Post # 1
About a month ago we put an offer on a new condo, which to our excitement got accepted and we entered escrow. Today we are set to close escrow and get our keys to our FIRST HOME which we will live in once we are married in September.
Coincidentally, this morning, I saw a new listing for a condo unit in the same building, same layout/specs and location (top floor, corner unit), but on the opposite side of our unit, for 20k LESS. It doesn’t seem to be too different than ours in terms of condition. Mind you this is a highly desired community which, according to real estate listings, “rarely has any units that go on sale.” My heart sank and I texted my Fiance right away, and he understandbly got upset, asking me why I’m still checking listings when we aren’t looking anymore. I do agree that I don’t have a reason to be checking new listings (and I don’t check regularly anymore) but we get an automatic daily email from our realtor with new listings which hasn’t been deactivated yet, and for whatever reason I opened today’s email. That’s besides the point…
We are in a competitive market in Southern California and we were so excited to get our offer accepted on our dream condo. But now I can’t help to think if we got our place for 20k less, we could’ve had more money to spend on remodeling and also on our wedding which is in a few months. I know I should be grateful we are buying a home especially given the competitive market, but I can’t help feeling a bit disappointed. Which I hate because today is supposed to be a happy day! Is there something I’m missing? Has anyone been in a similar situation? I would appreciate any advice or words of comfort lol.
Post # 2
It could have been listed at a lower price to incite a bidding war.
Post # 3
First world problems.
Your fiancé is right, forget about it and move on because, really, what are you going to do about this? It’s best left alone.
Post # 4
rubibelle : There’s so many other factors here. Finishes could be different. There could be an issue with the unit that isn’t clear from the listing. The unit owner may be listing low in order to sell fast and encourage a multiple bidder situation. The reality is there is no way to know if it’s really an identical comparsion or where the price will finally end up. Enjoy your new home and try to ignore what’s happening next door.
Post # 5
- Wedding: April 2016 - Manhattan, NY
rubibelle : “Comparison is the thief of joy.” It happens sometimes, but there’s no guarantee that you’d like that condo better than the one you just closed on or that the final sale price will be the listing price. Enjoy your new home!
Post # 6
You will lose money if you back out of this deal you are in already. You have no idea what kind of repairs need to be made in the other place, so enjoy the one you have.
Post # 7
rubibelle : the market doesn’t really work like that with any kind of professional agent involved, esp in a hot market. I am sure your buyers’ agent or lawyer did the comps for you and even the listing agent themselves.
You should not care what it listed for. Care what it sold for. Things will sell for what the market will bear.
If you are super concerned, ask your agent why it’s listed below your unit.
Post # 8
rubibelle : list price and sell price are two different things especially in a hot market. A lot of agents list low in a hot market to get people through the door to view and hopefully cause a bidding war.
I wouldn’t worry too much even if it does sell for less than you paid. Over the life of a loan… 10k isn’t a huge amount. Go to a online mortgage calculator and enter both sets of numbers and work out how much less it really works out to be per mortgage repayment. Its probably something like less than $20 a week extra you are paying.
You got your house…Congrats!
Post # 9
rubibelle : if it’s truly a hot market they are probably trying to spark a bidding war particularly if that $20k less puts the front number down (i.e. $380k v. $400k) to get the lower budget buyers to see the listing.
Post # 10
I wouldn’t worry about it. Like others have said, they could have done that on purpose to ignite a bidding war which a LOT of people do nowadays. It was a scare tactic ten years ago but now it’s becoming ‘standard practice’ unfortunately for buyers.
There are so many factors playing into this that we dont know about.
Pretend you never saw it and be happy, this is a very exciting day indeed. Enjoy your new home!
Post # 11
Same as everyone else said. If it’s a hot market, sometimes realtors will list low to ignite a bidding war. Clearly there’s nothing you can do now that you’re closing escrow today…so move on. Be greatful that you were able to find your dream condo!
Post # 12
I was going to mention the bidding war thing, too. You don’t watch HGTV? The Property Brothers are always warning people about houses that are priced low to sell in a hot market.
I hope this puts your mind at ease and you can go back to being excited about closing escrow today.
Post # 13
As others have said, especially in So Cal, the market is so hot they are probably low balling the price to get a better offer and bidding war. You have no idea the condition of the home based on photos or what it will really sell for. Give it a month or two, you may see that the condo actually sold for a comparable price to yours when it is all said and done.
We just closed on our dream home in So Cal last week, and I immediately deleted Redfin and unsubscribed from the Realtor auto messages. Like you, my agent did not discontinue auto emailing us listings, but ours had a link at the bottom to unsubscribe. Sure there are things about our home we need to change and it may take years and a ton of money to make it what we want, but it is what we wanted. Sometimes its hard when I see other houses come up that are cheaper or need less work, but I know we made the right decision, that is why I stopped looking.
Do yourself a favor and unsubscribe and stop looking because the grass isn’t always greener! I know how tough the housing market is in So Cal and we need to be happy that we’re even property owners.
Post # 14
I’m in SoCal and that will be snapped up for cash by an investor so fast. Or a bidding war will ensue. There’s not a big discount like that for no reason around here also.
Post # 15
I got into a bidding war on my townhouse that was in a hot neighborhood and listed 20k below market. It was so unbelievably stressful. We ended up paying 20k over ask and taking it as-is to win it. We’re happy with it but man it was a nail biter.