Author Topic: Observations from the front lines of the Irvine housing market…  (Read 249374 times)

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Offline fatduck

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Re: Observations from the front lines of the Irvine housing market…
« Reply #855 on: October 19, 2021, 09:06:30 AM »
The other manipulations comes in the form of scarcity. If there isn't enough of something, prices exploded.

Purposely holding low inventory is a classic controlling the free market. Looks at what the FED is doing, how about the banks holding on the foreclosures and not showing on listing. The FED "transitory", is making a lot less sense. The FED mandate 2%, is like its legalize inflation tax, which is a theft of people hard earn money.

The unfortunate reality is that whenever money is at stake there will be those who try to game the system for their own means, whether legally or illegally.
zero inflation would result in higher unemployment rate and lower GDP.  there's no free lunch.

Offline Compressed-Village

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Re: Observations from the front lines of the Irvine housing market…
« Reply #856 on: October 19, 2021, 09:26:16 AM »
The other manipulations comes in the form of scarcity. If there isn't enough of something, prices exploded.

Purposely holding low inventory is a classic controlling the free market. Looks at what the FED is doing, how about the banks holding on the foreclosures and not showing on listing. The FED "transitory", is making a lot less sense. The FED mandate 2%, is like its legalize inflation tax, which is a theft of people hard earn money.

The unfortunate reality is that whenever money is at stake there will be those who try to game the system for their own means, whether legally or illegally.
zero inflation would result in higher unemployment rate and lower GDP.  there's no free lunch.

Speaking of GDP,

https://www.atlantafed.org/cqer/research/gdpnow

It really is concerning charts. GDP is in real time and from the FED it’s self.

It’s is higher tax, higher inflation, much lower growth. To give money on one hand and pick pocket you on another isn’t free. Inflation is a hidden tax, on top of other taxes.


Offline fatduck

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Re: Observations from the front lines of the Irvine housing market…
« Reply #857 on: October 19, 2021, 11:00:44 AM »
The other manipulations comes in the form of scarcity. If there isn't enough of something, prices exploded.

Purposely holding low inventory is a classic controlling the free market. Looks at what the FED is doing, how about the banks holding on the foreclosures and not showing on listing. The FED "transitory", is making a lot less sense. The FED mandate 2%, is like its legalize inflation tax, which is a theft of people hard earn money.

The unfortunate reality is that whenever money is at stake there will be those who try to game the system for their own means, whether legally or illegally.
zero inflation would result in higher unemployment rate and lower GDP.  there's no free lunch.

Speaking of GDP,

https://www.atlantafed.org/cqer/research/gdpnow

It really is concerning charts. GDP is in real time and from the FED it’s self.

It’s is higher tax, higher inflation, much lower growth. To give money on one hand and pick pocket you on another isn’t free. Inflation is a hidden tax, on top of other taxes.
zero inflation is worse because downward nominal wage rigidity is extremely strong in the US.  cutting (nominal) salaries is basically a death sentence for a company.  but without inflation, companies have no other option in downturns. 

inflation caused by natural growth in money supply is also positively correlated with gdp growth.

but there's a misconception that the fed somehow causes inflation by "printing money."  that's not how it works, at least not until the fed starts literally dropping stacks of cash from helicopters.  the only mechanism the fed has to increase the money supply is thru bank lending (indirectly, by influencing bank reserves), which is dependent on borrower demand.

Offline CalBears96

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Re: Observations from the front lines of the Irvine housing market…
« Reply #858 on: October 19, 2021, 11:22:52 AM »
Yes, they can manipulate zestimates, but when they make an offer to buy from you, they wouldn’t just make a $1m home into zestimating $800k or something. The price range would be a reasonable ballpark, don’t you think? The benefit of selling to Zillow would be for someone who wants to quickly sell it without doing all those staging, open house, etc. Just take an offer and be done with it less than 2 week. If your looking for maximum ROI, then yeah just go through traditional style.

There are also some people who need to sell the current home quickly in order to close the new home, so the quickest way is through Zillow.

