How to know where value lies today

[usctrojancpa]

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

interested in what members have to say about this listing.

I showed that to the same buyer who put an offer in on Comet.  The home needed a full remodel and the enclosed sunroom made the yard feel tiny.  My buyer had no interest in it.

 

[potsticker]

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

Good luck, USC!
I put in an offer for a friend/client this weekend for a completely flipped home in Placentia. We initially offered $60k over ask and got a best and final counter. The sellers were actually reasonable...only asking for waived appraisal and highest price. We went back with a final offer of $831k ($70k over ask), no appraisal, 10 day inspection contingency, 17 day loan contingency. It's an outstanding offer, but with 30 other offers on the table, you just never know what extent other buyers will go to.

 

[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

Good luck, USC!
I put in an offer for a friend/client this weekend for a completely flipped home in Placentia. We initially offered $60k over ask and got a best and final counter. The sellers were actually reasonable...only asking for waived appraisal and highest price. We went back with a final offer of $831k ($70k over ask), no appraisal, 10 day inspection contingency, 17 day loan contingency. It's an outstanding offer, but with 30 other offers on the table, you just never know what extent other buyers will go to.

Thanks, good luck to you as well.  No word back yet on Comet, my buyers are on pins and needles.

 

[potsticker]

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

Good luck, USC!
I put in an offer for a friend/client this weekend for a completely flipped home in Placentia. We initially offered $60k over ask and got a best and final counter. The sellers were actually reasonable...only asking for waived appraisal and highest price. We went back with a final offer of $831k ($70k over ask), no appraisal, 10 day inspection contingency, 17 day loan contingency. It's an outstanding offer, but with 30 other offers on the table, you just never know what extent other buyers will go to.

Thanks, good luck to you as well.  No word back yet on Comet, my buyers are on pins and needles.

Just got the news that my buyers were outbid. The seller's got $96k over ask and a quick close. Crazy, crazy market!

 

[usctrojancpa]

My buyer didn't get Comet, another buyer went higher and removed loan contingency right off the bat.  Boy that's risky.

 

[nosuchreality]

Did they take down the listing or is that actually a 3/2 1600sf stud gut job for over $1 million that?s 500 feet from Interstate 5?

Okay, it is a one story, but ...

 

[usctrojancpa]

Did they take down the listing or is that actually a 3/2 1600sf stud gut job for over $1 million that?s 500 feet from Interstate 5?

Okay, it is a one story, but ...

Yeah, it's not hold and does need remodeling.  It probably went slightly over $1m given that my buyer is the first back-up buyer.

 

[talkirvine]

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

Good luck, USC!
I put in an offer for a friend/client this weekend for a completely flipped home in Placentia. We initially offered $60k over ask and got a best and final counter. The sellers were actually reasonable...only asking for waived appraisal and highest price. We went back with a final offer of $831k ($70k over ask), no appraisal, 10 day inspection contingency, 17 day loan contingency. It's an outstanding offer, but with 30 other offers on the table, you just never know what extent other buyers will go to.

Thanks, good luck to you as well.  No word back yet on Comet, my buyers are on pins and needles.

Just got the news that my buyers were outbid. The seller's got $96k over ask and a quick close. Crazy, crazy market!

Do not be misled by the listing price. At today's market, many seller agents list over $50-$100k below market value to attract interest and create bid wars. That's just a marketing strategy. So $96k over asking is fairly normal and becomes a new trend now. 

 

[eyephone]

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

Good luck, USC!
I put in an offer for a friend/client this weekend for a completely flipped home in Placentia. We initially offered $60k over ask and got a best and final counter. The sellers were actually reasonable...only asking for waived appraisal and highest price. We went back with a final offer of $831k ($70k over ask), no appraisal, 10 day inspection contingency, 17 day loan contingency. It's an outstanding offer, but with 30 other offers on the table, you just never know what extent other buyers will go to.

Thanks, good luck to you as well.  No word back yet on Comet, my buyers are on pins and needles.

Just got the news that my buyers were outbid. The seller's got $96k over ask and a quick close. Crazy, crazy market!

Do not be misled by the listing price. At today's market, many seller agents list over $50-$100k below market value to attract interest and create bid wars. That's just a marketing strategy. So $96k over asking is fairly normal and becomes a new trend now.

