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rickgrimes
LSU Fan
Member since Jan 2011
3517 posts

The housing market is so hot buyers are paying $1 million over asking price
quote:

Perez said one of his clients was in a bidding war on a $530,000 home, and offered $25,000 over the asking price.

The other top offer was only $15,000 over. But that buyer also threw in 10 Ether coins, which -- in early May when Ethereum was trading at $3,900 -- were worth nearly $40,000.
.
"We couldn't beat that," said Perez. "My client couldn't offer any crypto to counter that. It was kind of laughable."

quote:

Would you buy two homes just to get the one you really want? One buyer in Austin, Texas, did.

Competing against 50 other offers on the home, the buyer offered more than $100,000 above the asking price -- all cash, according to Thomas Brown, agent with and founder of The Agency Texas, who represented the buyer who was moving to Austin from the San Francisco area. But that offer was matched by other buyers. So to seal the deal, Brown's buyer offered something extra: to buy the seller's next house.

Altogether the buyer paid $1 million for a $500,000 home, said Brown. "Buyers are coming here from living in $1 million condos and seeing they can buy a 3,000-square foot house for less. They're saying 'Even if I pay more, I'm only in for $1 million?' "


quote:

A three bedroom, mid-century home on a cul-de-sac in Berkeley, California, with an expansive view of the San Francisco Bay was nearly a one-of-a-kind property, said Jill Carrigan, an agent with The Grubb Company who listed it this spring.

"It ticked all the boxes for a lot of people," she said. "I've never had a property with 29 offers and buyers were upping their offers without us even countering. The Bay Area is always competitive, but this was something I'd never seen before."

Listed at $1.15 million, the home sold in two weeks for $2.3 million in cash, double the asking price.

quote:

The Berkeley home was just one of hundreds of homes in the US that have sold for $1 million over the asking price this spring -- there were 310 of these sales nationally just in March, according to Zillow, up 74% from last year.

And paying half a million dollars over the list price, isn't even that rare. There were more than 940 sales that were more than $500,000 over the list price in March, according to Zillow, twice as many as last year.

LINK
This post was edited on 6/17 at 11:08 am


SlowFlowPro
Stanford Fan
Simple Solutions to Complex Probs
Member since Jan 2004
381457 posts

re: The housing market is so hot buyers are paying $1 million over asking price
This just means selling agents are doing terribly at their jobs


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211
thadcastle
LSU Fan
Member since Dec 2019
1808 posts

re: The housing market is so hot buyers are paying $1 million over asking price
Californians ruin everything


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662
Street Hawk
LSU Fan
Member since Nov 2014
2683 posts

re: The housing market is so hot buyers are paying $1 million over asking price
quote:

the buyer who was moving to Austin from the San Francisco area

The SF Bay Area and the tech industry is the best wealth creating engine that the world has seen in the last 40-50 years. There is no contest there whatsoever.


Upperdecker
US Space Force Fan
St. George, LA
Member since Nov 2014
24910 posts

re: The housing market is so hot buyers are paying $1 million over asking price
California people ruin everything


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374
Street Hawk
LSU Fan
Member since Nov 2014
2683 posts

re: The housing market is so hot buyers are paying $1 million over asking price
quote:

This just means selling agents are doing terribly at their jobs

I'd actually wager that they know exactly what they are doing. List home slightly under market value and then let the bidding wars drive up the final price, instead of listing at a higher price to begin with.
This post was edited on 6/17 at 11:13 am


Centinel
Alabama Fan
South Carolina
Member since Sep 2016
34829 posts

re: The housing market is so hot buyers are paying $1 million over asking price
quote:

The SF Bay Area and the tech industry is the best wealth creating engine that the world has seen in the last 40-50 years. There is no contest there whatsoever.



Unfortunately it also creates a class of people who think they know how you should live your life better than you do, and will use the government jackboot to make sure you do so.



DeathValley85
LSU Fan
Strawberry Fields
Member since May 2011
14533 posts

re: The housing market is so hot buyers are paying $1 million over asking price
quote:

"We couldn't beat that," said Perez. "My client couldn't offer any crypto to counter that. It was kind of laughable."


sucks to suck


Friscodog
Louisiana Tech Fan
Frisco, TX
Member since Jul 2009
3394 posts

re: The housing market is so hot buyers are paying $1 million over asking price
The middle class is getting destroyed right before our eyes.. So you sell your 400-500K home for 100K over asking.. problem is where will you buy? You can't buy what you just sold for even the extra 100K..


USMEagles
Southern Miss Fan
Member since Jan 2018
7530 posts

re: The housing market is so hot buyers are paying $1 million over asking price
quote:

sucks to suck


Yeah, I'm a winner so I got in early. I've got the 9th roots of several 114-digit prime numbers printed out in my bomb shelter.


