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$782k over asking for a house in Sunnyvale

84 pointsby cx1000over 7 years ago

32 comments

victorNicolletover 7 years ago
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.
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andrewstuart2over 7 years ago
Working 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.
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koolbaover 7 years ago
&gt; The four-bed, two-bath house — less than 2,000 square feet — listed for $1,688,000 and sold for $2,470,000.<p>Using a ballpark figure of $500&#x2F;mo per $100K of house, this comes out to $12,500&#x2F;mo. That&#x27;s $150K&#x2F;year, mostly after tax (there&#x27;s a bit of a deduction for interest but let&#x27;s ignore that for now). Using the standard 30% rule, that means you should have a gross income of about $500K.<p>What I&#x27;m questioning is, how many people are there with that income level to eventually sell these insanely expensive houses to? Sure you have a bunch of all cash offers but that eventually dries up as well right?<p>Plus 4BR at 2000sqft isn&#x27;t particularly spacious. And only two bathrooms at that size? IMHO that&#x27;s insane.
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matt_wulfeckover 7 years ago
It&#x27;s a 13k lot a mile from Apples new campus. The person who bought it knows it&#x27;s potential. Even if you make 10% of that initial investment you&#x27;re still doing amazing.
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ryandammover 7 years ago
For all the comments about listing shenanigans, we&#x27;re overlooking a basic game theory issue here: when you set a price that looks to be near the value of the home, you&#x27;re saying you&#x27;re willing to accept reasonable offers. You&#x27;re setting an implicit cap on the value of the home.<p>An obviously undervalued home, though, in addition to driving up interest (and creating a bidding war), suggests a much fuzzier cap so there&#x27;s less signaling around price and a less obvious ceiling to offers. In other words, buyers are stuck wondering what other buyers might offer, rather than discussing whether to go some normative amount over the ask (like 10-20%).<p>Also, there&#x27;s a &#x27;curse of the winner&#x27; dynamic in auction-like environments, where the deal will necessarily go to the party that values the asset the highest. (This is evidently destructive to profits in oil and gas leasing auctions, for what it&#x27;s worth.)<p>I think that&#x27;s the dynamic, because no one is actually fooling anyone by underlisting prices, and real estate agents talk to each other and know immediately if something is priced to generate interest, or if the price is closer to what the buyer expects.
jarjouraover 7 years ago
Yes South Bay is so overpriced right now it’s ridiculous. Keep in mind that 5 years ago that same house would have sold for 650k and even then people would have been complaining that’s it was way overpriced.<p>One things certain, east bay across the 84 is still under a million at the moment. I suspect that will change soon.
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ccordaover 7 years ago
Redfin listing: <a href="https:&#x2F;&#x2F;www.redfin.com&#x2F;CA&#x2F;Sunnyvale&#x2F;1129-Prunelle-Ct-94087&#x2F;home&#x2F;1376492" rel="nofollow">https:&#x2F;&#x2F;www.redfin.com&#x2F;CA&#x2F;Sunnyvale&#x2F;1129-Prunelle-Ct-94087&#x2F;h...</a>
habosaover 7 years ago
Aside: I don&#x27;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 <i>down</i> but the listed price is always accepted.<p>This system of listing a price to &#x27;get people in the door&#x27; and then igniting a bidding war makes it impossible for anyone to shop for a house except for realtors who are &#x27;in the know&#x27; and can tell you the real price based on listing.
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dagwover 7 years ago
I guess it must be a cultural thing. In major cities in Sweden 15% over the asking price is the asking price and 50% over the asking price, while rare, is hardly unheard of. No seller ever accepts the asking price unless they&#x27;re really desperate.
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lisperover 7 years ago
About a half hour north of Sunnyvale, there is this brand new 3300 sqft spec house offered at 2.5M:<p><a href="http:&#x2F;&#x2F;www.glenlochway.com" rel="nofollow">http:&#x2F;&#x2F;www.glenlochway.com</a><p>It has been on the market for months without selling.<p>[UPDATE] Downvotes? Seriously? Why?
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sureshvover 7 years ago
Listing under to create a bidding war is definitely a thing in the Bay Area. It&#x27;s really gotten out of control the last few years. From last month:<p>Listing: $2M - <a href="https:&#x2F;&#x2F;deleonrealty.com&#x2F;property&#x2F;4136-briarwood-way-palo-alto&#x2F;" rel="nofollow">https:&#x2F;&#x2F;deleonrealty.com&#x2F;property&#x2F;4136-briarwood-way-palo-al...</a><p>Sale Price: $3.2M - <a href="https:&#x2F;&#x2F;www.redfin.com&#x2F;CA&#x2F;Palo-Alto&#x2F;4136-Briarwood-Way-94306&#x2F;home&#x2F;1391820" rel="nofollow">https:&#x2F;&#x2F;www.redfin.com&#x2F;CA&#x2F;Palo-Alto&#x2F;4136-Briarwood-Way-94306...</a>
misterbwongover 7 years ago
This is absurd but not quite as absurd as the headline makes it out to be.<p>FTA:<p><i>Over-asking sales are at least partly the result of agents’ sleight of hand. It’s become common strategy to list homes under their market value in order to entice Silicon Valley buyers; they are all too willing to fight over the few houses available in this chronically tight market [...] Given prices to the north, spending less than $2.5 million for a house in Sunnyvale on a large lot — about 13,000 square feet — “wasn’t a wrong move,” Kalkat said.</i>
bsvalleyover 7 years ago
