Talk Irvine

General => Real Estate => Irvine Real Estate => Topic started by: anteaterscientist on April 05, 2021, 06:37:31 PM

Title: First Time Second Home Buyer - Advice
Post by: anteaterscientist on April 05, 2021, 06:37:31 PM
My plan to purchase a second home in Irvine with cash to house a relative and sublet the other rooms.

My previous agent was a relative who represented me but declined this time to work with me, because she's in LA area.

-Has anyone had experience with Redfin before?
-Has anyone had experiences (good or bad) with subleasing? I don't think subleasing is a thing in Irvine, but I do see a lot of single rooms available.
-Anything else to consider? My first home purchase was through the builder and I did use the in-house lender.

If these items are discussed in other threads, feel free to direct me there.

I can share my experiences here too going through the process, if people are interested.
Title: Re: First Time Second Home Buyer - Advice
Post by: eyephone on April 05, 2021, 06:45:07 PM
My plan to purchase a second home in Irvine with cash to house a relative and sublet the other rooms.

My previous agent was a relative who represented me but declined this time to work with me, because she's in LA area.

-Has anyone had experience with Redfin before?
-Has anyone had experiences (good or bad) with subleasing? I don't think subleasing is a thing in Irvine, but I do see a lot of single rooms available.
-Anything else to consider? My first home purchase was through the builder and I did use the in-house lender.

If these items are discussed in other threads, feel free to direct me there.

I can share my experiences here too going through the process, if people are interested.

You might have better cash flow in the IE.
Title: Re: First Time Second Home Buyer - Advice
Post by: anteaterscientist on April 05, 2021, 06:54:20 PM
My plan to purchase a second home in Irvine with cash to house a relative and sublet the other rooms.

My previous agent was a relative who represented me but declined this time to work with me, because she's in LA area.

-Has anyone had experience with Redfin before?
-Has anyone had experiences (good or bad) with subleasing? I don't think subleasing is a thing in Irvine, but I do see a lot of single rooms available.
-Anything else to consider? My first home purchase was through the builder and I did use the in-house lender.

If these items are discussed in other threads, feel free to direct me there.

I can share my experiences here too going through the process, if people are interested.

You might have better cash flow in the IE.

Trying to keep relative closeby, that's the primary reason and some of that Irvine safeness.

When you say cash flow, you mean more properties are available there or more renters out there?
Title: Re: First Time Second Home Buyer - Advice
Post by: Cares on April 05, 2021, 08:19:25 PM
He means rent received relative to purchase price or in other words cap rate is higher in IE compared to OC.
Title: Re: First Time Second Home Buyer - Advice
Post by: woodburyowner on April 05, 2021, 08:45:32 PM
Careful on subleasing.  It is not allowed in most HOAs.  You might get unlucky with a nosy neighbor or over zealous board member who will shut you down.
Title: Re: First Time Second Home Buyer - Advice
Post by: USCTrojanCPA on April 05, 2021, 09:20:46 PM
There are realtors on here that provide will not only provide you a rebate that's more than Redfin will provide but are better more experienced agents.  ;)
Title: Re: First Time Second Home Buyer - Advice
Post by: ucla bruin on April 07, 2021, 12:38:19 PM
I've sublet before in Irvine but this was years ago.

Interview and select your tenants carefully. Even if it's take months. You're buying cash so you've got time. Picking the right tenants will save you a lot of headache. You shouldn't have problems given the demographic of Irvine. I opted for young professionals (ended up with girls). Ask them question to get a sense of how respectful they are, cleanliness, experience living with others, what are their pet-peeves, how they handle conflicts....etc. Have your relative present too so there are no surprises for anyone.

Always do background check, call their references and sign a contract.
Title: Re: First Time Second Home Buyer - Advice
Post by: the.irvine on April 07, 2021, 02:18:06 PM
My plan to purchase a second home in Irvine with cash to house a relative and sublet the other rooms.

My previous agent was a relative who represented me but declined this time to work with me, because she's in LA area.

-Has anyone had experience with Redfin before?
-Has anyone had experiences (good or bad) with subleasing? I don't think subleasing is a thing in Irvine, but I do see a lot of single rooms available.
-Anything else to consider? My first home purchase was through the builder and I did use the in-house lender.

If these items are discussed in other threads, feel free to direct me there.

I can share my experiences here too going through the process, if people are interested.

Please share your experience, would love to learn. At what price point are you looking to buy?
Title: Re: First Time Second Home Buyer - Advice
Post by: JadedOne on April 07, 2021, 03:48:03 PM
I've sublet before in Irvine but this was years ago.

Interview and select your tenants carefully. Even if it's take months. You're buying cash so you've got time. Picking the right tenants will save you a lot of headache. You shouldn't have problems given the demographic of Irvine. I opted for young professionals (ended up with girls). Ask them question to get a sense of how respectful they are, cleanliness, experience living with others, what are their pet-peeves, how they handle conflicts....etc. Have your relative present too so there are no surprises for anyone.

Always do background check, call their references and sign a contract.

Girls that are young, professional, respectful, clean, handle conflicts well, with no pet-peeve issues...interviewed by you and a relative?

Sounds like marriage material!  ;)
Title: Re: First Time Second Home Buyer - Advice
Post by: eyephone on April 07, 2021, 03:58:52 PM
I've sublet before in Irvine but this was years ago.

Interview and select your tenants carefully. Even if it's take months. You're buying cash so you've got time. Picking the right tenants will save you a lot of headache. You shouldn't have problems given the demographic of Irvine. I opted for young professionals (ended up with girls). Ask them question to get a sense of how respectful they are, cleanliness, experience living with others, what are their pet-peeves, how they handle conflicts....etc. Have your relative present too so there are no surprises for anyone.

Always do background check, call their references and sign a contract.

Sounds like a lot a lot of work. But I guess it is possible.
Title: Re: First Time Second Home Buyer - Advice
Post by: sleepy5136 on April 07, 2021, 08:42:35 PM
I've sublet before in Irvine but this was years ago.

Interview and select your tenants carefully. Even if it's take months. You're buying cash so you've got time. Picking the right tenants will save you a lot of headache. You shouldn't have problems given the demographic of Irvine. I opted for young professionals (ended up with girls). Ask them question to get a sense of how respectful they are, cleanliness, experience living with others, what are their pet-peeves, how they handle conflicts....etc. Have your relative present too so there are no surprises for anyone.

Always do background check, call their references and sign a contract.

Girls that are young, professional, respectful, clean, handle conflicts well, with no pet-peeve issues...interviewed by you and a relative?

Sounds like marriage material!  ;)
sounds more like discrimination based on gender lol.
Title: Re: First Time Second Home Buyer - Advice
Post by: Dr. CA Real Estate on April 07, 2021, 09:08:13 PM
I've sublet before in Irvine but this was years ago.

Interview and select your tenants carefully. Even if it's take months. You're buying cash so you've got time. Picking the right tenants will save you a lot of headache. You shouldn't have problems given the demographic of Irvine. I opted for young professionals (ended up with girls). Ask them question to get a sense of how respectful they are, cleanliness, experience living with others, what are their pet-peeves, how they handle conflicts....etc. Have your relative present too so there are no surprises for anyone.

Always do background check, call their references and sign a contract.

Girls that are young, professional, respectful, clean, handle conflicts well, with no pet-peeve issues...interviewed by you and a relative?