Yeah, it they don?t get the hyped price. They will take it off the market and relist it later on.

 

[sleepy5136]

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

Good luck, USC!
I put in an offer for a friend/client this weekend for a completely flipped home in Placentia. We initially offered $60k over ask and got a best and final counter. The sellers were actually reasonable...only asking for waived appraisal and highest price. We went back with a final offer of $831k ($70k over ask), no appraisal, 10 day inspection contingency, 17 day loan contingency. It's an outstanding offer, but with 30 other offers on the table, you just never know what extent other buyers will go to.

Thanks, good luck to you as well.  No word back yet on Comet, my buyers are on pins and needles.

Just got the news that my buyers were outbid. The seller's got $96k over ask and a quick close. Crazy, crazy market!

Do not be misled by the listing price. At today's market, many seller agents list over $50-$100k below market value to attract interest and create bid wars. That's just a marketing strategy. So $96k over asking is fairly normal and becomes a new trend now.

Yeah, it they don?t get the hyped price. They will take it off the market and relist it later on.

It?s ridiculous what?s happening in the housing market right now. Unless one needs to buy a house immediately, I don?t see the point in bidding percentages over asking. It?s a stupid game and the only winners of this are the agents and the seller. Interest rates at record lows is a great reason to buy now but not a good reason to bid percentages over asking. Hopefully these buyers are planning to stay there for ten years. But there are unfortunately  tons of buyers having second thoughts.

 

[qwerty]

This market does have all of the makings of a bubble/peak. I would hate to be a first time buyer right now. Presumably this doesn?t impact existing move up sellers as much since they are reaping the benefits on the sell side and just moving those gains to their new home.

 

[sleepy5136]

This market does have all of the makings of a bubble/peak. I would hate to be a first time buyer right now. Presumably this doesn?t impact existing move up sellers as much since they are reaping the benefits on the sell side and just moving those gains to their new home.

Yeah, FTHB are constantly being outbid by move up/cash buyers. Surprisingly the amount of FTHB is unchanged from last year which is roughly ~30%. I?m actually surprised since my initial thoughts when I graduated would be that millennials wouldn?t be able to buy homes due to student loan balances. But I guess I underestimated their parents financial abilities to help with the down payment.

 

[potsticker]

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

Good luck, USC!
I put in an offer for a friend/client this weekend for a completely flipped home in Placentia. We initially offered $60k over ask and got a best and final counter. The sellers were actually reasonable...only asking for waived appraisal and highest price. We went back with a final offer of $831k ($70k over ask), no appraisal, 10 day inspection contingency, 17 day loan contingency. It's an outstanding offer, but with 30 other offers on the table, you just never know what extent other buyers will go to.

Thanks, good luck to you as well.  No word back yet on Comet, my buyers are on pins and needles.

Just got the news that my buyers were outbid. The seller's got $96k over ask and a quick close. Crazy, crazy market!

Do not be misled by the listing price. At today's market, many seller agents list over $50-$100k below market value to attract interest and create bid wars. That's just a marketing strategy. So $96k over asking is fairly normal and becomes a new trend now.

In this case, the listing agent priced it at 10% over the most recent comp that sold in January. So, they did list at market value, but the market dynamics (low supply, high demand) drove the price up.

This market does have all of the makings of a bubble/peak. I would hate to be a first time buyer right now. Presumably this doesn?t impact existing move up sellers as much since they are reaping the benefits on the sell side and just moving those gains to their new home.

Yeah, FTHB are constantly being outbid by move up/cash buyers. Surprisingly the amount of FTHB is unchanged from last year which is roughly ~30%. I?m actually surprised since my initial thoughts when I graduated would be that millennials wouldn?t be able to buy homes due to student loan balances. But I guess I underestimated their parents financial abilities to help with the down payment.

I've worked with 4 FTHB's last year and am working with 2 right now. Generally, they're double-income, no kids with around $200k combined gross earnings. At that level, you're not wanting to live in a shit hole, but renting a nice 2bd at $3k/mo doesn't make a lot of financial sense. These buyers are putting 10%-15% down with conventional loans - None have gotten help from their parents. Some have purchased new construction, others have bought older condos and have done light remodeling (floors and painting).

