New Listing - Crescendo Plan 1 home @ Cadence Park (116 Crossover)

[usctrojancpa]

Very interesting reaction to the seller's decision to increase the listing price.  Let me explain the justification for the initial listing price.  We used the closed comp at 131 Drama at $3,060,000 at a price per SF of $467 (that home is a former Crescendo Plan 3 model home with 5 bedrooms and 450sf larger) so we rounded up the listing price to $2,800,000.  In our minds, we thought might get to around $3m if we had multiple offers but never thought we'd have 14 offers over $3m.  It's very difficult to price a one-off type of home like this one where you have a huge corner lot and almost $1m in upgrades because there isn't a home like that in the Great Park (excluding Altair) as no buyer would put that much in upgrades into a $2m home. My job is to get the highest and best price for my seller and the market will ultimately determine what the price of the home should be, not the listing price.

 

[sleepy5136]

Your ?that price? is $500k over original list price.  Seller has his right to raise the price like that. Is it ethical? I think not.  What do you think how the earlier bidders feel? This guy is playing with them. What?s next? He is going to raise another $500k?

One thing i can tell you is that I would not ask my listing agent raising the LP when I sell my place.

I would immediately withdraw my offer if i was one of these bidders

Does it matter what the earlier bidders feel since they're probably bidding near the original listing price? I mean, if they don't even need to withdraw their offers because they're already priced out and won't even get a counter offer.

The reason for raising the listing price is to be closer to the higher bids.

I think the argument is the list price was completely misleading and may have led buyers into a trap. Also the ethics of it which is difficult to argue since it's a business transaction.

One thing is clear is lots of people are FOMO'ing while rates are low. Fed due for a meeting which may mean 3 rate hikes in 2022 instead of 2.

 

[Ready2Downsize]

Your ?that price? is $500k over original list price.  Seller has his right to raise the price like that. Is it ethical? I think not.  What do you think how the earlier bidders feel? This guy is playing with them. What?s next? He is going to raise another $500k?

One thing i can tell you is that I would not ask my listing agent raising the LP when I sell my place.

I would immediately withdraw my offer if i was one of these bidders

Does it matter what the earlier bidders feel since they're probably bidding near the original listing price? I mean, if they don't even need to withdraw their offers because they're already priced out and won't even get a counter offer.

The reason for raising the listing price is to be closer to the higher bids.

I think the argument is the list price was completely misleading and may have led buyers into a trap. Also the ethics of it which is difficult to argue since it's a business transaction.

One thing is clear is lots of people are FOMO'ing while rates are low. Fed due for a meeting which may mean 3 rate hikes in 2022 instead of 2.

Honestly I don't think it's a trap. It's letting the majority know right now there are offers that high.

This happened to me which I think was a trap:

I found a resale. I knew the only offer was x.xx from an investment company (a little over asking) and the seller didn't want to deal with them. I'm the only other offer which wasn't submitted yet but someone during the open house came and decided to bid my price (our realtor let their realtor know what it would be) so we put our offer in a little over that, all cash only continency being inspection. We were the highest offer which was over the investment offer and asking and the all only cash. Their realtor says oh but if you can only come in 2% more......... Luckily she was a rookie realtor and let our realtor see their offer (big huge down supposedly). It was lower than our all cash and for less than 15% down.

We refused to come up but that buyer took their bait and we refused to play (this would only be beat by this non cash buyer who was desperate for the property and end up with a higher comp). Shocked was the seller we wouldn't play so they took the other offer.

THAT was a trap....... me the high offer bidding against myself.

In the end, the buyer couldn't qualify due to the low LTV and the seller came crawling back at which time we refused to play and offer more. There was an issue with the roof which they refused to fix even though we would extend escrow so we walked.

 

[usctrojancpa]

Your ?that price? is $500k over original list price.  Seller has his right to raise the price like that. Is it ethical? I think not.  What do you think how the earlier bidders feel? This guy is playing with them. What?s next? He is going to raise another $500k?

One thing i can tell you is that I would not ask my listing agent raising the LP when I sell my place.

I would immediately withdraw my offer if i was one of these bidders

Does it matter what the earlier bidders feel since they're probably bidding near the original listing price? I mean, if they don't even need to withdraw their offers because they're already priced out and won't even get a counter offer.

The reason for raising the listing price is to be closer to the higher bids.

I think the argument is the list price was completely misleading and may have led buyers into a trap. Also the ethics of it which is difficult to argue since it's a business transaction.

One thing is clear is lots of people are FOMO'ing while rates are low. Fed due for a meeting which may mean 3 rate hikes in 2022 instead of 2.

We were not trying to trap anyone, buyers have their own agents who they consulted with before making an offer. Our first offers before the open houses were $3.05m and $3.08m and those agents didn't even call me and just emailed me the offers after showing the home to their buyers. Like I said, this home is a bit of a unicorn hence why it was difficult to come up with an appropriate listing price.  But the market is efficient and will determine what the ultimate price of the home should be. 

