Real Estate is a Circus Right Now

[Jim Becker]

"Circus" is now an understatement....for a property we visited on Friday that we really liked and was in a great location for our needs, we offered $65K over listing, $2500 forgiveness on any inspection issues (none likely...the place was immaculate), waived appraisal concerns and STILL lost to a buyer that bid higher. We went that high because it was clearly listed under value after I did some comparable sales analysis backed up by what our Realtor did, but...wow. This is exactly why I'm glad we don't need to sell first before buying what comes next...

[Bill McNiel]

Understand that the Real Estate buying market is being driven by the, almost record, low interest rates. That is the current primary driver without a doubt. Note:don't ever forgo an inspection!

[Jim Matthews]

Just checked Zillow for what it estimates my home value. According to their algorithm, my home has appreciated in value 12% in the past year when I did nothing but cut the grass.

It's another housing bubble.

[Jim Becker]

Understand that the Real Estate buying market is being driven by the, almost record, low interest rates. That is the current primary driver without a doubt. Note:don't ever forgo an inspection!

Yes, very true, along with some other factors, depending on one's area. And yes, we would never forgo an inspection. For this one, we did throw the bone that we would "forgive" up to $2500 in repairs identified by an inspection, but it was extremely unlikely there would be any for that particular property. I have never been in such an immaculately kept home, including several with live-in staff, than this one. You could eat off the basement floor...and all of the mechanicals were recent vintage and regularly serviced. The siding was recently replaced (storm damage) and the landscaping was also "beautifully simple". Yes, some things are sometimes hidden...hence, the inspection...but our risk was low on that one for sure. But it's "water over the dam"...and apparently wasn't meant to be.

[John K Jordan]

I haven't been keeping up with the market. Maybe it's time to sell our spare riverfront lot.

[Jim Becker]

I haven't been keeping up with the market. Maybe it's time to sell our spare riverfront lot.

You would do well to at least find out what it's potentially worth in this market because there may indeed be a "bubble" to take advantage of now.

[John K Jordan]

You would do well to at least find out what it's potentially worth in this market because there may indeed be a "bubble" to take advantage of now.

The last appraisal we got was at least three or four years ago. I thought that appraisal was way more than the lot was worth and couldn't imagine anyone paying that much. It's less than 2 acres.

There's no house on it but someone built a high-end house on a similar lot adjacent to it, perhaps it would sell.

[Jim Becker]

John, two acres here, undeveloped (no improvements), sells for $300K or more, depending on location. One acre lots...the few that exist anymore...are going for $200K. If I could get a 1 acre lot for say, $100K right now, I'd jump on it and do the improvements necessary to put a home and shop on it. But that's just not realistic anymore.

[John K Jordan]

John, two acres here, undeveloped (no improvements), sells for $300K or more, depending on location....

Zounds. For about 1/2 that much a guy bought 3 acres next to me, 2 wooded, with a house, a small outbuilding, and a concrete block garage big enough to park two big RVs and then some.

JKJ

[eugene thomas]

well jim. when ya list your ovre size house. the money should rool in......

[Brian Elfert]

A few years ago a housing developer bought a closed library and an adjacent building to split into seven building lots. The lots are narrow and probably cost the developer at least $500,000 per lot by the time they were buildable. The houses are large and I think they listed for $1 million or so. I can't believe a developer thought it was worth spending $500,000 each on lots in a city where a lot of houses are worth less than the cost of each lot.

[Jim Becker]

well jim. when ya list your ovre size house. the money should rool in......

We can only hope...

That said, our house isn't exactly oversized. It's just under-utilized since our older daughter has an apartment in town and the younger will soon be leaving the nest. For four people it's great. For two, it's more than we "need". We love our nearly four acres, too...but not all the weeding and upkeep beyond mowing grassy areas. So if and when we find something appropriate and actually have a winning offer, we'll do next steps. In the meantime...life is good.

One good thing that's coming out of this is the "downsizing of the stuff". 22 years in this house means there's a lot of stuff. The place is actually looking better just because of simplification.

[Bruce King]

Sometimes wonder if posting a "wanted to buy" ad listing what property type you are looking for and any financial incentive info you would offer etc etc would be beneficial. Don't quite know where you would post it and how it would actually but but it would get you out in front of the whole super fast real-estate biz.

Some areas have the NextDoor app being used. Down here people are always posting for a house that a relative or friend wants. The problem is that you have to know someone in that area to post what your looking for. Another one is the Citydata forum, its nationwide. Just pick the town and post when you are moving there and what type house you want. You might get lots of private messages from realtors but maybe a seller to. Many people are doing the flat fee listing and some are making the mistake of listing on FSBO but they will reply also. No offense to realtors but many sellers are fully capable of handling a sale. Buyers should get a realtor but don’t ever negotiate a price then shove a realtor into the face of the seller because they have just cut a deal with you and won’t like an additional 3 percent added on.

[Jeff Bartley]

Jim,
I’m sure you know this already but don’t overlook the price of a shop build in the metrics of your decision. Material costs are insane right now. Advantech ply is $50/sheet now, a 2x4 from Lowe’s is almost $6/ea and I wouldn’t even consider them for a small project. Premium 2x4’s are $6-7. I wanted to do a project here this year but decided to wait.

[Jim Becker]

Jim,
I’m sure you know this already but don’t overlook the price of a shop build in the metrics of your decision. Material costs are insane right now. Advantech ply is $50/sheet now, a 2x4 from Lowe’s is almost $6/ea and I wouldn’t even consider them for a small project. Premium 2x4’s are $6-7. I wanted to do a project here this year but decided to wait.

Yes, that's already been calculated, but it's a good point to be included in the discussion. But also don't assume it will be a wooden building