Another one in the same street, not 300K over, but over 250K over and no double dipping.
No, sellers are the final dictators. They even squeeze Listing Agents, likely reduce 5% to 4% commission, to extract more for double !
It was a joke. Clearly here listing agent convinced a lower price?
A very simple scenario where LA can play in their favor.
LA is obliged to show all offer to seller but not the one which was rejected/ignored on the ground of being late (or unacked). Now its very common for LA to accepts offer even after due time but does seller checks which offer was accepted in-spite of being late and which was rejected?
Now in event of highest bid Vs LA favorite bid - margin is small – seller does not loose much(even unaware of such bid as it was ignored by LA on grounds of late), the LA gets 1.5 times commission.
Why BA agents send late bid - they do not but when they come to know some are sending late bids, they suspect their initial offer might be leaked so they pro-actively send counter offer. All this is possible when market is seller’s and buyer is desperate.
Why BA do not give their best number in beginning - how many will put 50% over asking in first go - needs experience .
Listing agents are not strict in rejecting any offer coming after due deadline. They promptly share the offer details to seller. Listing agents, to my knowledge, never hide those from sellers, LA is morally bound to share details to Seller.
LA will not entertain any offer after Seller signed one offer. As soon as seller signs the offer, within 10 to 15 minutes, LA notifies to buyer agent. Any offer submitted after this time is really late offer.
In other cases, LA+Seller gets multiple high bid offers and they are negotiating with top 4 or 5 bids. If someone responds with an offer, LA never care, unless the offer is above these top offers.
The only mischief LA do is tip tentative high offer range to his/her favorite persons and ask them to write an offer above the highest offer. Then, they re-tip to another party verbally back and forth to hike the offer price. In some cases, where 25 offers are there, it is very common to tip two or more parties to hike the prices.
That is the main reason, I always avoid Redfin Hot Homes which results easily 10+ offers on the table and multiple rounds of negotiations happening there.
We need regulatory live auctions & second pricing.
Buyers need more housing built. The bidding process is not the problem. Lack of supply is…
Buyers/Sellers apply signatures more than 100 in final closing, but almost 300-500 signatures between contract and final closing. Every signature was introduced by some regulations !
There are plenty of rules/regulations, like IRS tax rules, for real estate.
Do not derive rules based on the statements we provide ! As long as humans are handling, every rule is overlooked or bypassed or managed in such a way not challenged in court !
They are bound to happen. Assume this is the world we live in,think how to proceed further and make it work !
Meh. The market is still distorted by the agents, even though buyers scramble to buy.
There’s no reason one should pay for a house 200K more than the next best offer. But this happens, and it becomes a “comp” for the next sale. People don’t approach SFR rationally, so they’d be willing to pay 3M even if that means living paycheck to paycheck. Say all you will about the situation, but this is reality. When an agent pressures you into overpaying (i mean, he doesn’t know the sale price in advance, so he’s making a “comfortable” guesss), someone obeys. The next sale has to, because now “it’s a comp”.
Like it or not, this is the “science” of pricing for houses today in Bay Area.
The scenario described is the seller’s real asking price. Any buyer can choose not to participate.
I understand where you are coming from. You don’t want to throw away your hard earned money because some agent tells you to. But the reality is even in 2012 when the market just started picking back up, I was losing on my bids until I paid 100K above what I estimated to be the highest price. I had to go that much above the prevailing market price to get the house. It felt irrational but after wring 40 offers I was fed up. Now 6 years later it’s still the same or worse. I don’t think a recession or slowdown will change the scenario that much because of the limited land availability here. There are so many people waiting for the housing price slowdown that by itself will make sure the slowdown won’t ever materialize.
No i am not waiting for it to slow down, there is plenty of money here, but i have seen this happen multiple times, in one case know the agent that overpaid 200K more to get a house. I am talking about market inefficiency, and illiquidity.
Inefficiency is because 1. super highly regulated sales and hidden auctions. 2. overly restricted supply 3. psychology
If auctions were more transparent, the “marginal buyer” effect would slow down - and that’s huge.
Then go to the court steps. Why wait?
Interesting house for contractors.
Kidding me. 1.3M for 80% done rebuild? Is warwick area that much expensive now? I know the sft is 2500
It’s asking price…
Google Streetview can give you the current build.
Wow, that’s a little too much asking price and you can buy with cash only.
One more contractor special
sold for $65k over asking $990K.