Sounds like marriage material!  ;)
sounds more like discrimination based on gender lol.

sounds like a good way to end up on a list
Title: Re: First Time Second Home Buyer - Advice
Post by: anteaterscientist on May 28, 2021, 05:52:24 PM
My plan to purchase a second home in Irvine with cash to house a relative and sublet the other rooms.

My previous agent was a relative who represented me but declined this time to work with me, because she's in LA area.

-Has anyone had experience with Redfin before?
-Has anyone had experiences (good or bad) with subleasing? I don't think subleasing is a thing in Irvine, but I do see a lot of single rooms available.
-Anything else to consider? My first home purchase was through the builder and I did use the in-house lender.

If these items are discussed in other threads, feel free to direct me there.

I can share my experiences here too going through the process, if people are interested.

Please share your experience, would love to learn. At what price point are you looking to buy?


Haven't learned much since, I have been on vacation. I'm looking for 2/2 or 3/3, single level or where a bed/bath is on the first floor.

Joined the FB group on Irvine rentals available, there is daily activity and interest.

Open houses are making a comeback with the county starting to open up! The previous workaround was asking a friend with the same floorplan to see her home.


To those who have sent me a direct message: for some reason, I cannot reply directly to you?! As you "do not accept personal messages"
Title: Re: First Time Second Home Buyer - Advice
Post by: anteaterscientist on June 07, 2021, 04:30:10 PM
Giving an update and to share this journey with whoever is interested.

I have an agent as my realtor relative referred me to a former co-worker from the previous brokerage and I will be receiving the referral amount (25% of the commission) instead of my realtor relative. Won't have to deal with a 1099 form either.

After that was squared away, was ready to start an offer but the place was already under contract. I just saw the place less than 48 hours ago. Can't be too slow, not even for a modest 2bed/2bath place.

Suggested to offer 10-15% above list price.

I'm just looking for an extra place for the MIL. I'm starting to think of those condos with carports at this point... It's like would I rather rent a one bed apt or pay property tax, hoas, home insurance?

When will the price of construction materials like lumber go down?


Title: Re: First Time Second Home Buyer - Advice
Post by: Cares on June 07, 2021, 08:16:31 PM
An accurately priced home shouldn't really go 10% over asking even in this market. It would be more of the exception than the norm.
Title: Re: First Time Second Home Buyer - Advice
Post by: anteaterscientist on June 07, 2021, 08:52:43 PM
An accurately priced home shouldn't really go 10% over asking even in this market. It would be more of the exception than the norm.

Is there a tracking of list price and sold price for recent sales?
Title: Re: First Time Second Home Buyer - Advice
Post by: USCTrojanCPA on June 07, 2021, 09:04:22 PM
An accurately priced home shouldn't really go 10% over asking even in this market. It would be more of the exception than the norm.

Is there a tracking of list price and sold price for recent sales?

Yes, on MLS.  The amount that the home will sell over the list price will depend upon the amount under comps it's listed for.
Title: Re: First Time Second Home Buyer - Advice
Post by: Cares on June 08, 2021, 12:07:26 AM
An accurately priced home shouldn't really go 10% over asking even in this market. It would be more of the exception than the norm.

Is there a tracking of list price and sold price for recent sales?

Yes, on MLS.  The amount that the home will sell over the list price will depend upon the amount under comps it's listed for.

Just a general MLS pull of detached Irvine homes that sold in the last 30 days. Only 13 homes sold > 10% over list out of 373 listings. Most are in the 0-5% range.

For attached homes, 6 homes out of 348 sold > 10% over ask.
Title: Re: First Time Second Home Buyer - Advice
Post by: anteaterscientist on June 08, 2021, 08:11:12 PM
An accurately priced home shouldn't really go 10% over asking even in this market. It would be more of the exception than the norm.

Is there a tracking of list price and sold price for recent sales?

Yes, on MLS.  The amount that the home will sell over the list price will depend upon the amount under comps it's listed for.

Just a general MLS pull of detached Irvine homes that sold in the last 30 days. Only 13 homes sold > 10% over list out of 373 listings. Most are in the 0-5% range.

For attached homes, 6 homes out of 348 sold > 10% over ask.


That sounds reasonable. I looked at the recent sales for surrounding homes and nothing was over 10%. This is for a 2 bed / 2 bath condo.
Title: Re: First Time Second Home Buyer - Advice
Post by: USCTrojanCPA on June 09, 2021, 11:27:53 PM
An accurately priced home shouldn't really go 10% over asking even in this market. It would be more of the exception than the norm.

Is there a tracking of list price and sold price for recent sales?

Yes, on MLS.  The amount that the home will sell over the list price will depend upon the amount under comps it's listed for.

Just a general MLS pull of detached Irvine homes that sold in the last 30 days. Only 13 homes sold > 10% over list out of 373 listings. Most are in the 0-5% range.

For attached homes, 6 homes out of 348 sold > 10% over ask.


That sounds reasonable. I looked at the recent sales for surrounding homes and nothing was over 10%. This is for a 2 bed / 2 bath condo.

This is because agents are beginning to move up listing prices closer to their true market value as prices have moved up significantly in the past 6 months.
Title: Re: First Time Second Home Buyer - Advice
Post by: Agent Joe on June 12, 2021, 11:52:55 PM
My plan to purchase a second home in Irvine with cash to house a relative and sublet the other rooms.

My previous agent was a relative who represented me but declined this time to work with me, because she's in LA area.

-Has anyone had experience with Redfin before?
-Has anyone had experiences (good or bad) with subleasing? I don't think subleasing is a thing in Irvine, but I do see a lot of single rooms available.
-Anything else to consider? My first home purchase was through the builder and I did use the in-house lender.

If these items are discussed in other threads, feel free to direct me there.

I can share my experiences here too going through the process, if people are interested.

Thanks for sharing your home purchase experience in Irvine! Just curious, in today's ultra low interest environment, why are you choosing to pay cash? Since you're planning to rent out some rooms, the interest could also help offset your rental income on your tax return.

As for subleasing, that's no different from people renting out rooms, which is pretty common in Irvine. If you're not familiar with screening and managing tenants, I'd recommend hiring a reliable realtor to handle the leasing and possibly property management. This would be more complicated than a standard lease as a bad tenant would not only stress you out but also your relative (even more so actually). Just something to think about.
Title: Re: First Time Second Home Buyer - Advice
Post by: sleepy5136 on June 13, 2021, 12:06:29 PM
My plan to purchase a second home in Irvine with cash to house a relative and sublet the other rooms.

My previous agent was a relative who represented me but declined this time to work with me, because she's in LA area.

-Has anyone had experience with Redfin before?
-Has anyone had experiences (good or bad) with subleasing? I don't think subleasing is a thing in Irvine, but I do see a lot of single rooms available.
-Anything else to consider? My first home purchase was through the builder and I did use the in-house lender.

If these items are discussed in other threads, feel free to direct me there.

I can share my experiences here too going through the process, if people are interested.

Thanks for sharing your home purchase experience in Irvine! Just curious, in today's ultra low interest environment, why are you choosing to pay cash? Since you're planning to rent out some rooms, the interest could also help offset your rental income on your tax return.

As for subleasing, that's no different from people renting out rooms, which is pretty common in Irvine. If you're not familiar with screening and managing tenants, I'd recommend hiring a reliable realtor to handle the leasing and possibly property management. This would be more complicated than a standard lease as a bad tenant would not only stress you out but also your relative (even more so actually). Just something to think about.
I could be wrong but some people pay cash to win the bidding wars and will eventually get a mortgage after closing escrow.
Title: Re: First Time Second Home Buyer - Advice
Post by: USCTrojanCPA on June 13, 2021, 01:00:02 PM
My plan to purchase a second home in Irvine with cash to house a relative and sublet the other rooms.

