a seller multiple counter to the top 2-3 buyers (we had the 2nd highest offer).  I think the home will close right around $1.5m.  The takeaway from this experience is don't hold back too much on your initial offer because you may not get another chance to bid higher.

How about this strategy for buyers. The first day, search online and narrow down to 10 houses to visit in person the second day. On the second day, visit all 10 houses. If there are 8 houses the buyer likes, then submit 8 offers for all 8 houses, and negotiate with all 8 sellers at the same time. If eventually one offer works out and is accepted, then cancel the other 7 offers right away.
This was a really nice house too - very tasteful upgrades.  Very clean and decent sized lot. I always liked these Laurel floorplans. The lots were terrible (super small) but the floorplans were very clean  compared to some of the other SFR's in Cypress. 
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on March 24, 2021, 02:40:04 PM
I made an offer above the list price for this Tustin Ranch home earlier tonight for another buyer....

https://www.redfin.com/CA/Tustin/10650-Costello-Dr-92782/home/4774377

They are reviewing offers on Tuesday and we'll probably get a best and final counter unless some motivated cash buyer came in with a high bid.



Update....

My buyer offered $1.25m initially and then went up to $1.28m on best & final counters but we didn't get the home.  The listing agent said they got an offer over $1.3m that they accepted.  They had 11 offers and countered 8 buyers who had initial offers of $1.25m or higher.
Title: Re: Where the market is - Buyer Offers
Post by: crownedking on March 25, 2021, 01:04:21 PM
I'm curious to know what type of jobs does everyone here have where you can afford a multi-million dollar home.
Title: Re: Where the market is - Buyer Offers
Post by: akkord on March 25, 2021, 01:24:51 PM
I'm curious to know what type of jobs does everyone here have where you can afford a multi-million dollar home.

It's family $ and overseas China FCB $ ...   I'm sure there are families where both earners are doctors, lawyers, small business owners, in finance (PMs, senior mgmt), engineers/programmers, or a combination of any of those.  I'm sure there are niche jobs that make a lot of $ too.   I'm poor thinking about it now.

I remember someone who submitted their app on our rental, they made ~$170k as mid lvl mgmt at the Taco Bell, that's just one of them. 
Title: Re: Where the market is - Buyer Offers
Post by: sleepy5136 on March 25, 2021, 01:40:29 PM
I'm curious to know what type of jobs does everyone here have where you can afford a multi-million dollar home.

It's family $ and overseas China FCB $ ...   I'm sure there are families where both earners are doctors, lawyers, small business owners, in finance (PMs, senior mgmt), engineers/programmers, or a combination of any of those.  I'm sure there are niche jobs that make a lot of $ too.   I'm poor thinking about it now.

I remember someone who submitted their app on our rental, they made ~$170k as mid lvl mgmt at the Taco Bell, that's just one of them.
The majority of buyers are age 22-40. I would love to see metrics of income for OC. The nationwide metrics specify that households are earning 100-113k. But that doesn't seem realistic with California prices.
Title: Re: Where the market is - Buyer Offers
Post by: Cornflakes on March 25, 2021, 01:47:56 PM
I'm curious to know what type of jobs does everyone here have where you can afford a multi-million dollar home.

It's family $ and overseas China FCB $ ...   I'm sure there are families where both earners are doctors, lawyers, small business owners, in finance (PMs, senior mgmt), engineers/programmers, or a combination of any of those.  I'm sure there are niche jobs that make a lot of $ too.   I'm poor thinking about it now.

I remember someone who submitted their app on our rental, they made ~$170k as mid lvl mgmt at the Taco Bell, that's just one of them.

That's lotta cheese.. ;)
Title: Re: Where the market is - Buyer Offers
Post by: akkord on March 25, 2021, 01:49:15 PM
The majority of buyers are age 22-40. I would love to see metrics of income for OC. The nationwide metrics specify that households are earning 100-113k. But that doesn't seem realistic with California prices.

Even if the stats say people aren't earning as much in the OC, if family/parents/overseas $ help with huge down payments, they don't need to make as much to cover the monthly payments.
Title: Re: Where the market is - Buyer Offers
Post by: Liar Loan on March 25, 2021, 01:52:19 PM
I'm curious to know what type of jobs does everyone here have where you can afford a multi-million dollar home.

My wife is a teacher that makes $110k for 9 months of work.  (Thank you teacher's unions.)
I am in finance.
We bought our prior home near the bottom in 2010 and had 10 years of equity gains through appreciation/amortization that we parlayed into a dp for a bigger house last year. 
Ultra low rates increase buying power by magnitudes.
No family money needed.

Oh, and the #1 thing... Don't buy in Irvine!

Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on March 25, 2021, 01:56:23 PM
Most of my clients are professionally employed with dual income households....legal, medical, dental, finance, engineering, etc.  I'd venture to guess that 80% of them have household incomes from $200k to $500k.
Title: Re: Where the market is - Buyer Offers
Post by: Cornflakes on March 25, 2021, 01:57:01 PM
The majority of buyers are age 22-40. I would love to see metrics of income for OC. The nationwide metrics specify that households are earning 100-113k. But that doesn't seem realistic with California prices.

Even if the stats say people aren't earning as much in the OC, if family/parents/overseas $ help with huge down payments, they don't need to make as much to cover the monthly payments.

It is futile to go with those average numbers. I am sure you all know/have seen a desk receptionist (or equivalent) driving off in a shiny BMW, and a high earner pinching every $ and dime he/she can, even if it is embarrasing at times..

Buying home has a lot to do with risk tolerance, spending habits etc. Income level is just a loose barrier.
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on March 25, 2021, 01:57:11 PM
I'm curious to know what type of jobs does everyone here have where you can afford a multi-million dollar home.

My wife is a teacher that makes $110k for 9 months of work.  (Thank you teacher's unions.)
I am in finance.
We bought our prior home near the bottom in 2010 and had 10 years of equity gains through appreciation/amortization that we parlayed into a dp for a bigger house last year. 
Ultra low rates increase buying power by magnitudes.
No family money needed.

Oh, and the #1 thing... Don't buy in Irvine!



Buy in Tustin Ranch, right?  ;)
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on March 25, 2021, 01:58:39 PM
The majority of buyers are age 22-40. I would love to see metrics of income for OC. The nationwide metrics specify that households are earning 100-113k. But that doesn't seem realistic with California prices.

Even if the stats say people aren't earning as much in the OC, if family/parents/overseas $ help with huge down payments, they don't need to make as much to cover the monthly payments.

It is futile to go with those average numbers. I am sure you all know/have seen a desk receptionist (or equivalent) driving off in a shiny BMW, and a high earner pinching every $ and dime he/she can, even if it is embarrasing at times..

Buying home has a lot to do with risk tolerance, spending habits etc. Income level is just a loose barrier.

Irvine is a bit different that most buyers there tend to be conservative and underbuy...when they can afford a $1.5m+ home they are looking around $1m.  I see people streching a bit more outside of Irvine.
Title: Re: Where the market is - Buyer Offers
Post by: akkord on March 25, 2021, 02:15:40 PM
The majority of buyers are age 22-40. I would love to see metrics of income for OC. The nationwide metrics specify that households are earning 100-113k. But that doesn't seem realistic with California prices.

Even if the stats say people aren't earning as much in the OC, if family/parents/overseas $ help with huge down payments, they don't need to make as much to cover the monthly payments.

It is futile to go with those average numbers. I am sure you all know/have seen a desk receptionist (or equivalent) driving off in a shiny BMW, and a high earner pinching every $ and dime he/she can, even if it is embarrasing at times..

Buying home has a lot to do with risk tolerance, spending habits etc. Income level is just a loose barrier.

Irvine is a bit different that most buyers there tend to be conservative and underbuy...when they can afford a $1.5m+ home they are looking around $1m.  I see people streching a bit more outside of Irvine.

That's b/c the stretch in Irvine is a lot more than elsewhere.  Bids of 100k+ over ask isn't chump change for the majority of people.  Whereas stretching 20-30k is fine elsewhere.  Must be nice to be a seller now. 
Title: Re: Where the market is - Buyer Offers
Post by: sleepy5136 on March 25, 2021, 02:45:52 PM
The majority of buyers are age 22-40. I would love to see metrics of income for OC. The nationwide metrics specify that households are earning 100-113k. But that doesn't seem realistic with California prices.

Even if the stats say people aren't earning as much in the OC, if family/parents/overseas $ help with huge down payments, they don't need to make as much to cover the monthly payments.

It is futile to go with those average numbers. I am sure you all know/have seen a desk receptionist (or equivalent) driving off in a shiny BMW, and a high earner pinching every $ and dime he/she can, even if it is embarrasing at times..

Buying home has a lot to do with risk tolerance, spending habits etc. Income level is just a loose barrier.

Irvine is a bit different that most buyers there tend to be conservative and underbuy...when they can afford a $1.5m+ home they are looking around $1m.  I see people streching a bit more outside of Irvine.
I bought in Lake Forest and qualified for 1m. Bought a 730k home instead :)
Title: Re: Where the market is - Buyer Offers
Post by: crownedking on March 25, 2021, 07:57:34 PM
I'm curious to know what type of jobs does everyone here have where you can afford a multi-million dollar home.

It's family $ and overseas China FCB $ ...   I'm sure there are families where both earners are doctors, lawyers, small business owners, in finance (PMs, senior mgmt), engineers/programmers, or a combination of any of those.  I'm sure there are niche jobs that make a lot of $ too.   I'm poor thinking about it now.

I remember someone who submitted their app on our rental, they made ~$170k as mid lvl mgmt at the Taco Bell, that's just one of them.
The majority of buyers are age 22-40. I would love to see metrics of income for OC. The nationwide metrics specify that households are earning 100-113k. But that doesn't seem realistic with California prices.

Im 25 and just hit 6 figures at work, but still finding it impossible to find a property. Im single (so not dual income), maybe thats why? It feels like I'm going in circles; can't find a partner while living with my parents, but can't afford a reasonable house without a dual income  :-\
Title: Re: Where the market is - Buyer Offers
Post by: Cares on March 25, 2021, 08:37:20 PM
I'm curious to know what type of jobs does everyone here have where you can afford a multi-million dollar home.

It's family $ and overseas China FCB $ ...   I'm sure there are families where both earners are doctors, lawyers, small business owners, in finance (PMs, senior mgmt), engineers/programmers, or a combination of any of those.  I'm sure there are niche jobs that make a lot of $ too.   I'm poor thinking about it now.

I remember someone who submitted their app on our rental, they made ~$170k as mid lvl mgmt at the Taco Bell, that's just one of them.
The majority of buyers are age 22-40. I would love to see metrics of income for OC. The nationwide metrics specify that households are earning 100-113k. But that doesn't seem realistic with California prices.

Im 25 and just hit 6 figures at work, but still finding it impossible to find a property. Im single (so not dual income), maybe thats why? It feels like I'm going in circles; can't find a partner while living with my parents, but can't afford a reasonable house without a dual income  :-\

If your future partner looks down on you for being financially sensible then they wouldn't be a good partner in my opinion. Why would living with parents while saving to purchase a home be a negative thing? It shouldn't.
Title: Re: Where the market is - Buyer Offers
Post by: sleepy5136 on March 25, 2021, 09:43:51 PM
I'm curious to know what type of jobs does everyone here have where you can afford a multi-million dollar home.

It's family $ and overseas China FCB $ ...   I'm sure there are families where both earners are doctors, lawyers, small business owners, in finance (PMs, senior mgmt), engineers/programmers, or a combination of any of those.  I'm sure there are niche jobs that make a lot of $ too.   I'm poor thinking about it now.

I remember someone who submitted their app on our rental, they made ~$170k as mid lvl mgmt at the Taco Bell, that's just one of them.
The majority of buyers are age 22-40. I would love to see metrics of income for OC. The nationwide metrics specify that households are earning 100-113k. But that doesn't seem realistic with California prices.

Im 25 and just hit 6 figures at work, but still finding it impossible to find a property. Im single (so not dual income), maybe thats why? It feels like I'm going in circles; can't find a partner while living with my parents, but can't afford a reasonable house without a dual income  :-\
You could probably get a place for 500k-600k I would think. But it wouldn't be the prettiest place. May need some renovations too. Do you put your money to work or do you let it sit in the bank? It makes a huge difference.
Title: Re: Where the market is - Buyer Offers
Post by: talkirvine on March 25, 2021, 09:55:30 PM
Salary increases dramatically in the past 5 years. The 9 month salary for a fresh finance/accounting assistant professor in the UC system has increased from 200k to 300k.
Title: Re: Where the market is - Buyer Offers
Post by: Cornflakes on March 25, 2021, 10:06:38 PM
Salary increases dramatically in the past 5 years. The 9 month salary for a fresh finance/accounting assistant professor in the UC system has increased from 200k to 300k.

I highly doubt it.

There could be a miniscule % of tentured professors making tha kind of salary, but fresh guy? nO way.

UC salaries are public. should be fairly easy to search.
Title: Re: Where the market is - Buyer Offers
Post by: qwerty on March 25, 2021, 10:08:47 PM
Salary increases dramatically in the past 5 years. The 9 month salary for a fresh finance/accounting assistant professor in the UC system has increased from 200k to 300k.

I highly doubt it.

There could be a miniscule % of tentured professors making tha kind of salary, but fresh guy? nO way.

UC salaries are public. should be fairly easy to search.

Yeah that seems way off
Title: Re: Where the market is - Buyer Offers
Post by: best_potsticker_in_town on March 25, 2021, 10:38:17 PM
I'm curious to know what type of jobs does everyone here have where you can afford a multi-million dollar home.

It's family $ and overseas China FCB $ ...   I'm sure there are families where both earners are doctors, lawyers, small business owners, in finance (PMs, senior mgmt), engineers/programmers, or a combination of any of those.  I'm sure there are niche jobs that make a lot of $ too.   I'm poor thinking about it now.

I remember someone who submitted their app on our rental, they made ~$170k as mid lvl mgmt at the Taco Bell, that's just one of them.
The majority of buyers are age 22-40. I would love to see metrics of income for OC. The nationwide metrics specify that households are earning 100-113k. But that doesn't seem realistic with California prices.

Im 25 and just hit 6 figures at work, but still finding it impossible to find a property. Im single (so not dual income), maybe thats why? It feels like I'm going in circles; can't find a partner while living with my parents, but can't afford a reasonable house without a dual income  :-\

I was there before. Timing is everything and your time will come.

I happened to buy my first property at 25. It was a Bay Area condo that was built in 2010 - they were unable to sell the units so they rented them out. When the market got healthier, they started to sell the condos as leases expired. I was able to buy a 2-bd unit for $495,000. Lived there for a few years - unable to find a compatible partner and just living the ups/downs of single life. I eventually sold the unit and flipped a nice profit. Moved down to Irvine and bought a brand new condo in Eastwood. Dated a bit and was married within 2 years and had a kid a year later. With our dual income, we were able to buy a nice place here in Irvine that we both love.

My suggestions:

1. Save your money and don't be afraid to take safe risks. If you've saved up 20% - I say go for it and buy a place. If you haven't hit that threshold, save a little more. Get a cheaper condo here in OC and build some equity. Maybe something like this: https://www.redfin.com/CA/Tustin/1722-Mitchell-Ave-92780/unit-179/home/4617570
2. Invest in yourself - whether it's educational courses, self-improvement books, living a healthier lifestyle...whatever it is, utilize this time to groom healthy habits that will help you sustain yourself once you do find a partner and settle down.
3. Set short and long-term goals and milestones in your career and personal life and work towards those. Keep a journal - it's often the journey that's more enjoyable than the actual reward.
Title: Re: Where the market is - Buyer Offers
Post by: talkirvine on March 25, 2021, 11:36:19 PM
Salary increases dramatically in the past 5 years. The 9 month salary for a fresh finance/accounting assistant professor in the UC system has increased from 200k to 300k.

I highly doubt it.

There could be a miniscule % of tentured professors making tha kind of salary, but fresh guy? nO way.

UC salaries are public. should be fairly easy to search.

https://calsalaries.com/ben-lourie-5709687

He was hired in 2015. UC system pays more for more recent hires just to keep competitive on the job market.
Title: Re: Where the market is - Buyer Offers
Post by: crownedking on March 26, 2021, 12:29:44 AM
I'm curious to know what type of jobs does everyone here have where you can afford a multi-million dollar home.

It's family $ and overseas China FCB $ ...   I'm sure there are families where both earners are doctors, lawyers, small business owners, in finance (PMs, senior mgmt), engineers/programmers, or a combination of any of those.  I'm sure there are niche jobs that make a lot of $ too.   I'm poor thinking about it now.

I remember someone who submitted their app on our rental, they made ~$170k as mid lvl mgmt at the Taco Bell, that's just one of them.
The majority of buyers are age 22-40. I would love to see metrics of income for OC. The nationwide metrics specify that households are earning 100-113k. But that doesn't seem realistic with California prices.

Im 25 and just hit 6 figures at work, but still finding it impossible to find a property. Im single (so not dual income), maybe thats why? It feels like I'm going in circles; can't find a partner while living with my parents, but can't afford a reasonable house without a dual income  :-\

If your future partner looks down on you for being financially sensible then they wouldn't be a good partner in my opinion. Why would living with parents while saving to purchase a home be a negative thing? It shouldn't.