I see this everyday in the Bay Area. In this case it seems to be a tech worker. Usually these are bought by some investors in China and the houses are never occupied.
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luckydudeover 7 years ago
&quot;Large lot - 13000 square feet&quot;. So I&#x27;m not anywhere near as good of a commute location, takes me 25 minutes to get to Los Gatos, so getting to Apple is probably 40, but I&#x27;ve got 15 acres, a main house almost twice as big (it&#x27;s too big in my opinion, just gathers junk, so not necessarily a plus), a barn that we have turned into 1&#x2F;4th man cave, 1&#x2F;4 exercise room, 1&#x2F;4 chicken house, and 1&#x2F;4 barn, and a 1 bedroom guest house, and a 1500 square foot shop, and a quonset hut you can park 3 or 4 semis in.<p>All for less than what that buyer paid, admittedly 10 years ago. So it&#x27;s in no ways apples to apples. My guess is my place is worth about what they just paid. Yeah, my commute would not be great if I worked at Apple, but you guys remember Rands in Repose, right? The manager dude with the blog about managing? Worked at Apple? He&#x27;s my neighbor. We&#x27;ve got lots of Google&#x2F;Apple&#x2F;whatever people up here, you get way way more house and property for your money and you are not living right on top of each other.<p>If you are house hunting and you want to consider the mountains, PM me, I&#x27;ll hook you up with an excellent real estate agent. It&#x27;s definitely not for everyone, if owning and running a generator, tractor, chainsaw seems nuts to you, yeah, not for you (though I didn&#x27;t know anything about tractors before I moved up here, now I own two and an excavator and do jobs for $1000&#x2F;day). Happy to answer questions on or off the forum about the mountains, I frigging love it up here.<p>I&#x27;m blown away that people will spend that much for a boring ranch house on a little lot. I could get it if it were downtown Mountain View, that&#x27;s pretty pleasant, ditto Palo Alto, but Sunnyvale? That seems nuts.<p>Does anyone else feel like it is a bubble? Or is this the new normal?
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oldsklgdfthover 7 years ago
As a skeptical home-owner of a modest town house this screams housing bubble. The only thing left is to figure out how to make money off of it.
Mankhoolover 7 years ago
Please come to Vancouver, BC. We have bidding wars on houses and many have sold WAY over the asking price. Here&#x27;s a fine example: <a href="http:&#x2F;&#x2F;www.cbc.ca&#x2F;news&#x2F;canada&#x2F;british-columbia&#x2F;vancouver-teardown-real-estate-1.3449869" rel="nofollow">http:&#x2F;&#x2F;www.cbc.ca&#x2F;news&#x2F;canada&#x2F;british-columbia&#x2F;vancouver-tea...</a>
aidenn0over 7 years ago
As a tech worker with a large family (this house is too small for my family), I believe I am now officially priced out of every moving to SV. And that&#x27;s with me being quite wealthy; I have about $1MM in equity in my house, and various other investments and retirement savings.
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Jeremy1026over 7 years ago
My $235,000 home is also 4-BR, 2-BA, 2000 sq ft. Its just located on the wrong coast.
trhwayover 7 years ago
&gt;The property is one of more than 50 South Bay homes that sold in the last month for at least $200,000 above the listing price. More than half of those deals were made in Sunnyvale. Others were made in Cupertino, Saratoga and West San Jose<p>as they mentioned this house is close to that humongous Apple new campus, and the mentioned areas - too. Given the current traffic and what it can become near that campus, one can understandably want to live closer, especially given the current fashion for the biking, walking, etc.
Iknowsecurityover 7 years ago
Some areas in Vallejo above Oakland are also currently rising in price pretty quickly. After San Francisco, even Oakland is running out of affordable houses. There is a Ferry that goes from Vallejo to the Ferry building in San Francisco with free wifi. Unsurprising more people decide to live there.
rbanffyover 7 years ago
After living in Dublin, Ireland, for a year, this looks rather unimpressive.
napoluxover 7 years ago
If they keep paying for it, you should just really rise prices.<p>It&#x27;s the market, baby.
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Justsignedupover 7 years ago
I remember a time when a company would open a campus, and provide cheap housing rental or purchase but only to employees.<p>Now the same is happening, except with crazypants pricing.
Iknowsecurityover 7 years ago
A colleague that was looking to buy a house last Spring said that the house he put a bid on in San Francisco sold for 100% above the listing price.
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anticipationover 7 years ago
I&#x27;m guessing it&#x27;s bitcoin money !
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SCAQTonyover 7 years ago
If the house were for sale by a politician I wold suspect that it was one hell of a bribe!
loegover 7 years ago
They&#x27;re paying for that 13,000 sq feet of property, not so much the house.
misiti3780over 7 years ago
And I thought NYC RE was bad .... Northern California is out of control
boboshaover 7 years ago
are there any affordable places in around SF? North Bay or Berkeley or further south? or are they all just as insane prices?
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CPLXover 7 years ago
Greetings from New York.<p>You people are fucking insane, for the love of God please consider building some apartment buildings.<p>Cheers.
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wnevetsover 7 years ago
Isn&#x27;t this how trump is accused of accepting bribes from the russian government?
megamindbrianover 7 years ago
HEY! MOVE TO PHOENIX. HOUSES ARE CHEAP!