How to know where value lies today

[usctrojancpa]

It is a detached property. Good sized yard for this price point in Irvine as well.. We ended up writing a counter that is something along the lines of "Buyer to offer $2,500 over highest offer, not to exceed x" and we brought our x up approx. 10K.. Not sure we will get it.. But again, it's a 3 bed detached in Irvine. It won't end up being a bad investment... Eventually.

Good stategy with the escalation clause.  Good luck.

 

[nosuchreality]

It is a detached property. Good sized yard for this price point in Irvine as well.. We ended up writing a counter that is something along the lines of "Buyer to offer $2,500 over highest offer, not to exceed x" and we brought our x up approx. 10K.. Not sure we will get it.. But again, it's a 3 bed detached in Irvine. It won't end up being a bad investment... Eventually.

Good stategy with the escalation clause.  Good luck.

Yes, I was suspecting that their initial bid was probably the high bid in round 1.  It also is right at one of those psychological points too.  If the agent provided guidance to others it  increases the chances they would get sniped.  Remaining question is if anybody that bid lower initially, ups their bid over the 3/4 mark.

Good luck!

 

[usctrojancpa]

It is a detached property. Good sized yard for this price point in Irvine as well.. We ended up writing a counter that is something along the lines of "Buyer to offer $2,500 over highest offer, not to exceed x" and we brought our x up approx. 10K.. Not sure we will get it.. But again, it's a 3 bed detached in Irvine. It won't end up being a bad investment... Eventually.

Good stategy with the escalation clause.  Good luck.

Yes, I was suspecting that their initial bid was probably the high bid in round 1.  It also is right at one of those psychological points too.  If the agent provided guidance to others it  increases the chances they would get sniped.  Remaining question is if anybody that bid lower initially, ups their bid over the 3/4 mark.

Good luck!

I think 90%+ buyers bump up their offer on best and final counters...at least that's been my experience with my buyers.

 

[nosuchreality]

It is a detached property. Good sized yard for this price point in Irvine as well.. We ended up writing a counter that is something along the lines of "Buyer to offer $2,500 over highest offer, not to exceed x" and we brought our x up approx. 10K.. Not sure we will get it.. But again, it's a 3 bed detached in Irvine. It won't end up being a bad investment... Eventually.

Good stategy with the escalation clause.  Good luck.

Yes, I was suspecting that their initial bid was probably the high bid in round 1.  It also is right at one of those psychological points too.  If the agent provided guidance to others it  increases the chances they would get sniped.  Remaining question is if anybody that bid lower initially, ups their bid over the 3/4 mark.

Good luck!

I think 90%+ buyers bump up their offer on best and final counters...at least that's been my experience with my buyers.

It's not a 'are they' but a 'how much' are they bumping is the important part. 1%, 2%, 10K, 20K, 10%?

With a list of $820K, if someone bid list before, they need to add $40K+ to swing over.

 

[usctrojancpa]

It is a detached property. Good sized yard for this price point in Irvine as well.. We ended up writing a counter that is something along the lines of "Buyer to offer $2,500 over highest offer, not to exceed x" and we brought our x up approx. 10K.. Not sure we will get it.. But again, it's a 3 bed detached in Irvine. It won't end up being a bad investment... Eventually.

Good stategy with the escalation clause.  Good luck.

Yes, I was suspecting that their initial bid was probably the high bid in round 1.  It also is right at one of those psychological points too.  If the agent provided guidance to others it  increases the chances they would get sniped.  Remaining question is if anybody that bid lower initially, ups their bid over the 3/4 mark.

Good luck!

I think 90%+ buyers bump up their offer on best and final counters...at least that's been my experience with my buyers.

It's not a 'are they' but a 'how much' are they bumping is the important part. 1%, 2%, 10K, 20K, 10%?

With a list of $820K, if someone bid list before, they need to add $40K+ to swing over.

I always advise my buyers to bid strong right off the bat so when they do increase their offers via their best and final counter, it's only about 1-2% higher.  Even the highest price in my range that I give buyers isn't enough to buy the home about half the time.

The $820k list price is low and given how many views and favorites on Redfin there are I'd venture to bet they have more than 10 offers.  I'd also venture to bet that some of those offers are all cash and to beat a cash buyer you'll need to bid about $10k more. I wouldn't be surprised if the home ends up closing around $900k given the serious lack of inventory.

 

[potsticker]

It is a detached property. Good sized yard for this price point in Irvine as well.. We ended up writing a counter that is something along the lines of "Buyer to offer $2,500 over highest offer, not to exceed x" and we brought our x up approx. 10K.. Not sure we will get it.. But again, it's a 3 bed detached in Irvine. It won't end up being a bad investment... Eventually.

Good luck. Keep us posted on what happens.
I like the escalation clause...not used enough IMO. That said, it does give the seller an idea on what your max is. If they were to counter back at your max without proof of another offer escalating to that level...would you say no? For most buyers, probably not...but it?s worth it if you?re getting the house you love.