My previous agent was a relative who represented me but declined this time to work with me, because she's in LA area.

-Has anyone had experience with Redfin before?
-Has anyone had experiences (good or bad) with subleasing? I don't think subleasing is a thing in Irvine, but I do see a lot of single rooms available.
-Anything else to consider? My first home purchase was through the builder and I did use the in-house lender.

If these items are discussed in other threads, feel free to direct me there.

I can share my experiences here too going through the process, if people are interested.

Thanks for sharing your home purchase experience in Irvine! Just curious, in today's ultra low interest environment, why are you choosing to pay cash? Since you're planning to rent out some rooms, the interest could also help offset your rental income on your tax return.

As for subleasing, that's no different from people renting out rooms, which is pretty common in Irvine. If you're not familiar with screening and managing tenants, I'd recommend hiring a reliable realtor to handle the leasing and possibly property management. This would be more complicated than a standard lease as a bad tenant would not only stress you out but also your relative (even more so actually). Just something to think about.
I could be wrong but some people pay cash to win the bidding wars and will eventually get a mortgage after closing escrow.

Yup, I have a buyer just like that...they can pull cash via their brokerage account (low margin interest) and then will turn around and do a delayed purchase loan on the home (has to be done within 90 days of the purchase to not be considered a cash-out refi).
Title: Re: First Time Second Home Buyer - Advice
Post by: Cares on June 13, 2021, 05:58:37 PM
My plan to purchase a second home in Irvine with cash to house a relative and sublet the other rooms.

My previous agent was a relative who represented me but declined this time to work with me, because she's in LA area.

-Has anyone had experience with Redfin before?
-Has anyone had experiences (good or bad) with subleasing? I don't think subleasing is a thing in Irvine, but I do see a lot of single rooms available.
-Anything else to consider? My first home purchase was through the builder and I did use the in-house lender.

If these items are discussed in other threads, feel free to direct me there.

I can share my experiences here too going through the process, if people are interested.

Thanks for sharing your home purchase experience in Irvine! Just curious, in today's ultra low interest environment, why are you choosing to pay cash? Since you're planning to rent out some rooms, the interest could also help offset your rental income on your tax return.

As for subleasing, that's no different from people renting out rooms, which is pretty common in Irvine. If you're not familiar with screening and managing tenants, I'd recommend hiring a reliable realtor to handle the leasing and possibly property management. This would be more complicated than a standard lease as a bad tenant would not only stress you out but also your relative (even more so actually). Just something to think about.
I could be wrong but some people pay cash to win the bidding wars and will eventually get a mortgage after closing escrow.

Yup, I have a buyer just like that...they can pull cash via their brokerage account (low margin interest) and then will turn around and do a delayed purchase loan on the home (has to be done within 90 days of the purchase to not be considered a cash-out refi).

Delayed financing is always a cash out refinance. It is clear in the Fannie and Freddie guidelines that cash out rules and adjustments apply. The 90 day rule is for tax deduction purposes called "acquisition debt".
Title: Re: First Time Second Home Buyer - Advice
Post by: anteaterscientist on June 28, 2021, 06:18:03 PM
My plan to purchase a second home in Irvine with cash to house a relative and sublet the other rooms.

My previous agent was a relative who represented me but declined this time to work with me, because she's in LA area.

-Has anyone had experience with Redfin before?
-Has anyone had experiences (good or bad) with subleasing? I don't think subleasing is a thing in Irvine, but I do see a lot of single rooms available.
-Anything else to consider? My first home purchase was through the builder and I did use the in-house lender.

If these items are discussed in other threads, feel free to direct me there.

I can share my experiences here too going through the process, if people are interested.

Thanks for sharing your home purchase experience in Irvine! Just curious, in today's ultra low interest environment, why are you choosing to pay cash? Since you're planning to rent out some rooms, the interest could also help offset your rental income on your tax return.

As for subleasing, that's no different from people renting out rooms, which is pretty common in Irvine. If you're not familiar with screening and managing tenants, I'd recommend hiring a reliable realtor to handle the leasing and possibly property management. This would be more complicated than a standard lease as a bad tenant would not only stress you out but also your relative (even more so actually). Just something to think about.

As I'm a first time second home buyer, I don't think lenders are giving loans for second homes or investment properties may have different rates? I don't know this property's category either because I'm buying a second home to house a relative rent free in one room and rent out the other room to a student or working professional. My primary home will be nearby the second home. Also gotta figure out the tax forms or implications.
Title: Re: First Time Second Home Buyer - Advice
Post by: Soylent Green Is People on June 29, 2021, 07:25:29 AM
A true second home is for your "Exclusive part time use and enjoyment" and is never to be rented. Pricing for second homes are equal to primary residences. Some lenders have "mileage restrictions" - as in Current House A must be at least 50 miles away from New Second Home B.

Investment Properties - which your purchase as self described is - will have interest rates at least a half percent or higher than a primary residence home loan and require in some cases more than 25% down.

My .02c
Title: Re: First Time Second Home Buyer - Advice
Post by: Cares on June 29, 2021, 09:14:47 PM
I'm seeing some lenders have LLPAs for second homes as well. Not as heavy as investment properties though.
Title: Re: First Time Second Home Buyer - Advice
Post by: anteaterscientist on July 06, 2021, 11:36:45 AM
Update!

A unit I was eyeing came back on the market because the previous buyer's loan didn't get approved. The buyer offered 2% above listing.

The seller is entertaining our cash offer at the list price since no offers have been submitted since being back in the market. However, looking at similar previous sales that closed within 2 months, this unit list price is 5% higher. The list price seems a bit high to me.

What to do! I don't want to feel rushed nor am I in a rush.
Title: Re: First Time Second Home Buyer - Advice
Post by: anteaterscientist on July 06, 2021, 11:43:34 AM
Update 2!

Also the purchase depends on the ability to modify a bathroom, maybe city permit is involved.

How to research the feasibility of a modification before deciding the purchase a place.
Title: Re: First Time Second Home Buyer - Advice
Post by: USCTrojanCPA on July 06, 2021, 12:03:59 PM
If you have to move any kind of plumbing fixture/piping, you'll need a permit. Why not bring in a plumbing contractor to get a quote?
Title: Re: First Time Second Home Buyer - Advice
Post by: anteaterscientist on July 07, 2021, 05:12:14 PM
If you have to move any kind of plumbing fixture/piping, you'll need a permit. Why not bring in a plumbing contractor to get a quote?

Is it common for a contractor to give a quote on a place that is in consideration of being purchased?

I'm still in hypothetical land.
Title: Re: First Time Second Home Buyer - Advice
Post by: USCTrojanCPA on July 07, 2021, 11:03:36 PM
If you have to move any kind of plumbing fixture/piping, you'll need a permit. Why not bring in a plumbing contractor to get a quote?

Is it common for a contractor to give a quote on a place that is in consideration of being purchased?

I'm still in hypothetical land.

Yeah, if you can see the home you can bring a contractor out with you and get a quote for the work.
Title: Re: First Time Second Home Buyer - Advice
Post by: anteaterscientist on July 21, 2021, 08:19:14 PM
Another update:

Considering to expand the real estate net... looking for nearby areas surrounding Irvine for a single level 1 bed / 1 bath ... slightly lower price per square foot but similar nice-ness to Irvine.