 

[sleepy5136]

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

Good luck, USC!
I put in an offer for a friend/client this weekend for a completely flipped home in Placentia. We initially offered $60k over ask and got a best and final counter. The sellers were actually reasonable...only asking for waived appraisal and highest price. We went back with a final offer of $831k ($70k over ask), no appraisal, 10 day inspection contingency, 17 day loan contingency. It's an outstanding offer, but with 30 other offers on the table, you just never know what extent other buyers will go to.

Thanks, good luck to you as well.  No word back yet on Comet, my buyers are on pins and needles.

Just got the news that my buyers were outbid. The seller's got $96k over ask and a quick close. Crazy, crazy market!

Do not be misled by the listing price. At today's market, many seller agents list over $50-$100k below market value to attract interest and create bid wars. That's just a marketing strategy. So $96k over asking is fairly normal and becomes a new trend now.

In this case, the listing agent priced it at 10% over the most recent comp that sold in January. So, they did list at market value, but the market dynamics (low supply, high demand) drove the price up.

This market does have all of the makings of a bubble/peak. I would hate to be a first time buyer right now. Presumably this doesn?t impact existing move up sellers as much since they are reaping the benefits on the sell side and just moving those gains to their new home.

Yeah, FTHB are constantly being outbid by move up/cash buyers. Surprisingly the amount of FTHB is unchanged from last year which is roughly ~30%. I?m actually surprised since my initial thoughts when I graduated would be that millennials wouldn?t be able to buy homes due to student loan balances. But I guess I underestimated their parents financial abilities to help with the down payment.

I've worked with 4 FTHB's last year and am working with 2 right now. Generally, they're double-income, no kids with around $200k combined gross earnings. At that level, you're not wanting to live in a shit hole, but renting a nice 2bd at $3k/mo doesn't make a lot of financial sense. These buyers are putting 10%-15% down with conventional loans - None have gotten help from their parents. Some have purchased new construction, others have bought older condos and have done light remodeling (floors and painting).

Do they have student loans? It makes a difference. Regardless if they did or not, a lot of millennials do have student loans after graduation and depending on the amount, it can be very difficult to buy a home and if they were able to do it, they would be on a tighter budget than other buyers. I am a millennial myself and I have a lot of friends who bought homes did receive help from their parents.

 

[potsticker]

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

Good luck, USC!
I put in an offer for a friend/client this weekend for a completely flipped home in Placentia. We initially offered $60k over ask and got a best and final counter. The sellers were actually reasonable...only asking for waived appraisal and highest price. We went back with a final offer of $831k ($70k over ask), no appraisal, 10 day inspection contingency, 17 day loan contingency. It's an outstanding offer, but with 30 other offers on the table, you just never know what extent other buyers will go to.

Thanks, good luck to you as well.  No word back yet on Comet, my buyers are on pins and needles.

Just got the news that my buyers were outbid. The seller's got $96k over ask and a quick close. Crazy, crazy market!

Do not be misled by the listing price. At today's market, many seller agents list over $50-$100k below market value to attract interest and create bid wars. That's just a marketing strategy. So $96k over asking is fairly normal and becomes a new trend now.

In this case, the listing agent priced it at 10% over the most recent comp that sold in January. So, they did list at market value, but the market dynamics (low supply, high demand) drove the price up.

This market does have all of the makings of a bubble/peak. I would hate to be a first time buyer right now. Presumably this doesn?t impact existing move up sellers as much since they are reaping the benefits on the sell side and just moving those gains to their new home.

Yeah, FTHB are constantly being outbid by move up/cash buyers. Surprisingly the amount of FTHB is unchanged from last year which is roughly ~30%. I?m actually surprised since my initial thoughts when I graduated would be that millennials wouldn?t be able to buy homes due to student loan balances. But I guess I underestimated their parents financial abilities to help with the down payment.

I've worked with 4 FTHB's last year and am working with 2 right now. Generally, they're double-income, no kids with around $200k combined gross earnings. At that level, you're not wanting to live in a shit hole, but renting a nice 2bd at $3k/mo doesn't make a lot of financial sense. These buyers are putting 10%-15% down with conventional loans - None have gotten help from their parents. Some have purchased new construction, others have bought older condos and have done light remodeling (floors and painting).