 

[sleepy5136]

Keep in mind the agents are responding. Just keep in mind. They won%u2019t bring up the economy, they won%u2019t talk about the rent freeze.

I just go by what I hear from my clients and what I see with my own eyes. Unlike other realtors, I'm actually putting my money where my mouth is, literally speaking, when I tell my buyers that if you plan on living in a home for 5+ years it's fine to buy.

But agents do not like haggle. I don%u2019t know if it s like the blue line honor code.

Maybe this market you can%u2019t make deals. But when the market was not hot. Some do not want to make deals.

I feel like with the attitude that they give or non response. That they lose money when they make an offer for a customer. (We do not care how agents will look at you, the customer should be the concern.)
Even though it is a basic template that they use. Lol

That's because most agents are passive and/or lazy.  I love negotiating whenever I can.  Heck, I helped a buyer purchase a new Lennar home at Serrano Summit recently, and even though the sales person said Lennar doesn't provide any discounts, I was able to get my buyer about $8,000 off (between price reduction and 1-year paid HOA).  You never get what you don't ask for.

What community in serrano summit did you get this discount for?

 

[usctrojancpa]

Keep in mind the agents are responding. Just keep in mind. They won%u2019t bring up the economy, they won%u2019t talk about the rent freeze.

I just go by what I hear from my clients and what I see with my own eyes. Unlike other realtors, I'm actually putting my money where my mouth is, literally speaking, when I tell my buyers that if you plan on living in a home for 5+ years it's fine to buy.

But agents do not like haggle. I don%u2019t know if it s like the blue line honor code.

Maybe this market you can%u2019t make deals. But when the market was not hot. Some do not want to make deals.

I feel like with the attitude that they give or non response. That they lose money when they make an offer for a customer. (We do not care how agents will look at you, the customer should be the concern.)
Even though it is a basic template that they use. Lol

That's because most agents are passive and/or lazy.  I love negotiating whenever I can.  Heck, I helped a buyer purchase a new Lennar home at Serrano Summit recently, and even though the sales person said Lennar doesn't provide any discounts, I was able to get my buyer about $8,000 off (between price reduction and 1-year paid HOA).  You never get what you don't ask for.

What community in serrano summit did you get this discount for?

Amara.  The buyer was an all cash buyer that could close quickly on standing inventory home so I asked for $10k off the price plus 1 year paid HOA and the builder came back with $6k off the price and the 1 year paid HOA.  I was telling the buyer that we wouldn?t get much at all so it was a pleasant surprise for the both of us. 

 

[Cares]

Yes you can always strike deals on standing inventory. I know over at Verdi the sales rep straight up told me that we should ask for something because they were striking some deals on standing homes.

 

[sleepy5136]

Keep in mind the agents are responding. Just keep in mind. They won%u2019t bring up the economy, they won%u2019t talk about the rent freeze.

I just go by what I hear from my clients and what I see with my own eyes. Unlike other realtors, I'm actually putting my money where my mouth is, literally speaking, when I tell my buyers that if you plan on living in a home for 5+ years it's fine to buy.

But agents do not like haggle. I don%u2019t know if it s like the blue line honor code.

Maybe this market you can%u2019t make deals. But when the market was not hot. Some do not want to make deals.

I feel like with the attitude that they give or non response. That they lose money when they make an offer for a customer. (We do not care how agents will look at you, the customer should be the concern.)
Even though it is a basic template that they use. Lol

That's because most agents are passive and/or lazy.  I love negotiating whenever I can.  Heck, I helped a buyer purchase a new Lennar home at Serrano Summit recently, and even though the sales person said Lennar doesn't provide any discounts, I was able to get my buyer about $8,000 off (between price reduction and 1-year paid HOA).  You never get what you don't ask for.

What community in serrano summit did you get this discount for?

Amara.  The buyer was an all cash buyer that could close quickly on standing inventory home so I asked for $10k off the price plus 1 year paid HOA and the builder came back with $6k off the price and the 1 year paid HOA.  I was telling the buyer that we wouldn?t get much at all so it was a pleasant surprise for the both of us.

Ah! makes sense. What floor plan? I was about to say how you got a discount on something that is in the future phase haha. I got nothing and my agent said they aren't giving anything since Arieta & Covera are selling well. 

Also, what are your thoughts on Amara? I think there is also something similar in terms of price nearby which is Teresina by Shea?

 

[irvinenative1995]

Update for anyone wondering: we were outbid. Better luck next time!

 

[MountainsToSea]

Even if you have an agent. I say do your own research. I remember when I was looking for a house back in the day. I would always have the high end houses shown to me. Also, she did not like to haggle or make low ball offers. At the end we stayed with her, but I did the research and found the house. I didn?t have time find a new agent.

At the end of the day. You will make the payment and not the agent.

Good advice.  I would never rely on any realtor to do any research, their interest is to sell you something and any property will do when it is all said and done.  95% of realtors are horrible.

 

[nosuchreality]

Update for anyone wondering: we were outbid. Better luck next time!

Bummer, better luck next time.