I should have added that I'm a guy. Typically thats the attitude you can expect in the OC dating scene ;D haha
It somewhat makes sense to me though; you've got teenagers driving down Jamboree in Lamborghinis, why would a girl be interested in a 25yr old guy living at home haha. My friends that still live with their parents have had the same experience...
Title: Re: Where the market is - Buyer Offers
Post by: HMart on March 26, 2021, 11:35:18 AM
I should have added that I'm a guy. Typically thats the attitude you can expect in the OC dating scene ;D haha
It somewhat makes sense to me though; you've got teenagers driving down Jamboree in Lamborghinis, why would a girl be interested in a 25yr old guy living at home haha. My friends that still live with their parents have had the same experience...

Literally everyone I knew in my 20s rented an apartment. As long as you're not doing something dumb like renting a $4k amenity building unit, you should be fine.

Honestly, I went on a shitton of dates while still living in a jr 1bd apt in Irvine and driving a Honda Accord just fine. I definitely was making less money than you. Right before I met my future wife, I was online dating like crazy, like 6+ dates/wk.

I think you gotta ignore all this conspicuous consumption.

If you are really fixated on buying a home, you should consider a smaller property in the area (e.g. Keller Dr in Tustin Ranch) or moving to a lower cost area.
Title: Re: Where the market is - Buyer Offers
Post by: Cornflakes on March 26, 2021, 12:02:38 PM
If I am a 25 yr old, making decent $, and facing financing hurdles with lenders because of a single income, this is what I'd do:

Have my parents help me with a down payment large enough that brings my DTIs to a desirable level. Give the parents their money back eventually or have their name as % owner on the title of the home.

Alternatively, get an FHA loan with lower down payment. When numbers improve in 2-3-5 years, refi out of it. Small price to pay but who know you get much more value out of owning and living in your own place than paying few more $ for an expensive loan.
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on March 26, 2021, 09:15:53 PM
I should have added that I'm a guy. Typically thats the attitude you can expect in the OC dating scene ;D haha
It somewhat makes sense to me though; you've got teenagers driving down Jamboree in Lamborghinis, why would a girl be interested in a 25yr old guy living at home haha. My friends that still live with their parents have had the same experience...

Literally everyone I knew in my 20s rented an apartment. As long as you're not doing something dumb like renting a $4k amenity building unit, you should be fine.

Honestly, I went on a shitton of dates while still living in a jr 1bd apt in Irvine and driving a Honda Accord just fine. I definitely was making less money than you. Right before I met my future wife, I was online dating like crazy, like 6+ dates/wk.

I think you gotta ignore all this conspicuous consumption.

If you are really fixated on buying a home, you should consider a smaller property in the area (e.g. Keller Dr in Tustin Ranch) or moving to a lower cost area.

Went on 6 dates per week?  Dang, you were really working it online.  haha
Title: Re: Where the market is - Buyer Offers
Post by: Cornflakes on March 26, 2021, 09:47:32 PM
I should have added that I'm a guy. Typically thats the attitude you can expect in the OC dating scene ;D haha
It somewhat makes sense to me though; you've got teenagers driving down Jamboree in Lamborghinis, why would a girl be interested in a 25yr old guy living at home haha. My friends that still live with their parents have had the same experience...

Literally everyone I knew in my 20s rented an apartment. As long as you're not doing something dumb like renting a $4k amenity building unit, you should be fine.

Honestly, I went on a shitton of dates while still living in a jr 1bd apt in Irvine and driving a Honda Accord just fine. I definitely was making less money than you. Right before I met my future wife, I was online dating like crazy, like 6+ dates/wk.

I think you gotta ignore all this conspicuous consumption.

If you are really fixated on buying a home, you should consider a smaller property in the area (e.g. Keller Dr in Tustin Ranch) or moving to a lower cost area.

Went on 6 dates per week?  Dang, you were really working it online.  haha

If he paid for all those dinners and movies, then the stats on the NAR report checks out... ;)
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on March 27, 2021, 08:04:32 PM
Made an offer over list on this Montecito Plan 2 home in Woodbury earlier today...

https://www.redfin.com/CA/Irvine/32-Marblehead-92620/home/28931918

Agent said they have multiple offers (big shocker) and will be reviewing them with the seller on Sunday night.
Title: Re: Where the market is - Buyer Offers
Post by: CLB_srA on March 28, 2021, 12:37:45 PM
I'm curious to know what type of jobs does everyone here have where you can afford a multi-million dollar home.

It's family $ and overseas China FCB $ ...   I'm sure there are families where both earners are doctors, lawyers, small business owners, in finance (PMs, senior mgmt), engineers/programmers, or a combination of any of those.  I'm sure there are niche jobs that make a lot of $ too.   I'm poor thinking about it now.

I remember someone who submitted their app on our rental, they made ~$170k as mid lvl mgmt at the Taco Bell, that's just one of them.
The majority of buyers are age 22-40. I would love to see metrics of income for OC. The nationwide metrics specify that households are earning 100-113k. But that doesn't seem realistic with California prices.

Im 25 and just hit 6 figures at work, but still finding it impossible to find a property. Im single (so not dual income), maybe thats why? It feels like I'm going in circles; can't find a partner while living with my parents, but can't afford a reasonable house without a dual income  :-\

I was there before. Timing is everything and your time will come.

I happened to buy my first property at 25. It was a Bay Area condo that was built in 2010 - they were unable to sell the units so they rented them out. When the market got healthier, they started to sell the condos as leases expired. I was able to buy a 2-bd unit for $495,000. Lived there for a few years - unable to find a compatible partner and just living the ups/downs of single life. I eventually sold the unit and flipped a nice profit. Moved down to Irvine and bought a brand new condo in Eastwood. Dated a bit and was married within 2 years and had a kid a year later. With our dual income, we were able to buy a nice place here in Irvine that we both love.

My suggestions:

1. Save your money and don't be afraid to take safe risks. If you've saved up 20% - I say go for it and buy a place. If you haven't hit that threshold, save a little more. Get a cheaper condo here in OC and build some equity. Maybe something like this: https://www.redfin.com/CA/Tustin/1722-Mitchell-Ave-92780/unit-179/home/4617570
2. Invest in yourself - whether it's educational courses, self-improvement books, living a healthier lifestyle...whatever it is, utilize this time to groom healthy habits that will help you sustain yourself once you do find a partner and settle down.
3. Set short and long-term goals and milestones in your career and personal life and work towards those. Keep a journal - it's often the journey that's more enjoyable than the actual reward.

Wow that's a really nice interior good find.
Title: Re: Where the market is - Buyer Offers
Post by: ThirtySomethingWEquity on March 28, 2021, 03:31:23 PM
I'm curious to know what type of jobs does everyone here have where you can afford a multi-million dollar home.

It's family $ and overseas China FCB $ ...   I'm sure there are families where both earners are doctors, lawyers, small business owners, in finance (PMs, senior mgmt), engineers/programmers, or a combination of any of those.  I'm sure there are niche jobs that make a lot of $ too.   I'm poor thinking about it now.

I remember someone who submitted their app on our rental, they made ~$170k as mid lvl mgmt at the Taco Bell, that's just one of them.
The majority of buyers are age 22-40. I would love to see metrics of income for OC. The nationwide metrics specify that households are earning 100-113k. But that doesn't seem realistic with California prices.

Im 25 and just hit 6 figures at work, but still finding it impossible to find a property. Im single (so not dual income), maybe thats why? It feels like I'm going in circles; can't find a partner while living with my parents, but can't afford a reasonable house without a dual income  :-\

Rent a room.  It's a lot easier to find roommates when you're in your 20s than in your 30s, so take advantage of this stage of your life to get some freedom and still save a boatload of money.  Remember if you move into a new place you need to buy TV, furniture, kitchen stuff, could be  another 10-20k if you don't want hand me downs and depending on how big of a place.

When I was in my early twenties I moved in with two guys who owned a big house in Irvine, they each had their girlfriends living with them.  I got to meat a lot of people through them, the main downside was dealing iwth noise, but earplugs are cheap.  Did that for a few years, saved a boatload of money, bought a townhouse in 2009 in my late twenties, and that was a good purchase. :)
Title: Re: Where the market is - Buyer Offers
Post by: crownedking on March 28, 2021, 07:16:36 PM
I'm curious to know what type of jobs does everyone here have where you can afford a multi-million dollar home.

It's family $ and overseas China FCB $ ...   I'm sure there are families where both earners are doctors, lawyers, small business owners, in finance (PMs, senior mgmt), engineers/programmers, or a combination of any of those.  I'm sure there are niche jobs that make a lot of $ too.   I'm poor thinking about it now.

I remember someone who submitted their app on our rental, they made ~$170k as mid lvl mgmt at the Taco Bell, that's just one of them.
The majority of buyers are age 22-40. I would love to see metrics of income for OC. The nationwide metrics specify that households are earning 100-113k. But that doesn't seem realistic with California prices.

Im 25 and just hit 6 figures at work, but still finding it impossible to find a property. Im single (so not dual income), maybe thats why? It feels like I'm going in circles; can't find a partner while living with my parents, but can't afford a reasonable house without a dual income  :-\

I was there before. Timing is everything and your time will come.

I happened to buy my first property at 25. It was a Bay Area condo that was built in 2010 - they were unable to sell the units so they rented them out. When the market got healthier, they started to sell the condos as leases expired. I was able to buy a 2-bd unit for $495,000. Lived there for a few years - unable to find a compatible partner and just living the ups/downs of single life. I eventually sold the unit and flipped a nice profit. Moved down to Irvine and bought a brand new condo in Eastwood. Dated a bit and was married within 2 years and had a kid a year later. With our dual income, we were able to buy a nice place here in Irvine that we both love.

My suggestions:

1. Save your money and don't be afraid to take safe risks. If you've saved up 20% - I say go for it and buy a place. If you haven't hit that threshold, save a little more. Get a cheaper condo here in OC and build some equity. Maybe something like this: https://www.redfin.com/CA/Tustin/1722-Mitchell-Ave-92780/unit-179/home/4617570
2. Invest in yourself - whether it's educational courses, self-improvement books, living a healthier lifestyle...whatever it is, utilize this time to groom healthy habits that will help you sustain yourself once you do find a partner and settle down.
3. Set short and long-term goals and milestones in your career and personal life and work towards those. Keep a journal - it's often the journey that's more enjoyable than the actual reward.

Wow that's a really nice interior good find.

I totally agree! great interior; now to find a place with that look outside as-well  ;D (or am I asking for too much LOL)
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on March 28, 2021, 08:35:31 PM
Made another 2 offers for 2 of my buyers today for these 2 homes....

https://www.redfin.com/CA/Irvine/9-Robinstree-92602/home/4793849

https://www.redfin.com/CA/Irvine/73-Navigator-92620/home/7203459



Title: Re: Where the market is - Buyer Offers
Post by: moc on March 29, 2021, 10:44:28 AM
I'm curious to know what type of jobs does everyone here have where you can afford a multi-million dollar home.

It's family $ and overseas China FCB $ ...   I'm sure there are families where both earners are doctors, lawyers, small business owners, in finance (PMs, senior mgmt), engineers/programmers, or a combination of any of those.  I'm sure there are niche jobs that make a lot of $ too.   I'm poor thinking about it now.

I remember someone who submitted their app on our rental, they made ~$170k as mid lvl mgmt at the Taco Bell, that's just one of them.
The majority of buyers are age 22-40. I would love to see metrics of income for OC. The nationwide metrics specify that households are earning 100-113k. But that doesn't seem realistic with California prices.

Im 25 and just hit 6 figures at work, but still finding it impossible to find a property. Im single (so not dual income), maybe thats why? It feels like I'm going in circles; can't find a partner while living with my parents, but can't afford a reasonable house without a dual income  :-\

Crowned king - having a dual income does help, I would not have been able to afford to purchase our home with just my salary. But, I will say we felt the same at 25 - looked around at the housing market and it felt like an impossible task to buy. We moved to a cheaper place(rental), took a hard look at our spending, made savings goals, bought a cheap car etc etc etc. We bought our first home when we were 28 (we are 29 now so this is recent lol). I know it feels impossible but a lot can change in just a few years. It is easier with a partner but you can probably achieve it on your own. Keep your head up and don't lose hope.
Title: Re: Where the market is - Buyer Offers
Post by: eyephone on March 29, 2021, 10:54:43 AM
I read that person post and I laughed.
If the person wanted a house that person can most likely buy one. But maybe not in Irvine.
How is it our fault that you are not married? I do not think no one here is going to hook you up.



Title: Re: Where the market is - Buyer Offers
Post by: ucla bruin on March 29, 2021, 12:37:11 PM
That's interesting you took it as that.

I didn't read it as him blaming the world, just sharing his sentiments and challenges of having goals vs meeting them.

Crowned King - keep doing what you're doing. 6 figures by 25 is already an achievement. Renting a room as opposed to a single apt definitely helps. I did that for many years when I was still single. Save wherever you can. Invest your money. Chart your growth and see if it's on track, make adjustments.

Evaluate your expectations too. Your first house doesn't need to be a multi-million dollar home.
Title: Re: Where the market is - Buyer Offers
Post by: Mety on March 29, 2021, 02:01:39 PM
Those who are looking to buy a home, what's your budget?
Title: Re: Where the market is - Buyer Offers
Post by: crownedking on March 29, 2021, 03:06:44 PM
Those who are looking to buy a home, what's your budget?

looking for a newer 1 or 2 bed townhome, around the low 500's
Title: Re: Where the market is - Buyer Offers
Post by: eyephone on March 29, 2021, 03:26:54 PM
Those who are looking to buy a home, what's your budget?

1. So I guess you are going to hook him or her up with a partner.
2. Help that person move out of the parent house.
3. Help search for a newer place.

You got this bro.  ;)
Title: Re: Where the market is - Buyer Offers
Post by: Mety on March 29, 2021, 04:34:10 PM
Those who are looking to buy a home, what's your budget?

looking for a newer 1 or 2 bed townhome, around the low 500's

That's tough in Irvine especially if you want a "newer." Stonegate East or Woodbury East will sometimes have 1bed-plus-den with that price range so stay tuned.
Title: Re: Where the market is - Buyer Offers
Post by: Soylent Green Is People on March 29, 2021, 05:15:43 PM
Crowned King - I'm curious why Irvine only, when there aren't kids (schooling) or really commute issues at play here. Is this more or less a MAX ROI question or something else not yet noted? Everyone has their reasons for buying in Irvine - all of them are legitimate and personal - but as a mid 20's single person if equity appreciation wasn't at the top of my list, I'd probably buy reasonably close at a lower price point.

What is behind the drive to buy in this red hot location specific market versus 1-3 miles outside of Irvine - if you care to share please.
Title: Re: Where the market is - Buyer Offers
Post by: talkirvine on March 29, 2021, 05:30:12 PM
Those who are looking to buy a home, what's your budget?

If I were you, I would buy in Ontario/Eastvale. You can get a 3-4 bedroom brand new detached condo with that price. The price has increased a lot over the last year and it still has the potential to increase. With less than $200/sqft, you can not beat that price any where in Orange county.
Title: Re: Where the market is - Buyer Offers
Post by: eyephone on March 29, 2021, 06:04:10 PM
Those who are looking to buy a home, what's your budget?

looking for a newer 1 or 2 bed townhome, around the low 500's

That's tough in Irvine especially if you want a "newer." Stonegate East or Woodbury East will sometimes have 1bed-plus-den with that price range so stay tuned.

But you did not help that person find a partner for dual income. (to buy a house)

Title: Re: Where the market is - Buyer Offers
Post by: kpatnps on March 29, 2021, 10:37:25 PM
Salary increases dramatically in the past 5 years. The 9 month salary for a fresh finance/accounting assistant professor in the UC system has increased from 200k to 300k.

I highly doubt it.

There could be a miniscule % of tentured professors making tha kind of salary, but fresh guy? nO way.

UC salaries are public. should be fairly easy to search.

https://transparentcalifornia.com/

See where all your tax monies go.

Title: Re: Where the market is - Buyer Offers
Post by: kpatnps on March 29, 2021, 10:38:57 PM
Most of my clients are professionally employed with dual income households....legal, medical, dental, finance, engineering, etc.  I'd venture to guess that 80% of them have household incomes from $200k to $500k.

200 to 500K is a big range.  Might as well say 99% of your clients are between 100k and 1M.
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on March 30, 2021, 12:23:01 AM
Most of my clients are professionally employed with dual income households....legal, medical, dental, finance, engineering, etc.  I'd venture to guess that 80% of them have household incomes from $200k to $500k.

200 to 500K is a big range.  Might as well say 99% of your clients are between 100k and 1M.