Do they have student loans? It makes a difference. Regardless if they did or not, a lot of millennials do have student loans after graduation and depending on the amount, it can be very difficult to buy a home and if they were able to do it, they would be on a tighter budget than other buyers. I am a millennial myself and I have a lot of friends who bought homes did receive help from their parents.

Yes, a couple of them had student loans and car loans! No doubt, it's a tight budget. In this market, it's extremely tough for a FTHB to compete. It's often times easier to buy a new construction home where it's first come, first serve rather than trying to bid against multiple offers.

 

[sleepy5136]

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

Good luck, USC!
I put in an offer for a friend/client this weekend for a completely flipped home in Placentia. We initially offered $60k over ask and got a best and final counter. The sellers were actually reasonable...only asking for waived appraisal and highest price. We went back with a final offer of $831k ($70k over ask), no appraisal, 10 day inspection contingency, 17 day loan contingency. It's an outstanding offer, but with 30 other offers on the table, you just never know what extent other buyers will go to.

Thanks, good luck to you as well.  No word back yet on Comet, my buyers are on pins and needles.

Just got the news that my buyers were outbid. The seller's got $96k over ask and a quick close. Crazy, crazy market!

Do not be misled by the listing price. At today's market, many seller agents list over $50-$100k below market value to attract interest and create bid wars. That's just a marketing strategy. So $96k over asking is fairly normal and becomes a new trend now.

In this case, the listing agent priced it at 10% over the most recent comp that sold in January. So, they did list at market value, but the market dynamics (low supply, high demand) drove the price up.

This market does have all of the makings of a bubble/peak. I would hate to be a first time buyer right now. Presumably this doesn?t impact existing move up sellers as much since they are reaping the benefits on the sell side and just moving those gains to their new home.

Yeah, FTHB are constantly being outbid by move up/cash buyers. Surprisingly the amount of FTHB is unchanged from last year which is roughly ~30%. I?m actually surprised since my initial thoughts when I graduated would be that millennials wouldn?t be able to buy homes due to student loan balances. But I guess I underestimated their parents financial abilities to help with the down payment.

I've worked with 4 FTHB's last year and am working with 2 right now. Generally, they're double-income, no kids with around $200k combined gross earnings. At that level, you're not wanting to live in a shit hole, but renting a nice 2bd at $3k/mo doesn't make a lot of financial sense. These buyers are putting 10%-15% down with conventional loans - None have gotten help from their parents. Some have purchased new construction, others have bought older condos and have done light remodeling (floors and painting).

Do they have student loans? It makes a difference. Regardless if they did or not, a lot of millennials do have student loans after graduation and depending on the amount, it can be very difficult to buy a home and if they were able to do it, they would be on a tighter budget than other buyers. I am a millennial myself and I have a lot of friends who bought homes did receive help from their parents.

Yes, a couple of them had student loans and car loans! No doubt, it's a tight budget. In this market, it's extremely tough for a FTHB to compete. It's often times easier to buy a new construction home where it's first come, first serve rather than trying to bid against multiple offers.

I'm not sure with other builders but Lennar recently implemented a bidding process for homes. But the thing with new construction is their sales may be impacted because rates are looking to go up. So you are taking quite a risk unless you can lock in your interest rate well in advance which generally speaking isn't possible for most banks.

 

[talkirvine]

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

Good luck, USC!
I put in an offer for a friend/client this weekend for a completely flipped home in Placentia. We initially offered $60k over ask and got a best and final counter. The sellers were actually reasonable...only asking for waived appraisal and highest price. We went back with a final offer of $831k ($70k over ask), no appraisal, 10 day inspection contingency, 17 day loan contingency. It's an outstanding offer, but with 30 other offers on the table, you just never know what extent other buyers will go to.

Thanks, good luck to you as well.  No word back yet on Comet, my buyers are on pins and needles.

Just got the news that my buyers were outbid. The seller's got $96k over ask and a quick close. Crazy, crazy market!

Do not be misled by the listing price. At today's market, many seller agents list over $50-$100k below market value to attract interest and create bid wars. That's just a marketing strategy. So $96k over asking is fairly normal and becomes a new trend now.

