[jimmydean]

The zombie house that was vacant for 5+ years due to owner in prison will be on the market again soon. Seems there is a curse or something seeing how it sold 3 years ago at auction for $175k, flipped for $310k, divorce caused sale a year later for $325k and new owners just split and are moving out. See what they list it for, our hood has slowed a bit this Summer.

 

[Pesqueeb]

https://www.reuters.com/article/us-usa-economy-housing/u-s-existing-home-sales-fall-for-third-straight-month-idUSKBN1KD1SJ?il=0

 

[rideit]

So, my wife's friend just sold their house on 1/4 acre in town for $1m, with a rider that if the deal falls through by next June, they walk with a clean $100k, no strings attached.
The buyers are an investment group that bought it to scrape, the house was/is a prefab POS.

Granted, our friends over payed for it in 07' for 700k, but that's a decent return for 11 years.

 

[Toshi]

So, my wife's friend just sold their house on 1/4 acre in town for $1m, with a rider that if the deal falls through by next June, they walk with a clean $100k, no strings attached.
The buyers are an investment group that bought it to scrape, the house was/is a prefab POS.

Granted, our friends over payed for it in 07' for 700k, but that's a decent return for 11 years.

Uh, that’s 3.5% per year.

 

[rideit]

Which is FAR better than losing it all, and selling at the bottom of the market, which a lot of people were forced to do.

 

[Westy]

Uh, that’s 3.5% per year.

3.296%

 

[rideit]

How is $300,000 dollars 3.29 percent of $700,000?
PLUS the $100,000 clean if the deal falls through?
(They had this offer in 48 hours, they will just put it on the market again..)

I'm no mathametician...is it the annual thing?

 

[Westy]

How is $300,000 dollars 3.29 percent of $700,000?
PLUS the $100,000 clean if the deal falls through?
(They had this offer in 48 hours, they will just put it on the market again..)

I'm no mathametician...is it the annual thing?

(10/7)^(1/11)=1.032956


or Original Price X (1+ interest rate)^years = today's price


Solve for interest rate:

Rate =-1 + (new price/old price)^(1/years)

I too am no mathematician, but I did go to middle school.

 

[Pesqueeb]

(10/7)^(1/11)=1.032956


or Original Price X (1+ interest rate)^years = today's price


Solve for interest rate:

Rate =-1 + (new price/old price)^(1/years)

I too am no mathematician, but I did go to middle school.

This shit right here is why I'm an aircraft mechanic.

 

[rideit]

OK, but that is still a 28% return overall, it just took some time.

 

[Westy]

OK, but that is still a 28% return overall, it just took some time.

Did they have a mortgage? What was the interest rate, probably not even close to a 28% return.

 

[rideit]

All good points, I don't know.

 

[Pesqueeb]

Soon®

 

[Nick]

our market here in town is cooling significantly, but only inventory. anything on the market properly priced is gone in no time.

 

[Adventurous]

House we sold at end of June is down 1.1% over the past 30 days after climbing the entire time we owned it. Perhaps our timing was near perfect...

 

[johnbryanpeters]

House we sold at end of June is down 1.1% over the past 30 days after climbing the entire time we owned it. Perhaps our timing was near perfect...

Could be signal, could be noise.

 

[StiHacka]

This no good for the market. https://www.cnbc.com/2018/07/26/international-buyers-are-dropping-out-of-us-housing-market.html

 

[Pesqueeb]

This no good for the market. https://www.cnbc.com/2018/07/26/international-buyers-are-dropping-out-of-us-housing-market.html

And the current political climate in the U.S. also should not be overlooked.

Talk about burying the lede.

 

[rideit]

Hey, Sqeeb, more 'Gilded Age' economic indicators...

https://www.forbes.com/sites/keithflamer/2018/07/29/this-1-billion-beverly-hills-estate-is-los-angeles-most-expensive-ever/#433457e45599

 

[Pesqueeb]

Buy high, sell low!

 

[Pesqueeb]

https://www.marketwatch.com/story/housing-market-has-hit-a-significant-slowdown-in-recent-weeks-redfin-ceo-says-2018-08-09

 

[SkaredShtles]

Buyers are finally getting exhausted of the horseshit?

 

[Westy]

Buyers are finally getting exhausted of the horseshit?

Foreign buyers/investors have pretty much dried up overnight. I think a lot of owners who rent out homes have decided to sell as prices have peaked and rent has been dropping.

 

[Pesqueeb]

Hey, Sqeeb, more 'Gilded Age' economic indicators...

https://www.forbes.com/sites/keithflamer/2018/07/29/this-1-billion-beverly-hills-estate-is-los-angeles-most-expensive-ever/#433457e45599

Related?

 

[gonefirefightin]

I got priced out of my little town in less than a year, rent got raised every year for the last 5 years in a row. What was a 200k property in January is now a 320k property? guess living in a van down by the river isn't so bad after all.

 

[SkaredShtles]

I got priced out of my little town in less than a year, rent got raised every year for the last 5 years in a row. What was a 200k property in January is now a 320k property? guess living in a van down by the river isn't so bad after all.

It's not...

 

[Westy]

I got priced out of my little town in less than a year, rent got raised every year for the last 5 years in a row. What was a 200k property in January is now a 320k property? guess living in a van down by the river isn't so bad after all.

Patience, it will be a $120K property in due time.

 

[johnbryanpeters]

https://www.weichert.com/72043326/

 

[Pesqueeb]

https://www.weichert.com/72043326/

That is fucking awesome. Except for the whole being in Arkansas part.

 

[rideit]

House six doors down fron us sold for $869.
Bubble is still in effect here.
As the realtor put it, "That piece of shit split level sold, I can't believe it"...

It is the same model as our house.
(Except we gutted it and rebuilt it)

 

[StiHacka]

That is fucking awesome. Except for the whole being in Arkansas part.

Meh, looks like a glorified tornado shelter. Makes sense if you hate windows though.

 

[SkaredShtles]

Meh, looks like a glorified tornado shelter. Makes sense if you hate windows though.

I'd rather have a Hobbit hole.

 

[Pesqueeb]

Good news for @Westy!

https://www.seattletimes.com/business/real-estate/seattle-home-prices-drop-by-70000-in-three-months-as-market-cooldown-continues/

 

[Westy]

Good news for @Westy!

https://www.seattletimes.com/business/real-estate/seattle-home-prices-drop-by-70000-in-three-months-as-market-cooldown-continues/

When you consider that property taxes just went up an average of 1k/year, interests rates have increased and SALT deductions are less advantageous compared to previous years, people are still paying more for a house at a similar rate, sellers are just getting less of the cut.

I have a couple of friends who recently bought, they certainly did not feel like they buying in a correcting market. They ended uo in Everett for price reasons, a fate I would wish upon no one.

 

[Pesqueeb]

Time to sell this bitch and get out!

 

[SkaredShtles]

Time to sell this bitch and get out!

Sell while hot... rent downtown until things drop?

 

[Pesqueeb]

Sell while hot... rent downtown until things drop?

Try to time the market and guarantee that things stay hot for at least the next 5 years?

 

[SkaredShtles]

Try to time the market and guarantee that things stay hot for at least the next 5 years?

Yeah. Timing the RE market is a fool's errand for sure...

 

[rideit]

Time to sell this bitch and get out!

Love that they show a strip mall as a defining photograph.

 

[Pesqueeb]

Love that they show a strip mall as a defining photograph.

It was either that, or a really bad chain restaurant.