Any suggestions?
Title: Re: First Time Second Home Buyer - Advice
Post by: USCTrojanCPA on July 22, 2021, 09:53:24 AM
Another update:

Considering to expand the real estate net... looking for nearby areas surrounding Irvine for a single level 1 bed / 1 bath ... slightly lower price per square foot but similar nice-ness to Irvine.

Any suggestions?

Foothill Ranch, Tustin Ranch, Aliso Viejo, and Costa Mesa.
Title: Re: First Time Second Home Buyer - Advice
Post by: anteaterscientist on July 22, 2021, 10:02:14 PM
I'm getting discouraged more and more everyday. It's slim pickings and everything is moving fast.
Title: Re: First Time Second Home Buyer - Advice
Post by: USCTrojanCPA on July 22, 2021, 10:20:37 PM
I'm getting discouraged more and more everyday. It's slim pickings and everything is moving fast.

Yeah, it's getting worse and worse out there (lower inventory when it should be increasing).  Not a fun time to be a buyer now.
Title: Re: First Time Second Home Buyer - Advice
Post by: Cares on July 22, 2021, 10:58:09 PM
I'm getting discouraged more and more everyday. It's slim pickings and everything is moving fast.

Yeah, it's getting worse and worse out there (lower inventory when it should be increasing).  Not a fun time to be a buyer now.

Like I mentioned in the other interest rate thread. I foresee this to be a very painful summer for buyers especially at entry level. With rates decreasing, more buyers with FOMO seeking to take advantage. Lower rates also means more refinances and people not wanting to sell and give up their low rate.
Title: Re: First Time Second Home Buyer - Advice
Post by: USCTrojanCPA on July 22, 2021, 11:34:18 PM
I'm getting discouraged more and more everyday. It's slim pickings and everything is moving fast.

Yeah, it's getting worse and worse out there (lower inventory when it should be increasing).  Not a fun time to be a buyer now.

Like I mentioned in the other interest rate thread. I foresee this to be a very painful summer for buyers especially at entry level. With rates decreasing, more buyers with FOMO seeking to take advantage. Lower rates also means more refinances and people not wanting to sell and give up their low rate.

New inventory YTD June 2021 in Irvine is about the same what new inventory we had YTD June 2019 (last year was an unusual year) so the problem is the huge buyer demand.  It's not just the low end, it's tough to get buyers a home in the $1m to $2m range as well.
Title: Re: First Time Second Home Buyer - Advice
Post by: anteaterscientist on August 03, 2021, 11:36:20 AM
Is this a new thing now: sellers only accepting cash offers and all contingencies waived?
The property that was in serious consideration is a townhome (3/3) built in the 80s.

Is it possible attempt an inspection and backing out if the findings would be too costly to buyer to be OK w/ "as-is"?
Title: Re: First Time Second Home Buyer - Advice
Post by: USCTrojanCPA on August 03, 2021, 11:41:40 AM
Is this a new thing now: sellers only accepting cash offers and all contingencies waived?
The property that was in serious consideration is a townhome (3/3) built in the 80s.

Is it possible attempt an inspection and backing out if the findings would be too costly to buyer to be OK w/ "as-is"?


I've seen plenty of "as-is" counters (meaning that the seller won't do any repairs or provide credits in lieu of repairs) but have not seen an all cash offer and all contingencies waived situation yet. I'd tell my clients to pass.
Title: Re: First Time Second Home Buyer - Advice
Post by: sleepy5136 on August 03, 2021, 12:32:47 PM
Is this a new thing now: sellers only accepting cash offers and all contingencies waived?
The property that was in serious consideration is a townhome (3/3) built in the 80s.

Is it possible attempt an inspection and backing out if the findings would be too costly to buyer to be OK w/ "as-is"?
doesn't matter what market we're in. once you hear "all contingencies waived" in order to get the home, you run.
Title: Re: First Time Second Home Buyer - Advice
Post by: Cares on August 03, 2021, 03:37:55 PM
Is this a new thing now: sellers only accepting cash offers and all contingencies waived?
The property that was in serious consideration is a townhome (3/3) built in the 80s.

Is it possible attempt an inspection and backing out if the findings would be too costly to buyer to be OK w/ "as-is"?
doesn't matter what market we're in. once you hear "all contingencies waived" in order to get the home, you run.

If you ever want to buy in the Bay Area market and you want a contingency, good luck. You're getting diddly. No contingencies has become the absolute norm up there.
Title: Re: First Time Second Home Buyer - Advice
Post by: sleepy5136 on August 03, 2021, 05:21:08 PM
Is this a new thing now: sellers only accepting cash offers and all contingencies waived?
The property that was in serious consideration is a townhome (3/3) built in the 80s.

Is it possible attempt an inspection and backing out if the findings would be too costly to buyer to be OK w/ "as-is"?
doesn't matter what market we're in. once you hear "all contingencies waived" in order to get the home, you run.

If you ever want to buy in the Bay Area market and you want a contingency, good luck. You're getting diddly. No contingencies has become the absolute norm up there.
I have no desire to buy in Bay Area. I'll buy in Hawaii before I buy Bay Area.
Title: Re: First Time Second Home Buyer - Advice
Post by: anteaterscientist on August 03, 2021, 05:47:47 PM
Is this a new thing now: sellers only accepting cash offers and all contingencies waived?
The property that was in serious consideration is a townhome (3/3) built in the 80s.

Is it possible attempt an inspection and backing out if the findings would be too costly to buyer to be OK w/ "as-is"?
doesn't matter what market we're in. once you hear "all contingencies waived" in order to get the home, you run.

If you ever want to buy in the Bay Area market and you want a contingency, good luck. You're getting diddly. No contingencies has become the absolute norm up there.


So it's just a Bay Area thing... for now? I am familiar as I saw what my relatives and friends went through early 2010s and also a Bay Area native.
Title: Re: First Time Second Home Buyer - Advice
Post by: anteaterscientist on August 03, 2021, 05:59:31 PM
Is this a new thing now: sellers only accepting cash offers and all contingencies waived?
The property that was in serious consideration is a townhome (3/3) built in the 80s.

Is it possible attempt an inspection and backing out if the findings would be too costly to buyer to be OK w/ "as-is"?


I've seen plenty of "as-is" counters (meaning that the seller won't do any repairs or provide credits in lieu of repairs) but have not seen an all cash offer and all contingencies waived situation yet. I'd tell my clients to pass.

I missed the one and only open house this weekend and my agent went, seller only interested in all cash and no contingency offers. My agent commented there were 15 groups of people visiting on Sunday.

I think the seller will get what they want from someone. Is the buyer being lead astray or this is what it takes?
This property is under 900k.
Title: Re: First Time Second Home Buyer - Advice
Post by: USCTrojanCPA on August 03, 2021, 06:28:18 PM
Is this a new thing now: sellers only accepting cash offers and all contingencies waived?
The property that was in serious consideration is a townhome (3/3) built in the 80s.

Is it possible attempt an inspection and backing out if the findings would be too costly to buyer to be OK w/ "as-is"?


I've seen plenty of "as-is" counters (meaning that the seller won't do any repairs or provide credits in lieu of repairs) but have not seen an all cash offer and all contingencies waived situation yet. I'd tell my clients to pass.

I missed the one and only open house this weekend and my agent went, seller only interested in all cash and no contingency offers. My agent commented there were 15 groups of people visiting on Sunday.