In this case, the listing agent priced it at 10% over the most recent comp that sold in January. So, they did list at market value, but the market dynamics (low supply, high demand) drove the price up.

This market does have all of the makings of a bubble/peak. I would hate to be a first time buyer right now. Presumably this doesn?t impact existing move up sellers as much since they are reaping the benefits on the sell side and just moving those gains to their new home.

Yeah, FTHB are constantly being outbid by move up/cash buyers. Surprisingly the amount of FTHB is unchanged from last year which is roughly ~30%. I?m actually surprised since my initial thoughts when I graduated would be that millennials wouldn?t be able to buy homes due to student loan balances. But I guess I underestimated their parents financial abilities to help with the down payment.

I've worked with 4 FTHB's last year and am working with 2 right now. Generally, they're double-income, no kids with around $200k combined gross earnings. At that level, you're not wanting to live in a shit hole, but renting a nice 2bd at $3k/mo doesn't make a lot of financial sense. These buyers are putting 10%-15% down with conventional loans - None have gotten help from their parents. Some have purchased new construction, others have bought older condos and have done light remodeling (floors and painting).

Do they have student loans? It makes a difference. Regardless if they did or not, a lot of millennials do have student loans after graduation and depending on the amount, it can be very difficult to buy a home and if they were able to do it, they would be on a tighter budget than other buyers. I am a millennial myself and I have a lot of friends who bought homes did receive help from their parents.

Yes, a couple of them had student loans and car loans! No doubt, it's a tight budget. In this market, it's extremely tough for a FTHB to compete. It's often times easier to buy a new construction home where it's first come, first serve rather than trying to bid against multiple offers.

I'm not sure with other builders but Lennar recently implemented a bidding process for homes. But the thing with new construction is their sales may be impacted because rates are looking to go up. So you are taking quite a risk unless you can lock in your interest rate well in advance which generally speaking isn't possible for most banks.

In today's market, even experienced developers can not predict how high the market could be, so they just let the market play by itself. They used to be price-setter and market maker, making it easier and more convenient for buyers. But now, they want to be a market follower.

 

[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

Good luck, USC!
I put in an offer for a friend/client this weekend for a completely flipped home in Placentia. We initially offered $60k over ask and got a best and final counter. The sellers were actually reasonable...only asking for waived appraisal and highest price. We went back with a final offer of $831k ($70k over ask), no appraisal, 10 day inspection contingency, 17 day loan contingency. It's an outstanding offer, but with 30 other offers on the table, you just never know what extent other buyers will go to.

Thanks, good luck to you as well.  No word back yet on Comet, my buyers are on pins and needles.

Just got the news that my buyers were outbid. The seller's got $96k over ask and a quick close. Crazy, crazy market!

Do not be misled by the listing price. At today's market, many seller agents list over $50-$100k below market value to attract interest and create bid wars. That's just a marketing strategy. So $96k over asking is fairly normal and becomes a new trend now.

In this case, the listing agent priced it at 10% over the most recent comp that sold in January. So, they did list at market value, but the market dynamics (low supply, high demand) drove the price up.

This market does have all of the makings of a bubble/peak. I would hate to be a first time buyer right now. Presumably this doesn?t impact existing move up sellers as much since they are reaping the benefits on the sell side and just moving those gains to their new home.

Yeah, FTHB are constantly being outbid by move up/cash buyers. Surprisingly the amount of FTHB is unchanged from last year which is roughly ~30%. I?m actually surprised since my initial thoughts when I graduated would be that millennials wouldn?t be able to buy homes due to student loan balances. But I guess I underestimated their parents financial abilities to help with the down payment.

I've worked with 4 FTHB's last year and am working with 2 right now. Generally, they're double-income, no kids with around $200k combined gross earnings. At that level, you're not wanting to live in a shit hole, but renting a nice 2bd at $3k/mo doesn't make a lot of financial sense. These buyers are putting 10%-15% down with conventional loans - None have gotten help from their parents. Some have purchased new construction, others have bought older condos and have done light remodeling (floors and painting).

Do they have student loans? It makes a difference. Regardless if they did or not, a lot of millennials do have student loans after graduation and depending on the amount, it can be very difficult to buy a home and if they were able to do it, they would be on a tighter budget than other buyers. I am a millennial myself and I have a lot of friends who bought homes did receive help from their parents.