Ok fair enough, more than 50% of my Irvine buyers have household incomes from $250k to $350k (the majority of these are dual-income households).  Assuming that buyers don't have any significant outstanding recurring debt obligations (car loans/leases, student loans, etc), they can easily qualify for a loan of 5-6x their annual pre-tax income assuming they have the required downpayment and reserves with today's interest rate environment. I've noticed that some higher earning first-time buyers tend to have somewhat limited down payment funds from savings which reduces their ultimate maximum purchase price. 
Title: Re: Where the market is - Buyer Offers
Post by: daedalus on March 30, 2021, 01:59:39 AM
more than 50% of my Irvine buyers have household incomes from $250k to $350k (the majority of these are dual-income households).  Assuming that buyers don't have any significant outstanding recurring debt obligations (car loans/leases, student loans, etc), they can easily qualify for a loan of 5-6x their annual pre-tax income assuming they have the required downpayment and reserves with today's interest rate environment.

They can qualify for that, but I think you've said in the past that most buyers spend conservatively, right?   Even 5x seems like it's pushing it to me.  For a couple grossing $300k and buying a $1.9M home ($1.5M loan)...That's ~$6300/month just for P&I (@ 3%).  Add in Taxes, HOA, insurance, mello-roos...  ~$10k/month?  Give or take.
$25k gross -30% equivalent taxes all in, -10% retirement savings...  $15k take home

$15k - $10K = $5k left to pay for everything else.  Not starving by any means, unless they have young kids in daycare @ $1500 each.  Then it gets pretty tight.  Car payments, insurance, food, utilities...nothing left for the annual vacay to Disneyworld.  Unless we're not saving for retirement.   :o

Title: Re: Where the market is - Buyer Offers
Post by: akkord on March 30, 2021, 06:02:34 AM
more than 50% of my Irvine buyers have household incomes from $250k to $350k (the majority of these are dual-income households).  Assuming that buyers don't have any significant outstanding recurring debt obligations (car loans/leases, student loans, etc), they can easily qualify for a loan of 5-6x their annual pre-tax income assuming they have the required downpayment and reserves with today's interest rate environment.

They can qualify for that, but I think you've said in the past that most buyers spend conservatively, right?   Even 5x seems like it's pushing it to me.  For a couple grossing $300k and buying a $1.9M home ($1.5M loan)...That's ~$6300/month just for P&I (@ 3%).  Add in Taxes, HOA, insurance, mello-roos...  ~$10k/month?  Give or take.
$25k gross -30% equivalent taxes all in, -10% retirement savings...  $15k take home

$15k - $10K = $5k left to pay for everything else.  Not starving by any means, unless they have young kids in daycare @ $1500 each.  Then it gets pretty tight.  Car payments, insurance, food, utilities...nothing left for the annual vacay to Disneyworld.  Unless we're not saving for retirement.   :o

I think USC mentioned most buyers are conservative in this area, so I wouldn't think they would go for what they max qualify for so 1-1.5mm depending on down with a 600-800k loan is would be a lot more realistic and manageable.  That's assuming they can find a 1mm home these days.    :-\ 
Title: Re: Where the market is - Buyer Offers
Post by: OCtoSV on March 30, 2021, 08:22:54 AM
Most of my clients are professionally employed with dual income households....legal, medical, dental, finance, engineering, etc.  I'd venture to guess that 80% of them have household incomes from $200k to $500k.

200 to 500K is a big range.  Might as well say 99% of your clients are between 100k and 1M.

Ok fair enough, more than 50% of my Irvine buyers have household incomes from $250k to $350k (the majority of these are dual-income households).  Assuming that buyers don't have any significant outstanding recurring debt obligations (car loans/leases, student loans, etc), they can easily qualify for a loan of 5-6x their annual pre-tax income assuming they have the required downpayment and reserves with today's interest rate environment. I've noticed that some higher earning first-time buyers tend to have somewhat limited down payment funds from savings which reduces their ultimate maximum purchase price.

Needing 2 earners to achieve $250-350K/yr and trying to buy a 1.5M house is just insane unless the down is >$500K. It also leaves no room for one of them to stay home with kids.

2 earners in my neighborhood in SV (not the fanciest by any means but somewhat Irvine-like in demographics) is typically $350-500K+, with median home sales price $1.5M.
Title: Re: Where the market is - Buyer Offers
Post by: zovall on March 30, 2021, 08:37:53 AM
Needing 2 earners to achieve $250-350K/yr and trying to buy a 1.5M house is just insane unless the down is >$500K. It also leaves no room for one of them to stay home with kids.

Do you mean the option for one parent to not work and stay home with kids? Did you take that option or is it more about knowing that you could take that option if desired?
Title: Re: Where the market is - Buyer Offers
Post by: Cornflakes on March 30, 2021, 08:55:50 AM
more than 50% of my Irvine buyers have household incomes from $250k to $350k (the majority of these are dual-income households).  Assuming that buyers don't have any significant outstanding recurring debt obligations (car loans/leases, student loans, etc), they can easily qualify for a loan of 5-6x their annual pre-tax income assuming they have the required downpayment and reserves with today's interest rate environment.

They can qualify for that, but I think you've said in the past that most buyers spend conservatively, right?   Even 5x seems like it's pushing it to me.  For a couple grossing $300k and buying a $1.9M home ($1.5M loan)...That's ~$6300/month just for P&I (@ 3%).  Add in Taxes, HOA, insurance, mello-roos...  ~$10k/month?  Give or take.
$25k gross -30% equivalent taxes all in, -10% retirement savings...  $15k take home

$15k - $10K = $5k left to pay for everything else.  Not starving by any means, unless they have young kids in daycare @ $1500 each.  Then it gets pretty tight.  Car payments, insurance, food, utilities...nothing left for the annual vacay to Disneyworld.  Unless we're not saving for retirement.   :o

The way you did math is pretty accurate and you are right, it is very tight. I think that if you are buying 1.9M home, one of these two conditions has to be met to make the numbers work for borrower and for the lender.

1. If 300k income, better have lower LTV more like 60% or less. Then you get a nice cut in interest rate, payments are a bit lower etc..
2. If 80% LTV, better have income north of 450k. Higher the better.
Title: Re: Where the market is - Buyer Offers
Post by: Mety on March 30, 2021, 11:08:45 AM
Those who are looking to buy a home, what's your budget?

looking for a newer 1 or 2 bed townhome, around the low 500's

That's tough in Irvine especially if you want a "newer." Stonegate East or Woodbury East will sometimes have 1bed-plus-den with that price range so stay tuned.

But you did not help that person find a partner for dual income. (to buy a house)

You can try that, but a real faithful wife is a gift from God. So even if you end up introducing someone for him, you don't get the credit. 
Title: Re: Where the market is - Buyer Offers
Post by: eyephone on March 30, 2021, 11:22:20 AM
Those who are looking to buy a home, what's your budget?

looking for a newer 1 or 2 bed townhome, around the low 500's

That's tough in Irvine especially if you want a "newer." Stonegate East or Woodbury East will sometimes have 1bed-plus-den with that price range so stay tuned.

But you did not help that person find a partner for dual income. (to buy a house)

You can try that, but a real faithful wife is a gift from God. So even if you end up introducing someone for him, you don't get the credit.

Yes, you can not force a relationship. But that person wants the dual income to buy a house or something. Idk

* I take that back, I guess you can do an arrange marriage and charge a fee. jkjk
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on March 30, 2021, 12:51:28 PM
more than 50% of my Irvine buyers have household incomes from $250k to $350k (the majority of these are dual-income households).  Assuming that buyers don't have any significant outstanding recurring debt obligations (car loans/leases, student loans, etc), they can easily qualify for a loan of 5-6x their annual pre-tax income assuming they have the required downpayment and reserves with today's interest rate environment.

They can qualify for that, but I think you've said in the past that most buyers spend conservatively, right?   Even 5x seems like it's pushing it to me.  For a couple grossing $300k and buying a $1.9M home ($1.5M loan)...That's ~$6300/month just for P&I (@ 3%).  Add in Taxes, HOA, insurance, mello-roos...  ~$10k/month?  Give or take.
$25k gross -30% equivalent taxes all in, -10% retirement savings...  $15k take home

$15k - $10K = $5k left to pay for everything else.  Not starving by any means, unless they have young kids in daycare @ $1500 each.  Then it gets pretty tight.  Car payments, insurance, food, utilities...nothing left for the annual vacay to Disneyworld.  Unless we're not saving for retirement.   :o



I agree, just because they would be approved for a $1.5m loan amount doesn't mean that they go that high.  A typical buyer with that type of income would tend to get a loan of $900k to $1.1m hence why I state that pretty much all of my Irvine buyers are underbuying.
Title: Re: Where the market is - Buyer Offers
Post by: OCtoSV on March 30, 2021, 03:38:48 PM
Needing 2 earners to achieve $250-350K/yr and trying to buy a 1.5M house is just insane unless the down is >$500K. It also leaves no room for one of them to stay home with kids.

Do you mean the option for one parent to not work and stay home with kids? Did you take that option or is it more about knowing that you could take that option if desired?

I took that option early on when the wife got preggo and fortunately have scaled my earnings since that time to buy our house/fund our lifestyle and retirement investing on 1 income.
Title: Re: Where the market is - Buyer Offers
Post by: kpatnps on March 30, 2021, 07:04:53 PM
more than 50% of my Irvine buyers have household incomes from $250k to $350k (the majority of these are dual-income households).  Assuming that buyers don't have any significant outstanding recurring debt obligations (car loans/leases, student loans, etc), they can easily qualify for a loan of 5-6x their annual pre-tax income assuming they have the required downpayment and reserves with today's interest rate environment.

They can qualify for that, but I think you've said in the past that most buyers spend conservatively, right?   Even 5x seems like it's pushing it to me.  For a couple grossing $300k and buying a $1.9M home ($1.5M loan)...That's ~$6300/month just for P&I (@ 3%).  Add in Taxes, HOA, insurance, mello-roos...  ~$10k/month?  Give or take.
$25k gross -30% equivalent taxes all in, -10% retirement savings...  $15k take home

$15k - $10K = $5k left to pay for everything else.  Not starving by any means, unless they have young kids in daycare @ $1500 each.  Then it gets pretty tight.  Car payments, insurance, food, utilities...nothing left for the annual vacay to Disneyworld.  Unless we're not saving for retirement.   :o

100% agree with you.  300K income with a 1.9M home is insane in my opinion.  This is the classic example of being house poor imo. 
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on March 30, 2021, 07:34:36 PM
more than 50% of my Irvine buyers have household incomes from $250k to $350k (the majority of these are dual-income households).  Assuming that buyers don't have any significant outstanding recurring debt obligations (car loans/leases, student loans, etc), they can easily qualify for a loan of 5-6x their annual pre-tax income assuming they have the required downpayment and reserves with today's interest rate environment.

They can qualify for that, but I think you've said in the past that most buyers spend conservatively, right?   Even 5x seems like it's pushing it to me.  For a couple grossing $300k and buying a $1.9M home ($1.5M loan)...That's ~$6300/month just for P&I (@ 3%).  Add in Taxes, HOA, insurance, mello-roos...  ~$10k/month?  Give or take.
$25k gross -30% equivalent taxes all in, -10% retirement savings...  $15k take home

$15k - $10K = $5k left to pay for everything else.  Not starving by any means, unless they have young kids in daycare @ $1500 each.  Then it gets pretty tight.  Car payments, insurance, food, utilities...nothing left for the annual vacay to Disneyworld.  Unless we're not saving for retirement.   :o

100% agree with you.  300K income with a 1.9M home is insane in my opinion.  This is the classic example of being house poor imo. 

Unless the buyer is putting a larger downpayment.  Some people need a larger home because they have 3-4 kids and/or have parents living with them.  Each situation is different. 
Title: Re: Where the market is - Buyer Offers
Post by: Dr. CA Real Estate on March 30, 2021, 08:09:58 PM
People not taking into account after a certain price point just about all buyers do 40%+ down payments.
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on March 30, 2021, 09:57:25 PM
Made an offer over list on this Montecito Plan 2 home in Woodbury earlier today...

https://www.redfin.com/CA/Irvine/32-Marblehead-92620/home/28931918

Agent said they have multiple offers (big shocker) and will be reviewing them with the seller on Sunday night.

No dice for my buyers who put an initial offer of $1.251m on the home.  Got this reply from the listing agent...

"The seller finally made a decision in another direction. The prevailing party has a family in the area and terms that the seller couldn't refuse.

I know so many buyers are disappointed these days and I appreciate your work on this."

So sounds like seller got an offer that they couldn't refuse and didn't want to send out counters. 
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on March 30, 2021, 09:59:27 PM
Made another 2 offers for 2 of my buyers today for these 2 homes....

https://www.redfin.com/CA/Irvine/9-Robinstree-92602/home/4793849

https://www.redfin.com/CA/Irvine/73-Navigator-92620/home/7203459



No luck on Robins Tree, they got 15 offers and my client's offer of $1,037,500 was the 5th highest of the bunch.  My guess is that the home will close somewhere between $1.05m to $1.075m but I guess we'll see.

We are waiting on a reply and/or counter for Navigator....
Title: Re: Where the market is - Buyer Offers
Post by: marmott on March 30, 2021, 10:14:55 PM
I would hate to be looking right now...

Just for a good laugh, it could be worst  ;D: https://www.kron4.com/news/california/citrus-heights-home-for-sale-receives-122-offers-in-one-weekend-sells-in-3-hours/
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on March 31, 2021, 09:22:50 AM
Navigator got 11 offers but the seller only decided to counter the top 5 buyers with a best & final counter (including my buyer) which is due by 7pm today.
Title: Re: Where the market is - Buyer Offers
Post by: Soylent Green Is People on March 31, 2021, 09:48:08 AM
Marmott's article does hold out an offer strategy of note:


“Brittan says the highest offer was above $500,000, but that was not the winning offer. There were other factors to consider. The couple is buying a home in Idaho. They need time for the escrow to close on that home, so one big factor was they needed a buyer to wait until that happens before moving in.”

Also, I wonder what the 122 offers were comprised of. Here's an example of a similar frenzied transaction:

https://www.wrcbtv.com/story/43575971/76-allcash-offers-on-one-home-as-house-market-spins-out-of-control (https://www.wrcbtv.com/story/43575971/76-allcash-offers-on-one-home-as-house-market-spins-out-of-control)

86% of the offers were all cash. At that price it's possible, but still.......Cray-zeee times!
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on March 31, 2021, 10:21:33 AM
Marmott's article does hold out an offer strategy of note:


“Brittan says the highest offer was above $500,000, but that was not the winning offer. There were other factors to consider. The couple is buying a home in Idaho. They need time for the escrow to close on that home, so one big factor was they needed a buyer to wait until that happens before moving in.”


Also, wonder what the 122 offers were comprised of. Here's an example of a similar frenzied transaction:

https://www.wrcbtv.com/story/43575971/76-allcash-offers-on-one-home-as-house-market-spins-out-of-control (https://www.wrcbtv.com/story/43575971/76-allcash-offers-on-one-home-as-house-market-spins-out-of-control)

The thing that makes a bit tricky is when there is a lack of good comparable sales to determine what a good listing price may be.  I ran into this with my West Covina listing where I got 24 offers. 
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on April 01, 2021, 01:18:34 PM
No luck on Navigator.  My buyer bid $1.311m and then used an escalation clause going up to $1.321m with a $1,000 over the highest offer/counter.  Listing agent emailed me this late last night when I asked if the top buyer bid above $1.321m here was her reply...

"Yes, by a good amount over your max escalation amount."
Title: Re: Where the market is - Buyer Offers
Post by: hurijo on April 01, 2021, 01:49:35 PM
Yeesh... think almost $1.35m? For a 3bdrm close to the rumblings of Sand Canyon Ave...

No luck on Navigator.  My buyer bid $1.311m and then used an escalation clause going up to $1.321m with a $1,000 over the highest offer/counter.  Listing agent emailed me this late last night when I asked if the top buyer bid above $1.321m here was her reply...

"Yes, by a good amount over your max escalation amount."
Title: Re: Where the market is - Buyer Offers
Post by: talkirvine on April 01, 2021, 01:57:49 PM
No luck on Navigator.  My buyer bid $1.311m and then used an escalation clause going up to $1.321m with a $1,000 over the highest offer/counter.  Listing agent emailed me this late last night when I asked if the top buyer bid above $1.321m here was her reply...

"Yes, by a good amount over your max escalation amount."

It might hurt you. The listing agent can make use of your escalation clause and tell the other buyers that the highest offer is $1.321m, and you have to bid over that price. I am sure someone will do so.
Title: Re: Where the market is - Buyer Offers
Post by: kpatnps on April 01, 2021, 02:29:18 PM
No luck on Navigator.  My buyer bid $1.311m and then used an escalation clause going up to $1.321m with a $1,000 over the highest offer/counter.  Listing agent emailed me this late last night when I asked if the top buyer bid above $1.321m here was her reply...

"Yes, by a good amount over your max escalation amount."

It might hurt you. The listing agent can make use of your escalation clause and tell the other buyers that the highest offer is $1.321m, and you have to bid over that price. I am sure someone will do so.

Personally I think an escalation clause with a max limit doesnt make any sense.  Put yourself in the sellers position.  If a buyer says they will pay $X over the highest bid up to $Y amount, then I would just simply counter at $Y or higher regardless of whether I had other offers or not.  Furthermore would a thousand or two above the next bid really matter since it is literally a small fraction of the price of these homes?  Escalation clauses simply give the seller an advantage without gaining any for the buyer. 

