Housing prices have gone insane

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:To understand how these things sell quick here is an actual example. My old realtor had a old rich Greek man (has cash business) who like to buy homes under a certain price point cheap.

My realtor had authorization to do on the spot cash offers in certain instances and the man even gave her PA and a check book and she got 1 percent buyers commission. Deals as is cash and his lawyer does closing.

Pretty much the factor was land value. Any house prices at land value or less she wrote check on spot in a 20 mile radius in preset towns under certain price point. .She told me she would check every morning, at lunch time and at end of day 365 days a year. She often would get them pre listing or broker open house. She run as soon as listed or even heard a rumor. Many were her own listings.

Last i spoke to her in 2015 the deal was already 25 years old. She bought maybe 2-5 homes a year. He never tore a home done. Even crappiest smallest flooded out moldy cape his handiman fixed and rented no permits if possible. He is land value and rent roll. My math he is up to around 100 homes, mainly shoebox crap homes.

Folks like him set a floor on deals. He is the anti flipper anti hgtv man. One day his estate will unleash 100 Starter homes in poor conditions for one million each

Very smart and low maintenance way of preserving and growing wealth. But why doesn't he leverage? Maybe he just got too much cash...

Real estate is last great place to hide cash. Plus with closing costs and transfer taxes way cheaper to do cash. I sold my mothers house in an estate sale for $535k to a cash investor. I was shocked he owned a ton of business and said every six months buys a house around 500k to 600k cash as he builds up that much cash every six months and does not like stocks or bonds.

The problem is real estate isn't mobile like stock/bonds are...localities are starting to hike property taxes, specifically targeting investors (they provide breaks to owner occupied homes, 1 per person). There is a growing political bullseye being drawn on all real estate but especially rental/investment property, that makes me nervous.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You can easily put up a 6 bed, 6000 sqft house for $600k (see for example Focal Point). And bam you have a $1.8-2.0m house that you paid $1.6m for.

No you can’t.

PP is right. We did it in a similar area.

[Anonymous]

yes...yes they have. I purchased an investment property in April in Ashburn worried I had bought at the top. Took me until June to get it fixed up and rented. Not only did I have a over 2 dozen applications, the rent got bid up (people fleeing dense areas and apartments due to the pandemic) also during the rental process i had unsolicited offers to buy it 25k over the price I offered in March when it went under contract. I could have sold it with renters in it! Absolutely bananas!

[Anonymous]

Yes, real estate is going nuts. Buy in college towns as they always have tons of students looking for rent.

[Anonymous]

Anonymous wrote:Can this house really be worth $1M ?
https://www.zillow.com/homedetails/6312-Kellogg-Dr-Mclean-VA-22101/51756381_zpid/?utm_campaign=iosappmessage&utm_medium=referral&utm_source=txtshare

Back on the market.

[Anonymous]

Typical old boomer farts who bought their house cheap decades ago selling them way overpriced to young families, and people wonder why everyone is struggling.

[Anonymous]

Anonymous wrote:1/3 acre inside the beltway with McLean schools? I think OP is the realtor listing his fire sale house. That’s very cheap.

I agree and I live in 22101.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Can this house really be worth $1M ?
https://www.zillow.com/homedetails/6312-Kellogg-Dr-Mclean-VA-22101/51756381_zpid/?utm_campaign=iosappmessage&utm_medium=referral&utm_source=txtshare

Back on the market.

Maybe the previous buyer read this thread and got cold feet.

[Anonymous]

House in Olney on not a great street had an under contract sign in 2,3 days. It has a pool. I can see why people need a pool for kids when nothing else is happening! House just like that one, on the same street, took several weeks to sell in the spring.
https://www.zillow.com/homedetails/4250-Briars-Rd-Olney-MD-20832/37205540_zpid/

[Anonymous]

Anonymous wrote:Typical old boomer farts who bought their house cheap decades ago selling them way overpriced to young families, and people wonder why everyone is struggling.

Isn’t that what a market price is all about? You want them to give you their houses for free?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Can this house really be worth $1M ?
https://www.zillow.com/homedetails/6312-Kellogg-Dr-Mclean-VA-22101/51756381_zpid/?utm_campaign=iosappmessage&utm_medium=referral&utm_source=txtshare

Back on the market.

Maybe the previous buyer read this thread and got cold feet.

Or maybe it didn't appraise

[Anonymous]

Anonymous wrote:This is McLean. Even if not zoned for Langley HS, this school pyramid is good enough to justify a premium. 1M seems about right.

Lmao no it doesn’t. Absolutely no public school justifies that price for that house, get real. McLean High is only a 7/10 anyways

[Anonymous]

Anonymous wrote:

Anonymous wrote:Typical old boomer farts who bought their house cheap decades ago selling them way overpriced to young families, and people wonder why everyone is struggling.

Isn’t that what a market price is all about? You want them to give you their houses for free?

No. But why do they think a house they paid way less for is worth 1M? Apparently they’re the ones that want free money. Especially considering that quality of life in America has been on the decline in a lot of ways because of the screwed up system, why should I have to pay even higher prices than they did?

[Anonymous]

Anonymous wrote:

Anonymous wrote:This is McLean. Even if not zoned for Langley HS, this school pyramid is good enough to justify a premium. 1M seems about right.

Lmao no it doesn’t. Absolutely no public school justifies that price for that house, get real. McLean High is only a 7/10 anyways

It’s regularly rated the #3 or #2 high school in Virginia.

https://www.usnews.com/education/best-high-schools/virginia/rankings

And of course the prices reflect the location as well as the schools.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is McLean. Even if not zoned for Langley HS, this school pyramid is good enough to justify a premium. 1M seems about right.

Lmao no it doesn’t. Absolutely no public school justifies that price for that house, get real. McLean High is only a 7/10 anyways

It’s regularly rated the #3 or #2 high school in Virginia.

https://www.usnews.com/education/best-high-schools/virginia/rankings

And of course the prices reflect the location as well as the schools.

Whatever. Nothing will justify living in this $1M shitshack in a 7/10 school district, living a miserable and depressed lifestyle. Private schools are a thing, and anyone able to afford a million dollar house can certainly afford a private education that is significantly better than a 7/10 school district. This oversaturated real estate market is not going to last very long, especially with COVID permanently changing the nature of jobs. It’s so expensive right now because the inventory is low, but eventually these shitshacks will depreciate to what they’re actually worth...shit.