 

[CalBears96]

Your ?that price? is $500k over original list price.  Seller has his right to raise the price like that. Is it ethical? I think not.  What do you think how the earlier bidders feel? This guy is playing with them. What?s next? He is going to raise another $500k?

One thing i can tell you is that I would not ask my listing agent raising the LP when I sell my place.

I would immediately withdraw my offer if i was one of these bidders

Does it matter what the earlier bidders feel since they're probably bidding near the original listing price? I mean, if they don't even need to withdraw their offers because they're already priced out and won't even get a counter offer.

The reason for raising the listing price is to be closer to the higher bids.

I think the argument is the list price was completely misleading and may have led buyers into a trap. Also the ethics of it which is difficult to argue since it's a business transaction.

One thing is clear is lots of people are FOMO'ing while rates are low. Fed due for a meeting which may mean 3 rate hikes in 2022 instead of 2.

My point is, it doesn't matter what the listing price is, because those early bids were completely outmatched anyway. There are so many bids over $3M. It seems like buyers are trying to outbid each other already, so changing the listing price doesn't make any difference at all.

Let's put it this way, you saw the listing at $2.8M and you bid $2.9M and as Martin pointed out, 14 of the offers are over $3M. Now, what are you going to do whether or not the listing price is changed to $3.3M? You drop out regardless, right? I mean, you will need to outbid those 14 offers regardless if you want to buy the home.

 

[sleepy5136]

Your ?that price? is $500k over original list price.  Seller has his right to raise the price like that. Is it ethical? I think not.  What do you think how the earlier bidders feel? This guy is playing with them. What?s next? He is going to raise another $500k?

One thing i can tell you is that I would not ask my listing agent raising the LP when I sell my place.

I would immediately withdraw my offer if i was one of these bidders

Does it matter what the earlier bidders feel since they're probably bidding near the original listing price? I mean, if they don't even need to withdraw their offers because they're already priced out and won't even get a counter offer.

The reason for raising the listing price is to be closer to the higher bids.

I think the argument is the list price was completely misleading and may have led buyers into a trap. Also the ethics of it which is difficult to argue since it's a business transaction.

One thing is clear is lots of people are FOMO'ing while rates are low. Fed due for a meeting which may mean 3 rate hikes in 2022 instead of 2.

My point is, it doesn't matter what the listing price is, because those early bids were completely outmatched anyway. There are so many bids over $3M. It seems like buyers are trying to outbid each other already, so changing the listing price doesn't make any difference at all.

Let's put it this way, you saw the listing at $2.8M and you bid $2.9M and as Martin pointed out, 14 of the offers are over $3M. Now, what are you going to do whether or not the listing price is changed to $3.3M? You drop out regardless, right? I mean, you will need to outbid those 14 offers regardless if you want to buy the home.

I think the list price does matter actually to a certain degree. Maybe like Martin mentioned, it's difficult to price this home. I can't speak for a 3m home buyer. Maybe a couple 100k is nothing to them. But to increase it by 500k is quite a lot.

I see both sides of the argument, I am trying to point out why some buyers could be pissed. Home buying is a emotional process and to see a home that you are interested in have a 17% increase from the initial list price is not something that each person can stomach and not be mad/disappointed about. An argument could be made that it would have been a waste of time for them to see this home. To say what can you do is not really the point, especially with this market being so crazy, these buyers might have written 10+ offers and seen 20+ open houses. It gets tiring and the feeling of being defeated really can hit some buyers in this market.

 

[Danimal]

Your ?that price? is $500k over original list price.  Seller has his right to raise the price like that. Is it ethical? I think not.  What do you think how the earlier bidders feel? This guy is playing with them. What?s next? He is going to raise another $500k?

One thing i can tell you is that I would not ask my listing agent raising the LP when I sell my place.

I would immediately withdraw my offer if i was one of these bidders

Does it matter what the earlier bidders feel since they're probably bidding near the original listing price? I mean, if they don't even need to withdraw their offers because they're already priced out and won't even get a counter offer.

The reason for raising the listing price is to be closer to the higher bids.

I think the argument is the list price was completely misleading and may have led buyers into a trap. Also the ethics of it which is difficult to argue since it's a business transaction.

One thing is clear is lots of people are FOMO'ing while rates are low. Fed due for a meeting which may mean 3 rate hikes in 2022 instead of 2.

My point is, it doesn't matter what the listing price is, because those early bids were completely outmatched anyway. There are so many bids over $3M. It seems like buyers are trying to outbid each other already, so changing the listing price doesn't make any difference at all.

You just contradict your argument right there. If changing the lp would not make any difference then why change it in the first place?  Just let the natural offer/counter offer process take its course.  As a buyer, when you see seller pulling a stunt like this,  you gotta ask yourself ?is this joker gonna raise another $500k??. Anyhow, this is my last post in this thread. Good luck with the sale Martin.