I think the seller will get what they want from someone. Is the buyer being lead astray or this is what it takes?
This property is under 900k.

They'll definitely reduce their buyer pool but they might get it if the price is right and it's a desirable floor plan and location.  I've only seen a couple of counters where the seller wanted the buyers to remove all contingencies right off the bat, but never a requirement for all cash with that request.  The normal is waiving loan and appraisal contingencies along with removing all contingencies in 10-14 days.  I'm seeing more and more counters with buying "as-is" where the seller won't do any repairs and won't provide any kind of credit in lieu of repairs.
Title: Re: First Time Second Home Buyer - Advice
Post by: Mety on August 05, 2021, 03:00:17 PM
Is it safe to say "Sell now or get priced out forever!"?
Title: Re: First Time Second Home Buyer - Advice
Post by: Cares on August 05, 2021, 06:14:07 PM
With a combination of institutions buying up real estate, high demand from individual buyers, low supply, low interest rate, well-qualified buyers offering much higher down than 2008, etc.... I do not see how there could possibly be a bubble or drastic price reduction. Home prices will keep increasing or stay flat at the worst.

Basically buy now or regret later. I worked with a stubborn buyer for over 1 year because they didn't want to offer just a little bit more on several properties against my advice. After we found a property not only did they pay $100k more than when we started looking but the home was smaller and in worse condition.
Title: Re: First Time Second Home Buyer - Advice
Post by: USCTrojanCPA on August 05, 2021, 06:26:45 PM
With a combination of institutions buying up real estate, high demand from individual buyers, low supply, low interest rate, well-qualified buyers offering much higher down than 2008, etc.... I do not see how there could possibly be a bubble or drastic price reduction. Home prices will keep increasing or stay flat at the worst.

Basically buy now or regret later. I worked with a stubborn buyer for over 1 year because they didn't want to offer just a little bit more on several properties against my advice. After we found a property not only did they pay $100k more than when we started looking but the home was smaller and in worse condition.

Agreed, the fundamentals (low rates, a ton of highly qualified buyers, low inventory levels, strong economic backdrop, etc) are way too strong to see any kind of pullback in prices.  I believe that prices will continue to grind higher as we currently only have about 3 weeks of inventory on the market.  If you buy a home in Irvine today and own the home for 3-5+ years it'll be worth more than what you pay for it today because the new home construction will come to an end during the time period (excluding the last remaining homes at the Great Park).  This is nothing close to what we saw in 2004-2007.  Buy now or pay more later is what I tell my buyers and they are seeing it first hand. 
Title: Re: First Time Second Home Buyer - Advice
Post by: fatduck on August 05, 2021, 09:18:59 PM
I am not in OC, but every time I have said "prices can't stay this high" I have been dead wrong.

A house a couple blocks from me, 1000 sqft on a 3000 sq ft lot, listed for 1.4. I thought surely this is the bubble. Went under contract almost immediately, for over 1.5 supposedly.  Shows what I know.
Title: Re: First Time Second Home Buyer - Advice
Post by: USCTrojanCPA on August 05, 2021, 09:27:57 PM
I am not in OC, but every time I have said "prices can't stay this high" I have been dead wrong.

A house a couple blocks from me, 1000 sqft on a 3000 sq ft lot, listed for 1.4. I thought surely this is the bubble. Went under contract almost immediately, for over 1.5 supposedly.  Shows what I know.

The market took most buyers by surprise but once my buyers started experiencing the getting outbid we adjusted our approach to aggressively bidding on homes (both on price and terms) that they really liked and had fairly good success.
Title: Re: First Time Second Home Buyer - Advice
Post by: fatduck on August 05, 2021, 09:44:23 PM
I am not in OC, but every time I have said "prices can't stay this high" I have been dead wrong.

A house a couple blocks from me, 1000 sqft on a 3000 sq ft lot, listed for 1.4. I thought surely this is the bubble. Went under contract almost immediately, for over 1.5 supposedly.  Shows what I know.

The market took most buyers by surprise but once my buyers started experiencing the getting outbid we adjusted our approach to aggressively bidding on homes (both on price and terms) that they really liked and had fairly good success.
I started house hunting in 2017, kept getting outbid, tried again in 2018, kept getting outbid, tried again in 2019 and ended up getting a good deal during a brief dip in the LA market.  So I'm thinking wow, my patience sure paid off.

Right now my home value is up like 30% in 2 yrs. Which is awesome. But I just looked up a house that I offered and missed out on in 2017, and it's up almost 70%. So I still would have been better off making a super aggressive offer back then and "overpaying."

Title: Re: First Time Second Home Buyer - Advice
Post by: sleepy5136 on August 05, 2021, 10:30:45 PM
I don't know about other buyers but if I ever hear an agent tell me to overbid on a home which I don't feel comfortable doing, I would question whether or not the agent is looking out for my interest. Sure, I'll get outbid many times, but that doesn't mean I'm "missing out". As long as one is consistently invested, the appreciation of homes outside of 2020 and maybe 2021 is generally not as high as equities.

I think it's completely fine to give context on the current state of the market. But there needs to be a mutual understanding that the buyer may not be comfortable putting an aggressive offer just to get a home. This is probably very situational and it obviously depends on how desperate the buyer is. 

I always follow Warren Buffets philosophy in finances. Be fearful when others are greedy and be greedy when others are fearful. (This does not mean to time the market.)
Title: Re: First Time Second Home Buyer - Advice
Post by: USCTrojanCPA on August 05, 2021, 10:43:55 PM
I don't know about other buyers but if I ever hear an agent tell me to overbid on a home which I don't feel comfortable doing, I would question whether or not the agent is looking out for my interest. Sure, I'll get outbid many times, but that doesn't mean I'm "missing out". As long as one is consistently invested, the appreciation of homes outside of 2020 and maybe 2021 is generally not as high as equities.

I think it's completely fine to give context on the current state of the market. But there needs to be a mutual understanding that the buyer may not be comfortable putting an aggressive offer just to get a home. This is probably very situational and it obviously depends on how desperate the buyer is. 

I always follow Warren Buffets philosophy in finances. Be fearful when others are greedy and be greedy when others are fearful. (This does not mean to time the market.)

A good agent should provide their buyers a good estimate of what a home may sell for and what the appropriate bidding strategy should be based upon where the market is.  I found that buyers will tend to bid more aggressively on homes that they really like.  You can't real compare buying a home to live in and raise your family to investing in equities.  Real estate allows you to leverage 4x+ at super low rates and if you live in a home for 2+ years individuals are eligible for a $250k ($500k for married couples) federal and state gain tax exemption.  A home is a primarily a commodity where you live and a financial asset second.  Your comparison to equities would better work for rental properties but let's play devils advocate for a second...say you bought a home last year for $1m then most likely your home is now worth $1.2m so if you put 20% down you are up 100% on a cash-on-cash basis and oh the gains are all tax free where you'd have a possible tax of 25-35% on realized equity gains.
Title: Re: First Time Second Home Buyer - Advice
Post by: sleepy5136 on August 05, 2021, 11:56:50 PM
I don't know about other buyers but if I ever hear an agent tell me to overbid on a home which I don't feel comfortable doing, I would question whether or not the agent is looking out for my interest. Sure, I'll get outbid many times, but that doesn't mean I'm "missing out". As long as one is consistently invested, the appreciation of homes outside of 2020 and maybe 2021 is generally not as high as equities.

