Redfin listing: https://www.redfin.com/CA/Sunnyvale/1129-Prunelle-Ct-94087/h...
$782k over asking for a house in Sunnyvale
11–20 of 209 posts
Re: $782k over asking for a house in Sunnyvale
#12Aside: I don't think it should be legal to not accept the asking price for a home. With any other thing I want to buy, if I agree to pay the list price I get the item. Sometimes I can haggle the price down but the listed price is always accepted. This system of listing a price to 'get people in the door' and then igniting a bidding war makes it impossible for anyone to shop for a house except for realtors who are 'in…
> Aside: I don't think it should be legal to not accept the asking price for a home.
You're attacking basic supply and demand here. Let's say I set a list price and then figure out I could have asked for more...you want to legally bind me to sell for less than what the free market is willing to offer? Where does this stop? Should we ban speculative investments as a whole?
Re: $782k over asking for a house in Sunnyvale
#13In France, there's no such thing as paying over the ask price. You are forced to sell to the first buyer who offers to pay the ask price. I suspect that this is done to prevent prices from rising too quickly.
Re: $782k over asking for a house in Sunnyvale
#14Aside: I don't think it should be legal to not accept the asking price for a home. With any other thing I want to buy, if I agree to pay the list price I get the item. Sometimes I can haggle the price down but the listed price is always accepted. This system of listing a price to 'get people in the door' and then igniting a bidding war makes it impossible for anyone to shop for a house except for realtors who are 'in…
What problem does that really solve? Most people shop on Redfin anyway, which gives a fairly accurate estimate for what the house will sell for.
Re: $782k over asking for a house in Sunnyvale
#15It's a 13k lot a mile from Apples new campus. The person who bought it knows it's potential. Even if you make 10% of that initial investment you're still doing amazing.
Re: $782k over asking for a house in Sunnyvale
#16Working at a huge tech company like Google or Facebook is attractive to me, but not enough to justify spending $2.5M on a smaller house, or 12x more per square foot. And this is just in Phoenix. I know there are other places with tech jobs and much lower cost of living, or better income-to-COL ratios.
They might have tens of millions and think that the house will retain and probably increase value. Greater fool theory.
You are not buying this with a $150k salary.
Re: $782k over asking for a house in Sunnyvale
#17Aside: I don't think it should be legal to not accept the asking price for a home. With any other thing I want to buy, if I agree to pay the list price I get the item. Sometimes I can haggle the price down but the listed price is always accepted. This system of listing a price to 'get people in the door' and then igniting a bidding war makes it impossible for anyone to shop for a house except for realtors who are 'in…
> With any other thing I want to buy, if I agree to pay the list price I get the item
This is a modern phenomenon wholly reliant on the predictable cost of industrially-produced goods. Houses are different. Your proposal would lead to: most people (a) listing at $100 billion, (b) giving no listing price, or (c) becoming reliant on third-party pricing consultants, since you only get one chance to get it right.
Re: $782k over asking for a house in Sunnyvale
#18Working at a huge tech company like Google or Facebook is attractive to me, but not enough to justify spending $2.5M on a smaller house, or 12x more per square foot. And this is just in Phoenix. I know there are other places with tech jobs and much lower cost of living, or better income-to-COL ratios.
They aren't paying that much for the house. They're paying that much because it's located in a good area. They'll knock it down and built a brand spanking new house and sell that for a profit. This happens every day in hot real estate markets
Re: $782k over asking for a house in Sunnyvale
#19In France, there's no such thing as paying over the ask price. You are forced to sell to the first buyer who offers to pay the ask price. I suspect that this is done to prevent prices from rising too quickly.
Are asking prices artificially limited somehow, or do people just set the price high so they can negotiate between potential buyers?
Re: $782k over asking for a house in Sunnyvale
#20It's a 13k lot a mile from Apples new campus. The person who bought it knows it's potential. Even if you make 10% of that initial investment you're still doing amazing.
I think you're on to something here; usually when you see transactions that seem absurd from the outside, there is some other angle that you don't know about (like, you can rip down the existing house and build one 3x the size that you can sell for $8mm).