 

[sgip]

Let me assure the readers here that the market is swimming in delusional buyers being advised by lazy realtors. Given market activity, anyone making a 2.8m offer on a 2.8m listing should have been told "This ain't gonna happen" - yet many will complete the 10 page RPA and fling it against the wall hoping something will stick. Buying real estate is a significant committed investment of both time and treasure - as well as a great risk if not managed properly. Low-ish offers on a premium listing is to guarantee failure, yet we read here of 40-50 offers on properties being made in the same manner. Unfortunately there are too few good Realtors out there able to advise and guide buyers who are seemingly driven as if by a rabid fever to buy, BUY BUYYYYY!!.

Asset prices are adjusted higher any time during a sale when greater demand appears to confirm underrepresented value. This has always been the case in a sellers market, like it or not.

 

[The Motor Court Company]

why not do a live auction for this unicorn property? let the top 14 buyers bid in real time?

 

[trematix]

duplicate post

 

[trematix]

LOL, why is anyone getting emotional about this? How is this unethical? Were in a capitalist society. The house is worth what someone is willing to pay for it. No point in getting emotional about what someone else is doing regarding their own home. If he wants to price it at 4million even, that's his right and if he finds a buyer, great for them. Not sure how raising the price is unethical or why someone who isn't even a buyer on the home is getting worked up about. Best of luck to you Martin, i'm sure you'll get close to that. You were already out of my range with the original listing price LOL

 

[irvinebullhousing]

Blame is on the FED, the bazooka guns non-stop action.

Not sure why JPowell would want another term and having a legacy of the highest inflation ever. If they use the same metrics as they did in the 80's for inflation. The number is 15 % or slightly higher. At 6.7% is a fixed number to make it look not as bad with all the keys metric stripped away.

Housing account for 40% of dispossable income. Housing cost and rent will not come down as in transitory. Which world do they live in I don't know. But the cost of rental is sky rocket. So, are we expecting more exodus from CA?

 

[CalBears96]

You just contradict your argument right there. If changing the lp would not make any difference then why change it in the first place?  Just let the natural offer/counter offer process take its course.  As a buyer, when you see seller pulling a stunt like this,  you gotta ask yourself ?is this joker gonna raise another $500k??. Anyhow, this is my last post in this thread. Good luck with the sale Martin.

I did not contradict my argument at all. Changing the list price doesn't make a difference to the early bidders or anyone who already bid. However, leaving the list price as is would fool any new bidders into thinking they could get it for anything close to $2.8M, which is completely not true. So changing it to something that is closer to the higher bids will tell any new bidders what to expect.

 

[sgip]

The solution is found in Bartertown.....
https://www.youtube.com/watch?v=9yDL0AKUCKo

 

[irvinebullhousing]

You just contradict your argument right there. If changing the lp would not make any difference then why change it in the first place?  Just let the natural offer/counter offer process take its course.  As a buyer, when you see seller pulling a stunt like this,  you gotta ask yourself ?is this joker gonna raise another $500k??. Anyhow, this is my last post in this thread. Good luck with the sale Martin.

I did not contradict my argument at all. Changing the list price doesn't make a difference to the early bidders or anyone who already bid. However, leaving the list price as is would fool any new bidders into thinking they could get it for anything close to $2.8M, which is completely not true. So changing it to something that is closer to the higher bids will tell any new bidders what to expect.

Exactly. Stopping the time waster.

 

[akkord]

I should have bought the home at 2.8mm...pre-listing from Martin when we saw it...how's that for regret.  I should be the one emotional losing out on instant couple hundred k for a flip, or Martin since he thought about buying it too, but at least he gets commish, but he would have made double commish if I got it. Hindsight is always 20/20.   

 

[bones]

I should have bought the home at 2.8mm...pre-listing from Martin when we saw it...how's that for regret.  I should be the one emotional losing out on instant couple hundred k for a flip, or Martin since he thought about buying it too, but at least he gets commish, but he would have made double commish if I got it. Hindsight is always 20/20.   

Except he wouldn?t have sold it to you pre list? So there?s no regret here.

I don?t understand jacking up the list price after best and finals are out. Maybe to lure one final buyer who only had his Redfin filtered to $3m+?

 

[sleepy5136]

.

 

[akkord]

It may have worked, Martin showed our family the home one night before cleaning/staging.  It was extremely nice, but at 2.8 at that part of GP felt high to Martin and me, but I guess there's market for 3+mm homes outside of Altair in the GP area.  The only comp that Martin used was at 3.06 and was a bigger home, the only home in GP that sold 3+ in the past 3 months. 

I should have bought the home at 2.8mm...pre-listing from Martin when we saw it...how's that for regret.  I should be the one emotional losing out on instant couple hundred k for a flip, or Martin since he thought about buying it too, but at least he gets commish, but he would have made double commish if I got it. Hindsight is always 20/20.   

Except he wouldn?t have sold it to you pre list? So there?s no regret here.

I don?t understand jacking up the list price after best and finals are out. Maybe to lure one final buyer who only had his Redfin filtered to $3m+?

 

[bones]

Sure but if you are unsure of how to price it (sounds like that?s the case), want max sell price (also sounds like the case) and don?t need the asap sale (also sounds like the case), you wouldn?t take a pre-list offer. That?s my read based on the ?facts? presented here but I guess anything is possible.