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More real estate doom and gloom

jimmydean

The Official Meat of Ridemonkey
Sep 10, 2001
40,945
13,138
Portland, OR
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.
 

rideit

Bob the Builder
Aug 24, 2004
23,067
11,304
In the cleavage of the Tetons
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

Harbinger of Doom
Oct 23, 2001
38,037
7,555
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

Bob the Builder
Aug 24, 2004
23,067
11,304
In the cleavage of the Tetons
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?
 
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Westy

the teste
Nov 22, 2002
54,241
20,025
Sleazattle
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.
 
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Westy

the teste
Nov 22, 2002
54,241
20,025
Sleazattle
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.
 

rideit

Bob the Builder
Aug 24, 2004
23,067
11,304
In the cleavage of the Tetons
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)
 

Westy

the teste
Nov 22, 2002
54,241
20,025
Sleazattle
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.