TexasTiger90
US Space Force Fan
Rocky Mountain High
Member since Jul 2014
3039 posts

re: The housing market is so hot buyers are paying $1 million over asking price
Insert white suburban dad joke of "glad we got here when we did"


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60
teke184
LSU Fan
Zachary, LA
Member since Jan 2007
60782 posts

re: The housing market is so hot buyers are paying $1 million over asking price
I’m glad I got my current house a few years ago. Locked in good rates without the principal being fricking insane.

This is going to cause some serious long term disruption in prime RE markets like Houston, Dallas, Nashville, etc. Current inventory will spike while Blackrock et all are buying up spec homes by the neighborhood as investments.


bayoudude
LSU Fan
Houma
Member since Dec 2007
21506 posts

re: The housing market is so hot buyers are paying $1 million over asking price
Sounds like people are pissing away money for no reason other than competition. They will never see a return on investment paying that much over asking unless we get to full on hyper inflation. I would never pay above asking price for a property.


RogerTheShrubber
LSU Fan
Juneau, AK
Member since Jan 2009
197912 posts

re: The housing market is so hot buyers are paying $1 million over asking price
quote:


I'd actually wager that they know exactly what they are doing. List home slightly under market value and then let the bidding wars drive up the final price, instead of listing at a higher price to begin with.


Exactly.


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30
Joshjrn
LSU Fan
Baton Rouge
Member since Dec 2008
17717 posts

re: The housing market is so hot buyers are paying $1 million over asking price
quote:

This is going to cause some serious long term disruption in prime RE markets like Houston, Dallas, Nashville, etc. Current inventory will spike while Blackrock et all are buying up spec homes by the neighborhood as investments.


This is the problem, and why I've posted in a few threads that this is the reason I purchased in a market I felt was overheated. I'm just not sure if the merry-go-round slows down anytime soon, and it very well might speed up. First time home buyers are in a bit of a fricking pinch right now, in spite of all the crowing about interest rates.
This post was edited on 6/17 at 11:52 am


Columbia
Arkansas Fan
Land of the Yuppies
Member since Mar 2016
2713 posts

re: The housing market is so hot buyers are paying $1 million over asking price
quote:

The middle class is getting destroyed right before our eyes.. So you sell your 400-500K home for 100K over asking.. problem is where will you buy? You can't buy what you just sold for even the extra 100K..


Exactly where I’m at right now. I need a larger home. Could sell mine easily and make an extra 100k, but buying a larger home or building right now isn’t very easy. Homes built in the 60s listing for 550k. 4x8 plywood for $70. I just feel like it’s a bad dream.


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70
SlowFlowPro
Stanford Fan
Simple Solutions to Complex Probs
Member since Jan 2004
381457 posts

re: The housing market is so hot buyers are paying $1 million over asking price
I think that areas who have sustainable futures (Houston, Dallas, Austin, etc.) can withstand the fury because, at the end of the day, they have a real economic base and plenty of positives to sell future transplants.

Areas like BR, New Orleans, etc.?

Image: https://i.gifer.com/Ic61.gif


It certainly CAN sustain long term, if everything falls right and they have massive improvements to major issues...but if it doesn't...lots of people are going to be holding assets that may take decades to get positive equity in.


TigerFanatic99
Chicago Cubs Fan
South Bend, Indiana
Member since Jan 2007
18060 posts

re: The housing market is so hot buyers are paying $1 million over asking price
The market is legitimately insane right now. There is a house back in the cul de sac that was sold about 4 years ago for 145k. They just listed it Tuesday asking $278k. It's a nice enough place but there have been no improvements since they bought it. What's weirder is the realtor has a process laid out for the sale.

Listed on Tuesday, no open houses scheduled.

Scheduled appointments for viewings to begin on Thursday through Sunday only.

No offers will be accepted for consideration until Monday opening of business.


I guarentee it sells by Monday night for at least $315k. We bought our place in 2016 for $175k and I'll bet we could sell pretty quickly for 350k. Its tempting to sell and just get a luxury apartment until the market crashes and then buy bigger for cheap.


lsuconnman
Troy Fan
Baton rouge
Member since Feb 2007
2027 posts

re: The housing market is so hot buyers are paying $1 million over asking price
quote:

The middle class is getting destroyed right before our eyes.. So you sell your 400-500K home for 100K over asking.. problem is where will you buy? You can't buy what you just sold for even the extra 100K..


Did you read the article? You effectively sell your million dollar home in Berkeley, and then get a bigger one in Austin for free.


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