How do you know the buyer had their own agent? How do you know the buyer did not use a seller's agent or a broker's agent to buy this house?
Your blog does nothing more than bash real estate agents. Your question here is unanswerable.
There are various sections to it, the first level are condos and only a few floor plans, futher up you go there are semicustom and custom built homes. And empty lots incase you don't find what you want, you can build your own. Prices will vary between them, condo vs SFR. Square footage, Lot size, pools/spa, views, year built, plan or custom, and more.
Buyers agents must do their comps, review, adjust accordingly for lot and home size, adj for amenities, view, for starters - more depending on the property itself. The SFR in Crystal Cove can very from about 4000 to over 13,000 square feet.
Per MLS -as of today, there are 32 homes for sale in Crystal Cove. Only 1 is in Foreclosure process, and 2 are Short Sales. I search the MLS for REO/Foreclosure process SALES since 1/1/2010 - Non. Of the 32 listings - 5 are condos, listed from $2,195,000 to $2,750,000, and 28 Single Family Residents listed from $2,795,000 to $19,990,000. The two most expensive SFR were built in 2010 and are an excess of 13,500 sq feet - and that is the house, not the lot size. The smallest Single Family Residence is just under 3200 sq feet. The smaller condo listed about 2850 square feet - the largest condo listed is less than 3900 sq feet.
That's why real estate attorneys drew up the Market Conditions Advisory to protect RealtorsÂ® from getting sued by remorsed buyers.
If it was an investment property, ok that would be a bad deal.
But if it is a primary residence, cool. They can live there until the market comes back up and sell.
The buyer's agent did no wrong. Just did their duty.
Jes Sierra, B.Sc.
Pretty telling that not one agent from the local area responded.
I think I can address every question raised by the responders, who obviously know nothing about the local market here. If you knew anything, you would know that simlar ASKING prices on homes within 2 blocks have already dropped well into the $3,000,000's. Uhhhh, last time I checked, the market value for a home was less than asking price. These are all cookie cutter homes so it is a valid comparison.
First, as to the lack of detail, did any of you click on the web link? The detail is all there in my blog. Always has been. Web links are these things that most people understand.
The houses are all identical cookie cutter Tuscan homes. I know. I live here. I've been going to open houses in this neighborhood for 2 years.
Finally, appraisals are always pretty squishy and have a lot of room for error. Market data on the other hand doesn't lie. So if the buyer's agent didn't tell the buyer about the skyrocketing inventory, foreclosures in the neighborhood and the trend of vastly decreasing closings, the buyer was uniformed. Can't hide behind the appraisal.....
I have a couple of suggestions that might help you.
You could ask the listing agent...if you google the address you'll find them, just like I did.
Also, when a home sells, the buyers usually have some time of financing and the lender requires an appraisal. LIkewise, in a cash offer, an appraisal is often performed. So odds are that the property sold for market value.
I will also share with you that the listing agent states in the listing that if anyone has questions, to contact her.
So far as that "other " property that sold for 1.8 less...you did not mention WHICH property that was. In most markets it is very rare for a property to sell "under market" unless it is an arm's length transaction.
Second, agents don't set prices. The sellers and buyers agree on a price. If the buyer was willing to pay that, what's that to you? I see on your blog that you're interested in price declines. Fair enough. But that's a different issue. As you note, these sales occurred at roughly the same time, so it doesn't even play into your theme of a price decline. You're suggesting either improper behavior by an agent or ignorance on the part of the buyer. And I don't see much evidence for either.
Third, you're assuming the higher-priced home was overpriced. It's equally likely that the lower-priced home was underpriced. That happens. Perhaps the seller of the lower-priced home was more motivated to sell.
If you have something more to offer, then please present it.