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Where the market is - Buyer Offers

usctrojancpa

Well-known member
I got some good feedback from some of the folks on here from my post where I listed out the offers that I made on behalf of my buyers.  This should provide some good insight as to what is going on in the market for everyone from a buyer's perspective.

Today I submitted offers on the following 3 properties...
https://www.redfin.com/CA/Irvine/11-Pollena-92602/home/5814724
https://www.redfin.com/CA/Mission-Viejo/26261-Verona-Pl-92692/home/5031784
https://www.redfin.com/CA/Irvine/43-Garden-Ter-92603/home/5901366

Offers on the first 2 homes were materially over the list price while the offer on the last home was under the list price as it's been sitting on the market for a while.  Hopefully I can help all 3 buyers get these homes.
 

Cornflakes

Active member
USCTrojanCPA said:
I got some good feedback from some of the folks on here from my post where I listed out the offers that I made on behalf of my buyers.  This should provide some good insight as to what is going on in the market for everyone from a buyer's perspective.

Today I submitted offers on the following 3 properties...
https://www.redfin.com/CA/Irvine/11-Pollena-92602/home/5814724
https://www.redfin.com/CA/Mission-Viejo/26261-Verona-Pl-92692/home/5031784
https://www.redfin.com/CA/Irvine/43-Garden-Ter-92603/home/5901366

Offers on the first 2 homes were materially over the list price while the offer on the last home was under the list price as it's been sitting on the market for a while.  Hopefully I can help all 3 buyers get these homes.

My guestimate is that Pollena home would go 100k above asking. And if there is serious bidding war, upto 150k above asking.
 

greatname

New member
USCTrojanCPA said:
I got some good feedback from some of the folks on here from my post where I listed out the offers that I made on behalf of my buyers.  This should provide some good insight as to what is going on in the market for everyone from a buyer's perspective.

Today I submitted offers on the following 3 properties...
https://www.redfin.com/CA/Irvine/11-Pollena-92602/home/5814724
https://www.redfin.com/CA/Mission-Viejo/26261-Verona-Pl-92692/home/5031784
https://www.redfin.com/CA/Irvine/43-Garden-Ter-92603/home/5901366

Offers on the first 2 homes were materially over the list price while the offer on the last home was under the list price as it's been sitting on the market for a while.  Hopefully I can help all 3 buyers get these homes.


I saw the last one. it was a hassle to get to see as the selling agent insisted on proof of funds beforehand, which was a turnoff. I thought the house was older than its "biological" age. Maybe with some remodeling  might be ok. I did not put an offer.
 

usctrojancpa

Well-known member
Quick update on the homes...

Got my buyer the 11 Pollena home with a strong price and aggressive terms (no appraisal and no loan contingency and removal of all contingencies in 9 days) with a 24-hour response deadline.  The seller was supposed to review all offers (they had 9) on Tuesday.  They also wrote a nice letter to the seller that they could really relate to and I've worked with the listing on a few previous transactions which went very smoothly.  Having good working relationships with agents does matter!

Got outbid on the Mission Viejo.  My buyer bid $1.19m on the best and final counter but got outbid with someone offering $1.25m (crazy high for that home).  There were 6 offers on this home.

Also ending up getting the Garden Terrace home for my client after a round of counters with a very stubborn owner/listing agent.  She was going to take the home off the market this coming week to do upgrades and then re-listing it in 2-3 months for $2.75m. 
 

usctrojancpa

Well-known member
HMart said:
Enjoying this thread and seeing your thought process, as well as the deal terms (to the extent you feel comfortable sharing). Thanks!

Yeah, I got some really positive feedback from a few folks on here when I posted about the offers that I made on 4 homes in the other thread so I figured it'd be informative to everyone to see home by home on how competitive the market really is and what it takes to get my buyers into escrow.  Obviously I'll share as much information without putting my buyer's offer at a disadvantage.  I will share more information on each of the homes as we get closer to the finish line. 
 

usctrojancpa

Well-known member
I made an offer for another buyer on this home back on March 3rd and it was interesting on it played out.
https://www.redfin.com/CA/Irvine/104-Summer-Lilac-92620/home/112721589

I told my buyer that a fair range price for this home was $1.475m to $1.5m.  So we started with an initial offer of $1.475m with no appraisal contingency and removing all contingencies in 14 days along with a 40% down payment.  My clients were ready to potentially go up to $1.5m on a best & final counter.  The listing agent texts me the next morning and apologizes to me saying that his seller accepted a slightly higher offer than ours despite him strongly recommending that they at least do a seller multiple counter to the top 2-3 buyers (we had the 2nd highest offer).  I think the home will close right around $1.5m.  The takeaway from this experience is don't hold back too much on your initial offer because you may not get another chance to bid higher. 
 
USCTrojanCPA said:
I made an offer for another buyer on this home back on March 3rd and it was interesting on it played out.
https://www.redfin.com/CA/Irvine/104-Summer-Lilac-92620/home/112721589

I told my buyer that a fair range price for this home was $1.475m to $1.5m.  So we started with an initial offer of $1.475m with no appraisal contingency and removing all contingencies in 14 days along with a 40% down payment.  My clients were ready to potentially go up to $1.5m on a best & final counter.  The listing agent texts me the next morning and apologizes to me saying that his seller accepted a slightly higher offer than ours despite him strongly recommending that they at least do a seller multiple counter to the top 2-3 buyers (we had the 2nd highest offer).  I think the home will close right around $1.5m.  The takeaway from this experience is don't hold back too much on your initial offer because you may not get another chance to bid higher.

