Author Topic: Where the market is - Buyer Offers  (Read 15339 times)

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Offline Dr. CA Real Estate

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Re: Where the market is - Buyer Offers
« Reply #75 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.
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Offline USCTrojanCPA

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Re: Where the market is - Buyer Offers
« Reply #76 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. 
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Offline USCTrojanCPA

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Re: Where the market is - Buyer Offers
« Reply #77 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....
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Offline marmott

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Re: Where the market is - Buyer Offers
« Reply #78 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/

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Offline USCTrojanCPA

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Re: Where the market is - Buyer Offers
« Reply #79 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.
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Offline Soylent Green Is People

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Re: Where the market is - Buyer Offers
« Reply #80 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

86% of the offers were all cash. At that price it's possible, but still.......Cray-zeee times!
« Last Edit: March 31, 2021, 10:48:20 AM by Soylent Green Is People »
My .02c

SGIP

Offline USCTrojanCPA

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Re: Where the market is - Buyer Offers
« Reply #81 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

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. 
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Offline USCTrojanCPA

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Re: Where the market is - Buyer Offers
« Reply #82 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."
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Offline hurijo

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Re: Where the market is - Buyer Offers
« Reply #83 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."

Offline talkirvine

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Re: Where the market is - Buyer Offers
« Reply #84 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.

Offline kpatnps

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Re: Where the market is - Buyer Offers
« Reply #85 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. 


Offline sleepy5136

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Re: Where the market is - Buyer Offers
« Reply #86 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.

Offline USCTrojanCPA

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Re: Where the market is - Buyer Offers
« Reply #87 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. 
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Offline USCTrojanCPA

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Re: Where the market is - Buyer Offers
« Reply #88 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. 
Martin Mania, CPA
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Offline USCTrojanCPA

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Re: Where the market is - Buyer Offers
« Reply #89 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.
Martin Mania, CPA
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