Title: Re: Where the market is - Buyer Offers
Post by: sleepy5136 on April 01, 2021, 02:42:11 PM
No luck on Navigator.  My buyer bid $1.311m and then used an escalation clause going up to $1.321m with a $1,000 over the highest offer/counter.  Listing agent emailed me this late last night when I asked if the top buyer bid above $1.321m here was her reply...

"Yes, by a good amount over your max escalation amount."

It might hurt you. The listing agent can make use of your escalation clause and tell the other buyers that the highest offer is $1.321m, and you have to bid over that price. I am sure someone will do so.

Personally I think an escalation clause with a max limit doesnt make any sense.  Put yourself in the sellers position.  If a buyer says they will pay $X over the highest bid up to $Y amount, then I would just simply counter at $Y or higher regardless of whether I had other offers or not.  Furthermore would a thousand or two above the next bid really matter since it is literally a small fraction of the price of these homes?  Escalation clauses simply give the seller an advantage without gaining any for the buyer.
yeah, i mentioned it before, but this market is way too crazy. unless you really need a home, might as well sit on the side lines and let things cool down.
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on April 01, 2021, 07:46:27 PM
Yeesh... think almost $1.35m? For a 3bdrm close to the rumblings of Sand Canyon Ave...

No luck on Navigator.  My buyer bid $1.311m and then used an escalation clause going up to $1.321m with a $1,000 over the highest offer/counter.  Listing agent emailed me this late last night when I asked if the top buyer bid above $1.321m here was her reply...

"Yes, by a good amount over your max escalation amount."

My clients only went up to $1.321m versus going $1.35m on Clocktower because Navigator had a smaller yard, needed some upgrading, and you got some road noise.  I gave my buyers a price range of $1.3m to $1.33m to bid on Navigator and a price range of $1.32m to $1.35m on Clocktower. My guess is that one of the runner up buyers on Clocktower bid up Navigator. 
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on April 01, 2021, 07:49:15 PM
No luck on Navigator.  My buyer bid $1.311m and then used an escalation clause going up to $1.321m with a $1,000 over the highest offer/counter.  Listing agent emailed me this late last night when I asked if the top buyer bid above $1.321m here was her reply...

"Yes, by a good amount over your max escalation amount."

It might hurt you. The listing agent can make use of your escalation clause and tell the other buyers that the highest offer is $1.321m, and you have to bid over that price. I am sure someone will do so.

I can't control what the listing agent does, hopefully they act professionally and ethically.  Why wouldn't the opposite happen where the listing agent would tell me to increase my esclation max price?  What's to say that if my client just did a straight bid of $1.321m that they wouldn't go to another buyer and tell them to bid above $1.321m?  I give my buyers the option of whether they want to use an escalation clause on counters and explain the pros and cons. 
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on April 01, 2021, 07:53:13 PM
No luck on Navigator.  My buyer bid $1.311m and then used an escalation clause going up to $1.321m with a $1,000 over the highest offer/counter.  Listing agent emailed me this late last night when I asked if the top buyer bid above $1.321m here was her reply...

"Yes, by a good amount over your max escalation amount."

It might hurt you. The listing agent can make use of your escalation clause and tell the other buyers that the highest offer is $1.321m, and you have to bid over that price. I am sure someone will do so.

Personally I think an escalation clause with a max limit doesnt make any sense.  Put yourself in the sellers position.  If a buyer says they will pay $X over the highest bid up to $Y amount, then I would just simply counter at $Y or higher regardless of whether I had other offers or not.  Furthermore would a thousand or two above the next bid really matter since it is literally a small fraction of the price of these homes?  Escalation clauses simply give the seller an advantage without gaining any for the buyer. 



I don't understand how it gives the Seller an advantage when the escalation clause is used on a best and final counter.  A best and final counter is what it means, all buyers are to provide their highest offers and the Seller does not come back with another counter above that the price that the buyers respond with.  I would argue that an escalation clause would be helpful to buyers as it may limit them from overbidding on a home if they already had the highest offer before the escalation.  I've had dozens of situations on the listing side when I sent out best n final counters to multiple buyers the top buyer would outbid themselves and be $20k-$40k higher than the 2nd highest offer.
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on April 01, 2021, 07:54:54 PM
No luck on Navigator.  My buyer bid $1.311m and then used an escalation clause going up to $1.321m with a $1,000 over the highest offer/counter.  Listing agent emailed me this late last night when I asked if the top buyer bid above $1.321m here was her reply...

"Yes, by a good amount over your max escalation amount."

It might hurt you. The listing agent can make use of your escalation clause and tell the other buyers that the highest offer is $1.321m, and you have to bid over that price. I am sure someone will do so.

Personally I think an escalation clause with a max limit doesnt make any sense.  Put yourself in the sellers position.  If a buyer says they will pay $X over the highest bid up to $Y amount, then I would just simply counter at $Y or higher regardless of whether I had other offers or not.  Furthermore would a thousand or two above the next bid really matter since it is literally a small fraction of the price of these homes?  Escalation clauses simply give the seller an advantage without gaining any for the buyer.
yeah, i mentioned it before, but this market is way too crazy. unless you really need a home, might as well sit on the side lines and let things cool down.

Yes what is happening is crazy but I would argue that the prices that we are seeing are market prices.  We are out of balance in the market and prices have to continue to keep going up to balance things out.  I think prices will be upon another 3-5% at minimum from today's prices by the end of the year because there is that much demand out there.
Title: Re: Where the market is - Buyer Offers
Post by: sleepy5136 on April 01, 2021, 09:52:12 PM
No luck on Navigator.  My buyer bid $1.311m and then used an escalation clause going up to $1.321m with a $1,000 over the highest offer/counter.  Listing agent emailed me this late last night when I asked if the top buyer bid above $1.321m here was her reply...

"Yes, by a good amount over your max escalation amount."

It might hurt you. The listing agent can make use of your escalation clause and tell the other buyers that the highest offer is $1.321m, and you have to bid over that price. I am sure someone will do so.

Personally I think an escalation clause with a max limit doesnt make any sense.  Put yourself in the sellers position.  If a buyer says they will pay $X over the highest bid up to $Y amount, then I would just simply counter at $Y or higher regardless of whether I had other offers or not.  Furthermore would a thousand or two above the next bid really matter since it is literally a small fraction of the price of these homes?  Escalation clauses simply give the seller an advantage without gaining any for the buyer. 



I don't understand how it gives the Seller an advantage when the escalation clause is used on a best and final counter.  A best and final counter is what it means, all buyers are to provide their highest offers and the Seller does not come back with another counter above that the price that the buyers respond with.  I would argue that an escalation clause would be helpful to buyers as it may limit them from overbidding on a home if they already had the highest offer before the escalation.  I've had dozens of situations on the listing side when I sent out best n final counters to multiple buyers the top buyer would outbid themselves and be $20k-$40k higher than the 2nd highest offer.
I think the main issue is the lack of transparency and trust in the current bidding process for the buyer. If you send out "best and final offers", as a buyer, how do I know where I stand? What if I'm the highest bidder and you still send that. I don't want to bid higher if I know I'm the highest offer. I've said it before and I'll say it again, with this type of bidding war, there needs to be transparency and trust for the buyer. Otherwise there will be buyers that will be hesitant to put their actual highest. The last thing I want to do is bid against myself. The current process definitely benefits the seller and not the buyer. But maybe I'm only speaking for myself and I'm wrong about the general consensus.
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on April 01, 2021, 10:00:33 PM
No luck on Navigator.  My buyer bid $1.311m and then used an escalation clause going up to $1.321m with a $1,000 over the highest offer/counter.  Listing agent emailed me this late last night when I asked if the top buyer bid above $1.321m here was her reply...

"Yes, by a good amount over your max escalation amount."

It might hurt you. The listing agent can make use of your escalation clause and tell the other buyers that the highest offer is $1.321m, and you have to bid over that price. I am sure someone will do so.

Personally I think an escalation clause with a max limit doesnt make any sense.  Put yourself in the sellers position.  If a buyer says they will pay $X over the highest bid up to $Y amount, then I would just simply counter at $Y or higher regardless of whether I had other offers or not.  Furthermore would a thousand or two above the next bid really matter since it is literally a small fraction of the price of these homes?  Escalation clauses simply give the seller an advantage without gaining any for the buyer. 



I don't understand how it gives the Seller an advantage when the escalation clause is used on a best and final counter.  A best and final counter is what it means, all buyers are to provide their highest offers and the Seller does not come back with another counter above that the price that the buyers respond with.  I would argue that an escalation clause would be helpful to buyers as it may limit them from overbidding on a home if they already had the highest offer before the escalation.  I've had dozens of situations on the listing side when I sent out best n final counters to multiple buyers the top buyer would outbid themselves and be $20k-$40k higher than the 2nd highest offer.
I think the main issue is the lack of transparency and trust in the current bidding process for the buyer. If you send out "best and final offers", as a buyer, how do I know where I stand? What if I'm the highest bidder and you still send that. I don't want to bid higher if I know I'm the highest offer. I've said it before and I'll say it again, with this type of bidding war, there needs to be transparency and trust for the buyer. Otherwise there will be buyers that will be hesitant to put their actual highest. The last thing I want to do is bid against myself. The current process definitely benefits the seller and not the buyer. But maybe I'm only speaking for myself and I'm wrong about the general consensus.

You are completely right that the multiple seller counter offer for best & final offers benefits the seller.  The escalation clause is one way to try to limit overbidding.  If you want a fair transparent bidding process then an online auction needs to be set up where the clock gets reset to 5 minutes after the last bid so there is no snipe bids like you have on Ebay.  That way buyers would see have full transparency.  This would favor the buyers not the seller so not sure if you'll see from listing agents that anytime soon. My job as a listing agent is to get the highest price with a qualified possible as quickly and effectively as I can. I've been easily able to motivate/encourage buyer agents to have their buyers bid higher over the years where the top buyer just outbid themselves with the best and final counter.
Title: Re: Where the market is - Buyer Offers
Post by: sleepy5136 on April 01, 2021, 10:15:25 PM
No luck on Navigator.  My buyer bid $1.311m and then used an escalation clause going up to $1.321m with a $1,000 over the highest offer/counter.  Listing agent emailed me this late last night when I asked if the top buyer bid above $1.321m here was her reply...

"Yes, by a good amount over your max escalation amount."

It might hurt you. The listing agent can make use of your escalation clause and tell the other buyers that the highest offer is $1.321m, and you have to bid over that price. I am sure someone will do so.

Personally I think an escalation clause with a max limit doesnt make any sense.  Put yourself in the sellers position.  If a buyer says they will pay $X over the highest bid up to $Y amount, then I would just simply counter at $Y or higher regardless of whether I had other offers or not.  Furthermore would a thousand or two above the next bid really matter since it is literally a small fraction of the price of these homes?  Escalation clauses simply give the seller an advantage without gaining any for the buyer. 



I don't understand how it gives the Seller an advantage when the escalation clause is used on a best and final counter.  A best and final counter is what it means, all buyers are to provide their highest offers and the Seller does not come back with another counter above that the price that the buyers respond with.  I would argue that an escalation clause would be helpful to buyers as it may limit them from overbidding on a home if they already had the highest offer before the escalation.  I've had dozens of situations on the listing side when I sent out best n final counters to multiple buyers the top buyer would outbid themselves and be $20k-$40k higher than the 2nd highest offer.
I think the main issue is the lack of transparency and trust in the current bidding process for the buyer. If you send out "best and final offers", as a buyer, how do I know where I stand? What if I'm the highest bidder and you still send that. I don't want to bid higher if I know I'm the highest offer. I've said it before and I'll say it again, with this type of bidding war, there needs to be transparency and trust for the buyer. Otherwise there will be buyers that will be hesitant to put their actual highest. The last thing I want to do is bid against myself. The current process definitely benefits the seller and not the buyer. But maybe I'm only speaking for myself and I'm wrong about the general consensus.

You are completely right that the multiple seller counter offer for best & final offers benefits the seller.  The escalation clause is one way to try to limit overbidding.  If you want a fair transparent bidding process then an online auction needs to be set up where the clock gets reset to 5 minutes after the last bid so there is no snipe bids like you have on Ebay.  That way buyers would see have full transparency.  This would favor the buyers not the seller so not sure if you'll see from listing agents that anytime soon. My job as a listing agent is to get the highest price with a qualified possible as quickly and effectively as I can. I've been easily able to motivate/encourage buyer agents to have their buyers bid higher over the years where the top buyer just outbid themselves with the best and final counter.
yeah and I think in this type of market, it’s best to give your best offer the first time and leave it as is. That way you don’t play that game of bidding against yourself. If you win, you can say you win and didn’t play any games in doing so.
Title: Re: Where the market is - Buyer Offers
Post by: akkord on April 01, 2021, 10:24:33 PM
It's a sellers market, sucks to be a buyer now, until the winds change and it becomes a buyers market, you're at the mercy of the seller.  Some agents are shady, some aren't, if you're a buyer now you have to play the game to get a home. 
Title: Re: Where the market is - Buyer Offers
Post by: zovall on April 01, 2021, 10:27:12 PM
The current process definitely benefits the seller and not the buyer. But maybe I'm only speaking for myself and I'm wrong about the general consensus.

I don't think you are wrong. This is the worst time to be a buyer because it is such a strong sellers market. Everything is to the benefit of the seller right now and buyers don't have any leverage. Regardless, there will still be people who feel like they need to buy a home, even in this market, and they are competing with many other buyers.  Using an escalation clause can help them compete.
Title: Re: Where the market is - Buyer Offers
Post by: kpatnps on April 02, 2021, 05:18:23 PM
No luck on Navigator.  My buyer bid $1.311m and then used an escalation clause going up to $1.321m with a $1,000 over the highest offer/counter.  Listing agent emailed me this late last night when I asked if the top buyer bid above $1.321m here was her reply...

"Yes, by a good amount over your max escalation amount."

It might hurt you. The listing agent can make use of your escalation clause and tell the other buyers that the highest offer is $1.321m, and you have to bid over that price. I am sure someone will do so.

Personally I think an escalation clause with a max limit doesnt make any sense.  Put yourself in the sellers position.  If a buyer says they will pay $X over the highest bid up to $Y amount, then I would just simply counter at $Y or higher regardless of whether I had other offers or not.  Furthermore would a thousand or two above the next bid really matter since it is literally a small fraction of the price of these homes?  Escalation clauses simply give the seller an advantage without gaining any for the buyer. 



I don't understand how it gives the Seller an advantage when the escalation clause is used on a best and final counter.  A best and final counter is what it means, all buyers are to provide their highest offers and the Seller does not come back with another counter above that the price that the buyers respond with.  I would argue that an escalation clause would be helpful to buyers as it may limit them from overbidding on a home if they already had the highest offer before the escalation.  I've had dozens of situations on the listing side when I sent out best n final counters to multiple buyers the top buyer would outbid themselves and be $20k-$40k higher than the 2nd highest offer.
I think the main issue is the lack of transparency and trust in the current bidding process for the buyer. If you send out "best and final offers", as a buyer, how do I know where I stand? What if I'm the highest bidder and you still send that. I don't want to bid higher if I know I'm the highest offer. I've said it before and I'll say it again, with this type of bidding war, there needs to be transparency and trust for the buyer. Otherwise there will be buyers that will be hesitant to put their actual highest. The last thing I want to do is bid against myself. The current process definitely benefits the seller and not the buyer. But maybe I'm only speaking for myself and I'm wrong about the general consensus.

You are completely right that the multiple seller counter offer for best & final offers benefits the seller.  The escalation clause is one way to try to limit overbidding.  If you want a fair transparent bidding process then an online auction needs to be set up where the clock gets reset to 5 minutes after the last bid so there is no snipe bids like you have on Ebay.  That way buyers would see have full transparency.  This would favor the buyers not the seller so not sure if you'll see from listing agents that anytime soon. My job as a listing agent is to get the highest price with a qualified possible as quickly and effectively as I can. I've been easily able to motivate/encourage buyer agents to have their buyers bid higher over the years where the top buyer just outbid themselves with the best and final counter.
yeah and I think in this type of market, it’s best to give your best offer the first time and leave it as is. That way you don’t play that game of bidding against yourself. If you win, you can say you win and didn’t play any games in doing so.

This
Title: Re: Where the market is - Buyer Offers
Post by: newOC on April 02, 2021, 05:34:01 PM
Having bought and sold property many times over the years including recently, I can say escalation clause is a fools tool. At best it makes a seller raise an eyebrow and not care, at worst it hurts the buyer as the seller will ignore and take a straight offer from someone not trying to play games or an agent not trying to look smarter than they are.

No luck on Navigator.  My buyer bid $1.311m and then used an escalation clause going up to $1.321m with a $1,000 over the highest offer/counter.  Listing agent emailed me this late last night when I asked if the top buyer bid above $1.321m here was her reply...

"Yes, by a good amount over your max escalation amount."

It might hurt you. The listing agent can make use of your escalation clause and tell the other buyers that the highest offer is $1.321m, and you have to bid over that price. I am sure someone will do so.

