Author Topic: Starter Family Detached Home Battle: New vs Resale  (Read 2167 times)

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Offline Netperx

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Re: Starter Family Detached Home Battle: New vs Resale
« Reply #15 on: March 08, 2019, 03:59:57 PM »

Offline Maserson

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Re: Starter Family Detached Home Battle: New vs Resale
« Reply #16 on: March 22, 2019, 09:27:34 AM »
Here's a PS one. Strange but it doesn't show on Redfin. I guess they're using some kind of service called REX?

https://www.zillow.com/homedetails/26-Los-Indios-Irvine-CA-92618/118264881_zpid/
https://www.rexhomes.com/listing/26-los-indios

Las Ventanas is/was a popular development. Well under a million at 900k. Real SFR with driveway, no motorcourt. $385/sq ft FTW.

Offline irvinehomeowner

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Re: Starter Family Detached Home Battle: New vs Resale
« Reply #17 on: March 22, 2019, 09:46:08 AM »
Here's a PS one. Strange but it doesn't show on Redfin. I guess they're using some kind of service called REX?

https://www.zillow.com/homedetails/26-Los-Indios-Irvine-CA-92618/118264881_zpid/
https://www.rexhomes.com/listing/26-los-indios

Las Ventanas is/was a popular development. Well under a million at 900k. Real SFR with driveway, no motorcourt. $385/sq ft FTW.

That may be just a bait price.

REX has done this before by listing homes on the MLS at a lower than market price and then holding an “auction” to sell them.

Let’s see what this closes at.
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Offline momopi

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Re: Starter Family Detached Home Battle: New vs Resale
« Reply #18 on: March 22, 2019, 09:46:33 AM »
I like this one, if you can settle for Tustin:

https://www.redfin.com/CA/Tustin/18192-Theodora-Dr-92780/home/4486495



Offline Maserson

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Re: Starter Family Detached Home Battle: New vs Resale
« Reply #19 on: March 22, 2019, 09:59:33 AM »
REX has done this before by listing homes on the MLS at a lower than market price and then holding an “auction” to sell them.

Aha!  Too good to be true...

Offline bitmaster20

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Re: Starter Family Detached Home Battle: New vs Resale
« Reply #20 on: March 22, 2019, 10:26:42 AM »
Here's a PS one. Strange but it doesn't show on Redfin. I guess they're using some kind of service called REX?

https://www.zillow.com/homedetails/26-Los-Indios-Irvine-CA-92618/118264881_zpid/
https://www.rexhomes.com/listing/26-los-indios

Las Ventanas is/was a popular development. Well under a million at 900k. Real SFR with driveway, no motorcourt. $385/sq ft FTW.

I looked up Rex's About Us page, they have an interesting business model.

Code: [Select]
Critically, we exist outside what is known as the Multiple Listing Service (MLS)
system, the loose confederation of realtor organizations that maintain artificially high
fees even though the Internet has radically reduced the value traditional realtors offer to
consumers. That sets us apart from other real estate firms that describe themselves as
technology­enabled disrupters, but remain compliant with the MLS, a confederation of
around 750 realtor organizations that maintain restrictive practices.

https://cdn.rexhomes.com/assets/docs/a-vision-for-the-future-of-the-residential-real-estate-business.pdf

Offline zubs

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Re: Starter Family Detached Home Battle: New vs Resale
« Reply #21 on: March 22, 2019, 10:36:45 AM »
In regards to listing a house below market value.

I was interested in this house last year:
https://www.redfin.com/CA/Orange/3076-N-Spicewood-St-92865/home/7202029

It was listed below 600,000, and got sold for 732,500.  I went to the open house twice, and this place was packed with people.
So from my experience, the low balling strategy works pretty well for the seller.


There was a bidding war.

Offline Mety

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Re: Starter Family Detached Home Battle: New vs Resale
« Reply #22 on: March 22, 2019, 11:14:31 AM »
In regards to listing a house below market value.

I was interested in this house last year:
https://www.redfin.com/CA/Orange/3076-N-Spicewood-St-92865/home/7202029

It was listed below 600,000, and got sold for 732,500.  I went to the open house twice, and this place was packed with people.
So from my experience, the low balling strategy works pretty well for the seller.


There was a bidding war.

That one was also an auction, bidding started from $599k. So that was not a normal listing price.

