TayMo bids war

lovingit

Member
Someone told me TayMo releases new phases to a group of buyers and then makes them bid up the prices.  Whoever has the highest price then gets that lot.  Is this a new practice for all builders or just TayMo?  Sounds a bit ridiculous.
 
If I had 10 houses and 50 people wanted to buy my 10 houses, I would put them in a bidding war.
Why ridiculous?
 
lovingit said:
Someone told me TayMo releases new phases to a group of buyers and then makes them bid up the prices.  Whoever has the highest price then gets that lot.  Is this a new practice for all builders or just TayMo?  Sounds a bit ridiculous.

Yes, that is what is happening at Palermo.  Most all of the other builders in Irvine are going off waitlists.


 
Palermo prices start at 1.55 million on their website for 2750 sqt. Wondering how much it will go up upon bidding within select group of buyers.
IP appears to price it high to start with.
 
Palermo increasing their prices significantly.  Plan 1 starts at $1.76 million now and Plan 3 at $1.91 million.  This is bare bone base price.  Thank you Ravello.
More pain for buyers coming!
 
wow... I wonder how their demand will be. I was interested in Palermo early on, but when they started doing a bidding war for basically every lot I didn't even bother
 
It goes both ways. If you are selling your house won't you do the same if there are multiple offers? It is quite fair.

Only shady thing the builder can do is to increase price after under contract or cancel you but legally they can do that from the contract.
 
akula1488 said:
It goes both ways. If you are selling your house won't you do the same if there are multiple offers? It is quite fair.

Only shady thing the builder can do is to increase price after under contract or cancel you but legally they can do that from the contract.
You're right that it works both ways. The reason why people are bothered by it is because new construction isn't considered cheap since you need to do some minor improvements to make it look better. Landscaping, window treatments, and at times light switches aren't even included in the base price.

With that understanding, now you are told that there will be bidding wars for new construction? I'd rather continue with resale in that case. With resale, landscaping, window treatments, and light switches already exist. So if I bid over ask, I won't have to pocket out more money for those items.
 
akula1488 said:
It goes both ways. If you are selling your house won't you do the same if there are multiple offers? It is quite fair.

Only shady thing the builder can do is to increase price after under contract or cancel you but legally they can do that from the contract.

Sure I can definitely understand that argument, but it's a bit apples/oranges. I could buy something second hand on ebay in an auction, or I can buy it brand new. I'm already paying the premium for the brand new product, and the whole point is that I'm buying something at a predictable advertised price point. And yea I get that if demand is higher than supply the price will come up, we see that all the time with new playstations and cars sometimes, but no I don't think bidding wars for a new product like a house is normal or the same as a resale situation, and we as consumers should not accept it as such
 
Actually new items can get bid up on Ebay way over listing/MSRP if the new item is popular with high demand. Like when Nintendo Wii first came out etc.
I guess at the end it still supply and demand and we are not used to see bidding war for new constructions but the same goes for waiving all contingencies like inspection for resale. Just not a normal time for real estate.

mythicquest said:
akula1488 said:
It goes both ways. If you are selling your house won't you do the same if there are multiple offers? It is quite fair.

Only shady thing the builder can do is to increase price after under contract or cancel you but legally they can do that from the contract.

Sure I can definitely understand that argument, but it's a bit apples/oranges. I could buy something second hand on ebay in an auction, or I can buy it brand new. I'm already paying the premium for the brand new product, and the whole point is that I'm buying something at a predictable advertised price point. And yea I get that if demand is higher than supply the price will come up, we see that all the time with new playstations and cars sometimes, but no I don't think bidding wars for a new product like a house is normal or the same as a resale situation, and we as consumers should not accept it as such
 
akula1488 said:
Actually new items can get bid up on Ebay way over listing/MSRP if the new item is popular with high demand. Like when Nintendo Wii first came out etc.
I guess at the end it still supply and demand and we are not used to see bidding war for new constructions but the same goes for waiving all contingencies like inspection for resale. Just not a normal time for real estate.

mythicquest said:
akula1488 said:
It goes both ways. If you are selling your house won't you do the same if there are multiple offers? It is quite fair.

Only shady thing the builder can do is to increase price after under contract or cancel you but legally they can do that from the contract.

