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Have people gone crazy?


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uhm.gifHave people gone crazy? In February, I bought a rural piece of property, no plumbing, no water, no driveways. no culverts, dirt road (but hard packed) and plenty of trees and vegetation. I paid heavily considering the man who had prchased it previously paid a tenth or maybe a fifth, He had bought several properties at the same time and price paid was for all,

 

Today I found out that the lot next to mine, same size, same conditions as far as I know, sold in July for $15,000.00 more dolllars. That previous owner got $17,000.00 profit in 11 months and there was one who got much more.

 

Has everyone gone crazy? Does everyone have so much extra money laying around that they can play with it? Or are people willing to take a chance of making big bucks? The way I see it, the only difference is that the trees and shrubs have grown taller and heavier. With city sized lots going for three times what I paid, guess it's the only way to go. uhm.gifuhm.gifuhm.gif

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Phyllis,

 

Having paid at least $15,000 dollars out for landscaping in the past two years I can answer, yes, trees do add a lot of extra value to a piece of property.

 

I look around in our neigbhorhood and wonder who all these young families can afford to buy here. We paid nearly 75% down and our mortgage for the rest is very managable. I don't see how these kids with their tiny down payments make it. Guess that's why both adults are working all the time. But what do we know. We're in our 60s buying our first brand new houses and they're in their twenties doing the same. Kids today can't wait for anything...got to have "new" right now.

 

Jean

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phyllis:

 

right now we are enjoying this real estate bubble, my hubby says we are wearing diamond studded underwear, but we have to wear it, can't sell it since everything has gone up so high in price, my niece paid 600k for 3 bedroom townhouse in NJ, if we get rid of this undie, won't be able to get new undie for the price we get, so we r planning to stay put, and ride with bubble

 

Asha

 

 

 

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I can't believe the prices now....houses have jumped so high I think everywhere since I watch the Home and garden channel ....

Even out here in this rural are.. I am so thankful we bought when we did. we bought raw land ...nothing on it...it has been a job in progress and now I am not able to help outside like I used to.

My "dream" was to keep all 5 acres, but have talked with John and we are going to keep everything on half and if they rezone from 1 house per 5 to 1 per 2 1/2 or 1 per acre..we could sell some off and this could be our nest egg....and as we "age" less would be easier.

Bonnie

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HEY PHYLLIS,

 

I AM A REAL ESTATE APPRASIER, AND WHILE I'M NOT FAMILIAR WITH YOUR AREA, WHAT THEY DID WHEN THEY BOUGHT THE LAND ALL AT ONCE AND DIVIDED IT AND RESOLD IT IS KNOWN AS "PLOTTAGE". LAND IS ALWAYS CHEAPER WHEN BOUGHT LIKE THIS. THEN, THEY HAVE EACH PACREL SURVEYED OUT SEPARATELY AND DEPENDING ON ANY IMPROVMENTS, AND ROAD FOOTAGE, IT IS ALWAYS WORTH MORE THAN THE ORIGINAL SALES PRICE WHEN SOLD SEPARATELY.

 

THE VALUE OF YOUR PROPERTY IS BASED ON A MARKET DERIVED OPINION OF RECENTLY CLOSED SALES WITH SIMILAR IMPROVEMENTS, LIKE YOU MENTIONED. SO, IF YOU HAVE AN EXACT PEICE OF PROPERTY LIKE THE ONES IN THE AREA, AND SAY THREE SOLD THEIRS FOR $15,000 LAST WEEK, THAT'S WHAT YOURS IS WORTH. HOWEVER, NEXT YEAR, IF THEY RESELL THE SAME THREE PIECES FOR $50,000, OR $10,000, THAT'S WHAT YOURS IS WORTH!!!!!

 

BASICALLY, WHAT THE MARKET IS AT ANY GIVEN TIME IS CHANGEABLE FOR VARYING REASONS AND BASED ON WHAT THE BUYING PUBLIC IS WILLING TO PAY FOR A SIMILAR PROPERTY. IT CAN GET CONFUSING, BUT THAT'S HOW IT WORKS, BASICALLY!!!!!

 

KIM pash.gifpash.gifpash.gif

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