Personally I think an escalation clause with a max limit doesnt make any sense.  Put yourself in the sellers position.  If a buyer says they will pay $X over the highest bid up to $Y amount, then I would just simply counter at $Y or higher regardless of whether I had other offers or not.  Furthermore would a thousand or two above the next bid really matter since it is literally a small fraction of the price of these homes?  Escalation clauses simply give the seller an advantage without gaining any for the buyer. 



I don't understand how it gives the Seller an advantage when the escalation clause is used on a best and final counter.  A best and final counter is what it means, all buyers are to provide their highest offers and the Seller does not come back with another counter above that the price that the buyers respond with.  I would argue that an escalation clause would be helpful to buyers as it may limit them from overbidding on a home if they already had the highest offer before the escalation.  I've had dozens of situations on the listing side when I sent out best n final counters to multiple buyers the top buyer would outbid themselves and be $20k-$40k higher than the 2nd highest offer.
I think the main issue is the lack of transparency and trust in the current bidding process for the buyer. If you send out "best and final offers", as a buyer, how do I know where I stand? What if I'm the highest bidder and you still send that. I don't want to bid higher if I know I'm the highest offer. I've said it before and I'll say it again, with this type of bidding war, there needs to be transparency and trust for the buyer. Otherwise there will be buyers that will be hesitant to put their actual highest. The last thing I want to do is bid against myself. The current process definitely benefits the seller and not the buyer. But maybe I'm only speaking for myself and I'm wrong about the general consensus.

You are completely right that the multiple seller counter offer for best & final offers benefits the seller.  The escalation clause is one way to try to limit overbidding.  If you want a fair transparent bidding process then an online auction needs to be set up where the clock gets reset to 5 minutes after the last bid so there is no snipe bids like you have on Ebay.  That way buyers would see have full transparency.  This would favor the buyers not the seller so not sure if you'll see from listing agents that anytime soon. My job as a listing agent is to get the highest price with a qualified possible as quickly and effectively as I can. I've been easily able to motivate/encourage buyer agents to have their buyers bid higher over the years where the top buyer just outbid themselves with the best and final counter.
yeah and I think in this type of market, it’s best to give your best offer the first time and leave it as is. That way you don’t play that game of bidding against yourself. If you win, you can say you win and didn’t play any games in doing so.

This
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on April 02, 2021, 06:05:21 PM
No luck on Navigator.  My buyer bid $1.311m and then used an escalation clause going up to $1.321m with a $1,000 over the highest offer/counter.  Listing agent emailed me this late last night when I asked if the top buyer bid above $1.321m here was her reply...

"Yes, by a good amount over your max escalation amount."

It might hurt you. The listing agent can make use of your escalation clause and tell the other buyers that the highest offer is $1.321m, and you have to bid over that price. I am sure someone will do so.

Personally I think an escalation clause with a max limit doesnt make any sense.  Put yourself in the sellers position.  If a buyer says they will pay $X over the highest bid up to $Y amount, then I would just simply counter at $Y or higher regardless of whether I had other offers or not.  Furthermore would a thousand or two above the next bid really matter since it is literally a small fraction of the price of these homes?  Escalation clauses simply give the seller an advantage without gaining any for the buyer. 



I don't understand how it gives the Seller an advantage when the escalation clause is used on a best and final counter.  A best and final counter is what it means, all buyers are to provide their highest offers and the Seller does not come back with another counter above that the price that the buyers respond with.  I would argue that an escalation clause would be helpful to buyers as it may limit them from overbidding on a home if they already had the highest offer before the escalation.  I've had dozens of situations on the listing side when I sent out best n final counters to multiple buyers the top buyer would outbid themselves and be $20k-$40k higher than the 2nd highest offer.
I think the main issue is the lack of transparency and trust in the current bidding process for the buyer. If you send out "best and final offers", as a buyer, how do I know where I stand? What if I'm the highest bidder and you still send that. I don't want to bid higher if I know I'm the highest offer. I've said it before and I'll say it again, with this type of bidding war, there needs to be transparency and trust for the buyer. Otherwise there will be buyers that will be hesitant to put their actual highest. The last thing I want to do is bid against myself. The current process definitely benefits the seller and not the buyer. But maybe I'm only speaking for myself and I'm wrong about the general consensus.

You are completely right that the multiple seller counter offer for best & final offers benefits the seller.  The escalation clause is one way to try to limit overbidding.  If you want a fair transparent bidding process then an online auction needs to be set up where the clock gets reset to 5 minutes after the last bid so there is no snipe bids like you have on Ebay.  That way buyers would see have full transparency.  This would favor the buyers not the seller so not sure if you'll see from listing agents that anytime soon. My job as a listing agent is to get the highest price with a qualified possible as quickly and effectively as I can. I've been easily able to motivate/encourage buyer agents to have their buyers bid higher over the years where the top buyer just outbid themselves with the best and final counter.
yeah and I think in this type of market, it’s best to give your best offer the first time and leave it as is. That way you don’t play that game of bidding against yourself. If you win, you can say you win and didn’t play any games in doing so.

Some buyers don't want to offer up their best price right off the bat.  The maximum price in the escalation clause is the same thing as their max price so it's all the same thing really. 
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on April 02, 2021, 06:10:50 PM
Having bought and sold property many times over the years including recently, I can say escalation clause is a fools tool. At best it makes a seller raise an eyebrow and not care, at worst it hurts the buyer as the seller will ignore and take a straight offer from someone not trying to play games or an agent not trying to look smarter than they are.

No luck on Navigator.  My buyer bid $1.311m and then used an escalation clause going up to $1.321m with a $1,000 over the highest offer/counter.  Listing agent emailed me this late last night when I asked if the top buyer bid above $1.321m here was her reply...

"Yes, by a good amount over your max escalation amount."

It might hurt you. The listing agent can make use of your escalation clause and tell the other buyers that the highest offer is $1.321m, and you have to bid over that price. I am sure someone will do so.

Personally I think an escalation clause with a max limit doesnt make any sense.  Put yourself in the sellers position.  If a buyer says they will pay $X over the highest bid up to $Y amount, then I would just simply counter at $Y or higher regardless of whether I had other offers or not.  Furthermore would a thousand or two above the next bid really matter since it is literally a small fraction of the price of these homes?  Escalation clauses simply give the seller an advantage without gaining any for the buyer. 



I don't understand how it gives the Seller an advantage when the escalation clause is used on a best and final counter.  A best and final counter is what it means, all buyers are to provide their highest offers and the Seller does not come back with another counter above that the price that the buyers respond with.  I would argue that an escalation clause would be helpful to buyers as it may limit them from overbidding on a home if they already had the highest offer before the escalation.  I've had dozens of situations on the listing side when I sent out best n final counters to multiple buyers the top buyer would outbid themselves and be $20k-$40k higher than the 2nd highest offer.
I think the main issue is the lack of transparency and trust in the current bidding process for the buyer. If you send out "best and final offers", as a buyer, how do I know where I stand? What if I'm the highest bidder and you still send that. I don't want to bid higher if I know I'm the highest offer. I've said it before and I'll say it again, with this type of bidding war, there needs to be transparency and trust for the buyer. Otherwise there will be buyers that will be hesitant to put their actual highest. The last thing I want to do is bid against myself. The current process definitely benefits the seller and not the buyer. But maybe I'm only speaking for myself and I'm wrong about the general consensus.

You are completely right that the multiple seller counter offer for best & final offers benefits the seller.  The escalation clause is one way to try to limit overbidding.  If you want a fair transparent bidding process then an online auction needs to be set up where the clock gets reset to 5 minutes after the last bid so there is no snipe bids like you have on Ebay.  That way buyers would see have full transparency.  This would favor the buyers not the seller so not sure if you'll see from listing agents that anytime soon. My job as a listing agent is to get the highest price with a qualified possible as quickly and effectively as I can. I've been easily able to motivate/encourage buyer agents to have their buyers bid higher over the years where the top buyer just outbid themselves with the best and final counter.
yeah and I think in this type of market, it’s best to give your best offer the first time and leave it as is. That way you don’t play that game of bidding against yourself. If you win, you can say you win and didn’t play any games in doing so.

This

The escalation clause has worked for a few of my buyers and sellers recently. It saved my buyers thousands of dollars and got my sellers extra money.  There's nothing complicated or sleight of hand about an escalation clause, it's just that it's not used very much so many sellers and agents don't fully understand the concept.  It is not meant to be used on every best & final counter situation, best to pick and choose the use of it.
Title: Re: Where the market is - Buyer Offers
Post by: irvinehomeowner on April 04, 2021, 07:57:46 AM
So remember when we were discussing buying when you can afford it instead of waiting for a speculated downturn of prices?

This is one of the issues you have to deal with.

That’s why sometimes* it’s ok to buy when prices are perceived as “high” because you can actually get the home you want without having to compete with over bids.

*Obvious caveats apply.
Title: Re: Where the market is - Buyer Offers
Post by: qwerty on April 04, 2021, 10:47:17 AM
I think the escalation cause would be more effective if there was more of “premium” so to speak over the actual highest offer. If I is an escalation clause of +20 to 30k over the highest actual offer then I think more buyers would bite.

I would look at at extra 20-30k as a negotiation premium for the ability to get the house. In some respects you are already overpaying by buying in this market. What’s another 20-30k?
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on April 05, 2021, 09:23:21 PM
Offers going out shortly on these 2 Irvine homes...

https://www.redfin.com/CA/Irvine/81-Navigator-92620/home/7215381

https://www.redfin.com/CA/Irvine/6-Grass-Vly-92602/home/5771347

Let's see what happens on these homes.
Title: Re: Where the market is - Buyer Offers
Post by: nosuchreality on April 06, 2021, 09:43:25 AM
I think the escalation cause would be more effective if there was more of “premium” so to speak over the actual highest offer. If I is an escalation clause of +20 to 30k over the highest actual offer then I think more buyers would bite.

I would look at at extra 20-30k as a negotiation premium for the ability to get the house. In some respects you are already overpaying by buying in this market. What’s another 20-30k?

It's price relative.  $20-$30K can sound like a lot, but at $800K-$900K it's pretty much chump change.  It's a hard habit to break, but bickering over 1% can tank a lot of deals.  It's real money but like arguing over a penny when buying a Big Gulp.

The alternative is continued living in the joys of the ever growing apartment complexes or hunting for a small time landlord that understands landlording and isn't chronically in your sh&t or neglecting everything.
Title: Re: Where the market is - Buyer Offers
Post by: Mety on April 06, 2021, 01:31:19 PM
So remember when we were discussing buying when you can afford it instead of waiting for a speculated downturn of prices?

This is one of the issues you have to deal with.

That’s why sometimes* it’s ok to buy when prices are perceived as “high” because you can actually get the home you want without having to compete with over bids.

*Obvious caveats apply.

So should people buy now also? ;D
Title: Re: Where the market is - Buyer Offers
Post by: irvinehomeowner on April 06, 2021, 07:17:52 PM
So remember when we were discussing buying when you can afford it instead of waiting for a speculated downturn of prices?

This is one of the issues you have to deal with.

That’s why sometimes* it’s ok to buy when prices are perceived as “high” because you can actually get the home you want without having to compete with over bids.

*Obvious caveats apply.

So should people buy now also? ;D

If they can afford it, like the home/location, and can live in it long term... YES.

That's what "obvious caveats" means.
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on April 06, 2021, 10:45:41 PM
So remember when we were discussing buying when you can afford it instead of waiting for a speculated downturn of prices?

This is one of the issues you have to deal with.

That’s why sometimes* it’s ok to buy when prices are perceived as “high” because you can actually get the home you want without having to compete with over bids.

*Obvious caveats apply.

So should people buy now also? ;D

If they can afford it, like the home/location, and can live in it long term... YES.

That's what "obvious caveats" means.

+1 Because sometimes life does not allow you to time buying a home to live in longer term.
Title: Re: Where the market is - Buyer Offers
Post by: talkirvine on April 07, 2021, 02:42:50 PM
So remember when we were discussing buying when you can afford it instead of waiting for a speculated downturn of prices?

This is one of the issues you have to deal with.

That’s why sometimes* it’s ok to buy when prices are perceived as “high” because you can actually get the home you want without having to compete with over bids.

*Obvious caveats apply.

So should people buy now also? ;D

If they can afford it, like the home/location, and can live in it long term... YES.

That's what "obvious caveats" means.

+1 Because sometimes life does not allow you to time buying a home to live in longer term.

It is very hard to time the market, especially on the buy side. You have to actively watch and follow the market. When price increases, it can go north pretty fast in a short time before you realize it. The down movement tends to be slower.
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on April 07, 2021, 03:19:42 PM
So remember when we were discussing buying when you can afford it instead of waiting for a speculated downturn of prices?

This is one of the issues you have to deal with.

That’s why sometimes* it’s ok to buy when prices are perceived as “high” because you can actually get the home you want without having to compete with over bids.

*Obvious caveats apply.

So should people buy now also? ;D

If they can afford it, like the home/location, and can live in it long term... YES.

That's what "obvious caveats" means.

+1 Because sometimes life does not allow you to time buying a home to live in longer term.

It is very hard to time the market, especially on the buy side. You have to actively watch and follow the market. When price increases, it can go north pretty fast in a short time before you realize it. The down movement tends to be slower.

That is very true, prices are much more sticky on the downstair because some sellers can be very stubborn on pricing.
Title: Re: Where the market is - Buyer Offers
Post by: irvineband on April 07, 2021, 06:21:08 PM
Where did all the Complainy Smurf, dooms dayers, market crashers go? Are they going to wait until the market goes up another 25% so we are at a 50% increase before they start saying we will have a 10% correction? Will it be time to time the market then? Prices are absolutely sticky on the way down and the homes that are available tend to not be great options. Markets go up and down but Irvine has proven time and again that it remains resilient and you need to buy the the house you want WHEN IT COMES UP FOR SALE!!!
Title: Re: Where the market is - Buyer Offers
Post by: Kenkoko on April 07, 2021, 07:13:39 PM
Where did all the Complainy Smurf, dooms dayers, market crashers go? Are they going to wait until the market goes up another 25% so we are at a 50% increase before they start saying we will have a 10% correction? Will it be time to time the market then? Prices are absolutely sticky on the way down and the homes that are available tend to not be great options. Markets go up and down but Irvine has proven time and again that it remains resilient and you need to buy the the house you want WHEN IT COMES UP FOR SALE!!!

Your all caps yelling scared away all the bears!

They all went into hiding so they don't have to face your wrath. 

Happy now ? ;)
Title: Re: Where the market is - Buyer Offers
Post by: nosuchreality on April 07, 2021, 08:20:06 PM
My concern is what happens when the giant juice machine stops?

Can it stop anymore?   

Let’s remember former President Trump dallied with gold standard finance peeps.  Plenty of far right types think the gold standard is the magic pill for government overreach. 

As for bearish downturns, the last real free market downturn we had was housing in 1994.  Since then with housing, we’ve nationalized the losses and privatized the profits, changing rules allowing large players to deep rewards.  The stock market has hardly been better, whether LTCM, GM or the a covid airline bailout before any lockdowns started.

Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on April 07, 2021, 10:41:25 PM
My concern is what happens when the giant juice machine stops?

Can it stop anymore?   

Let’s remember former President Trump dallied with gold standard finance peeps.  Plenty of far right types think the gold standard is the magic pill for government overreach. 

As for bearish downturns, the last real free market downturn we had was housing in 1994.  Since then with housing, we’ve nationalized the losses and privatized the profits, changing rules allowing large players to deep rewards.  The stock market has hardly been better, whether LTCM, GM or the a covid airline bailout before any lockdowns started.



The gov't and Fed have shown us enough that they will keep backstopping and kicking the can down the road perpetually so go with the flow.  People who think we'll have any kind of big correction in the real estate market are going to be waiting a long, long time.  Today's buyers are stronger than ever and loans are fully unwritten.  I laugh when I hear people say that this is the same thing that we saw in 2003-2007 with a similar crash coming afterwards....NOT GOING TO HAPPEN is what I say.
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on April 07, 2021, 10:44:04 PM
Offers going out shortly on these 2 Irvine homes...

https://www.redfin.com/CA/Irvine/81-Navigator-92620/home/7215381

https://www.redfin.com/CA/Irvine/6-Grass-Vly-92602/home/5771347

Let's see what happens on these homes.

Updates...

Navigator got 5 offers and ended up at around $1.5m with my clients only willing to go up to $1.451m due to the questionable location. 

