Author Topic: 2014 homebuyers turning into sellers  (Read 8060 times)

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Offline GH

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Re: 2014 homebuyers turning into sellers
« Reply #15 on: August 05, 2015, 12:37:48 PM »
In fact, it seems like in large part, more of those homes have been break even with one rare exception (early phase PP buyers). 

I'm one of these, and although I'm confident I could sell my house for 20% more than I bought it for in early 2014, there's not a lot of profit to be made after including the cost I paid (after close) for:
- Flooring
- Painting
- Built Ins
- Epoxy
- Shutters
- Crown Molding
- Landscaping

Just using round numbers as an example... If I paid $1M and can now sell for $1.2M, the cost I spent on  the list above is between $75k-$85k.  Then realtor fees of ~$50k.  So maybe I profit around $70k or so and that's if it sells for list.

But you still need to live somewhere, so the profit is not really a profit because your new home cost basis is now higher.. You just made your realtor richer by $50K  .. unless of course you plan to rent or does not live here :)

Offline bones

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Re: 2014 homebuyers turning into sellers
« Reply #16 on: August 05, 2015, 12:48:10 PM »
In fact, it seems like in large part, more of those homes have been break even with one rare exception (early phase PP buyers). 

I'm one of these, and although I'm confident I could sell my house for 20% more than I bought it for in early 2014, there's not a lot of profit to be made after including the cost I paid (after close) for:
- Flooring
- Painting
- Built Ins
- Epoxy
- Shutters
- Crown Molding
- Landscaping

Just using round numbers as an example... If I paid $1M and can now sell for $1.2M, the cost I spent on  the list above is between $75k-$85k.  Then realtor fees of ~$50k.  So maybe I profit around $70k or so and that's if it sells for list.

But you still need to live somewhere, so the profit is not really a profit because your new home cost basis is now higher.. You just made your realtor richer by $50K  .. unless of course you plan to rent or does not live here :)

Or move to foothill ranch. Don't worry Ronnie, we can still be friends if you do :) :) :)

Offline aquabliss

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Re: 2014 homebuyers turning into sellers
« Reply #17 on: August 05, 2015, 01:05:09 PM »
The only way out of Irvine for me is via Newport Beach or Corona Del Mar...

Heck, maybe even attached:
http://meridianresidences.com/ease-living-ultimate-luxury

Offline sell4u

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Re: 2014 homebuyers turning into sellers
« Reply #18 on: August 06, 2015, 04:12:25 AM »
So what is wrong with that?  Buyers remorse or people wanting to profit?

What's wrong is that it's not normal for a typical oc family to purchase a home and turn around less than a year later and put it back on the market.
again, these are not "flip" properties. they're not properties the family is looking to "profit" from. 
all i'm saying is this trend has been increasing.  You didn't see this take place in 2013.
this is telling us something. ....

Offline AW

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Re: 2014 homebuyers turning into sellers
« Reply #19 on: August 06, 2015, 08:11:37 AM »
It's market forces.  Supply and demand. 
What else is it telling us

Offline sell4u

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Re: 2014 homebuyers turning into sellers
« Reply #20 on: August 07, 2015, 04:14:21 AM »
It's market forces.  Supply and demand. 
What else is it telling us

i don't think it's a supply and demand. 1) there is not crazy demand right now in orange county for current home price levels and 2) the supply of inventory is still what i consider it to be in a normal range.  for example, look at irvine, it has approx 685 active properties.  Last year on this date it had 754 active properties. approx 10% less than last year. Less active's because there is less demand (my opinion)
it's telling us instability
it's telling us speculation, it's telling us possible buyer's remorse or any other factor
once in a blue moon a family purchases and ends up getting relocated for a job a month later. this is rare.
purchasing a home is the largest decision, mentally and financially, a person often makes. 

Offline USCTrojanCPA

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Re: 2014 homebuyers turning into sellers
« Reply #21 on: August 07, 2015, 08:04:50 AM »
You guys are also missing the fact that many of these 1-2 sellers are looking to move up since they did get unexpected gains and/or want to sell the home because they aren't happy with the home or neighborhood. 
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Offline sell4u

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Re: 2014 homebuyers turning into sellers
« Reply #22 on: August 09, 2015, 10:54:33 AM »
These 2014 homebuyers came active this week alone. Mind you I probably can't catch every single listing, so there's probably a couple more out there.  This is more than 1 or 2.....

1438 Montgomerey, Tustin Sold 5/27/14 $674k. Active $725k
2375 Elden, Costa Mesa. Sold 4/29/14 $549k. Active $629k
10707 Lauren, Garden Grove Sold 5/15/14 $583k. Active $629k
42 Chadron, Ladera Ranch Sold 3/2014 $394k. Active $408k
2314 Sandbar, Fullerton Sold 1/14/14 $412k. Active $469k
1561 Sherwood Village, Placentia Sold 4/14 $400k. Active $419k

For example, look at 42 Chadron in LR.  This owner is going to actually dig into their pocket if they chose to sell, even at their list price....Don't forget they have closing costs involved, often as much as 3-5%.  There is 0 unexpected gains from any of these properties.  There is 0 unexpected gains from *almost* any standard sale purchase in 2014.

In my opinion, this is too many coming back to active. It's starting to smell....maybe it goes away? But again, this is all my opinion.


Offline Bullsback

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Re: 2014 homebuyers turning into sellers
« Reply #23 on: August 10, 2015, 09:51:59 AM »
That doesn't seem like that much in all of orange county. People relocate, people get divorced, people's families grow, circumstances change. 

Offline AW

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Re: 2014 homebuyers turning into sellers
« Reply #24 on: August 10, 2015, 09:56:18 AM »
The lending is much stricter than what it was before, so if they can afford to buy it, chances are they'll be afford to keep it unlike the loose lending back then

Offline sell4u

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Re: 2014 homebuyers turning into sellers
« Reply #25 on: August 11, 2015, 08:46:31 AM »
That doesn't seem like that much in all of orange county. People relocate, people get divorced, people's families grow, circumstances change. 

just trying to make the point i'm noticing this much more than any year prior to 2014. Who doesn't get a divorce with a near 50% divorce rate in this country?

 

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