But I do agree and have said again and again the right strategy at this time being is to list the home with a little lower than usual. The usual at this time is a little too high anyways so the lower listing price will surely attract more buyers. One thing to consider though is that when the home was listed lower and it would not get sold for a long time. That would be a disaster. To sell the home, I believe listing price is the first and the foremost priority, but the listing agent has to do the math right considering the condition of the home, the floor plan, the location, the lot size, etc. This Orange home you showed has a real nice upgrades throughout so it could succeed.

I think the smart listing price would be to list at 2017's price range. Many people are still not realizing 2018's prices do not work anymore.


Offline USCTrojanCPA

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Re: Starter Family Detached Home Battle: New vs Resale
« Reply #23 on: March 22, 2019, 03:43:05 PM »
In regards to listing a house below market value.

I was interested in this house last year:
https://www.redfin.com/CA/Orange/3076-N-Spicewood-St-92865/home/7202029

It was listed below 600,000, and got sold for 732,500.  I went to the open house twice, and this place was packed with people.
So from my experience, the low balling strategy works pretty well for the seller.


There was a bidding war.

It's a bit risky to under list a home in a neutral/soft market because you may not get the volume of buyers who are willing to bid the home up enough to get back to the true market price.  I've used that strategy many times when sellers told me that they wanted to "go fast" with their home sale but that was when the market was good.  If a property is priced right and it shows well, it'll sell quickly even in this market so that's the pricing strategy that I'm recommending to sellers (for higher end homes you should bake in some "negotiation cushion" into the sales price).
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Offline USCTrojanCPA

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Re: Starter Family Detached Home Battle: New vs Resale
« Reply #24 on: March 22, 2019, 03:46:19 PM »
Here's a PS one. Strange but it doesn't show on Redfin. I guess they're using some kind of service called REX?

https://www.zillow.com/homedetails/26-Los-Indios-Irvine-CA-92618/118264881_zpid/
https://www.rexhomes.com/listing/26-los-indios

Las Ventanas is/was a popular development. Well under a million at 900k. Real SFR with driveway, no motorcourt. $385/sq ft FTW.

I looked up Rex's About Us page, they have an interesting business model.

Code: [Select]
Critically, we exist outside what is known as the Multiple Listing Service (MLS)
system, the loose confederation of realtor organizations that maintain artificially high
fees even though the Internet has radically reduced the value traditional realtors offer to
consumers. That sets us apart from other real estate firms that describe themselves as
technology­enabled disrupters, but remain compliant with the MLS, a confederation of
around 750 realtor organizations that maintain restrictive practices.

https://cdn.rexhomes.com/assets/docs/a-vision-for-the-future-of-the-residential-real-estate-business.pdf


Rex does not list properties on MLS and the seller does not pay a buyer's agent commission so that's why they are able to offer a 2% commission since that's only the listing commission (there is a minimum commission total commission of $9,500).  Buyers will have to represent themselves, have the Rex agent represent them, or pay their buyer's agent to represent them.
« Last Edit: March 22, 2019, 03:56:22 PM by USCTrojanCPA »
Martin Mania, CPA
AgencyOne
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CA CPA License # 107675
mmania001@yahoo.com
714-747-3884 cell

Often imitated....Never duplicated!

Offline USCTrojanCPA

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Re: Starter Family Detached Home Battle: New vs Resale
« Reply #25 on: March 22, 2019, 03:57:19 PM »
Here's a PS one. Strange but it doesn't show on Redfin. I guess they're using some kind of service called REX?

https://www.zillow.com/homedetails/26-Los-Indios-Irvine-CA-92618/118264881_zpid/
https://www.rexhomes.com/listing/26-los-indios

Las Ventanas is/was a popular development. Well under a million at 900k. Real SFR with driveway, no motorcourt. $385/sq ft FTW.

The house will probably be bid up to the mid $900s is my guess.
Martin Mania, CPA
AgencyOne
CA BRE License # 01799007
CA CPA License # 107675
mmania001@yahoo.com
714-747-3884 cell

Often imitated....Never duplicated!

Offline irvinehomeowner

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Re: Starter Family Detached Home Battle: New vs Resale
« Reply #26 on: April 02, 2019, 09:37:01 AM »
I don't really understand the REX model. I'm assuming they don't use the MLS to avoid buyer agent commission but wouldn't they want the exposure?

Can't they just put something like a 1% buyer's agent commission on the listing (or would buyers' agents just tell their clients not to look?).

They have ads on ESPN 710 Radio all the time.
Once you go 3-car garage... your junk can never go back.
3CWG: 3-Car Wide Garage
FCB: Foreign Cash Buyer
I recommend:
www.irvinerealtorsite.com
member: Soylent Green Is People (loans/refis)

 

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