I think it's completely fine to give context on the current state of the market. But there needs to be a mutual understanding that the buyer may not be comfortable putting an aggressive offer just to get a home. This is probably very situational and it obviously depends on how desperate the buyer is. 

I always follow Warren Buffets philosophy in finances. Be fearful when others are greedy and be greedy when others are fearful. (This does not mean to time the market.)

A good agent should provide their buyers a good estimate of what a home may sell for and what the appropriate bidding strategy should be based upon where the market is.  I found that buyers will tend to bid more aggressively on homes that they really like.  You can't real compare buying a home to live in and raise your family to investing in equities.  Real estate allows you to leverage 4x+ at super low rates and if you live in a home for 2+ years individuals are eligible for a $250k ($500k for married couples) federal and state gain tax exemption.  A home is a primarily a commodity where you live and a financial asset second.  Your comparison to equities would better work for rental properties but let's play devils advocate for a second...say you bought a home last year for $1m then most likely your home is now worth $1.2m so if you put 20% down you are up 100% on a cash-on-cash basis and oh the gains are all tax free where you'd have a possible tax of 25-35% on realized equity gains.
I was aiming more at the fact that people say one may be "missing out" if they don't "buy now". If one is invested in the market, one isn't missing out on anything tbh. It's not like potential home buyers don't already have a place to live. You're really only "missing out" if your money is sitting in cash. So if one wants to bid aggressively on a home they like, that's completely fine. But I think there are definitely buyers that are going to think twice about bidding aggressively even if it's a home they like. Because not everyone can pay $600+ a sqft and not think twice. My point is a buyer shouldn't be placed in a situation by their agent to overbid just to get it due to FOMO. The agent needs to respect the buyers unwillingness to overbid in the event they do not feel like doing so and not put the buyer in an uncomfortable situation.
Title: Re: First Time Second Home Buyer - Advice
Post by: USCTrojanCPA on August 06, 2021, 12:12:43 AM
I don't know about other buyers but if I ever hear an agent tell me to overbid on a home which I don't feel comfortable doing, I would question whether or not the agent is looking out for my interest. Sure, I'll get outbid many times, but that doesn't mean I'm "missing out". As long as one is consistently invested, the appreciation of homes outside of 2020 and maybe 2021 is generally not as high as equities.

I think it's completely fine to give context on the current state of the market. But there needs to be a mutual understanding that the buyer may not be comfortable putting an aggressive offer just to get a home. This is probably very situational and it obviously depends on how desperate the buyer is. 

I always follow Warren Buffets philosophy in finances. Be fearful when others are greedy and be greedy when others are fearful. (This does not mean to time the market.)

A good agent should provide their buyers a good estimate of what a home may sell for and what the appropriate bidding strategy should be based upon where the market is.  I found that buyers will tend to bid more aggressively on homes that they really like.  You can't real compare buying a home to live in and raise your family to investing in equities.  Real estate allows you to leverage 4x+ at super low rates and if you live in a home for 2+ years individuals are eligible for a $250k ($500k for married couples) federal and state gain tax exemption.  A home is a primarily a commodity where you live and a financial asset second.  Your comparison to equities would better work for rental properties but let's play devils advocate for a second...say you bought a home last year for $1m then most likely your home is now worth $1.2m so if you put 20% down you are up 100% on a cash-on-cash basis and oh the gains are all tax free where you'd have a possible tax of 25-35% on realized equity gains.
I was aiming more at the fact that people say one may be "missing out" if they don't "buy now". If one is invested in the market, one isn't missing out on anything tbh. It's not like potential home buyers don't already have a place to live. You're really only "missing out" if your money is sitting in cash. So if one wants to bid aggressively on a home they like, that's completely fine. But I think there are definitely buyers that are going to think twice about bidding aggressively even if it's a home they like. Because not everyone can pay $600+ a sqft and not think twice. My point is a buyer shouldn't be placed in a situation by their agent to overbid just to get it due to FOMO. The agent needs to respect the buyers unwillingness to overbid in the event they do not feel like doing so and not put the buyer in an uncomfortable situation.

Yes, ultimately it's the buyer that should make the decision how much to bid on a home that they like.  I give every options to my buyers on the strategies that we can use when submitting an offer but they make the final decision on which strategy to select.  Home prices will continue to head higher given where inventory levels are and the significant amount of highly qualified buyers bidding on homes today. 
Title: Re: First Time Second Home Buyer - Advice
Post by: Mety on August 06, 2021, 09:34:43 AM
I was saying that "sell now or get priced out forever" back in mid to late 2017 to early 2018. I thought the price was for sure at the highest peak. Now the price is even more spiked up so high I don't even know what will happen anymore. ;D

I guess there was a little bit of price reduction for some time around 2018-2019 when the interest rate was like 4%. But as soon as the rate went down and people started working from "home," the home prices started to go crazy again.
Title: Re: First Time Second Home Buyer - Advice
Post by: Cares on August 06, 2021, 09:53:12 AM
2018 to 2019 stayed flat to slightly up. 1st half, average price increased by $x and in the 2nd half it decreased by a little less than $x.
Title: Re: First Time Second Home Buyer - Advice
Post by: hurijo on August 06, 2021, 10:13:44 AM
Was still able to get our house 3.5% below asking in 2nd half 2019. The good ol' days.  ::)
Title: Re: First Time Second Home Buyer - Advice
Post by: Cares on August 06, 2021, 10:56:27 AM
Below asking? What does that mean? I never heard of that term before.

I only know 10% over asking, cash, no contingencies, 10 day escrow.
Title: Re: First Time Second Home Buyer - Advice
Post by: Mety on August 06, 2021, 12:19:15 PM
From the late 2018 to 2019, homes were not selling that well and they were sold a bit below asking pretty often. This was right before the interest rate started to drop significantly. I really think working from home situation also helped people spending more money on homes, buying home included. So that time was actually a better time to buy than 2017 IMHO.
Title: Re: First Time Second Home Buyer - Advice
Post by: zubs on August 06, 2021, 12:39:37 PM
If you bought a home between 2009 to 2020, you are doing well as the price of your house has only gone up.
I consider +/- 5% price to be flat.

When you plan in 10 year increments, why sweat the small stuff?
Title: Re: First Time Second Home Buyer - Advice
Post by: Mety on August 06, 2021, 01:39:35 PM
No sweating. I said I was wrong how the price must have been the highest peak in 2017-18. If you bough then, you would be well into much appreciation now. Cares said he never heard below asking as hurijo mentioned so I just explained what was going on a little bit with some minor hiccups that happened then. But yeah, you right. If you buy and live there 10+ years, you fine. 
Title: Re: First Time Second Home Buyer - Advice
Post by: Cares on August 06, 2021, 01:56:00 PM
Well I was being facetious in that we have been in an environment of only overbid for so long that it's easy to forget when homes sit on the market for more than 1 weekend now.
Title: Re: First Time Second Home Buyer - Advice
Post by: USCTrojanCPA on August 06, 2021, 10:59:28 PM
Was still able to get our house 3.5% below asking in 2nd half 2019. The good ol' days.  ::)

Yeah, those were the good ol' days where I could actually negotiate the price down for my buyers but I was still getting multiple offers and going over the listing price on the majority of my listings even before covid.  :D
Title: Re: First Time Second Home Buyer - Advice
Post by: anteaterscientist on August 17, 2021, 03:39:41 PM
As my quest continues...