Grass Vly got 8 offers.  My clients went up to $1.351m on best & final counters and didn't get the house.  My guess is that it got bid up to the high $1.3s. 
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on April 07, 2021, 11:06:07 PM
I made an offer for the following Laguna Niguel home for a buyer earlier today...

https://www.redfin.com/CA/Laguna-Niguel/28019-Greenlawn-Cir-92677/home/4877008

We were going to make an offer on it earlier but it went into escrow quickly but since it dropped out we submitted an offer.
Title: Re: Where the market is - Buyer Offers
Post by: nosuchreality on April 08, 2021, 08:14:33 AM
Looks like 9 foot ceilings?  Judging by the door, photo angle makes the ceilings look low, or maybe the dark grey walls and black doors.  Probably shows better in person.  Has plenty Windows, good light, but the photos make it look cavish imho.
Title: Re: Where the market is - Buyer Offers
Post by: AW on April 08, 2021, 08:54:31 AM
Isn’t 9 normal for non newer-ish homes?
I think it’s the photo editing that makes it look off, widening to make it look more spacious.  For example, the picture with the fridge, aspect ratio doesn’t look normal
Title: Re: Where the market is - Buyer Offers
Post by: Soylent Green Is People on April 08, 2021, 09:40:31 AM
Given the SF compared to other sales, it seems as if there was a loft added, giving the impression of a lower ceiling.
Title: Re: Where the market is - Buyer Offers
Post by: nosuchreality on April 08, 2021, 10:19:28 AM
Isn’t 9 normal for non newer-ish homes?
I think it’s the photo editing that makes it look off, widening to make it look more spacious.  For example, the picture with the fridge, aspect ratio doesn’t look normal

9' is a decent ceiling height.  But yes it looks like a wide angle effect.  Very noticeable in the bedroom shot where the  ceiling line looks sloped and doesn't parallel the bed frame line.
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on April 08, 2021, 10:53:07 AM
Looks like 9 foot ceilings?  Judging by the door, photo angle makes the ceilings look low, or maybe the dark grey walls and black doors.  Probably shows better in person.  Has plenty Windows, good light, but the photos make it look cavish imho.

Yeah, 9 foot ceilings for sure.
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on April 09, 2021, 11:57:28 PM
I made an offer for the following Laguna Niguel home for a buyer earlier today...

https://www.redfin.com/CA/Laguna-Niguel/28019-Greenlawn-Cir-92677/home/4877008

We were going to make an offer on it earlier but it went into escrow quickly but since it dropped out we submitted an offer.

The escalation clause buyer counter worked, my client got this home.  We'll officially open up escrow on Monday. 
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on April 11, 2021, 09:45:32 AM
I made offers on the following 2 homes yesterday...

https://www.redfin.com/CA/Irvine/81-Coleridge-92620/home/51684024

https://www.redfin.com/CA/Irvine/80-Birmingham-92620/home/112721965

My client bid $1,220,000 on 81 Coleridge but the seller decided to move forward with a slightly higher offer against the advice of the listing agent.  We are the first back up buyer on the home.  The listing agent on Birmingham said that they will review offers on Monday evening.
Title: Re: Where the market is - Buyer Offers
Post by: irvinehomeowner on April 12, 2021, 05:56:01 AM
I wonder if any of the sellers of these homes see this thread and say “Wait... my agent never told me about these offers!” 

:)
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on April 13, 2021, 12:41:09 AM
I wonder if any of the sellers of these homes see this thread and say “Wait... my agent never told me about these offers!” 

:)

I told for the sake of their listing agents that it didn't happen.
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on April 13, 2021, 12:44:01 AM
I made offers for the 3 following homes earlier today...

https://www.redfin.com/CA/Irvine/109-Windham-92620/home/112720862

https://www.redfin.com/CA/Irvine/80-Birmingham-92620/home/112721965

https://www.redfin.com/CA/Irvine/61-Gardenstone-Path-92620/home/58557056

We already got the best & final counter offer for 80 Biringham that is due back by Tuesday at 6pm.
Title: Re: Where the market is - Buyer Offers
Post by: Sidehussle on April 13, 2021, 05:23:14 PM
These offer bid-ups seem exuberant for Irvine until you compare to Los Angeles pricing from 2019 through today.

We were shopping the SGV area (Arcadia, Temple City, and north San Gabriel (San Marino schools) and prices for run down, crappy, TLC homes averaged in the 650-700/ foot range back then.

Thankfully with telework, we bought in Irvine late 2019 for 460 per foot (and thought that was high).  We always thought Irvine is a great value compared for what you get in LA and the recent price increases is just closing the LA/OC gap.

Offers going out shortly on these 2 Irvine homes...

https://www.redfin.com/CA/Irvine/81-Navigator-92620/home/7215381

https://www.redfin.com/CA/Irvine/6-Grass-Vly-92602/home/5771347

Let's see what happens on these homes.

Updates...

Navigator got 5 offers and ended up at around $1.5m with my clients only willing to go up to $1.451m due to the questionable location. 

Grass Vly got 8 offers.  My clients went up to $1.351m on best & final counters and didn't get the house.  My guess is that it got bid up to the high $1.3s.
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on April 13, 2021, 05:48:36 PM
These offer bid-ups seem exuberant for Irvine until you compare to Los Angeles pricing from 2019 through today.

We were shopping the SGV area (Arcadia, Temple City, and north San Gabriel (San Marino schools) and prices for run down, crappy, TLC homes averaged in the 650-700/ foot range back then.

Thankfully with telework, we bought in Irvine late 2019 for 460 per foot (and thought that was high).  We always thought Irvine is a great value compared for what you get in LA and the recent price increases is just closing the LA/OC gap.

Offers going out shortly on these 2 Irvine homes...

https://www.redfin.com/CA/Irvine/81-Navigator-92620/home/7215381

https://www.redfin.com/CA/Irvine/6-Grass-Vly-92602/home/5771347

Let's see what happens on these homes.

Updates...

Navigator got 5 offers and ended up at around $1.5m with my clients only willing to go up to $1.451m due to the questionable location. 

Grass Vly got 8 offers.  My clients went up to $1.351m on best & final counters and didn't get the house.  My guess is that it got bid up to the high $1.3s.

You make a great point.  I've had a few LA buyers who moved down to Irvine and all of them told me that Irvine was considerably less expensive and much nicer.  So at the end of the day it's all relative from a price/sf perspective.
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on April 18, 2021, 10:14:13 PM
I sent an offer for the Stonegate home for one of my clients this evening...

https://www.redfin.com/CA/Irvine/60-Parkdale-92620/home/58556535
Title: Re: Where the market is - Buyer Offers
Post by: Irvinehomeseeker on April 18, 2021, 10:24:09 PM
That one in SG looks very attractively priced. Multiple offers may push it up to 1.45 M I guess
Title: Re: Where the market is - Buyer Offers
Post by: zovall on April 20, 2021, 10:50:44 PM
https://www.redfin.com/CA/Irvine/11-Pollena-92602/home/5814724

My guestimate is that Pollena home would go 100k above asking. And if there is serious bidding war, upto 150k above asking.

Great call Cornflakes! Looks like that one closed for 100k over asking

And congrats USC!
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on April 21, 2021, 12:11:18 AM
https://www.redfin.com/CA/Irvine/11-Pollena-92602/home/5814724

My guestimate is that Pollena home would go 100k above asking. And if there is serious bidding war, upto 150k above asking.

Great call Cornflakes! Looks like that one closed for 100k over asking

And congrats USC!

Thanks Zovall.  There's a bit more information how things played out.  So the seller received 10 offers on the home by Saturday when we asked for a 24-hour reply for our offer.  Of the 10 offers, there were 3 offers that the seller was seriously considering...$1.24m, $1.25m (my client's offer), and $1.265m.  The listing agent told me that the seller selected to move forward with my client's offer at the inspection for the following reasons (along with telling me about the other 2 offers were we competing against)...

1) My clients wrote a very detailed, sincere letter to the sellers identifying several things (posters, accessory pieces, and pictures of the sellers traveling adventures) that they saw in the home that they shared in common.

2) I've done several transactions with the listing agent over the years and she told the sellers that she would be most comfortable working with me versus the other agents as their offers weren't as clear and concise as mine and never worked with either of them.

3) My buyer's lender was very proactive and contacted the listing agent stated that my clients were very strong and underbuying with a DTI in the 20%s and had the financial capacity to purchase a $2m home.

4) We were the only offer that lifted both loan and appraisal contingencies right off the bat (we removed all contingencies in 10 days) while the other 2 offers only removed the appraisal contingency.

The appraisal on the home came in $85k short at $1,165,000 but my buyers easily and happily bridged the gap by putting more than 20% down.
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on April 21, 2021, 12:15:59 AM
I made an offer for another buyer on this home back on March 3rd and it was interesting on it played out.

https://www.redfin.com/CA/Irvine/104-Summer-Lilac-92620/home/112721589

I told my buyer that a fair range price for this home was $1.475m to $1.5m.  So we started with an initial offer of $1.475m with no appraisal contingency and removing all contingencies in 14 days along with a 40% down payment.  My clients were ready to potentially go up to $1.5m on a best & final counter.  The listing agent texts me the next morning and apologizes to me saying that his seller accepted a slightly higher offer than ours despite him strongly recommending that they at least do a seller multiple counter to the top 2-3 buyers (we had the 2nd highest offer).  I think the home will close right around $1.5m.  The takeaway from this experience is don't hold back too much on your initial offer because you may not get another chance to bid higher. 

This one closed for $1.6m which is almost shocking given that the regular lot homes have been closing around $1.4m.
Title: Re: Where the market is - Buyer Offers
Post by: Cares on April 21, 2021, 07:27:52 AM
I made an offer for another buyer on this home back on March 3rd and it was interesting on it played out.

https://www.redfin.com/CA/Irvine/104-Summer-Lilac-92620/home/112721589

I told my buyer that a fair range price for this home was $1.475m to $1.5m.  So we started with an initial offer of $1.475m with no appraisal contingency and removing all contingencies in 14 days along with a 40% down payment.  My clients were ready to potentially go up to $1.5m on a best & final counter.  The listing agent texts me the next morning and apologizes to me saying that his seller accepted a slightly higher offer than ours despite him strongly recommending that they at least do a seller multiple counter to the top 2-3 buyers (we had the 2nd highest offer).  I think the home will close right around $1.5m.  The takeaway from this experience is don't hold back too much on your initial offer because you may not get another chance to bid higher. 

This one closed for $1.6m which is almost shocking given that the regular lot homes have been closing around $1.4m.

I took a peek at this one potentially for myself. I predicted on the dot that it would sell at $1.6m cash given the nature that they changed their offer review from 1 week to 1 day (to a Tues/Weds) and not let the home sit until the weekend. They said they had a really strong offer that they had to respond it.

The agent is a relative to the seller.
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on April 21, 2021, 10:00:53 AM
I made an offer for another buyer on this home back on March 3rd and it was interesting on it played out.

https://www.redfin.com/CA/Irvine/104-Summer-Lilac-92620/home/112721589

I told my buyer that a fair range price for this home was $1.475m to $1.5m.  So we started with an initial offer of $1.475m with no appraisal contingency and removing all contingencies in 14 days along with a 40% down payment.  My clients were ready to potentially go up to $1.5m on a best & final counter.  The listing agent texts me the next morning and apologizes to me saying that his seller accepted a slightly higher offer than ours despite him strongly recommending that they at least do a seller multiple counter to the top 2-3 buyers (we had the 2nd highest offer).  I think the home will close right around $1.5m.  The takeaway from this experience is don't hold back too much on your initial offer because you may not get another chance to bid higher. 

This one closed for $1.6m which is almost shocking given that the regular lot homes have been closing around $1.4m.

I took a peek at this one potentially for myself. I predicted on the dot that it would sell at $1.6m cash given the nature that they changed their offer review from 1 week to 1 day (to a Tues/Weds) and not let the home sit until the weekend. They said they had a really strong offer that they had to respond it.

The agent is a relative to the seller.

What's interesting, is that my client's offer at $1.475m was the second highest offer as they were the first backup buyer.  IMO, the $1.6m sales price was a bit much but hey someone really wanted so they bid high to get even paying $125k more than the second highest buyer (good thing the buyer put $600k down because I'm sure it didn't appraise at $1.6m).
Title: Re: Where the market is - Buyer Offers
Post by: Cares on April 21, 2021, 10:15:37 AM
I made an offer for another buyer on this home back on March 3rd and it was interesting on it played out.

https://www.redfin.com/CA/Irvine/104-Summer-Lilac-92620/home/112721589

I told my buyer that a fair range price for this home was $1.475m to $1.5m.  So we started with an initial offer of $1.475m with no appraisal contingency and removing all contingencies in 14 days along with a 40% down payment.  My clients were ready to potentially go up to $1.5m on a best & final counter.  The listing agent texts me the next morning and apologizes to me saying that his seller accepted a slightly higher offer than ours despite him strongly recommending that they at least do a seller multiple counter to the top 2-3 buyers (we had the 2nd highest offer).  I think the home will close right around $1.5m.  The takeaway from this experience is don't hold back too much on your initial offer because you may not get another chance to bid higher. 

This one closed for $1.6m which is almost shocking given that the regular lot homes have been closing around $1.4m.

I took a peek at this one potentially for myself. I predicted on the dot that it would sell at $1.6m cash given the nature that they changed their offer review from 1 week to 1 day (to a Tues/Weds) and not let the home sit until the weekend. They said they had a really strong offer that they had to respond it.

The agent is a relative to the seller.

What's interesting, is that my client's offer at $1.475m was the second highest offer as they were the first backup buyer.  IMO, the $1.6m sales price was a bit much but hey someone really wanted so they bid high to get even paying $125k more than the second highest buyer (good thing the buyer put $600k down because I'm sure it didn't appraise at $1.6m).

That home is one of the largest in CV and also probably on the largest lot in CV. They also did extensive backyard work and well maintained. At that exact moment there were I believe only 2 other 4BR SFR's available. Someone must have been desperate to buy so they overbid.
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on April 21, 2021, 12:09:22 PM
I made an offer for another buyer on this home back on March 3rd and it was interesting on it played out.

https://www.redfin.com/CA/Irvine/104-Summer-Lilac-92620/home/112721589

I told my buyer that a fair range price for this home was $1.475m to $1.5m.  So we started with an initial offer of $1.475m with no appraisal contingency and removing all contingencies in 14 days along with a 40% down payment.  My clients were ready to potentially go up to $1.5m on a best & final counter.  The listing agent texts me the next morning and apologizes to me saying that his seller accepted a slightly higher offer than ours despite him strongly recommending that they at least do a seller multiple counter to the top 2-3 buyers (we had the 2nd highest offer).  I think the home will close right around $1.5m.  The takeaway from this experience is don't hold back too much on your initial offer because you may not get another chance to bid higher. 

This one closed for $1.6m which is almost shocking given that the regular lot homes have been closing around $1.4m.

I took a peek at this one potentially for myself. I predicted on the dot that it would sell at $1.6m cash given the nature that they changed their offer review from 1 week to 1 day (to a Tues/Weds) and not let the home sit until the weekend. They said they had a really strong offer that they had to respond it.

The agent is a relative to the seller.

What's interesting, is that my client's offer at $1.475m was the second highest offer as they were the first backup buyer.  IMO, the $1.6m sales price was a bit much but hey someone really wanted so they bid high to get even paying $125k more than the second highest buyer (good thing the buyer put $600k down because I'm sure it didn't appraise at $1.6m).

That home is one of the largest in CV and also probably on the largest lot in CV. They also did extensive backyard work and well maintained. At that exact moment there were I believe only 2 other 4BR SFR's available. Someone must have been desperate to buy so they overbid.

Yeah, I get it....extreme situations call for exterme measures (aka bidding high).
Title: Re: Where the market is - Buyer Offers
Post by: hurijo on April 24, 2021, 08:02:04 AM
Wow, 32 Marblehead sold $1.35m (list $1.2m). Last highest sale in same tract was about a month ago for $1.275m.

Made an offer over list on this Montecito Plan 2 home in Woodbury earlier today...

https://www.redfin.com/CA/Irvine/32-Marblehead-92620/home/28931918

Agent said they have multiple offers (big shocker) and will be reviewing them with the seller on Sunday night.

No dice for my buyers who put an initial offer of $1.251m on the home.  Got this reply from the listing agent...

"The seller finally made a decision in another direction. The prevailing party has a family in the area and terms that the seller couldn't refuse.

I know so many buyers are disappointed these days and I appreciate your work on this."

So sounds like seller got an offer that they couldn't refuse and didn't want to send out counters.
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on April 24, 2021, 10:17:13 AM
Wow, 32 Marblehead sold $1.35m (list $1.2m). Last highest sale in same tract was about a month ago for $1.275m.

Made an offer over list on this Montecito Plan 2 home in Woodbury earlier today...

https://www.redfin.com/CA/Irvine/32-Marblehead-92620/home/28931918

Agent said they have multiple offers (big shocker) and will be reviewing them with the seller on Sunday night.

No dice for my buyers who put an initial offer of $1.251m on the home.  Got this reply from the listing agent...

"The seller finally made a decision in another direction. The prevailing party has a family in the area and terms that the seller couldn't refuse.

I know so many buyers are disappointed these days and I appreciate your work on this."

So sounds like seller got an offer that they couldn't refuse and didn't want to send out counters.

Yeah the other Marblehead was more upgraded and had a larger lot.
Title: Re: Where the market is - Buyer Offers
Post by: The California Court Company on April 24, 2021, 10:41:08 AM
damn Irvine housing market is not that hot. slightly above listing can get you a house nowadays?
Title: Re: Where the market is - Buyer Offers
Post by: irvinehomeowner on April 24, 2021, 11:05:35 AM
damn Irvine housing market is not that hot. slightly above listing can get you a house nowadays?