After looking at the 3 beds in the zip for <$900K, I?m curious why they didn?t list at $874,999?  Of even $849,999, which seems equally likely to start a bidding war.

Would the small footprint chase away at the higher price points or is the market hot enough that we are back to everybody wildly swing?

 

[Cares]

Update for anyone wondering: we were outbid. Better luck next time!

Bummer, better luck next time.

After looking at the 3 beds in the zip for <$900K, I?m curious why they didn?t list at $874,999?  Of even $849,999, which seems equally likely to start a bidding war.

Would the small footprint chase away at the higher price points or is the market hot enough that we are back to everybody wildly swing?

It's been rough but hopefully for buyers it will be easier moving forward with higher interest rates.

 

[irvineband]

Hello USCT, always love your insight but can you clarify this point on your recent purchases? You said, ?we will basically be breaking down cash flow? from the below. Does this mean your rent will cover all your expenses and therefore you won?t be cash flow negative?

? My partner and will be closing on 2 rental properties with 25% down with fixed rates at 2.99% where we will basically be breakdown on cashflow so we are very happy.?

USC - what gives you enough confidence in the OC job market to invest now in rental properties, especially given the eviction moratoriums that seem to be moving towards codification in bright blue CA? OC job market seems more unstable than ever.

Because of what I hear from my clients, that their companies and businesses are doing as well or better than pre-covid.  I see the huge demand from buyers, builders stopping all incentives, and strong rental demand.  There was only one person that I know that had an issue with their tenant...this is where tenant selection becomes very important.  Yes, the lower end of the job market is shakey but professionally employed folks are doing well.  I also believe that significant inflation is coming and rates are still low.  My partner and will be closing on 2 rental properties with 25% down with fixed rates at 2.99% where we will basically be breakdown on cashflow so we are very happy.

 

[aquabliss]

Most likely he meant ?breakeven? and autocorrect got him.

 

[usctrojancpa]

Hello USCT, always love your insight but can you clarify this point on your recent purchases? You said, ?we will basically be breaking down cash flow? from the below. Does this mean your rent will cover all your expenses and therefore you won?t be cash flow negative?

? My partner and will be closing on 2 rental properties with 25% down with fixed rates at 2.99% where we will basically be breakdown on cashflow so we are very happy.?

USC - what gives you enough confidence in the OC job market to invest now in rental properties, especially given the eviction moratoriums that seem to be moving towards codification in bright blue CA? OC job market seems more unstable than ever.

Because of what I hear from my clients, that their companies and businesses are doing as well or better than pre-covid.  I see the huge demand from buyers, builders stopping all incentives, and strong rental demand.  There was only one person that I know that had an issue with their tenant...this is where tenant selection becomes very important.  Yes, the lower end of the job market is shakey but professionally employed folks are doing well.  I also believe that significant inflation is coming and rates are still low.  My partner and will be closing on 2 rental properties with 25% down with fixed rates at 2.99% where we will basically be breakdown on cashflow so we are very happy.

Sorry, it was an autospell on my iPhone.  I did mean we are basically breakeven for the 2 rental properties that we bought 50/50 together putting 25% down with a 2.99% interest rate.

 

[Cornflakes]

USC - what gives you enough confidence in the OC job market to invest now in rental properties, especially given the eviction moratoriums that seem to be moving towards codification in bright blue CA? OC job market seems more unstable than ever.

Because of what I hear from my clients, that their companies and businesses are doing as well or better than pre-covid.  I see the huge demand from buyers, builders stopping all incentives, and strong rental demand.  There was only one person that I know that had an issue with their tenant...this is where tenant selection becomes very important.  Yes, the lower end of the job market is shakey but professionally employed folks are doing well.  I also believe that significant inflation is coming and rates are still low.  My partner and will be closing on 2 rental properties with 25% down with fixed rates at 2.99% where we will basically be breakdown on cashflow so we are very happy.

I can second that. In what I have observed, if one is using his/her fingers (keyboard and mouse) to get the work done and be paid, his/her personal economy is unaffected or has even gotten better. If your job involved standing all day, or walking around all day, or have face to face interaction with customers pre-covid, you are more likely to be affected by the covid crisis.

One would think that with Irvine's cost of living, there are more of former type of workers than latter living in Irvine.

 

[usctrojancpa]

Let's see how crazy the market is...

I put in an initial bid of $990,000 on 14592 Comet St in El Camino on Sunday (listed for $925k) for one of my buyers.  We got best & final counters with some very seller favorable terms like removing all contingencies in 7 days, $40,000 deposit, close in 25 days, and 8 day free rent back to the seller (they are buying a larger home and need to seller Comet first).  We responded by accepted all the seller terms and bumped the offer to $991,000 which was due today by 2pm.  Hopefully we'll know by tonight if we got it or not. I told them that a bid over $1m was crazy town.
https://www.redfin.com/CA/Irvine/14592-Comet-St-92604/home/4664381

 

[incrediblehau]

https://www.redfin.com/CA/Irvine/3842-Uris-Ct-92606/home/4667626

interested in what members have to say about this listing.