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Tastemaking? Okay, I can try that. I was visiting a friend last night, who is looking to buy her first house. She told me that she's been having trouble becau

Tastemaking? Okay, I can try that. I was visiting a friend last night, who is looking to buy her first house. She told me that she's been having trouble because people are showing up for $300k houses ($150-200k 5 years ago) and offering, same day, without an inspection, $600k cash offers. That tastes funny.

bduerst 11y ago
Was this in the SF Bay? Because that market is in a bubble from foreign investors looking to unload cash.
- anigbrowl 11y ago
  I was just gonna say the same thing, SF and NY real estate markets (and a few others) have become asset dumps for the very wealthy and this has hugely distorted prices. We bought a house in the East Bay when the market was more or less at bottom and now I get a postcard almost every week from some local realtor asking if we're interested in cashing out.
  - bkjelden 11y ago
    I rent a SFH on the peninsula, and I get those same postcards almost weekly. I think what's most amazing to me is how much realtors are making right now. I'm not sure if it's still standard for the buyer's agent & seller's agent to each take a 3% cut like elsewhere in the country, but I've gotten multiple postcards where a realtor has moved $10MM-$15MM of inventory, in the last quarter, in my neighborhood alone. A 3% cut of that ain't a bad gig...
    - nradov 11y ago
      Only a very few star real estate agents make anywhere near that much. Most close few if any transactions per year. Out of the typical 3% commission per side of the transaction, the agent will only net about half. The rest goes to the broker and expenses.
- rifung 11y ago
  I'd be surprised if you could find a house there for $300k
r00fus 11y ago
The property was purposefully underpriced on the listing. In an extreme seller's market, it's effectively equivalent to not providing even a listing price. They might as well say $0, because there will be plenty of buyers who show up to establish market price immediately (and then bid up from there).

bduerst 11y ago

Was this in the SF Bay? Because that market is in a bubble from foreign investors looking to unload cash.

anigbrowl 11y ago
I was just gonna say the same thing, SF and NY real estate markets (and a few others) have become asset dumps for the very wealthy and this has hugely distorted prices. We bought a house in the East Bay when the market was more or less at bottom and now I get a postcard almost every week from some local realtor asking if we're interested in cashing out.
- bkjelden 11y ago
  I rent a SFH on the peninsula, and I get those same postcards almost weekly. I think what's most amazing to me is how much realtors are making right now. I'm not sure if it's still standard for the buyer's agent & seller's agent to each take a 3% cut like elsewhere in the country, but I've gotten multiple postcards where a realtor has moved $10MM-$15MM of inventory, in the last quarter, in my neighborhood alone. A 3% cut of that ain't a bad gig...
  - nradov 11y ago
    Only a very few star real estate agents make anywhere near that much. Most close few if any transactions per year. Out of the typical 3% commission per side of the transaction, the agent will only net about half. The rest goes to the broker and expenses.
rifung 11y ago
I'd be surprised if you could find a house there for $300k

r00fus 11y ago

The property was purposefully underpriced on the listing. In an extreme seller's market, it's effectively equivalent to not providing even a listing price. They might as well say $0, because there will be plenty of buyers who show up to establish market price immediately (and then bid up from there).