How about this strategy for buyers. The first day, search online and narrow down to 10 houses to visit in person the second day. On the second day, visit all 10 houses. If there are 8 houses the buyer likes, then submit 8 offers for all 8 houses, and negotiate with all 8 sellers at the same time. If eventually one offer works out and is accepted, then cancel the other 7 offers right away. 
 
Soylent Green Is People said:
Amazingly difficult out there.

A buyer I'm working with hoped to purchase this $900k listing. They offered 11% over list - just past the $1m mark from the get go but did not succeed.

https://www.redfin.com/CA/Santa-Ana/18622-Beachmont-Ave-92705/home/4450222

It closed at a 30% over list at an " unsupported by closed comparables" price of $1.2m.

Someone must see greater potential in this property than others.

Just from the pictures of the kitchen, I think it is purchased by a flipper. This property needs major renovation. No ordinary homeowners would like to cook in that kitchen.
 

sgip

Well-known member
Even with the $150-$200k of work needed, it's still not a $1.5 valued home given nearby comparables. Methinks it's going to be flattened and subdivided. Who knows!
 

usctrojancpa

Well-known member
talkirvine said:
USCTrojanCPA said:
I made an offer for another buyer on this home back on March 3rd and it was interesting on it played out.
https://www.redfin.com/CA/Irvine/104-Summer-Lilac-92620/home/112721589

I told my buyer that a fair range price for this home was $1.475m to $1.5m.  So we started with an initial offer of $1.475m with no appraisal contingency and removing all contingencies in 14 days along with a 40% down payment.  My clients were ready to potentially go up to $1.5m on a best & final counter.  The listing agent texts me the next morning and apologizes to me saying that his seller accepted a slightly higher offer than ours despite him strongly recommending that they at least do a seller multiple counter to the top 2-3 buyers (we had the 2nd highest offer).  I think the home will close right around $1.5m.  The takeaway from this experience is don't hold back too much on your initial offer because you may not get another chance to bid higher.

How about this strategy for buyers. The first day, search online and narrow down to 10 houses to visit in person the second day. On the second day, visit all 10 houses. If there are 8 houses the buyer likes, then submit 8 offers for all 8 houses, and negotiate with all 8 sellers at the same time. If eventually one offer works out and is accepted, then cancel the other 7 offers right away. 

That's a good strategy but many times now there aren't more than 2-3 homes that one buyer may want to look at given how low inventory levels are.  But yes, if my buyer likes more than one home we made offers on all the homes that they like because there's no guarantee that we'll get one of them.
 

usctrojancpa

Well-known member
Soylent Green Is People said:
Amazingly difficult out there.

A buyer I'm working with hoped to purchase this $900k listing. They offered 11% over list - just past the $1m mark from the get go but did not succeed.

https://www.redfin.com/CA/Santa-Ana/18622-Beachmont-Ave-92705/home/4450222

It closed at a 30% over list at an " unsupported by closed comparables" price of $1.2m.

Someone must see greater potential in this property than others. 

Wow, that's a big number for a home that needs a full renovation of this size. It does have a very large lot though.
 

Cornflakes

Active member
Soylent Green Is People said:
Even with the $150-$200k of work needed, it's still not a $1.5 valued home given nearby comparables. Methinks it's going to be flattened and subdivided. Who knows!

Methink so too on flattened. Not likely subdivided but build something nicer, bigger, contemporary on a 15k sqft lot. Used to happen a lot in silicone valley. May be that's the next wave for socal?
 

OCtoSV

Active member
With new zoning regulations being phased in up here in SV to bridge the housing shortage subdividing large residential lots into 4-plexes will be very profitable, and will likely lead to some angry neighbors throughout some very ice neighborhoods.
 

Bullsback

Well-known member
talkirvine said:
USCTrojanCPA said:
I made an offer for another buyer on this home back on March 3rd and it was interesting on it played out.
https://www.redfin.com/CA/Irvine/104-Summer-Lilac-92620/home/112721589

I told my buyer that a fair range price for this home was $1.475m to $1.5m.  So we started with an initial offer of $1.475m with no appraisal contingency and removing all contingencies in 14 days along with a 40% down payment.  My clients were ready to potentially go up to $1.5m on a best & final counter.  The listing agent texts me the next morning and apologizes to me saying that his seller accepted a slightly higher offer than ours despite him strongly recommending that they at least do a seller multiple counter to the top 2-3 buyers (we had the 2nd highest offer).  I think the home will close right around $1.5m.  The takeaway from this experience is don't hold back too much on your initial offer because you may not get another chance to bid higher.

How about this strategy for buyers. The first day, search online and narrow down to 10 houses to visit in person the second day. On the second day, visit all 10 houses. If there are 8 houses the buyer likes, then submit 8 offers for all 8 houses, and negotiate with all 8 sellers at the same time. If eventually one offer works out and is accepted, then cancel the other 7 offers right away.
This was a really nice house too - very tasteful upgrades.  Very clean and decent sized lot. I always liked these Laurel floorplans. The lots were terrible (super small) but the floorplans were very clean  compared to some of the other SFR's in Cypress. 
 
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