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About a half hour north of Sunnyvale, there is this brand new 3300 sqft spec house offered at 2.5M: http://www.glenlochway.com It has been on the market for months without selling. [UPDATE] Downvotes? Seriously? Why?
What's the catch?
It'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.
There are an incredible number of Apple employees worth tens of millions of dollars that would love to not commute. The potential to rebuild a monster house on this lot next to Apple is definitely quite valuable. Location, location, location.
Is there really? Can you quantify what an "incredible number of employees" is here? Thousands, 10s of thousands? Do you have a citation for that statement?
Why would so many people worth 10s of millions of dollar be competing for the same properties/ Also why are so many people worth 10s of millions of dollars still working at Apple?
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Can you just overprice it and let bidders fight on lower than asking? Essentially the same thing, but with different psychology. I wonder how it would play out differently.
If France is anything like Denmark, the price is usually based on a combination of a public and a private valuation of the house (both of which are available to buyers upon request). You can give it any price you want, but since buyers can get an insight to its valuation, the asking price is usually around its valuation. So as I understand it, the strategy is usually to sell the house for a much higher price than its…
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The USA is like that as well. If you receive a cash offer with no contingencies for your asking price then you can't refuse. This is specifically to prevent discrimination against minorities. In most real world transactions there's some back / forth with the lawyers about details (ex: " We want your ugly drapes! ") as well as non-cash considerations. A seller may accept a lower cash offer over a higher mortgage based…
Do you have a citation for "seller must accept cash offer"?
Earlier quoted context omitted.
If France is anything like Denmark, the price is usually based on a combination of a public and a private valuation of the house (both of which are available to buyers upon request). You can give it any price you want, but since buyers can get an insight to its valuation, the asking price is usually around its valuation. So as I understand it, the strategy is usually to sell the house for a much higher price than its…
If buyers and sellers never set a price, how is a valuation ever accurate?
https://www.meilleursagents.com/prix-immobilier/paris-75000/
In 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.
Can you just overprice it and let bidders fight on lower than asking? Essentially the same thing, but with different psychology. I wonder how it would play out differently.
1) having a lower price attracts more bidders, and the bidders may go much higher than they originally planned after they see it in person.
2) having multiple potential buyers in the mix creates urgency, which drives the price up AND lets you sell faster.
3) Homes aren't free to own. Most have mortgages that you waste money on interest again each month, amongst other things (taxes). Selling fast for cheaper may not be less money in the end.
4) Homes on the market for a long time get tainted. People get worried there's a reason no one has jumped on it yet (maybe there's a sinkhole under it, or the water is bad, or some other thing you can't tell in a driveby).
> The four-bed, two-bath house — less than 2,000 square feet — listed for $1,688,000 and sold for $2,470,000. Using a ballpark figure of $500/mo per $100K of house, this comes out to $12,500/mo. That's $150K/year, mostly after tax (there's a bit of a deduction for interest but let's ignore that for now). Using the standard 30% rule, that means you should have a gross income of about $500K. What I'm questioning is, ho…
Probably an high-income couple with help from their families.
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Or 6-7 smaller houses and sell them for ~$1m each.
Not on a 13k square foot lot! But yeah, that has happened elsewhere in the Bay Area. (Zoning tends to prevent it, though, so there's an element of regulatory arbitrage.)
Though as you mention, zoning may prevent it. Some areas have 5,000 s.f. minimum lot sizes.