It's official, homes are like ammo

[Wakey]

Lumber costs are through the roof and I’m sure COVID reduced new home starts. So there is a lack of inventory which makes a seller’s market.

My neighbor intends to sell their home on 10 acres. It was part of my property before I arrived. The previous owner of my home built it for his mother. The current owners are building a new home across the street on Granny’s property.

I want to buy it but I’m curious what she’s going to want for it. How much did it appreciate? They aren’t planning on hiring an agent so that should keep a bidding war from starting.

 

[MossRoad]

Our area is experiencing similar. As MossRoad pointed out there are many reasons. Building materials are also very expensive right now. This also is weighing into the equation.

Around here, many realtors are convincing their prey to put in offers with zero conditions. The home inspections are not being done so people are paying more for houses and getting surprising bills for expensive repairs after they move in. If you have a home with some major problems, now is the time to sell it!

That reminded me that my sibling said there was no home inspection required by the purchaser of her house! YIKES!

Here's a quote from their text to me:

"Tough buyers market. Stuff is gone in a day. Sold mine in one day, too. Great price. No contingencies. No inspection, no survey. Month free after closing. More if I need. 2 folks got into bidding war."

 

[oosik]

Around here - 9 acres with a livable house for 200K. You could be prosecuted for stealing.

 

[Sigarms]

If you have a home with some major problems, now is the time to sell it!

I could never sell something knowing that I have issues with what I'm selling without being straight up with the buyer on what those issues I'm aware of. It would be nice if I didn't know of any issues, but generally I know about them if they exist

 

[Sigarms]

"Tough buyers market. Stuff is gone in a day. Sold mine in one day, too. Great price. No contingencies. No inspection, no survey. Month free after closing. More if I need. 2 folks got into bidding war."

To me, that's like finding out after the fact that you have an easement on your driveway or you now belong to a HOA.

 

[MossRoad]

To me, that's like finding out after the fact that you have an easement on your driveway or you now belong to a HOA.

Funny you should mention that.... they have an easement on their driveway, there is an HOA, and they have three sump pumps in their basement, 1 of which runs pretty much continuously after every heavy rain. They bought the house about 15 years ago during a divorce. I'd have told them not to buy that house. Most of the groundwater/drainage issues have been dealt with properly since then. Still, I'd hope that they listed those issues when sold.

 

[Muhammad]

Those prices are just the down payment, right? This is from my neighborhood... just in case you wanted to feel better about the prices where you are.

 

[ericm979]

A house in Berkeley recently sold for $1M over asking price (which was $1M). That house may well have been priced low and the realtor was certainly good at getting buyers into bidding wars.

A lot of well off tech workers are moving. Some are going out to rural areas north of SF or east in the Sierra foothills to get away from the city. Some are moving from south of SF in what's traditionally the suburban Silicon Valley to SF or Berkeley to get closer to a city. Some people in tech are buying 2nd homes in remote areas. All this is driven by people and their companies realizing that they can work mostly or totally remotely.

This isn't limited to SF or tech, its nation wide.

I'm a little ahead of the curve since I started working mostly remotely four years ago. We had road outages and the only way into work was very long, so I told them I'd be working from home. When the roads were fixed I kept doing it.

If my wife was up for it, I'd be one of those people moving to the Sierras, only it'd be moving back to the Sierras for me.

 

[MossRoad]

Those prices are just the down payment, right? This is from my neighborhood... just in case you wanted to feel better about the prices where you are.

View attachment 693624

Knock off two of those zeros and you have my neighborhood.

 

[MoKelly]

Don’t forget the stock market impact.

Fortunes have been made by simply investing in the S&P 500. If you were into tech stocks it’s a fortune x 2.

And you didn’t even need to be smart. My kids, when in teens, HAD to have Apple stuff. Anything with an Apple logo was gold. Not only my kids, but all their friends.

So, I buy Apple stock.

10 years later —-

I did zero to earn that money. Zero.

MoKelly