Offline Liar Loan

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Re: Observations from the front lines of the Irvine housing market…
« Reply #859 on: October 19, 2021, 02:02:22 PM »
Yes, they can manipulate zestimates, but when they make an offer to buy from you, they wouldn’t just make a $1m home into zestimating $800k or something. The price range would be a reasonable ballpark, don’t you think? The benefit of selling to Zillow would be for someone who wants to quickly sell it without doing all those staging, open house, etc. Just take an offer and be done with it less than 2 week. If your looking for maximum ROI, then yeah just go through traditional style.

There are also some people who need to sell the current home quickly in order to close the new home, so the quickest way is through Zillow.

Yes, this is the primary selling point of these services. 

When I sold my last home, I got quotes or attempted to get quotes from all the iBuyers - Zillow, Redfin, Open Door, Owning, and also a private home flipper - just to see how the quotes would compare.  I had an amount in mind that I would be willing to sell for if it meant avoiding staging and marketing the home (I have four kids, so keeping things looking perfect all the time is near impossible).

Redfin ended up offering me the most, and it was almost enough to make me pull the trigger, but I instead opted for a traditional listing to net the most money after fees.  I was able to close on our new house before selling the old, something I wasn't positive mortgage underwriting would allow me to do, and I was able to sell the old house before the first payment came due on the new house.

For people that need the certainty of selling their existing home first, iBuying is a nice service, but it comes with a high price.  At the end of the day, losing tens of thousands in net proceeds was not worth the added convenience for me.

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Offline ThirtySomethingWEquity

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Re: Observations from the front lines of the Irvine housing market…
« Reply #860 on: October 19, 2021, 03:14:03 PM »

but there's a misconception that the fed somehow causes inflation by "printing money."  that's not how it works, at least not until the fed starts literally dropping stacks of cash from helicopters.  the only mechanism the fed has to increase the money supply is thru bank lending (indirectly, by influencing bank reserves), which is dependent on borrower demand.

The fed doesn't buy treasuries? 

Offline USCTrojanCPA

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Re: Observations from the front lines of the Irvine housing market…
« Reply #861 on: October 19, 2021, 06:34:48 PM »
Yes, they can manipulate zestimates, but when they make an offer to buy from you, they wouldn’t just make a $1m home into zestimating $800k or something. The price range would be a reasonable ballpark, don’t you think? The benefit of selling to Zillow would be for someone who wants to quickly sell it without doing all those staging, open house, etc. Just take an offer and be done with it less than 2 week. If your looking for maximum ROI, then yeah just go through traditional style.

There are also some people who need to sell the current home quickly in order to close the new home, so the quickest way is through Zillow.

Yes, this is the primary selling point of these services. 

When I sold my last home, I got quotes or attempted to get quotes from all the iBuyers - Zillow, Redfin, Open Door, Owning, and also a private home flipper - just to see how the quotes would compare.  I had an amount in mind that I would be willing to sell for if it meant avoiding staging and marketing the home (I have four kids, so keeping things looking perfect all the time is near impossible).

Redfin ended up offering me the most, and it was almost enough to make me pull the trigger, but I instead opted for a traditional listing to net the most money after fees.  I was able to close on our new house before selling the old, something I wasn't positive mortgage underwriting would allow me to do, and I was able to sell the old house before the first payment came due on the new house.

For people that need the certainty of selling their existing home first, iBuying is a nice service, but it comes with a high price.  At the end of the day, losing tens of thousands in net proceeds was not worth the added convenience for me.

I provide the same service for my clients but at less cost and we set up a profit share (along with a short rent back, if needed) if the home sellers for over a certain price that we agree to.  I only do it for clients that have a home to sell and looking to move up but are stuck.  However, the market has gotten so stupid that I'm starting to step in to buy their move-up home for all cash and then flipping it back to them at the same price that I bought it off without a rebate (rebate covers my closing costs on both sides).  Then once they move out of their current home I list it for sale and like a magician that's have I create 2 transactions out of 0. 
Martin Mania, CPA
AgencyOne
CA DRE License # 01799007
CA CPA License # 107675
mmania001@yahoo.com
714-747-3884 cell

Often imitated....Never duplicated!
Have license, will travel!

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Offline Compressed-Village

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Re: Observations from the front lines of the Irvine housing market…
« Reply #862 on: October 20, 2021, 09:17:49 AM »
Yes, they can manipulate zestimates, but when they make an offer to buy from you, they wouldn’t just make a $1m home into zestimating $800k or something. The price range would be a reasonable ballpark, don’t you think? The benefit of selling to Zillow would be for someone who wants to quickly sell it without doing all those staging, open house, etc. Just take an offer and be done with it less than 2 week. If your looking for maximum ROI, then yeah just go through traditional style.