Yes, a couple of them had student loans and car loans! No doubt, it's a tight budget. In this market, it's extremely tough for a FTHB to compete. It's often times easier to buy a new construction home where it's first come, first serve rather than trying to bid against multiple offers.

I'm not sure with other builders but Lennar recently implemented a bidding process for homes. But the thing with new construction is their sales may be impacted because rates are looking to go up. So you are taking quite a risk unless you can lock in your interest rate well in advance which generally speaking isn't possible for most banks.

First I've heard of this in Orange County as I just got a buyer into a quicker move-in Irvine Pacific home in Orchard Hills, I know it's happening in Las Vegas where the builders open up a phase of 4-8 homes and ask buyers for their best and final offers on the home (sometimes not giving them any kind of price sheet). 

 

[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

Good luck, USC!
I put in an offer for a friend/client this weekend for a completely flipped home in Placentia. We initially offered $60k over ask and got a best and final counter. The sellers were actually reasonable...only asking for waived appraisal and highest price. We went back with a final offer of $831k ($70k over ask), no appraisal, 10 day inspection contingency, 17 day loan contingency. It's an outstanding offer, but with 30 other offers on the table, you just never know what extent other buyers will go to.

Thanks, good luck to you as well.  No word back yet on Comet, my buyers are on pins and needles.

Just got the news that my buyers were outbid. The seller's got $96k over ask and a quick close. Crazy, crazy market!

Do not be misled by the listing price. At today's market, many seller agents list over $50-$100k below market value to attract interest and create bid wars. That's just a marketing strategy. So $96k over asking is fairly normal and becomes a new trend now.

In this case, the listing agent priced it at 10% over the most recent comp that sold in January. So, they did list at market value, but the market dynamics (low supply, high demand) drove the price up.

This market does have all of the makings of a bubble/peak. I would hate to be a first time buyer right now. Presumably this doesn?t impact existing move up sellers as much since they are reaping the benefits on the sell side and just moving those gains to their new home.

Yeah, FTHB are constantly being outbid by move up/cash buyers. Surprisingly the amount of FTHB is unchanged from last year which is roughly ~30%. I?m actually surprised since my initial thoughts when I graduated would be that millennials wouldn?t be able to buy homes due to student loan balances. But I guess I underestimated their parents financial abilities to help with the down payment.

I've worked with 4 FTHB's last year and am working with 2 right now. Generally, they're double-income, no kids with around $200k combined gross earnings. At that level, you're not wanting to live in a shit hole, but renting a nice 2bd at $3k/mo doesn't make a lot of financial sense. These buyers are putting 10%-15% down with conventional loans - None have gotten help from their parents. Some have purchased new construction, others have bought older condos and have done light remodeling (floors and painting).

Do they have student loans? It makes a difference. Regardless if they did or not, a lot of millennials do have student loans after graduation and depending on the amount, it can be very difficult to buy a home and if they were able to do it, they would be on a tighter budget than other buyers. I am a millennial myself and I have a lot of friends who bought homes did receive help from their parents.

Yes, a couple of them had student loans and car loans! No doubt, it's a tight budget. In this market, it's extremely tough for a FTHB to compete. It's often times easier to buy a new construction home where it's first come, first serve rather than trying to bid against multiple offers.

I'm not sure with other builders but Lennar recently implemented a bidding process for homes. But the thing with new construction is their sales may be impacted because rates are looking to go up. So you are taking quite a risk unless you can lock in your interest rate well in advance which generally speaking isn't possible for most banks.

First I've heard of this in Orange County as I just got a buyer into a quicker move-in Irvine Pacific home in Orchard Hills, I know it's happening in Las Vegas where the builders open up a phase of 4-8 homes and ask buyers for their best and final offers on the home (sometimes not giving them any kind of price sheet). 

What builders should do is do auctions similar to Ebay where the bidding is transparent to get to price discovery (HUD and auction properties are sold in this manner, with buyer premiums).

 

[sleepy5136]

i wish bidding wars were live. so whoever is interested attends and with covid be 6 ft apart. As a buyer, I would hate to give my "best" offer knowing I am only competing against myself. The fact that there is no transparency in this I feel is quite shady.