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Old 04-12-2018, 11:21 PM
 
Location: Southern California
4,350 posts, read 4,933,884 times
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50+ last month, seller counter 30+ of them. House was underpriced by at least 20% of comparable. Listing was around $600,000
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Old 04-13-2018, 08:21 AM
 
570 posts, read 222,052 times
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I had previously posted about receiving 22 offers on our townhome. I forgot to add, in regards to pricing, we worked with our realtor and we priced in line with and/or slightly higher than the recent comparables in our neighborhood and the ones right around it because we had a three bedroom and all the recent sales in our neighborhood were for two bedroom units so we didn't want to price in line with smaller units. I don't feel that we underpriced based on that but there is an inventory issue in my area for townhomes in that pricepoint and/or location.
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Old 04-16-2018, 03:08 PM
 
719 posts, read 841,056 times
Reputation: 1244
I'm about to list my parents' 3BR condo in a hot California market for about $20k under what the last comp sold for five months ago. But keep in mind that comp was originally listed at slightly under what we're listing at, yet still sold for $31k over within seven days. So my hope is we get a flurry of strong offers and I can trust my realtor to help me choose the best offer since we're motivated to close ASAP.

I've never sold before, nor have I purchased in a hot market, so I don't fully understand the psychology. I assume buyers will be looking at the comps, the general area appreciation, and the special qualities of this property. But it's fairly a given in this market that the condo will be worth $20k more a year from now unless somebody grossly overpays.
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Old 04-16-2018, 05:22 PM
 
Location: San Diego / NWA
963 posts, read 557,604 times
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Quote:
Originally Posted by mrwumpus View Post
I'm about to list my parents' 3BR condo in a hot California market for about $20k under what the last comp sold for five months ago. But keep in mind that comp was originally listed at slightly under what we're listing at, yet still sold for $31k over within seven days. So my hope is we get a flurry of strong offers and I can trust my realtor to help me choose the best offer since we're motivated to close ASAP.

I've never sold before, nor have I purchased in a hot market, so I don't fully understand the psychology. I assume buyers will be looking at the comps, the general area appreciation, and the special qualities of this property. But it's fairly a given in this market that the condo will be worth $20k more a year from now unless somebody grossly overpays.
You might ask your Realtor to call a few that are in pending and see if they can get some sales prices on those since they soon will be your comps.
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Old 04-17-2018, 11:45 AM
 
170 posts, read 68,425 times
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They didn't get it. Didn't even get past the first round. Wrote the now-obligatory "we are such nice people!" letter on the realtor's advice-- the sellers refused to read any of them and only looked at the bottom line.

They are in round 3 of offers now and my family member tried to go back in with their highest offer. The agent responded that the considered offers are now $40K above asking (my family member could only go 30K above) with no contingencies.

They are discouraged, having looked at another place that they didn't like as much which already has 11 offers.

Sure sounds like a bubble to me.
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Old 04-17-2018, 11:51 AM
 
Location: Denver CO
19,005 posts, read 10,047,592 times
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If that's what's happening, it means they are looking above their price range. They need to look at the places that are 50K below their top, so that they are in a position to overbid.

Naturally, those places aren't going to be as nice or not as big or not as good an area or whatever, but it seems pretty clear that they won't find what they want at the price they want to pay.

that's a separate issue on whether it's worth paying those prices, of course.
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Old 04-17-2018, 11:56 AM
 
570 posts, read 222,052 times
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Quote:
Originally Posted by kickingthebricks View Post
They didn't get it. Didn't even get past the first round. Wrote the now-obligatory "we are such nice people!" letter on the realtor's advice-- the sellers refused to read any of them and only looked at the bottom line.

They are in round 3 of offers now and my family member tried to go back in with their highest offer. The agent responded that the considered offers are now $40K above asking (my family member could only go 30K above) with no contingencies.

They are discouraged, having looked at another place that they didn't like as much which already has 11 offers.

Sure sounds like a bubble to me.

We were worried about that here after we had gone under contract on our townhome but didn't have anything else lined up yet. We had already tried to make offers on several other homes we liked but were unsuccessful. The one we ended up getting had gone under contract before us but the other buyer backed out during the due diligence period because they couldn't come to an agreement on repairs. The house had the poly pipes and the buyer wanted the entire house re-piped and the owner declined. I think anytime a house goes under contract and then back on the market, there is a perception that there is something bad wrong with the house and there is less interest. We did not have any trouble getting our offer accepted and we were realistic that if we wanted a home in that neighborhood that was built in that era, we would probably encounter those pipes at most of the other homes as well.

You might tell your family member to ask their realtor to keep any eye out for homes that go back on the market in case there is less competition.
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Old 04-17-2018, 11:59 AM
 
570 posts, read 222,052 times
Reputation: 655
Quote:
Originally Posted by emm74 View Post
If that's what's happening, it means they are looking above their price range. They need to look at the places that are 50K below their top, so that they are in a position to overbid.

Naturally, those places aren't going to be as nice or not as big or not as good an area or whatever, but it seems pretty clear that they won't find what they want at the price they want to pay.

that's a separate issue on whether it's worth paying those prices, of course.
The problem with that is whether they would be in a position to overbid based on the appraised value. If financing, the loan is only going to cover that so they would have to be able to pay the down payment plus any extra they pay over the appraised value.
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Old 04-18-2018, 09:33 AM
 
3,468 posts, read 1,983,736 times
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Boy , I'm glad I'm not in those markets.

We paid a fair price for our home Nov of '15. It had been on the market 3 months and had no offers. We were considering ourselves lucky to get it as it was, I think a little under market die to little offers. One reason was it was a 2 br instead of 3 br, which suits us fine. It's not the only 2 br on our street, but 3 br are not the only either, there's also 4 br.s.
Ours is a starter house which is fine for us as downsizing getting ready to retired no kids folks.

I'd be waiting if I had to fight 25 other people and pay $40k over asking, even if asking was set to low.

Does sound exactly like a bubble is about to burst to me. Only time will tell as to when.

Good luck to all involved.
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Old 04-18-2018, 02:21 PM
 
Location: Fort Lauderdale, Florida
8,144 posts, read 7,469,555 times
Reputation: 17059
Eight offers on a forclosure. My client 'won' the bid and as a result, got the house about $200K under market value but it needed a lot of work and an all cash buyer.
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