Where have you been the last 3 years?
Title: Re: Where the market is - Buyer Offers
Post by: The California Court Company on April 24, 2021, 11:29:16 AM
We are still in Irvine for the next few months but has not followed real estate until recently. We are about to move to a much bigger house with 3CWG on a quiet cul-de-sac with mountain views, and it is in similar school district as IUSD and easy access to freeways (no, not Johns Creek). So I am deciding whether to keep our smaller house in Irvine or rent it out as the rent seems to be higher than the PITI we are paying.

How about you? have you found your 3CWG house yet?

damn Irvine housing market is not that hot. slightly above listing can get you a house nowadays?

Where have you been the last 3 years?
Title: Re: Where the market is - Buyer Offers
Post by: talkirvine on April 24, 2021, 12:41:15 PM
We are still in Irvine for the next few months but has not followed real estate until recently. We are about to move to a much bigger house with 3CWG on a quiet cul-de-sac with mountain views, and it is in similar school district as IUSD and easy access to freeways (no, not Johns Creek). So I am deciding whether to keep our smaller house in Irvine or rent it out as the rent seems to be higher than the PITI we are paying.

How about you? have you found your 3CWG house yet?

damn Irvine housing market is not that hot. slightly above listing can get you a house nowadays?

Where have you been the last 3 years?

This is BSO. And you pick on IHO.
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on April 26, 2021, 12:44:13 AM
I made offers for 2 buyers for the following 2 homes on Sunday evening....

https://www.redfin.com/CA/Irvine/64-Interlude-92620/home/51684862

https://www.redfin.com/CA/Placentia/224-Blanquita-Way-92870/home/4177900

The Placentia home is on hold as the seller is reviewing offers on Monday at 5pm.
Title: Re: Where the market is - Buyer Offers
Post by: irvinehomeowner on April 26, 2021, 10:14:35 AM
We are still in Irvine for the next few months but has not followed real estate until recently. We are about to move to a much bigger house with 3CWG on a quiet cul-de-sac with mountain views, and it is in similar school district as IUSD and easy access to freeways (no, not Johns Creek). So I am deciding whether to keep our smaller house in Irvine or rent it out as the rent seems to be higher than the PITI we are paying.

How about you? have you found your 3CWG house yet?


So Texas then? :)

We were actually thinking about looking again but seeing how crazy Irvine prices are... may need to reconsider.

With remote work being way more acceptable now, it expands where we can look but SoCal (and Irvine) is just superior to us. Maybe NorCal or Seattle suburbs... or San Diego area to stay close to family.

Going to give it a a few years for the kids to be out of the basement. :)

If you haven't had a 3CWG... you will love it... we've been compromising long enough to not really "need" one but it will always be on my list (I am fine with tandem but much prefer the wider driveway).
Title: Re: Where the market is - Buyer Offers
Post by: The California Court Company on April 26, 2021, 02:07:31 PM
No still west coast and one may argue the location has better weather than Irvine.  And yes inspired by you I really started to appreciate 3CWG house with wide lot (once we are in the position to buy 3CWG, 2CWG houses just look a lot less appealing)....the curb appeal, extra flexibility and distance to your neighbor.s..no more 10 ft rear or 3 ft side setback craps like in new Irvine builds.

We are still in Irvine for the next few months but has not followed real estate until recently. We are about to move to a much bigger house with 3CWG on a quiet cul-de-sac with mountain views, and it is in similar school district as IUSD and easy access to freeways (no, not Johns Creek). So I am deciding whether to keep our smaller house in Irvine or rent it out as the rent seems to be higher than the PITI we are paying.

How about you? have you found your 3CWG house yet?


So Texas then? :)

We were actually thinking about looking again but seeing how crazy Irvine prices are... may need to reconsider.

With remote work being way more acceptable now, it expands where we can look but SoCal (and Irvine) is just superior to us. Maybe NorCal or Seattle suburbs... or San Diego area to stay close to family.

Going to give it a a few years for the kids to be out of the basement. :)

If you haven't had a 3CWG... you will love it... we've been compromising long enough to not really "need" one but it will always be on my list (I am fine with tandem but much prefer the wider driveway).
Title: Re: Where the market is - Buyer Offers
Post by: trematix on April 26, 2021, 10:12:01 PM
where is this mythical place!

No still west coast and one may argue the location has better weather than Irvine.  And yes inspired by you I really started to appreciate 3CWG house with wide lot (once we are in the position to buy 3CWG, 2CWG houses just look a lot less appealing)....the curb appeal, extra flexibility and distance to your neighbor.s..no more 10 ft rear or 3 ft side setback craps like in new Irvine builds.

We are still in Irvine for the next few months but has not followed real estate until recently. We are about to move to a much bigger house with 3CWG on a quiet cul-de-sac with mountain views, and it is in similar school district as IUSD and easy access to freeways (no, not Johns Creek). So I am deciding whether to keep our smaller house in Irvine or rent it out as the rent seems to be higher than the PITI we are paying.

How about you? have you found your 3CWG house yet?


So Texas then? :)

We were actually thinking about looking again but seeing how crazy Irvine prices are... may need to reconsider.

With remote work being way more acceptable now, it expands where we can look but SoCal (and Irvine) is just superior to us. Maybe NorCal or Seattle suburbs... or San Diego area to stay close to family.

Going to give it a a few years for the kids to be out of the basement. :)

If you haven't had a 3CWG... you will love it... we've been compromising long enough to not really "need" one but it will always be on my list (I am fine with tandem but much prefer the wider driveway).
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on April 27, 2021, 08:12:46 AM
I made offers for 2 buyers for the following 2 homes on Sunday evening....

https://www.redfin.com/CA/Irvine/64-Interlude-92620/home/51684862

https://www.redfin.com/CA/Placentia/224-Blanquita-Way-92870/home/4177900

The Placentia home is on hold as the seller is reviewing offers on Monday at 5pm.

My client offered $2m with over 50% down on Interlude but the seller accepted a higher offer without a counter.
Title: Re: Where the market is - Buyer Offers
Post by: sleepy5136 on April 27, 2021, 10:02:27 AM
We are still in Irvine for the next few months but has not followed real estate until recently. We are about to move to a much bigger house with 3CWG on a quiet cul-de-sac with mountain views, and it is in similar school district as IUSD and easy access to freeways (no, not Johns Creek). So I am deciding whether to keep our smaller house in Irvine or rent it out as the rent seems to be higher than the PITI we are paying.

How about you? have you found your 3CWG house yet?


So Texas then? :)

We were actually thinking about looking again but seeing how crazy Irvine prices are... may need to reconsider.

With remote work being way more acceptable now, it expands where we can look but SoCal (and Irvine) is just superior to us. Maybe NorCal or Seattle suburbs... or San Diego area to stay close to family.

Going to give it a a few years for the kids to be out of the basement. :)

If you haven't had a 3CWG... you will love it... we've been compromising long enough to not really "need" one but it will always be on my list (I am fine with tandem but much prefer the wider driveway).
Texas has low property prices but high property taxes. Keep in mind property tax is a lifetime thing and high purchase price is a one time thing.
Title: Re: Where the market is - Buyer Offers
Post by: qwerty on April 27, 2021, 11:59:39 AM
I made offers for 2 buyers for the following 2 homes on Sunday evening....

https://www.redfin.com/CA/Irvine/64-Interlude-92620/home/51684862

https://www.redfin.com/CA/Placentia/224-Blanquita-Way-92870/home/4177900

The Placentia home is on hold as the seller is reviewing offers on Monday at 5pm.

My client offered $2m with over 50% down on Interlude but the seller accepted a higher offer without a counter.

It’s interesting to see how the price gaap between these larger homes and cheaper 2,000 sq ft homes seems to be narrowing.
Title: Re: Where the market is - Buyer Offers
Post by: DBtoOC on April 27, 2021, 12:20:13 PM
I made offers for 2 buyers for the following 2 homes on Sunday evening....

https://www.redfin.com/CA/Irvine/64-Interlude-92620/home/51684862

https://www.redfin.com/CA/Placentia/224-Blanquita-Way-92870/home/4177900

The Placentia home is on hold as the seller is reviewing offers on Monday at 5pm.

My client offered $2m with over 50% down on Interlude but the seller accepted a higher offer without a counter.

It’s interesting to see how the price gaap between these larger homes and cheaper 2,000 sq ft homes seems to be narrowing.

Good time for move-up buyers!
Title: Re: Where the market is - Buyer Offers
Post by: The California Court Company on April 27, 2021, 06:34:40 PM
So the market I was looking, and about to moved to, is extremely hot. Buyers have to remove all contingencies (appraisal, inspection, loan) , 3% earnest money deposit, short close window, using buyer agent commission rebate to pay seller's closing cost, up to 60 days free rent back (owner in possession), on top of bidding minimum 10% above asking to have a chance to be invited into the 2nd round of bidding or receiving counters.
What's the situation like in Irvine?
Title: Re: Where the market is - Buyer Offers
Post by: Kick53rv3 on April 27, 2021, 08:27:34 PM
I am in a situation where my house in Seattle is in escrow and moved to Irvine. At this point should I even bother looking at houses in Irvine as sellers probably won’t consider the contingency for the pending sale? On one hand I don’t want to waste money continuing the short term rental but also don’t want to waste time if no one would even entertain any offers?
Title: Re: Where the market is - Buyer Offers
Post by: Dr. CA Real Estate on April 27, 2021, 08:36:13 PM
I am in a situation where my house in Seattle is in escrow and moved to Irvine. At this point should I even bother looking at houses in Irvine as sellers probably won’t consider the contingency for the pending sale? On one hand I don’t want to waste money continuing the short term rental but also don’t want to waste time if no one would even entertain any offers?

Depends on your price point. I routinely get contingent offers accepted for my buyers. That said most of my buyers are not in the bloodbath low 1m and under bracket where its far more difficult to get any kind of offer accepted.
Title: Re: Where the market is - Buyer Offers
Post by: Kick53rv3 on April 27, 2021, 08:42:44 PM
I am in a situation where my house in Seattle is in escrow and moved to Irvine. At this point should I even bother looking at houses in Irvine as sellers probably won’t consider the contingency for the pending sale? On one hand I don’t want to waste money continuing the short term rental but also don’t want to waste time if no one would even entertain any offers?

Depends on your price point. I routinely get contingent offers accepted for my buyers. That said most of my buyers are not in the bloodbath low 1m and under bracket where its far more difficult to get any kind of offer accepted.

Unfortunately we are in the even lower 800-900k bracket, so probably no shot for contingent offers.
Title: Re: Where the market is - Buyer Offers
Post by: Cares on April 27, 2021, 10:17:21 PM
I am in a situation where my house in Seattle is in escrow and moved to Irvine. At this point should I even bother looking at houses in Irvine as sellers probably won’t consider the contingency for the pending sale? On one hand I don’t want to waste money continuing the short term rental but also don’t want to waste time if no one would even entertain any offers?

Depends on your price point. I routinely get contingent offers accepted for my buyers. That said most of my buyers are not in the bloodbath low 1m and under bracket where its far more difficult to get any kind of offer accepted.

Unfortunately we are in the even lower 800-900k bracket, so probably no shot for contingent offers.

Sub $800-900k is definitely a tough price range to be in for Irvine. It's not quite high enough to be competitive for 3BR detached homes but "too high" for attached homes.
Title: Re: Where the market is - Buyer Offers
Post by: Cornflakes on April 27, 2021, 11:16:04 PM
Is it possible to make an ebay style bid on a house.

Say a buyer really really must have the 800k listed home. Can he/she make an offer of "Lower of the $1M or highest offer+$1000" - subject to successful verification of the legitimacy of the highest offer?
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on April 28, 2021, 01:23:42 AM
I made offers for 2 buyers for the following 2 homes on Sunday evening....

https://www.redfin.com/CA/Irvine/64-Interlude-92620/home/51684862

https://www.redfin.com/CA/Placentia/224-Blanquita-Way-92870/home/4177900

The Placentia home is on hold as the seller is reviewing offers on Monday at 5pm.

Didn't even get a counter on my client's offer of $921,100 along with waiving loan and appraisal contingencies along with removing all contingencies in 10 days on the Placentia home, looks like they just selected the highest offer.
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on April 28, 2021, 01:26:30 AM
Is it possible to make an ebay style bid on a house.

Say a buyer really really must have the 800k listed home. Can he/she make an offer of "Lower of the $1M or highest offer+$1000" - subject to successful verification of the legitimacy of the highest offer?

What you suggest is a different style of writing up an escalation clause. They do work sometimes.
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on April 28, 2021, 01:28:09 AM
I am in a situation where my house in Seattle is in escrow and moved to Irvine. At this point should I even bother looking at houses in Irvine as sellers probably won’t consider the contingency for the pending sale? On one hand I don’t want to waste money continuing the short term rental but also don’t want to waste time if no one would even entertain any offers?

It really depends on where you are in the sale of your home.  Has your buyer lifted all contingencies?  How much longer before you the transaction closes?  Has your escrow company provided you a detailed estimated seller closing statement showing your estimated net seller proceeds once the sale is closed?
Title: Re: Where the market is - Buyer Offers
Post by: Kick53rv3 on April 28, 2021, 08:16:26 AM
I am in a situation where my house in Seattle is in escrow and moved to Irvine. At this point should I even bother looking at houses in Irvine as sellers probably won’t consider the contingency for the pending sale? On one hand I don’t want to waste money continuing the short term rental but also don’t want to waste time if no one would even entertain any offers?

It really depends on where you are in the sale of your home.  Has your buyer lifted all contingencies?  How much longer before you the transaction closes?  Has your escrow company provided you a detailed estimated seller closing statement showing your estimated net seller proceeds once the sale is closed?

Yup all contingencies were waived, closing on the 24th of may. I already received the earnest money in my account and they are approved for double the selling price from their lender (very reputable lender in this area).

I tried to buy Brisa this weekend and they flatly rejected us for not having the sale closed, while Lennar said they dont take contingency either. So we were told by our agent that resale homes will not accept any either and we should just wait until the money hit our account before looking.
Title: Re: Where the market is - Buyer Offers
Post by: Irvinehomeseeker on April 28, 2021, 08:55:55 AM
I am in a situation where my house in Seattle is in escrow and moved to Irvine. At this point should I even bother looking at houses in Irvine as sellers probably won’t consider the contingency for the pending sale? On one hand I don’t want to waste money continuing the short term rental but also don’t want to waste time if no one would even entertain any offers?

It really depends on where you are in the sale of your home.  Has your buyer lifted all contingencies?  How much longer before you the transaction closes?  Has your escrow company provided you a detailed estimated seller closing statement showing your estimated net seller proceeds once the sale is closed?

Yup all contingencies were waived, closing on the 24th of may. I already received the earnest money in my account and they are approved for double the selling price from their lender (very reputable lender in this area).

I tried to buy Brisa this weekend and they flatly rejected us for not having the sale closed, while Lennar said they dont take contingency either. So we were told by our agent that resale homes will not accept any either and we should just wait until the money hit our account before looking.
When buying new construction, does anyone know timeframe by when the builder expects one to sell existing property ?
Title: Re: Where the market is - Buyer Offers
Post by: Kick53rv3 on April 28, 2021, 09:35:25 AM
I am in a situation where my house in Seattle is in escrow and moved to Irvine. At this point should I even bother looking at houses in Irvine as sellers probably won’t consider the contingency for the pending sale? On one hand I don’t want to waste money continuing the short term rental but also don’t want to waste time if no one would even entertain any offers?

It really depends on where you are in the sale of your home.  Has your buyer lifted all contingencies?  How much longer before you the transaction closes?  Has your escrow company provided you a detailed estimated seller closing statement showing your estimated net seller proceeds once the sale is closed?

Yup all contingencies were waived, closing on the 24th of may. I already received the earnest money in my account and they are approved for double the selling price from their lender (very reputable lender in this area).

I tried to buy Brisa this weekend and they flatly rejected us for not having the sale closed, while Lennar said they dont take contingency either. So we were told by our agent that resale homes will not accept any either and we should just wait until the money hit our account before looking.
When buying new construction, does anyone know timeframe by when the builder expects one to sell existing property ?

I think it is your existing property must be sold. At least that is what cal pacific told me as mine is closing next month and their new build isn’t expected to finish until November. I said given I got 14 offers I am fully confident that it’ll sell way before October escrow start date. But nope, they got too many buyers so I must have fully closed the sale and have money sitting in my account for next 6 month to buy their new build.
Title: Re: Where the market is - Buyer Offers
Post by: Irvinehomeseeker on April 28, 2021, 09:42:45 AM
I am in a situation where my house in Seattle is in escrow and moved to Irvine. At this point should I even bother looking at houses in Irvine as sellers probably won’t consider the contingency for the pending sale? On one hand I don’t want to waste money continuing the short term rental but also don’t want to waste time if no one would even entertain any offers?

It really depends on where you are in the sale of your home.  Has your buyer lifted all contingencies?  How much longer before you the transaction closes?  Has your escrow company provided you a detailed estimated seller closing statement showing your estimated net seller proceeds once the sale is closed?

