Author Topic: Where the market is - Buyer Offers  (Read 57466 times)

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Offline USCTrojanCPA

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Re: Where the market is - Buyer Offers
« Reply #15 on: March 23, 2021, 03:38:30 PM »
I made an offer for another buyer on this home back on March 3rd and it was interesting on it played out.

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

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

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

That's a good strategy but many times now there aren't more than 2-3 homes that one buyer may want to look at given how low inventory levels are.  But yes, if my buyer likes more than one home we made offers on all the homes that they like because there's no guarantee that we'll get one of them.
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Offline USCTrojanCPA

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Re: Where the market is - Buyer Offers
« Reply #16 on: March 23, 2021, 03:46:19 PM »
Amazingly difficult out there.

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

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

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

Someone must see greater potential in this property than others. 

Wow, that's a big number for a home that needs a full renovation of this size. It does have a very large lot though.
Martin Mania, CPA
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Offline Cornflakes

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Re: Where the market is - Buyer Offers
« Reply #17 on: March 23, 2021, 07:24:58 PM »
Even with the $150-$200k of work needed, it's still not a $1.5 valued home given nearby comparables. Methinks it's going to be flattened and subdivided. Who knows!

Methink so too on flattened. Not likely subdivided but build something nicer, bigger, contemporary on a 15k sqft lot. Used to happen a lot in silicone valley. May be that's the next wave for socal?

Offline OCtoSV

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Re: Where the market is - Buyer Offers
« Reply #18 on: March 24, 2021, 08:57:50 AM »
With new zoning regulations being phased in up here in SV to bridge the housing shortage subdividing large residential lots into 4-plexes will be very profitable, and will likely lead to some angry neighbors throughout some very ice neighborhoods.

Offline Bullsback

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Re: Where the market is - Buyer Offers
« Reply #19 on: March 24, 2021, 02:35:17 PM »
I made an offer for another buyer on this home back on March 3rd and it was interesting on it played out.

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

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

How about this strategy for buyers. The first day, search online and narrow down to 10 houses to visit in person the second day. On the second day, visit all 10 houses. If there are 8 houses the buyer likes, then submit 8 offers for all 8 houses, and negotiate with all 8 sellers at the same time. If eventually one offer works out and is accepted, then cancel the other 7 offers right away.
This was a really nice house too - very tasteful upgrades.  Very clean and decent sized lot. I always liked these Laurel floorplans. The lots were terrible (super small) but the floorplans were very clean  compared to some of the other SFR's in Cypress. 

Offline USCTrojanCPA

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Re: Where the market is - Buyer Offers
« Reply #20 on: March 24, 2021, 02:40:04 PM »
I made an offer above the list price for this Tustin Ranch home earlier tonight for another buyer....

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

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



Update....

My buyer offered $1.25m initially and then went up to $1.28m on best & final counters but we didn't get the home.  The listing agent said they got an offer over $1.3m that they accepted.  They had 11 offers and countered 8 buyers who had initial offers of $1.25m or higher.
Martin Mania, CPA
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Offline crownedking

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Re: Where the market is - Buyer Offers
« Reply #21 on: March 25, 2021, 01:04:21 PM »
I'm curious to know what type of jobs does everyone here have where you can afford a multi-million dollar home.

Offline akkord

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Re: Where the market is - Buyer Offers
« Reply #22 on: March 25, 2021, 01:24:51 PM »
I'm curious to know what type of jobs does everyone here have where you can afford a multi-million dollar home.

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

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

Offline sleepy5136

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Re: Where the market is - Buyer Offers
« Reply #23 on: March 25, 2021, 01:40:29 PM »
I'm curious to know what type of jobs does everyone here have where you can afford a multi-million dollar home.

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

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

Offline Cornflakes

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Re: Where the market is - Buyer Offers
« Reply #24 on: March 25, 2021, 01:47:56 PM »
I'm curious to know what type of jobs does everyone here have where you can afford a multi-million dollar home.

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

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

That's lotta cheese.. ;)

Offline akkord

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Re: Where the market is - Buyer Offers
« Reply #25 on: March 25, 2021, 01:49:15 PM »
The majority of buyers are age 22-40. I would love to see metrics of income for OC. The nationwide metrics specify that households are earning 100-113k. But that doesn't seem realistic with California prices.

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

Offline Liar Loan

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Re: Where the market is - Buyer Offers
« Reply #26 on: March 25, 2021, 01:52:19 PM »
I'm curious to know what type of jobs does everyone here have where you can afford a multi-million dollar home.

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

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


Offline USCTrojanCPA

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Re: Where the market is - Buyer Offers
« Reply #27 on: March 25, 2021, 01:56:23 PM »
Most of my clients are professionally employed with dual income households....legal, medical, dental, finance, engineering, etc.  I'd venture to guess that 80% of them have household incomes from $200k to $500k.
Martin Mania, CPA
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Often imitated....Never duplicated!
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Offline Cornflakes

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Re: Where the market is - Buyer Offers
« Reply #28 on: March 25, 2021, 01:57:01 PM »
The majority of buyers are age 22-40. I would love to see metrics of income for OC. The nationwide metrics specify that households are earning 100-113k. But that doesn't seem realistic with California prices.

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

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

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

Offline USCTrojanCPA

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Re: Where the market is - Buyer Offers
« Reply #29 on: March 25, 2021, 01:57:11 PM »
I'm curious to know what type of jobs does everyone here have where you can afford a multi-million dollar home.

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

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



Buy in Tustin Ranch, right?  ;)
Martin Mania, CPA
AgencyOne
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CA CPA License # 107675
mmania001@yahoo.com
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Often imitated....Never duplicated!
Have license, will travel!

 

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