Though I get the feeling that the market is cooling down, the good buys are still in demand.
This one in ER listed ridiculously low at $989,000, when you consider that the last two similar REOs on the golf course both listed for over $1.2 million, and one already closed for $1,256,000, above its list price.
The agent had his sign in the front yard for weeks before listing – you may remember seeing it in a video clip here? Once they got the $989,000 list price from the bank, they solicited offers first from those who had called. After a couple of days, they inputted into the MLS, and sent it direct to the contingent category.
When I called within minutes after their MLS input, the girl said they had five offers, and any additional ones would be considered back-ups. Not one to take that lightly, I sent in an offer on behalf of clients for $1,110,000 all-cash.
And LOST.
Five of six offers submitted were all-cash, and at least one ‘considerably’ higher than ours.
Here is a video tour:
I’m sure this will get deleted for my honesty, but why should this be so frustrating to buyers? Do you really think that your clients are more deserving to get this home for $1.1M than a cash buyer with say $1.3 or 1.4? That house is loaded, and even in such a crap market, good homes with content and views still have a premium attached to them, regardless if their foreclosures, short sales, regular listings. Sour grapes, Jim?
Punky,
Why are you a hater? That’s not what he meant. He meant that he had a really solid, all cash, over asking offer, and he still didn’t get it, which means the market is hot in some areas…thus the title of this entry. Get it???
My buyers thought it was funny – I was talking about buyers in general who make good offers yet aren’t buying a house. It gets frustrating for buyers to have to endure, especially when you see the realtor tricks in living color.
Punky has been dying to take more shots at me because I deleted her post where she said local kids are stupid. Anonymous trolls like her come back again and again, thinking their shot is the one that’ll take me down.
Sorry about the comment on the local kids, maybe that did deserve the boot, but still my honest opinion.
Are we in a new bull market?
big n rich,
I’ll just ask you nicely.
Will you post some intelligent contributions? Or stop posting?
I have your ISP address, constantly changing your name isn’t fooling anyone.
Does your MLS have “dirty tricks” regulations? Most Boards of Realtors/MLS require listing submission with 24 hours unless written exclusion from Seller. If the agent did not have a valid listing, but is posting a for sale sign, it seems like a blatant violation of rules, in addition to false advertising, misrepresentation, and trespassing. This agent should have his/her a@@ kicked out of the real estate community.
We have the same rules here, but they are ignored because there is no MLS police. No enforcement whatsoever.
If someone complains, there might be a hearing, and the worst thing that will happen is a letter goes into the file for three months.
It’s too bad too, because this industry was built upon broker cooperation among agents.
I share my listings with you, and you share yours with me. That is what’s best for the clients.
But now it is dog eat dog.
I could do a whole post on how this will play out, and it’ll look like Mad Max. We’ll end up like the commercial guys, with exclusive listings only, and no MLS. Sandicor is contributing to their own demise by not being progressive in positioning themselves as a solution too.
Hey jim,
Love your blog and you are great.I try to ad some excitement to the conversation and not just agree with what everyone wants to hear.Sorry to be negative sometimes.I just get tired of the lies from people and the media.I will try and be more positive.
JtR, one other thought: even tho the seller is the bank, the agent did a huge disservice to the seller, his fiduciary. Banks do write counter offers, especially with several all cash viable offers. A good professional agent would have at least made that suggestion, thereby treating all parties fairly. It might have been one of those contrived double-whammy sales, which usually fall apart. Demand a back up.
They countered for highest and best, but only to the six that got their offers in before they shut it down. I had a fair shot at winning, but did everyone? Not when you throw it into ‘contingent’ within minutes after MLS input, and are telling callers they are a back-up only.
Plus you are dealing with assistants, you never get to the actual listing agent. The girl handling it? An agent for less than two years. The broker? Out of Bakersfield.
Is the agent that blatantly taking both sides of the deal, or is there a buyer’s agent also?
It’s inconceivable to me that these type of shenanigans are allowed to happen. It’s one thing for the NAR and CAR to be mindless industry cheerleaders, but this circus act on their watch is inexcusable.
Very nice house.
Real nice house, right up on a golf course, with a great ocean view.
I have to image it must be a bit frustrating to offer over a million dollars cash for something, be offering over list price, and basically be told we might consider you as a backup… maybe.
Maybe that’s a good problem to have though? Could be worse I suppose. 🙂
Is there any way I could list my house as an ‘REO’ so I can get much more for it now? I want those ‘frenzy’ buyers.
Watch out for all cash dirty tricks. Recent one: buyer submits brokerage account statement as source of all cash. However, buyer has no intention of liquidating those assets. In a parallel sleight of hand, buyer attempts to obtain loan from mortgage broker/friend of agent. Guess what, 5 days prior to close a big OOPS, we don’t have the money and need an extension of escrow. Seller agrees to 10 day extension. Guess what, OOPS, we don’t have the money. Seller unilaterally cancels pursuant buyer’s failure to perform. Backup gets house. Agent charged with misconduct and violation of ethics by Board of Realtors. Sometimes just desserts are served.
Sweet house, sweet location and a sweet toilet.
The story gets better.
With our offer I sent in a bank statement as proof of funds, to bolster our case. She declined to submit our offer because I was $25,000 light.
I had to get an additional statement from the buyers for the extra $25,000, and still had the package in her hands within about 2-3 hours of the MLS input. I think ours was the last offer to make the cut.
This has played out over the last ten days. Today I find out that the next door neighbor has an easement dispute over the shared driveway, and is trying to leverage that to get his offer accepted.
This is EXACTLY what we have going on in LA/OC for months. I have given examples on this blog before. Recently, A property I submitted a bid for(on first day listed) ended up sold for 50k less than my bid, with 50% down. Even all cash can’t make up that much difference. Very discouraging, yet for us this is a opportune time to buy. Seems high end buyers are subject to the same shenanigans as us bottom feeders.
have you checked out the one that just came back on the market on paseo de las flores? I think it’s a former Hovanian(sp?) model.
Wait…the next door neighbor is in on the bidding game? That starts to smell funky.
funky indeed.
Another one that’ll probably end up closing in 6-7 months, under list.
An eerie quiet around Nantucket and Magnolia Estates too these days, they were looking for cash buyers who could close in June, and still nothing different on the tax rolls….
Crazy ridiculous stuff. Jim, your on the spot stories are useful and excellent. Thank you for your blog.
Hey Jim, tell your buyers “There’s nothing price won’t fix”. That motto works both ways.
Great house, but I hardly consider that a ‘great’ ocean view
Seems the best way to get this fixed is to send an email to an exec at the bank. Between all the REO sales there are millions left on the table from these REO agent shenanigans. And CC some big shareholders.
Who designs these houses? Driving through 10 feet of tight columns just to get to the garage? Foolish.
Now THAT is a million dollar house. It’s not a great ocean view, but it’s a nice view overall that includes the ocean.
And those Japanese toilets, don’t knock it until you’ve tried it!
JtR, can you pls posy the closing price to update us?
Fraud, fraud, fraud…I see fraud everywhere!!! 😉
(just joking about my “is this fraud?” comments I post from time to time on deals like these)
Everything seems so surreal right now. We’re pretty much out at this point. Hopefully, sanity and honesty will return to the market sometime in the future.
Oh, and that is a beautiful house for a newer, two-story house. The floorplan looks more functional than most newer floorplans. It helps that the rooms are bigger, too. Nice floors!