Sure I can definitely understand that argument, but it's a bit apples/oranges. I could buy something second hand on ebay in an auction, or I can buy it brand new. I'm already paying the premium for the brand new product, and the whole point is that I'm buying something at a predictable advertised price point. And yea I get that if demand is higher than supply the price will come up, we see that all the time with new playstations and cars sometimes, but no I don't think bidding wars for a new product like a house is normal or the same as a resale situation, and we as consumers should not accept it as such

I think an apples to apples situation would be game console manufacturers . Ebay is not the manufacturer of their products like the builder is of their homes they sale. Last time I checked, Sony does not put their consoles into the market and cause a bidding war for them.
 
Lucifer-750x530.jpg
 
Another hot commodity is cars. While some dealers have marked them up, they don?t subject the buyer to an auction. If you want the car it?s yours if you are willing to pay the stated/inflated price. 
 
sleepy5136 said:
akula1488 said:
Actually new items can get bid up on Ebay way over listing/MSRP if the new item is popular with high demand. Like when Nintendo Wii first came out etc.
I guess at the end it still supply and demand and we are not used to see bidding war for new constructions but the same goes for waiving all contingencies like inspection for resale. Just not a normal time for real estate.

mythicquest said:
akula1488 said:
It goes both ways. If you are selling your house won't you do the same if there are multiple offers? It is quite fair.

Only shady thing the builder can do is to increase price after under contract or cancel you but legally they can do that from the contract.

Sure I can definitely understand that argument, but it's a bit apples/oranges. I could buy something second hand on ebay in an auction, or I can buy it brand new. I'm already paying the premium for the brand new product, and the whole point is that I'm buying something at a predictable advertised price point. And yea I get that if demand is higher than supply the price will come up, we see that all the time with new playstations and cars sometimes, but no I don't think bidding wars for a new product like a house is normal or the same as a resale situation, and we as consumers should not accept it as such

I think an apples to apples situation would be game console manufacturers . Ebay is not the manufacturer of their products like the builder is of their homes they sale. Last time I checked, Sony does not put their consoles into the market and cause a bidding war for them.

Nintendo definitely artificially controls supply causing demand and price surges. Business schools use Nintendo as a case study.
 
Cares said:
sleepy5136 said:
akula1488 said:
Actually new items can get bid up on Ebay way over listing/MSRP if the new item is popular with high demand. Like when Nintendo Wii first came out etc.
I guess at the end it still supply and demand and we are not used to see bidding war for new constructions but the same goes for waiving all contingencies like inspection for resale. Just not a normal time for real estate.

mythicquest said:
akula1488 said:
It goes both ways. If you are selling your house won't you do the same if there are multiple offers? It is quite fair.

Only shady thing the builder can do is to increase price after under contract or cancel you but legally they can do that from the contract.

Sure I can definitely understand that argument, but it's a bit apples/oranges. I could buy something second hand on ebay in an auction, or I can buy it brand new. I'm already paying the premium for the brand new product, and the whole point is that I'm buying something at a predictable advertised price point. And yea I get that if demand is higher than supply the price will come up, we see that all the time with new playstations and cars sometimes, but no I don't think bidding wars for a new product like a house is normal or the same as a resale situation, and we as consumers should not accept it as such

I think an apples to apples situation would be game console manufacturers . Ebay is not the manufacturer of their products like the builder is of their homes they sale. Last time I checked, Sony does not put their consoles into the market and cause a bidding war for them.

Nintendo definitely artificially controls supply causing demand and price surges. Business schools use Nintendo as a case study.
But will Nintendo release their products to market and ask buyers to bid up? Or do they sell whatever is in stock for the price they ask for?
 
Goriot said:
Palermo increasing their prices significantly.  Plan 1 starts at $1.76 million now and Plan 3 at $1.91 million.  This is bare bone base price.  Thank you Ravello.
More pain for buyers coming!

Latest auction must have been hot.  Price raised again to $1.83 million for Plan 1 and $2 million for the Plan 3.
 
Goriot said:
Goriot said:
Palermo increasing their prices significantly.  Plan 1 starts at $1.76 million now and Plan 3 at $1.91 million.  This is bare bone base price.  Thank you Ravello.
More pain for buyers coming!

Latest auction must have been hot.  Price raised again to $1.83 million for Plan 1 and $2 million for the Plan 3.

Wow, they are some tiny lots.
 
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