Starter Family Detached Home Battle: New vs Resale

[bitmaster20]

Here's a PS one. Strange but it doesn't show on Redfin. I guess they're using some kind of service called REX?
https://www.zillow.com/homedetails/26-Los-Indios-Irvine-CA-92618/118264881_zpid/https://www.rexhomes.com/listing/26-los-indios

Las Ventanas is/was a popular development. Well under a million at 900k. Real SFR with driveway, no motorcourt. $385/sq ft FTW.

I looked up Rex's About Us page, they have an interesting business model.

Critically, we exist outside what is known as the Multiple Listing Service (MLS)
system, the loose confederation of realtor organizations that maintain artificially high
fees even though the Internet has radically reduced the value traditional realtors offer to
consumers. That sets us apart from other real estate firms that describe themselves as
technology?enabled disrupters, but remain compliant with the MLS, a confederation of
around 750 realtor organizations that maintain restrictive practices.

https://cdn.rexhomes.com/assets/doc...e-of-the-residential-real-estate-business.pdf

 

[zubs]

In regards to listing a house below market value.

I was interested in this house last year:
https://www.redfin.com/CA/Orange/3076-N-Spicewood-St-92865/home/7202029

It was listed below 600,000, and got sold for 732,500.  I went to the open house twice, and this place was packed with people.
So from my experience, the low balling strategy works pretty well for the seller.


There was a bidding war.

 

[Mety]

In regards to listing a house below market value.

I was interested in this house last year:
https://www.redfin.com/CA/Orange/3076-N-Spicewood-St-92865/home/7202029

It was listed below 600,000, and got sold for 732,500.  I went to the open house twice, and this place was packed with people.
So from my experience, the low balling strategy works pretty well for the seller.


There was a bidding war.

That one was also an auction, bidding started from $599k. So that was not a normal listing price.

But I do agree and have said again and again the right strategy at this time being is to list the home with a little lower than usual. The usual at this time is a little too high anyways so the lower listing price will surely attract more buyers. One thing to consider though is that when the home was listed lower and it would not get sold for a long time. That would be a disaster. To sell the home, I believe listing price is the first and the foremost priority, but the listing agent has to do the math right considering the condition of the home, the floor plan, the location, the lot size, etc. This Orange home you showed has a real nice upgrades throughout so it could succeed.

I think the smart listing price would be to list at 2017's price range. Many people are still not realizing 2018's prices do not work anymore.

 

[usctrojancpa]

In regards to listing a house below market value.

I was interested in this house last year:
https://www.redfin.com/CA/Orange/3076-N-Spicewood-St-92865/home/7202029

It was listed below 600,000, and got sold for 732,500.  I went to the open house twice, and this place was packed with people.
So from my experience, the low balling strategy works pretty well for the seller.


There was a bidding war.

It's a bit risky to under list a home in a neutral/soft market because you may not get the volume of buyers who are willing to bid the home up enough to get back to the true market price.  I've used that strategy many times when sellers told me that they wanted to "go fast" with their home sale but that was when the market was good.  If a property is priced right and it shows well, it'll sell quickly even in this market so that's the pricing strategy that I'm recommending to sellers (for higher end homes you should bake in some "negotiation cushion" into the sales price).

 

[usctrojancpa]

Here's a PS one. Strange but it doesn't show on Redfin. I guess they're using some kind of service called REX?
https://www.zillow.com/homedetails/26-Los-Indios-Irvine-CA-92618/118264881_zpid/https://www.rexhomes.com/listing/26-los-indios

Las Ventanas is/was a popular development. Well under a million at 900k. Real SFR with driveway, no motorcourt. $385/sq ft FTW.

I looked up Rex's About Us page, they have an interesting business model.

Critically, we exist outside what is known as the Multiple Listing Service (MLS)
system, the loose confederation of realtor organizations that maintain artificially high
fees even though the Internet has radically reduced the value traditional realtors offer to
consumers. That sets us apart from other real estate firms that describe themselves as
technology?enabled disrupters, but remain compliant with the MLS, a confederation of
around 750 realtor organizations that maintain restrictive practices.

https://cdn.rexhomes.com/assets/doc...e-of-the-residential-real-estate-business.pdf

Rex does not list properties on MLS and the seller does not pay a buyer's agent commission so that's why they are able to offer a 2% commission since that's only the listing commission (there is a minimum commission total commission of $9,500).  Buyers will have to represent themselves, have the Rex agent represent them, or pay their buyer's agent to represent them.

