On Thu, 6 May 2021 09:56:29 -0500, Leon lcb11211@swbelldotnet wrote:

On 5/5/2021 6:47 PM, DerbyDad03 wrote:
On Wednesday, May 5, 2021 at 6:04:47 PM UTC-4, Scott Lurndal wrote:
nixie tube X11R6 widgetMichael Trew writes:
On 5/2/2021 3:43 PM, DerbyDad03 wrote:
What a crazy housing market this is! My #1 son and his GF just
found out that their offer has been accepted.

Here is how houses are being bought these days…

First, I should note that the submission period for offers was the 48
hours after the house hit the market. This was one of those listings
where all offers would be reviewed at the same time and the sellers
would choose the one that they liked the best.

Since my son and his GF are relocating to a different state, they
haven’t even seen the house in person. Just pictures, a video tour
and their agent’s assurance that the house was listed at a great
price, way under what she expected it to sell for. (She was right)
They submitted their offer within a few hours of the house being
listed. There was a total of 12 offers submitted in that 48 hour period.

They submitted an offer at full asking price ($370K), no contingencies.
The offer included an escalation clause. The escalation clause would
automatically increase their offer to $1000 more than the highest offer
submitted, but not to exceed $410K. They also included an "appraisal
clause" which stated that they would give the sellers up to $15K above
the appraised value, not to exceed $425K.

Their offer was accepted, not just based on the offer price, but also
based on the appraisal clause. Another offer also had an escalation
clause that maxed out at $410K, but the appraisal clause was only
$13K above the appraisal value, $2K less than their offer. That was
close!

So they may pay as much as $425K, but they may pay less than the
$410K if the appraisal is low – assuming it’s not so low that the seller
backs out. Their agent is sure that the appraised value won’t be low
enough for that to happen. The seller is moving out of town and needs
to get the house sold, thus the comparatively low asking price.

One other clause was a 15 day due-diligence clause, which was
accepted. Even though the offer was “as-is” and not contingent on an
inspection, they are still going to have one done and can use that to
negotiate repairs or get out of the contract if the seller’s disclosure form
is not accurate. They are hoping that at least one of them can be present
for the inspection.

If the house appraises at the $410K level, they will end up paying $55K
(15%) over the listing price. Holy crap!


Is this in California? The market is far different in rural eastern
Ohio where I live. I would live in my car vs. paying those kind of
prices for a house... my house is appraised at $40k - 2k sq ft home. I
paid $2k and change for it - foreclosure. $10K and sweat equity into it
- all I pay is $600 and change annually for property tax.
I believe "DerbyDad03" is somewhere in that area.

I see prices in Cadiz (picked at random) range from 40k for 1800sqft to
700k for 6000 sqft (413 N Main, cadiz).

https://www.realtor.com/realestatean...earch/Cadiz_OH

360 miles west in Indiana.

Hard to use a simple price/size comparison. Within 8 miles
$60K gets you 928 sq ft, $960K gets you 988 sq ft. It depends
on how much land you want. .5 acres or 38 acres.

The same holds for other house/lot sizes, of course.

The house in question is 2300 sq ft on 2.5 acres, at the end
of a cul-de-sac. Farm land on 2 sides. Selling price range on
Zillow is $314K - $423K They won't know what they will be
paying until the appraisal comes in. Add $15K up to a max
of $425K.



Some dear ex-neighbors of ours moved to to about 30 miles south of
Roanoke VA.
They are in a rural setting, beautiful green grass rolling hills, 13
acres with a creek at the back of the property and in the middle a 9200
sq ft 3 story home. $525K. They bought 18 months ago.

The nearest grocery stores is in Roanoke, right?