There are also some people who need to sell the current home quickly in order to close the new home, so the quickest way is through Zillow.

Yes, this is the primary selling point of these services. 

When I sold my last home, I got quotes or attempted to get quotes from all the iBuyers - Zillow, Redfin, Open Door, Owning, and also a private home flipper - just to see how the quotes would compare.  I had an amount in mind that I would be willing to sell for if it meant avoiding staging and marketing the home (I have four kids, so keeping things looking perfect all the time is near impossible).

Redfin ended up offering me the most, and it was almost enough to make me pull the trigger, but I instead opted for a traditional listing to net the most money after fees.  I was able to close on our new house before selling the old, something I wasn't positive mortgage underwriting would allow me to do, and I was able to sell the old house before the first payment came due on the new house.

For people that need the certainty of selling their existing home first, iBuying is a nice service, but it comes with a high price.  At the end of the day, losing tens of thousands in net proceeds was not worth the added convenience for me.

I provide the same service for my clients but at less cost and we set up a profit share (along with a short rent back, if needed) if the home sellers for over a certain price that we agree to.  I only do it for clients that have a home to sell and looking to move up but are stuck.  However, the market has gotten so stupid that I'm starting to step in to buy their move-up home for all cash and then flipping it back to them at the same price that I bought it off without a rebate (rebate covers my closing costs on both sides).  Then once they move out of their current home I list it for sale and like a magician that's have I create 2 transactions out of 0.

I think this is a great service to go head to head with the big funds. Few people know about your offer. Any tax implications for you and buyers?

Offline USCTrojanCPA

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Re: Observations from the front lines of the Irvine housing market…
« Reply #863 on: October 20, 2021, 10:01:09 AM »
Yes, they can manipulate zestimates, but when they make an offer to buy from you, they wouldn’t just make a $1m home into zestimating $800k or something. The price range would be a reasonable ballpark, don’t you think? The benefit of selling to Zillow would be for someone who wants to quickly sell it without doing all those staging, open house, etc. Just take an offer and be done with it less than 2 week. If your looking for maximum ROI, then yeah just go through traditional style.

There are also some people who need to sell the current home quickly in order to close the new home, so the quickest way is through Zillow.

Yes, this is the primary selling point of these services. 

When I sold my last home, I got quotes or attempted to get quotes from all the iBuyers - Zillow, Redfin, Open Door, Owning, and also a private home flipper - just to see how the quotes would compare.  I had an amount in mind that I would be willing to sell for if it meant avoiding staging and marketing the home (I have four kids, so keeping things looking perfect all the time is near impossible).

Redfin ended up offering me the most, and it was almost enough to make me pull the trigger, but I instead opted for a traditional listing to net the most money after fees.  I was able to close on our new house before selling the old, something I wasn't positive mortgage underwriting would allow me to do, and I was able to sell the old house before the first payment came due on the new house.

For people that need the certainty of selling their existing home first, iBuying is a nice service, but it comes with a high price.  At the end of the day, losing tens of thousands in net proceeds was not worth the added convenience for me.

I provide the same service for my clients but at less cost and we set up a profit share (along with a short rent back, if needed) if the home sellers for over a certain price that we agree to.  I only do it for clients that have a home to sell and looking to move up but are stuck.  However, the market has gotten so stupid that I'm starting to step in to buy their move-up home for all cash and then flipping it back to them at the same price that I bought it off without a rebate (rebate covers my closing costs on both sides).  Then once they move out of their current home I list it for sale and like a magician that's have I create 2 transactions out of 0.

I think this is a great service to go head to head with the big funds. Few people know about your offer. Any tax implications for you and buyers?

I only offer to repeat clients and new clients have an exit property after they purchase their home.  If they occupied the home for 2 out of the past 5 years then they will qualify for the gain exemption, even with the profit share payment as it just becomes an installment sale.  My dad is the buyer so his tax rate is lower than mine since he lives in Las Vegas.  I might provide a post where I provide more detail on the transaction and offer it to more people on TI after year end.
Martin Mania, CPA
AgencyOne
CA DRE License # 01799007
CA CPA License # 107675
mmania001@yahoo.com
714-747-3884 cell

Often imitated....Never duplicated!
Have license, will travel!