 

[usctrojancpa]

Here's a PS one. Strange but it doesn't show on Redfin. I guess they're using some kind of service called REX?
https://www.zillow.com/homedetails/26-Los-Indios-Irvine-CA-92618/118264881_zpid/https://www.rexhomes.com/listing/26-los-indios

Las Ventanas is/was a popular development. Well under a million at 900k. Real SFR with driveway, no motorcourt. $385/sq ft FTW.

The house will probably be bid up to the mid $900s is my guess.

 

[irvinehomeowner]

I don't really understand the REX model. I'm assuming they don't use the MLS to avoid buyer agent commission but wouldn't they want the exposure?

Can't they just put something like a 1% buyer's agent commission on the listing (or would buyers' agents just tell their clients not to look?).

They have ads on ESPN 710 Radio all the time.

 

[irvinehomeowner]

3 years later and there is probably nothing that qualifies, new or resale, under $1m.

Crazy.

 

[usctrojancpa]

3 years later and there is probably nothing that qualifies, new or resale, under $1m.

Crazy.

You have 2bd condos in the newer areas that are now trading around $900k +/-

 

[CalBears96]

3 years later and there is probably nothing that qualifies, new or resale, under $1m.

Crazy.

You have 2bd condos in the newer areas that are now trading around $900k +/-

When we first started looking, my wife was saying we needed to stay in the $800k-$900k range because that's how much our current home is worth. She gave up on that idea quickly.  I told her that we needed to be looking at $1.2M or so, so we started looking at Soria. We almost bought Soria 3...until we looked at Bluffs. She fell in love with PS and Bluffs floorplan, so here we are, with Bluffs 2, and a cost of nearly $1.7M. 

 

[irvinehomeowner]

3 years later and there is probably nothing that qualifies, new or resale, under $1m.

Crazy.

You have 2bd condos in the newer areas that are now trading around $900k +/-

Sure but that doesn't qualify for the criteria of this thread:

My criteria for this challenge is:

1. Detached
2. Proper driveway (so no motorcourt homes)
3. At least 3 bedrooms
4. Maximum 2 stories (sorry GP)
5. Lowest starting price (under $1m)

I think the new starting price is probably $1.2m+?

 

[Ready2Downsize]

3 years later and there is probably nothing that qualifies, new or resale, under $1m.

Crazy.

https://www.redfin.com/CA/Irvine/4942-Gainsport-Cir-92604/home/4667306

 

[irvinehomeowner]

Gainsport is a good one... except it backs the raillroad.

Nice culdesac location though and the interior has been updated.

I want to see what it sells for.

 

[sleepy5136]

3 years later and there is probably nothing that qualifies, new or resale, under $1m.

Crazy.

https://www.redfin.com/CA/Irvine/4942-Gainsport-Cir-92604/home/4667306

Price dropped 300k in one month. If I was a legit buyer, I would put an offer for 810k and see how desperate they are to sell.

 

[Ready2Downsize]

3 years later and there is probably nothing that qualifies, new or resale, under $1m.

Crazy.

https://www.redfin.com/CA/Irvine/4942-Gainsport-Cir-92604/home/4667306

Price dropped 300k in one month. If I was a legit buyer, I would put an offer for 810k and see how desperate they are to sell.

Now that it's on talk irvine, going to be a bidding war!

They haven't paid either property tax installment so maybe you're right....... might have to sell.

 

[nosuchreality]

https://www.redfin.com/CA/Irvine/14951-Pinehaven-Rd-92604/home/4667162

A few doors down and just as close to the tracks sold under a month ago for $1000+/sf.

 

[Ready2Downsize]

I think there might be a reason it hasn't sold and if you google enough, you'll figure it out. Don't want to say in case it's not true but I think you'd have a problem flipping it for a profit.

 

[usctrojancpa]

Gainsport is a good one... except it backs the raillroad.

Nice culdesac location though and the interior has been updated.

I want to see what it sells for.

And power lines.

 

[irvinehomeowner]

Gainsport is a good one... except it backs the raillroad.

Nice culdesac location though and the interior has been updated.

I want to see what it sells for.

And power lines.

That's a plus... in case you need Level 100 charging for your EV.

 

[Ready2Downsize]

Gainsport is a good one... except it backs the raillroad.

Nice culdesac location though and the interior has been updated.

I want to see what it sells for.

And power lines.

And if I'm right, there is another disclosure they would have to make as well.

If I wanted to live in it a few years, I'd buy it if it had a very steep discount, knowing I'd most likely have to keep it at least two years.