Yup all contingencies were waived, closing on the 24th of may. I already received the earnest money in my account and they are approved for double the selling price from their lender (very reputable lender in this area).

I tried to buy Brisa this weekend and they flatly rejected us for not having the sale closed, while Lennar said they dont take contingency either. So we were told by our agent that resale homes will not accept any either and we should just wait until the money hit our account before looking.
When buying new construction, does anyone know timeframe by when the builder expects one to sell existing property ?

I think it is your existing property must be sold. At least that is what cal pacific told me as mine is closing next month and their new build isn’t expected to finish until November. I said given I got 14 offers I am fully confident that it’ll sell way before October escrow start date. But nope, they got too many buyers so I must have fully closed the sale and have money sitting in my account for next 6 month to buy their new build.

Thanks for sharing! I thought with a 6 months window, there would be enough time to sell before the new construction move in.
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on April 30, 2021, 08:53:53 PM
Made an offer on this Costa Mesa Back Bay home earlier this afternoon for a client (it already has a few offers after 2 days of showing)....

https://www.redfin.com/CA/Costa-Mesa/2401-Tustin-Ave-92627/home/4634182
Title: Re: Where the market is - Buyer Offers
Post by: Cares on May 01, 2021, 02:56:56 PM
I am in a situation where my house in Seattle is in escrow and moved to Irvine. At this point should I even bother looking at houses in Irvine as sellers probably won’t consider the contingency for the pending sale? On one hand I don’t want to waste money continuing the short term rental but also don’t want to waste time if no one would even entertain any offers?

It really depends on where you are in the sale of your home.  Has your buyer lifted all contingencies?  How much longer before you the transaction closes?  Has your escrow company provided you a detailed estimated seller closing statement showing your estimated net seller proceeds once the sale is closed?

Yup all contingencies were waived, closing on the 24th of may. I already received the earnest money in my account and they are approved for double the selling price from their lender (very reputable lender in this area).

I tried to buy Brisa this weekend and they flatly rejected us for not having the sale closed, while Lennar said they dont take contingency either. So we were told by our agent that resale homes will not accept any either and we should just wait until the money hit our account before looking.
When buying new construction, does anyone know timeframe by when the builder expects one to sell existing property ?

I think it is your existing property must be sold. At least that is what cal pacific told me as mine is closing next month and their new build isn’t expected to finish until November. I said given I got 14 offers I am fully confident that it’ll sell way before October escrow start date. But nope, they got too many buyers so I must have fully closed the sale and have money sitting in my account for next 6 month to buy their new build.

This is not true in all cases. I have helped a buyer buy new construction while contingent on current home sale. They have to get an exception from management and likely your buyers have to have all purchase contingencies removed and only a week or 2 out from closing.
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on May 01, 2021, 04:16:49 PM
Put an offer on this smaller Oak Creek home last last night for a buyer...

https://www.redfin.com/CA/Irvine/10-Dahlia-92618/home/5483429
Title: Re: Where the market is - Buyer Offers
Post by: Cares on May 01, 2021, 05:18:02 PM
Put an offer on this smaller Oak Creek home last last night for a buyer...

https://www.redfin.com/CA/Irvine/10-Dahlia-92618/home/5483429

I visited this one. The backyard condition is vastly different than the pictures. These pictures must have been when they first bought the home.
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on May 05, 2021, 07:03:41 PM
Made an offer on this Costa Mesa Back Bay home earlier this afternoon for a client (it already has a few offers after 2 days of showing)....

https://www.redfin.com/CA/Costa-Mesa/2401-Tustin-Ave-92627/home/4634182

Didn't get this home, my buyer submitted a counter of $2.25m.  The home had a total of 4 offers and went for above my buyer's amount (my guess around $2.3m).
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on May 05, 2021, 07:05:33 PM
Put an offer on this smaller Oak Creek home last last night for a buyer...

https://www.redfin.com/CA/Irvine/10-Dahlia-92618/home/5483429

I visited this one. The backyard condition is vastly different than the pictures. These pictures must have been when they first bought the home.

Yeah, my client thought it was a bit of a catfish with those pictures.  haha  Here's the email that I got from the listing agent to my client's best and final offer of $921,000...

Good morning Martin,

The seller finally came to a decision last night and accepted another agent's offer.   FYI: There were a total of 15 offers on this property.

Just under $1M, As Is, cash purchase.

This is indeed a very challenging market for buyers.

Thank you, and your client, for your strong effort.
Title: Re: Where the market is - Buyer Offers
Post by: Cares on May 06, 2021, 11:04:42 PM
Put an offer on this smaller Oak Creek home last last night for a buyer...

https://www.redfin.com/CA/Irvine/10-Dahlia-92618/home/5483429

I visited this one. The backyard condition is vastly different than the pictures. These pictures must have been when they first bought the home.

Yeah, my client thought it was a bit of a catfish with those pictures.  haha  Here's the email that I got from the listing agent to my client's best and final offer of $921,000...

Good morning Martin,

The seller finally came to a decision last night and accepted another agent's offer.   FYI: There were a total of 15 offers on this property.

Just under $1M, As Is, cash purchase.

This is indeed a very challenging market for buyers.

Thank you, and your client, for your strong effort.

I'm dealing with some difficult buyers that have a hard time believing that homes are selling way above list regardless of comps. They are asking to look at homes beyond their max budget thinking they can negotiate it down. As an example, this home at $900k is their max but they believed they could be competitive at asking price. So difficult.
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on May 06, 2021, 11:13:20 PM
Put an offer on this smaller Oak Creek home last last night for a buyer...

https://www.redfin.com/CA/Irvine/10-Dahlia-92618/home/5483429

I visited this one. The backyard condition is vastly different than the pictures. These pictures must have been when they first bought the home.

Yeah, my client thought it was a bit of a catfish with those pictures.  haha  Here's the email that I got from the listing agent to my client's best and final offer of $921,000...

Good morning Martin,

The seller finally came to a decision last night and accepted another agent's offer.   FYI: There were a total of 15 offers on this property.

Just under $1M, As Is, cash purchase.

This is indeed a very challenging market for buyers.

Thank you, and your client, for your strong effort.

I'm dealing with some difficult buyers that have a hard time believing that homes are selling way above list regardless of comps. They are asking to look at homes beyond their max budget thinking they can negotiate it down. As an example, this home at $900k is their max but they believed they could be competitive at asking price. So difficult.

I had a buyer a few months back who thought that listing agents were lying about the number of offers the homes had, I thought that was kind of funny.  Buyers like you and I describe will have to learn the hard way.  The only buyers that are buying homes are those that bid aggressively and are underbuying (aka look very strong to a seller on paper). 
Title: Re: Where the market is - Buyer Offers
Post by: Cares on May 07, 2021, 09:35:12 AM
Put an offer on this smaller Oak Creek home last last night for a buyer...

https://www.redfin.com/CA/Irvine/10-Dahlia-92618/home/5483429

I visited this one. The backyard condition is vastly different than the pictures. These pictures must have been when they first bought the home.

Yeah, my client thought it was a bit of a catfish with those pictures.  haha  Here's the email that I got from the listing agent to my client's best and final offer of $921,000...

Good morning Martin,

The seller finally came to a decision last night and accepted another agent's offer.   FYI: There were a total of 15 offers on this property.

Just under $1M, As Is, cash purchase.

This is indeed a very challenging market for buyers.

Thank you, and your client, for your strong effort.

I'm dealing with some difficult buyers that have a hard time believing that homes are selling way above list regardless of comps. They are asking to look at homes beyond their max budget thinking they can negotiate it down. As an example, this home at $900k is their max but they believed they could be competitive at asking price. So difficult.

I had a buyer a few months back who thought that listing agents were lying about the number of offers the homes had, I thought that was kind of funny.  Buyers like you and I describe will have to learn the hard way.  The only buyers that are buying homes are those that bid aggressively and are underbuying (aka look very strong to a seller on paper).

Yea I agree this has been the case for me but it's a harsh reality for buyers that can "afford" $x price but are being told to only look at listings at $x minus $50k-$100k
Title: Re: Where the market is - Buyer Offers
Post by: best_potsticker_in_town on May 07, 2021, 10:53:01 AM
Put an offer on this smaller Oak Creek home last last night for a buyer...

https://www.redfin.com/CA/Irvine/10-Dahlia-92618/home/5483429

I visited this one. The backyard condition is vastly different than the pictures. These pictures must have been when they first bought the home.

Yeah, my client thought it was a bit of a catfish with those pictures.  haha  Here's the email that I got from the listing agent to my client's best and final offer of $921,000...

Good morning Martin,

The seller finally came to a decision last night and accepted another agent's offer.   FYI: There were a total of 15 offers on this property.

Just under $1M, As Is, cash purchase.

This is indeed a very challenging market for buyers.

Thank you, and your client, for your strong effort.

Saw this one too. Not a bad space. 3 bedrooms detached under $1m with low HOA makes this really attractive. Thought some buyers may be turned off with the murder on Red Apple...but I guess not.
Title: Re: Where the market is - Buyer Offers
Post by: sleepy5136 on May 07, 2021, 12:48:51 PM
Put an offer on this smaller Oak Creek home last last night for a buyer...

https://www.redfin.com/CA/Irvine/10-Dahlia-92618/home/5483429

I visited this one. The backyard condition is vastly different than the pictures. These pictures must have been when they first bought the home.

Yeah, my client thought it was a bit of a catfish with those pictures.  haha  Here's the email that I got from the listing agent to my client's best and final offer of $921,000...

Good morning Martin,

The seller finally came to a decision last night and accepted another agent's offer.   FYI: There were a total of 15 offers on this property.

Just under $1M, As Is, cash purchase.

This is indeed a very challenging market for buyers.

Thank you, and your client, for your strong effort.
Having a difficult time wrapping my head around a ~1m condo. Crazy market we are in.
Title: Re: Where the market is - Buyer Offers
Post by: Kenkoko on May 07, 2021, 12:58:39 PM
At least this one’s got a decent backyard and a good driveway

Just saw an attached condo with no yard and no driveway in Aliso Viejo sold for 1.04 million.

Tough to be a buyer these days
Title: Re: Where the market is - Buyer Offers
Post by: Cares on May 07, 2021, 04:46:43 PM
Put an offer on this smaller Oak Creek home last last night for a buyer...

https://www.redfin.com/CA/Irvine/10-Dahlia-92618/home/5483429

I visited this one. The backyard condition is vastly different than the pictures. These pictures must have been when they first bought the home.

Yeah, my client thought it was a bit of a catfish with those pictures.  haha  Here's the email that I got from the listing agent to my client's best and final offer of $921,000...

Good morning Martin,

The seller finally came to a decision last night and accepted another agent's offer.   FYI: There were a total of 15 offers on this property.

Just under $1M, As Is, cash purchase.

This is indeed a very challenging market for buyers.

Thank you, and your client, for your strong effort.
Having a difficult time wrapping my head around a ~1m condo. Crazy market we are in.

Cypress Village detached 3 and 4 BR condos have been going around $1.1m right now.
Title: Re: Where the market is - Buyer Offers
Post by: Sidehussle on May 07, 2021, 05:09:36 PM
Why is your buyer difficult if offering the seller full asking price?  I think a difficult buyer would be trying to get a discount from ask.

Put an offer on this smaller Oak Creek home last last night for a buyer...

https://www.redfin.com/CA/Irvine/10-Dahlia-92618/home/5483429

I visited this one. The backyard condition is vastly different than the pictures. These pictures must have been when they first bought the home.

Yeah, my client thought it was a bit of a catfish with those pictures.  haha  Here's the email that I got from the listing agent to my client's best and final offer of $921,000...

Good morning Martin,

The seller finally came to a decision last night and accepted another agent's offer.   FYI: There were a total of 15 offers on this property.

Just under $1M, As Is, cash purchase.

This is indeed a very challenging market for buyers.

Thank you, and your client, for your strong effort.

I'm dealing with some difficult buyers that have a hard time believing that homes are selling way above list regardless of comps. They are asking to look at homes beyond their max budget thinking they can negotiate it down. As an example, this home at $900k is their max but they believed they could be competitive at asking price. So difficult.
Title: Re: Where the market is - Buyer Offers
Post by: Cornflakes on May 07, 2021, 07:42:47 PM
It is almost like...

you have 300k for down pmt
keep aside 100k
with 200k remaining, at 25% down, look for properties that are listed at 800k or below.
bid agressively using your 100k war chest.
with 900k purchase price, 300k down payment, you look stonger to both lender and seller, and beat competition out of water.
Title: Re: Where the market is - Buyer Offers
Post by: akula1488 on May 08, 2021, 07:59:13 AM
It is almost like...

you have 300k for down pmt
keep aside 100k
with 200k remaining, at 25% down, look for properties that are listed at 800k or below.
bid agressively using your 100k war chest.
with 900k purchase price, 300k down payment, you look stonger to both lender and seller, and beat competition out of water.
.
Lol I don't think 300k down on $900k is that strong and beat competition out of water. Try $1M cash with all contingencies waived.

I seen houses in other desirable areas got 25% over asking closed with cash time line (7 day close final price 1.5M)
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on May 08, 2021, 10:05:42 AM
Why is your buyer difficult if offering the seller full asking price?  I think a difficult buyer would be trying to get a discount from ask.

Put an offer on this smaller Oak Creek home last last night for a buyer...

https://www.redfin.com/CA/Irvine/10-Dahlia-92618/home/5483429

I visited this one. The backyard condition is vastly different than the pictures. These pictures must have been when they first bought the home.

Yeah, my client thought it was a bit of a catfish with those pictures.  haha  Here's the email that I got from the listing agent to my client's best and final offer of $921,000...

Good morning Martin,

The seller finally came to a decision last night and accepted another agent's offer.   FYI: There were a total of 15 offers on this property.

Just under $1M, As Is, cash purchase.

This is indeed a very challenging market for buyers.

Thank you, and your client, for your strong effort.

I'm dealing with some difficult buyers that have a hard time believing that homes are selling way above list regardless of comps. They are asking to look at homes beyond their max budget thinking they can negotiate it down. As an example, this home at $900k is their max but they believed they could be competitive at asking price. So difficult.

Because most times the listing price is too low of a price and in many occasions the seller will accept the highest offer right off the bat or only counter the top buyers.
Title: Re: Where the market is - Buyer Offers
Post by: Cares on May 08, 2021, 06:26:30 PM
https://www.ocregister.com/2021/05/08/orange-county-adds-8-million-dollar-zips-loses-8-bargain-neighborhoods/

This article is more in line with what I'm seeing in the front lines as a realtor and a mortgage loan originator. All OC markets have housing prices that are significantly up from a year ago.
Title: Re: Where the market is - Buyer Offers
Post by: USCTrojanCPA on May 08, 2021, 06:30:11 PM
https://www.ocregister.com/2021/05/08/orange-county-adds-8-million-dollar-zips-loses-8-bargain-neighborhoods/

This article is more in line with what I'm seeing in the front lines as a realtor and a mortgage loan originator. All OC markets have housing prices that are significantly up from a year ago.

Yup, prices are now about 15-20% up from last year not only in Irvine but outside of Irvine as well.
Title: Re: Where the market is - Buyer Offers
Post by: Compressed-Village on May 09, 2021, 10:04:41 AM
Raw materials some double and tripples in price. I know the supply chains and disruption occur since the trade war began under prez T,,,but at 200 % plus for lumbers, the basic building block for homes, that has to be suck big time for home buyers. We still very much rely on too many things from foreign country for many, many basic materials. This will drive not only homes cost, building cost, and many everydays items cost higher. I was NOT suprise by the move up. The only questions is. if we continue to live like Japan economy, will we last as long? They have been running and printing since 1990, with over 230 % GDP debt per year today. WOWZER, that's a long time and still going. I assume we will have the same trajectory.
Title: Re: Where the market is - Buyer Offers
Post by: qwerty on May 09, 2021, 10:51:39 AM
Is there any alternative to Japan?? I don’t think so.  Once people get used to all of the freebies it’s tough to turn off the spigots. When the masses keep voting to get free stuff it’s a done deal. The government is a black belt at expanding and doesn’t know the meaning of contraction
Title: Re: Where the market is - Buyer Offers
Post by: eyephone on May 09, 2021, 02:27:11 PM
Raw materials some double and tripples in price. I know the supply chains and disruption occur since the trade war began under prez T,,,but at 200 % plus for lumbers, the basic building block for homes, that has to be suck big time for home buyers. We still very much rely on too many things from foreign country for many, many basic materials. This will drive not only homes cost, building cost, and many everydays items cost higher. I was NOT suprise by the move up. The only questions is. if we continue to live like Japan economy, will we last as long? They have been running and printing since 1990, with over 230 % GDP debt per year today. WOWZER, that's a long time and still going. I assume we will have the same trajectory.

Did you say that previously?
I think I was the only one on TI that talked about the farm subsidies in the billions or trillions. (Government giving money to farmers for not selling)
US tax cuts for business drove up the deficit like a crack add it. The top business still not paying fed income taxes. Plus the trade war negated the tax break.

SimplePortal 2.3.7 © 2008-2021, SimplePortal