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Offline Ready2Downsize

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Re: Observations from the front lines of the Irvine housing market…
« Reply #864 on: October 20, 2021, 10:54:49 AM »
Yes, they can manipulate zestimates, but when they make an offer to buy from you, they wouldn’t just make a $1m home into zestimating $800k or something. The price range would be a reasonable ballpark, don’t you think? The benefit of selling to Zillow would be for someone who wants to quickly sell it without doing all those staging, open house, etc. Just take an offer and be done with it less than 2 week. If your looking for maximum ROI, then yeah just go through traditional style.

There are also some people who need to sell the current home quickly in order to close the new home, so the quickest way is through Zillow.

Yes, this is the primary selling point of these services. 

When I sold my last home, I got quotes or attempted to get quotes from all the iBuyers - Zillow, Redfin, Open Door, Owning, and also a private home flipper - just to see how the quotes would compare.  I had an amount in mind that I would be willing to sell for if it meant avoiding staging and marketing the home (I have four kids, so keeping things looking perfect all the time is near impossible).

Redfin ended up offering me the most, and it was almost enough to make me pull the trigger, but I instead opted for a traditional listing to net the most money after fees.  I was able to close on our new house before selling the old, something I wasn't positive mortgage underwriting would allow me to do, and I was able to sell the old house before the first payment came due on the new house.

For people that need the certainty of selling their existing home first, iBuying is a nice service, but it comes with a high price.  At the end of the day, losing tens of thousands in net proceeds was not worth the added convenience for me.

I provide the same service for my clients but at less cost and we set up a profit share (along with a short rent back, if needed) if the home sellers for over a certain price that we agree to.  I only do it for clients that have a home to sell and looking to move up but are stuck.  However, the market has gotten so stupid that I'm starting to step in to buy their move-up home for all cash and then flipping it back to them at the same price that I bought it off without a rebate (rebate covers my closing costs on both sides).  Then once they move out of their current home I list it for sale and like a magician that's have I create 2 transactions out of 0.

I think this is a great service to go head to head with the big funds. Few people know about your offer. Any tax implications for you and buyers?

I only offer to repeat clients and new clients have an exit property after they purchase their home.  If they occupied the home for 2 out of the past 5 years then they will qualify for the gain exemption, even with the profit share payment as it just becomes an installment sale.  My dad is the buyer so his tax rate is lower than mine since he lives in Las Vegas.  I might provide a post where I provide more detail on the transaction and offer it to more people on TI after year end.

I'm surprised the dems haven't tried to take that $500K tax free gain back as a means to pay for their spending. Must be they have some properties to sell themselves before they go after the rest of us.

Offline fatduck

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Re: Observations from the front lines of the Irvine housing market…
« Reply #865 on: October 20, 2021, 10:57:51 AM »
yea dems hate homeowners.  next thing you know they'll be cutting deductions for property taxes and mortgage interest.

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Offline Sidehussle

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Re: Observations from the front lines of the Irvine housing market…
« Reply #866 on: October 22, 2021, 08:08:41 PM »
Actually republicans hate us Cali homeowners most by reducing the cap on our mortgage deduction and installing the  10k SALT limit. That’s hit us harder than any dem in my recent history. TurboTax gives my 5 year trend and under trump my effective tax rate jumped 7 to 10 points

Offline CalBears96

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Re: Observations from the front lines of the Irvine housing market…
« Reply #867 on: October 22, 2021, 10:39:34 PM »
I think fatduck was being sarcastic. Or at least, I hope. ;)

But yeah, the $10k SALT limit really hurt Cali homeowners.

Offline aquabliss

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Re: Observations from the front lines of the Irvine housing market…
« Reply #868 on: October 23, 2021, 12:26:59 AM »
Ya especially for us homeowners who previously decducted our Mello...

Offline fatduck

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Re: Observations from the front lines of the Irvine housing market…
« Reply #869 on: October 23, 2021, 07:16:29 AM »
Yeah that was the joke

The trump tax "cut" was a huge tax increase for me

 

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