Have another question for y'all. For proof of funds, it feels strange to submit where the selling agent and seller gets to see it? Feels so personal. 

Is this standard or being led astray?
Title: Re: First Time Second Home Buyer - Advice
Post by: Mety on August 17, 2021, 03:59:46 PM
As my quest continues...

Have another question for y'all. For proof of funds, it feels strange to submit where the selling agent and seller gets to see it? Feels so personal. 

Is this standard or being led astray?

That's standard. That's the only way you can prove you have enough money to move forward to the seller. I heard the agents for houses above $3m will require you show proof of funding prior to visiting the open house events.
Title: Re: First Time Second Home Buyer - Advice
Post by: USCTrojanCPA on August 17, 2021, 04:02:57 PM
As my quest continues...

Have another question for y'all. For proof of funds, it feels strange to submit where the selling agent and seller gets to see it? Feels so personal. 

Is this standard or being led astray?

That's standard. That's the only way you can prove you have enough money to move forward to the seller. I heard the agents for houses above $3m will require you show proof of funding prior to visiting the open house events.

Yup, happens for homes in the $1m range as well...either proof of funds or a loan pre-approval to set up the showing appt.
Title: Re: First Time Second Home Buyer - Advice
Post by: eyephone on August 17, 2021, 04:04:32 PM
As my quest continues...

Have another question for y'all. For proof of funds, it feels strange to submit where the selling agent and seller gets to see it? Feels so personal. 

Is this standard or being led astray?

Like I said. It does not sound like you are getting singled out. Maybe you are making a big deal out of nothing. This is industry standard. Ask to blackout your account number info. If you dont like the process you can always rent. Renting is okay. I know people that rent and made it.
Title: Re: First Time Second Home Buyer - Advice
Post by: anteaterscientist on August 17, 2021, 05:31:40 PM
As my quest continues...

Have another question for y'all. For proof of funds, it feels strange to submit where the selling agent and seller gets to see it? Feels so personal. 

Is this standard or being led astray?

That's standard. That's the only way you can prove you have enough money to move forward to the seller. I heard the agents for houses above $3m will require you show proof of funding prior to visiting the open house events.

Yup, happens for homes in the $1m range as well...either proof of funds or a loan pre-approval to set up the showing appt.

Thank you for your kind and patience with your response.
Title: Re: First Time Second Home Buyer - Advice
Post by: Cares on August 18, 2021, 12:39:51 AM
As my quest continues...

Have another question for y'all. For proof of funds, it feels strange to submit where the selling agent and seller gets to see it? Feels so personal. 

Is this standard or being led astray?

That's standard. That's the only way you can prove you have enough money to move forward to the seller. I heard the agents for houses above $3m will require you show proof of funding prior to visiting the open house events.

I've seen a $20M+ home listing that required people who wanted to visit the home to put $100k into escrow and it is refunded after your visit. That's the most egregious thing I've ever seen. The home had rare paintings and whatnot so I guess it made sense.
Title: Re: First Time Second Home Buyer - Advice
Post by: zubs on August 18, 2021, 10:24:23 AM
I tried to buy a $3 million warehouse recently.
I Told the agent I needed to borrow some money for this project.
He told me the other offers are all cash so don't bother.

I sad face :(
Title: Re: First Time Second Home Buyer - Advice
Post by: Compressed-Village on August 19, 2021, 11:00:59 AM
Another bummer part is no one coming on this board to say that the end is near. Use to be a few years ago, a handful of trolls on here keep on saying that it is going to crash soon.

They all disappear and now, to only see it balloon to past the 2007 high. Can this keep going on much longer? We'll see.
Title: Re: First Time Second Home Buyer - Advice
Post by: USCTrojanCPA on August 19, 2021, 11:59:53 AM
Another bummer part is no one coming on this board to say that the end is near. Use to be a few years ago, a handful of trolls on here keep on saying that it is going to crash soon.

They all disappear and now, to only see it balloon to past the 2007 high. Can this keep going on much longer? We'll see.

We are closer to the end of the run up than we are to the beginning.  That being said, no crash is coming and the best case for buyers is that we'll be flattish on prices but prices will continue to grind higher into the end of the year because there is a serious lack of inventory and way too much demand.
Title: Re: First Time Second Home Buyer - Advice
Post by: Irvinehomeseeker on August 19, 2021, 02:20:35 PM
Another bummer part is no one coming on this board to say that the end is near. Use to be a few years ago, a handful of trolls on here keep on saying that it is going to crash soon.

They all disappear and now, to only see it balloon to past the 2007 high. Can this keep going on much longer? We'll see.

We are closer to the end of the run up than we are to the beginning.  That being said, no crash is coming and the best case for buyers is that we'll be flattish on prices but prices will continue to grind higher into the end of the year because there is a serious lack of inventory and way too much demand.

Prices still strong I think. Look at this below one - Sold in March of this year for 1,080,000 and sold again this month at 1,165,000;  85K in 5 months despite being a unit backing to Irvine Blvd!
https://www.redfin.com/CA/Irvine/130-Gulfstream-92620/home/143910396
Title: Re: First Time Second Home Buyer - Advice
Post by: anteaterscientist on August 19, 2021, 03:26:17 PM
Did my first offer, lost to another presumed cash buyer.
Title: Re: First Time Second Home Buyer - Advice
Post by: Compressed-Village on August 19, 2021, 04:04:00 PM
I don’t think the FED can do much about raising rate.

They can only talk about, thinking about stop the tapering the bond purchase and you will have a major pull back in the equity market. This might pause the housing market hot run.

When you got cash sitting without any place to put, tangible assets is the next go to.

Even if prices is sky high
Title: Re: First Time Second Home Buyer - Advice
Post by: akula1488 on August 19, 2021, 04:25:35 PM
Did my first offer, lost to another presumed cash buyer.

One offer in 4 months? You must have a lot of patience.
Title: Re: First Time Second Home Buyer - Advice
Post by: anteaterscientist on September 01, 2021, 11:50:24 AM
Made another offer on another property, a few "stronger" offers ahead of me that are financed and so lost to those.
It's not in Irvine.

The situation isn't pressing, but getting annoyed with the limited choices. 

One fewer buyer competitor atleast?
Title: Re: First Time Second Home Buyer - Advice
Post by: anteaterscientist on September 17, 2021, 01:49:45 PM
Update 4: My agent accompanied me to see a property in the morning, within same day my offer was submitted but my agent found out the property opened escrow in the morning. They did not indicate to my agent that property was going to open escrow or inform of any offer.  The place was listed by Redf1n (censoring the name).

Wouldn't have bothered. Offer still out there, set to expiring in the next day.

Is this normal?
Title: Re: First Time Second Home Buyer - Advice
Post by: Compressed-Village on September 17, 2021, 02:54:57 PM
There is very little motivation for sellers to sell now, especially in prime areas:

1) Transactional costs are very high. Highly likely gain > 500k, thus portion has to be taxed and that amount sent to tax cannot be applied to next home. (Lost equity). Selling/buying costs.
2) Covid and significantly less relocations; thus homeowners are moving less. Also, mentally people are very grateful to own a home during pandemic and those who don’t are more desperate.
3) Interest rates are very low + high demand; incremental cost to pay additional 100k-200k are fairly low (350-700/month) compared to waiting around and waiting for more price hikes.
4) California tax rate is locked. Changing home now is likely to double one’s tax liability
5) Dumbest thing one can do is selling your home and rent waiting for a crash. More people understand/realize this now.
Title: Re: First Time Second Home Buyer - Advice
Post by: Irvinehomeseeker on September 17, 2021, 03:35:14 PM
There is very little motivation for sellers to sell now, especially in prime areas:

1) Transactional costs are very high. Highly likely gain > 500k, thus portion has to be taxed and that amount sent to tax cannot be applied to next home. (Lost equity). Selling/buying costs.
2) Covid and significantly less relocations; thus homeowners are moving less. Also, mentally people are very grateful to own a home during pandemic and those who don’t are more desperate.
3) Interest rates are very low + high demand; incremental cost to pay additional 100k-200k are fairly low (350-700/month) compared to waiting around and waiting for more price hikes.
4) California tax rate is locked. Changing home now is likely to double one’s tax liability
5) Dumbest thing one can do is selling your home and rent waiting for a crash. More people understand/realize this now.

