Tustin REO Asking $193/sqft.

SoCal78_IHB

SoCal78_IHB

New member
I'm only posting this because I don't see this everyday. <a href="http://www.redfin.com/CA/Santa-Ana/18261-Alexandra-Pl-92705/home/22048343">18261 Alexandra Pl., Tustin.</a> Now, let's see what it ends up closing for. I'm not too familiar with the comps other than what's listed on Redfin. Anyone want to take a stab at what it will sell for?
 
I am pretty sure it is listed low to start a bidding war. The way the market is now, it seems as if everyone except regular sellers list their houses way under market to get the 'buzz' going and collect 10-20 offers and pit everyone against each other to squeeze every penny out of the winner.
 
[quote author="davenlei" date=1256711821]I am pretty sure it is listed low to start a bidding war. The way the market is now, it seems as if everyone except regular sellers list their houses way under market to get the 'buzz' going and collect 10-20 offers and pit everyone against each other to squeeze every penny out of the winner.</blockquote>


Yep. fools were over bidding in 2005 and still happening now. There is no shortage of them.
 
[quote author="davenlei" date=1256711821]I am pretty sure it is listed low to start a bidding war. The way the market is now, it seems as if everyone except regular sellers list their houses way under market to get the 'buzz' going and collect 10-20 offers and pit everyone against each other to squeeze every penny out of the winner.</blockquote>
Exactly correct and because of that this property will go for around $300/sf. It's honestly the best and quickest way for sellers (equity sellers and REO lender sellers) to get a property into escrow at the highest price. It becomes an emotional thing for some of these buyers to win the bidding war and because of that they make irrational decisions....case in point 29 Grape Arbor in Irvine that went for $100k over comps to a cash buyer.
 
[quote author="USCTrojanCPA" date=1256715341][quote author="davenlei" date=1256711821]I am pretty sure it is listed low to start a bidding war. The way the market is now, it seems as if everyone except regular sellers list their houses way under market to get the 'buzz' going and collect 10-20 offers and pit everyone against each other to squeeze every penny out of the winner.</blockquote>
Exactly correct and because of that this property will go for around $300/sf. It's honestly the best and quickest way for sellers (equity sellers and REO lender sellers) to get a property into escrow at the highest price. It becomes an emotional thing for some of these buyers to win the bidding war and because of that they make irrational decisions....case in point 29 Grape Arbor in Irvine that went for $100k over comps to a cash buyer.</blockquote>


I have seen two equity sellers in my hood price their properties quite high and both of them went into escrow within days. And all this talk about bidding wars, there have been mostly distressed sales here and they all sold pretty close to asking price, which was about 30% less than what the equity sellers listed at. At least here, the REO agents price things way low and take the first offer with all cash or a huge amount down while rejecting higher offers that don't have a tremendous amount of cash down. Is the trend in my area the norm?
 
[quote author="stepping_up" date=1256725454][quote author="USCTrojanCPA" date=1256715341][quote author="davenlei" date=1256711821]I am pretty sure it is listed low to start a bidding war. The way the market is now, it seems as if everyone except regular sellers list their houses way under market to get the 'buzz' going and collect 10-20 offers and pit everyone against each other to squeeze every penny out of the winner.</blockquote>
Exactly correct and because of that this property will go for around $300/sf. It's honestly the best and quickest way for sellers (equity sellers and REO lender sellers) to get a property into escrow at the highest price. It becomes an emotional thing for some of these buyers to win the bidding war and because of that they make irrational decisions....case in point 29 Grape Arbor in Irvine that went for $100k over comps to a cash buyer.</blockquote>


I have seen two equity sellers in my hood price their properties quite high and both of them went into escrow within days. And all this talk about bidding wars, there have been mostly distressed sales here and they all sold pretty close to asking price, which was about 30% less than what the equity sellers listed at. At least here, the REO agents price things way low and take the first offer with all cash or a huge amount down while rejecting higher offers that don't have a tremendous amount of cash down. Is the trend in my area the norm?</blockquote>


What is the logic behind accepting a low all cash offer which is less than higher overall amount with a loan involved?
 
[quote author="ihate-nar" date=1256727568][quote author="stepping_up" date=1256725454][quote author="USCTrojanCPA" date=1256715341][quote author="davenlei" date=1256711821]I am pretty sure it is listed low to start a bidding war. The way the market is now, it seems as if everyone except regular sellers list their houses way under market to get the 'buzz' going and collect 10-20 offers and pit everyone against each other to squeeze every penny out of the winner.</blockquote>
Exactly correct and because of that this property will go for around $300/sf. It's honestly the best and quickest way for sellers (equity sellers and REO lender sellers) to get a property into escrow at the highest price. It becomes an emotional thing for some of these buyers to win the bidding war and because of that they make irrational decisions....case in point 29 Grape Arbor in Irvine that went for $100k over comps to a cash buyer.</blockquote>


I have seen two equity sellers in my hood price their properties quite high and both of them went into escrow within days. And all this talk about bidding wars, there have been mostly distressed sales here and they all sold pretty close to asking price, which was about 30% less than what the equity sellers listed at. At least here, the REO agents price things way low and take the first offer with all cash or a huge amount down while rejecting higher offers that don't have a tremendous amount of cash down. Is the trend in my area the norm?</blockquote>


What is the logic behind accepting a low all cash offer which is less than higher overall amount with a loan involved?</blockquote>
No appraisal/appraisal contingency to work about and they can close within about 2 weeks. I had a buyer who was the top bidder and the bank went with the 5th highest offer which was an all cash deal.
 
[quote author="ihate-nar" date=1256727568][quote author="stepping_up" date=1256725454][quote author="USCTrojanCPA" date=1256715341][quote author="davenlei" date=1256711821]I am pretty sure it is listed low to start a bidding war. The way the market is now, it seems as if everyone except regular sellers list their houses way under market to get the 'buzz' going and collect 10-20 offers and pit everyone against each other to squeeze every penny out of the winner.</blockquote>
Exactly correct and because of that this property will go for around $300/sf. It's honestly the best and quickest way for sellers (equity sellers and REO lender sellers) to get a property into escrow at the highest price. It becomes an emotional thing for some of these buyers to win the bidding war and because of that they make irrational decisions....case in point 29 Grape Arbor in Irvine that went for $100k over comps to a cash buyer.</blockquote>


I have seen two equity sellers in my hood price their properties quite high and both of them went into escrow within days. And all this talk about bidding wars, there have been mostly distressed sales here and they all sold pretty close to asking price, which was about 30% less than what the equity sellers listed at. At least here, the REO agents price things way low and take the first offer with all cash or a huge amount down while rejecting higher offers that don't have a tremendous amount of cash down. Is the trend in my area the norm?</blockquote>


What is the logic behind accepting a low all cash offer which is less than higher overall amount with a loan involved?</blockquote>


Depending on the price range, a large percentage of escrows that involve a loan, fall out. With cash, homes can close quicker and there is only a slim chance of falling out of escrow. Plus, all cash offers do not require appraisals.
 
You must log in or register to reply here.
Back
Top