Newer Irvine listings with crazy WTF asking prices from equity sellers

NEW -> Contingent Buyer Assistance Program
Raymond said:
That's not what it means. When you see something like "Buyer Agency Compensation 2.500" or "Buyers Agent Commission 2.5%" it means the Selling Agent (the Agent representing the Buyer) will receive 2.5% of the sales price - paid from the Seller's proceeds.
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My agent learned about this in the private comment section of MLS..
 
sleepy5136 said:
Just do the math and have them buy your rate down until it covers the buyers commission 🙂
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If they're not willing to pay the standard commission for their homes sale, it's highly unlikely they'd be willing to buy the rate down. And this is just the first challenge. What's going to happen when it comes time to negotiate repairs?
 
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Raymond said:
If they're not willing to pay the standard commission for their homes sale, it's highly unlikely they'd be willing to pay the rate down. And this is just the first challenge. What's going to happen when it comes time to negotiate repairs?
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You took me too seriously there haha. Sounds like an unreasonable ask so I was joking about having the buyer be unreasonable as well
 
Ready2Downsize said:
What if the flipper was a resident of a no income tax state? They just buy it, never move in and sell it. Do they owe California state income tax? What if they live in Puerto Rico or even better, the Cayman Islands?
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Yes, the flipper still owes CA tax on any gains from selling a CA property. It doesn't matter if the owner of the property is not a resident of CA, CA tax the gain as ordinary income even for non residents since CA does not have a long term capital gains tax structure like the Federal gov't has. Escrow requires that a Form 593C be completed for all sellers where the sellers are to calculate if there is a gain or loss on the sale of the home and then use that as the basis for calculating CA tax withholding on the gain (either 12.3% of the gain or 3.33% of the sales price).
 
The Motor Court Company said:
how this is a detached condo; looks like SFR to me. 1.25M is quite a bargain
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The home is a SFR detached home and not a detached condo. The listing is a broker who does not do much business so safe to assume that it was an input error on their part.

In the private remarks in the MLS state that the buyer will pay both the listing agent and buyer agent commission (see below)...

"Buyer to pay a buyers premium of 5% to be included to cover sales commission in offer please read and understand before submitting offers. Buyer must be pre qualified by a reputable lender, show proof of funds and credit scores. All offers must be submitted to Hugh Elder Broker to: hughreosales@gmail.com if you have any questions please call Hugh Elder 714-296-6265. Lock Box on property no showings until open house 09/23/2023 Buyer to verify sq footage, room sizes etc. 4th bedroom is loft/office also. 4 bedroom on Real Tax it is the largest floor plan but owner chose loft but has area for closet."

Typically the listing commission is outlined in the listing agreement but since the buyer is now asked to pay the commission, the buyer can negotiate to pay a lower total commission (whoever pays it can negotiate it). I have seen this a few times in my 16+ year career but it is very rare that the buyer will pay all the commissions. That being said, they priced this home low to get multiple offers and for it to sell fast. If the commission was paid by the seller, I believe this home would easily sell for $1.5m+.
 
usctrojancpa said:
The home is a SFR detached home and not a detached condo. The listing is a broker who does not do much business so safe to assume that it was an input error on their part.

In the private remarks in the MLS state that the buyer will pay both the listing agent and buyer agent commission (see below)...

"Buyer to pay a buyers premium of 5% to be included to cover sales commission in offer please read and understand before submitting offers. Buyer must be pre qualified by a reputable lender, show proof of funds and credit scores. All offers must be submitted to Hugh Elder Broker to: hughreosales@gmail.com if you have any questions please call Hugh Elder 714-296-6265. Lock Box on property no showings until open house 09/23/2023 Buyer to verify sq footage, room sizes etc. 4th bedroom is loft/office also. 4 bedroom on Real Tax it is the largest floor plan but owner chose loft but has area for closet."

Typically the listing commission is outlined in the listing agreement but since the buyer is now asked to pay the commission, the buyer can negotiate to pay a lower total commission (whoever pays it can negotiate it). I have seen this a few times in my 16+ year career but it is very rare that the buyer will pay all the commissions. That being said, they priced this home low to get multiple offers and for it to sell fast. If the commission was paid by the seller, I believe this home would easily sell for $1.5m+.
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How much difference is it in terms of pricing between SFR detached vs condo detached all else equal?
 
stuartsitu said:
How much difference is it in terms of pricing between SFR detached vs condo detached all else equal?
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Depends on the detached condo, if it has a decent sized yard and is located in a desirable area then the price per sf is around the same as for a similar sized comparable SFR. From what I've seen in my data tracking Irvine prices, detached condos and SFRs of similar age will tend to appreciate around the same percentage.
 
The Motor Court Company said:
how this is a detached condo; looks like SFR to me. 1.25M is quite a bargain
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We can't determine if it's a SFR, condo or townhome by its appearance - we have to look at how Title is held to determine the property type. This property is titled as a Condo, thus the reason for being listed as a detached condo.15 Sea Pnes.jpg
 
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