For incremental cost - Consider property Taxes as well, which would be going up in addition to the loan amount!
Title: Re: First Time Second Home Buyer - Advice
Post by: sleepy5136 on September 17, 2021, 04:01:51 PM
Isn’t there a prop that passed in ca where ppl age 55+ can carry over their old property taxes to the new place? But I guess ppl that age don’t need to upgrade and aren't willing to pay a premium in the current market.
Title: Re: First Time Second Home Buyer - Advice
Post by: anteaterscientist on September 17, 2021, 04:12:10 PM
Isn’t there a prop that passed in ca where ppl age 55+ can carry over their old property taxes to the new place? But I guess ppl that age don’t need to upgrade and pay the high premium

Prop 19
Title: Re: First Time Second Home Buyer - Advice
Post by: fatduck on September 17, 2021, 07:10:56 PM
Update 4: My agent accompanied me to see a property in the morning, within same day my offer was submitted but my agent found out the property opened escrow in the morning. They did not indicate to my agent that property was going to open escrow or inform of any offer.  The place was listed by Redf1n (censoring the name).

Wouldn't have bothered. Offer still out there, set to expiring in the next day.

Is this normal?
They probably figure they may as well get your offer in case escrow falls through
Title: Re: First Time Second Home Buyer - Advice
Post by: USCTrojanCPA on September 17, 2021, 10:06:01 PM
Update 4: My agent accompanied me to see a property in the morning, within same day my offer was submitted but my agent found out the property opened escrow in the morning. They did not indicate to my agent that property was going to open escrow or inform of any offer.  The place was listed by Redf1n (censoring the name).

Wouldn't have bothered. Offer still out there, set to expiring in the next day.

Is this normal?
They probably figure they may as well get your offer in case escrow falls through

I never change the status of a listing until the deposit is in escrow. With my experience, the majority of cancellations happen before the deposit is made.
Title: Re: First Time Second Home Buyer - Advice
Post by: anteaterscientist on September 18, 2021, 09:14:35 PM
Update 4: My agent accompanied me to see a property in the morning, within same day my offer was submitted but my agent found out the property opened escrow in the morning. They did not indicate to my agent that property was going to open escrow or inform of any offer.  The place was listed by Redf1n (censoring the name).

Wouldn't have bothered. Offer still out there, set to expiring in the next day.

Is this normal?
They probably figure they may as well get your offer in case escrow falls through

I never change the status of a listing until the deposit is in escrow. With my experience, the majority of cancellations happen before the deposit is made.

Is the seller obligated or out of courtesy to tell the visiting buyer that "escrow is going to open in the morning, but feel free to check out the place"?

I'm aware of instances with people still visiting properties with full knowledge that it has opened escrow. However, I stepped onto the property with no knowledge.
Title: Re: First Time Second Home Buyer - Advice
Post by: USCTrojanCPA on September 18, 2021, 09:32:01 PM
Update 4: My agent accompanied me to see a property in the morning, within same day my offer was submitted but my agent found out the property opened escrow in the morning. They did not indicate to my agent that property was going to open escrow or inform of any offer.  The place was listed by Redf1n (censoring the name).

Wouldn't have bothered. Offer still out there, set to expiring in the next day.

Is this normal?
They probably figure they may as well get your offer in case escrow falls through

I never change the status of a listing until the deposit is in escrow. With my experience, the majority of cancellations happen before the deposit is made.

Is the seller obligated or out of courtesy to tell the visiting buyer that "escrow is going to open in the morning, but feel free to check out the place"?

I'm aware of instances with people still visiting properties with full knowledge that it has opened escrow. However, I stepped onto the property with no knowledge.

There's no rule that the listing agent inform a buyer or buyer's agent voluntarily that they accepted an offer and are opening escrow.  However, if a buyer or buyer's agent asks if the home is still available to make an offer the listing should tell them that they have an accepted offer but that the deposit has not been received yet (there's no rule that they have to but it's common professional courtesy to do so). 
Title: Re: First Time Second Home Buyer - Advice
Post by: Soylent Green Is People on September 19, 2021, 07:33:33 AM
If an offer is sent and accompanied with a check from the Buyer for the Earnest Money Deposit, if I'm not mistaken isn't there a limited time the Selling Realtor has to cash the check into their brokers account?
Title: Re: First Time Second Home Buyer - Advice
Post by: USCTrojanCPA on September 19, 2021, 09:50:40 AM
If an offer is sent and accompanied with a check from the Buyer for the Earnest Money Deposit, if I'm not mistaken isn't there a limited time the Selling Realtor has to cash the check into their brokers account?

There's no more checks, 98% of all earnest money deposits now are make via wire transfer by the buyer.  Maybe some old school reatlors get checks from their buyers but I've only seen a copy of those EMD checks a few times in about 15 years.
Title: Re: First Time Second Home Buyer - Advice
Post by: Soylent Green Is People on September 19, 2021, 11:35:22 AM
True, as very, very few people today even know how to use a checking account. Checks are the fax machines of finance. Nice for a time. Obsolete in a few years.

That said, what would a realtor have to do with an offer that also included a check or money order attached physically to the contract?
Title: Re: First Time Second Home Buyer - Advice
Post by: fatduck on September 19, 2021, 01:26:07 PM
pretty soon you'll just send your deposit to $escrow on cash app
Title: Re: First Time Second Home Buyer - Advice
Post by: akula1488 on September 20, 2021, 04:40:39 AM
pretty soon you'll just send your deposit to $escrow on cash app

Then crypto
Title: Re: First Time Second Home Buyer - Advice
Post by: momopi on September 20, 2021, 08:50:54 AM

@_@;;  I still write checks.  And gift silver coins to kids.
Title: Re: First Time Second Home Buyer - Advice
Post by: Soylent Green Is People on September 20, 2021, 09:32:34 AM
@momopi - hand most 10-18 year olds a book of matches and see how few know how to operate one. The lack of knowledge about basic items is astounding.

Not to hijack this thread too far, but Crypto adoption by lenders is really not very widespread. Most lenders if they see crypto assets/use in a transaction want a documentation trail from start to finish - cash in bank (years ago...) to purchase to storage (how many statements?)  to liquidation to conversion back to cash. Blegh. This will change within the decade but at a very slow pace compared to other disruptive ideas we've seen.

My .02c
Title: Re: First Time Second Home Buyer - Advice
Post by: anteaterscientist on September 20, 2021, 10:38:38 AM
Update 5.5: Requested to see in person a property owned by Z1ll0w. I hope they don't stay silent if they are just looking for backup offers. (insert crying face emoji)
This afternoon, have additional places to look at but still traumatized from last experience.
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