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Old 08-04-2021, 08:19 AM   #61
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EVERYTHING has a price!


Mike

Not to me....people that truly believe that are arrogant...I see the smiley so I'm not referring to you.
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Old 08-04-2021, 09:18 AM   #62
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Originally Posted by semtex View Post
My neighbor came over and offered to buy our house. I told him that we had no plan to move. He said he would like to pay some premium above the current market price.
I heard some rumor that my neighbor made some significant money last year.
My house market value is about 850K. the fee (realtor/gov/insurance) is around 55k. To have a slight better house in my neighborhood, in this hot market, it needs at least 10% premium, 85K. so the total is 990K.
Is this reasonable? The 990K could give him a shock. This 55K fee eats lot of meat. My net gain is 935K. Below this, I doubt we could have a better house.
We are neighbors about ten years. We get along well. Maybe I should just say no, but he was kind of eager to have my house.
Not sure how you calculated a $55k fee, including realtor, insurance, etc?
This would be a By Owner sale, and no realtor required. You can fill out a boilerplate sales contract, take 10% earnest money (that goes hard immediately), and have a local title company execute the sale. Normally both parties split their fee, which is fairly minimal. If you prepaid insurance or property taxes, you would have them reimbursed to you at closing.
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Old 08-04-2021, 10:51 AM   #63
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Seems silly. I assume you r happy where you are. If youíre going to get 1.5 mill, sure, move. Otherwise, moving sucks. Not worth it unless itís a stupidly high profit.
and maybe not even then cuz it's not always about the $. another poster wrote that everything has a price. that may be the rule but we're the couple that failed to read the rule book. we are very happy with our home and neighborhood and would not sell before we are ready to move for any amount. asking again after twice asking and getting a polite 'no' each time is aggressively rude and justifies an equally aggressively rude response. based on some of the responses in this thread we may be in the minority.
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Old 08-04-2021, 11:57 AM   #64
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I missed one thing. after we said no. he explained that he was buying for his parents, both early 80s.
that made me seriously think about it.
He's tugging on your heart strings. Trying to move you to agree. Since the market is hot now, he'll have to pay more. I agree that selling and moving sounds like a PIA.
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Old 08-05-2021, 10:15 PM   #65
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I missed one thing. after we said no. he explained that he was buying for his parents, both early 80s.

that made me seriously think about it.


Thatís very manipulative on his part.

I agree with those who say give him a firm NO, then do not participate in any further talk.
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Old 08-05-2021, 10:46 PM   #66
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It would take a huge premium over market to deal with the hassle/stress/irritation of finding a new place and moving. Over the years we have 'tuned' the house to our tastes and like the neighborhood. Plus, there is not a lot of inventory out there right now.

Yes, if someone offered 2X market we would have a serious discussion and probably sell...but that is pretty unlikely
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Old 08-06-2021, 01:27 AM   #67
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Tell him he couldnít afford to pay double what the house is worth as that is the only price that would tempt you to sell.
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Old 08-06-2021, 10:43 AM   #68
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It would take a huge premium over market to deal with the hassle/stress/irritation of finding a new place and moving. Over the years we have 'tuned' the house to our tastes and like the neighborhood. Plus, there is not a lot of inventory out there right now.

Yes, if someone offered 2X market we would have a serious discussion and probably sell...but that is pretty unlikely
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Tell him he couldnít afford to pay double what the house is worth as that is the only price that would tempt you to sell.
These mentions of "2X market" and "huge premium over market" are making me contemplate how much it would take to get me to sell my house. According to Zillow and similar tools, my house is currently worth about $400k. I have virtually no interest in looking for (or buying) another house, and even less interest in packing up and moving. So, how much money would it take to overcome all this and get me to sell? I honestly don't think it can be expressed as a function of the current value of my house. It's probably something more like "How many years of spending money (at my current annual spending rate) would be enough to compensate for the short-term pain, discomfort, and disruption of selling my house and moving?"

Off the top of my head, I think three years of spending money would probably do it. I don't carefully track my spending or have a detailed budget, but I think a pretty reasonable, rough estimate would be that I'm spending about $60-65k/year. Given that, I think if someone were to offer me $590k for this house, I'd probably give the offer serious consideration. Having that extra $190k in my bank/brokerage accounts would provide a really nice "fun money" fund to spend on various lifestyle upgrades, e.g., always flying first/business class on overseas trips for the rest of my life. Ultimately, this is the way I'd look at it if I were OP and received an unsolicited offer for my house.
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Old 08-06-2021, 10:48 AM   #69
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...According to Zillow and similar tools, my house is currently worth about $400k. I have virtually no interest in looking for (or buying) another house, and even less interest in packing up and moving. So, how much money would it take to overcome all this and get me to sell? I honestly don't think it can be expressed as a function of the current value of my house. It's probably something more like "How many years of spending money (at my current annual spending rate) would be enough to compensate for the short-term pain, discomfort, and disruption of selling my house and moving?"
.
What it should be:

Price of the house you'd be thrilled to move up to (not zillow price, but the highest of the last 3 sales in that neighborhood since that would be higher)
Add 10-15% to that to account for the time before you'd be able to put in an offer...and realize that everything is getting bid higher
Add the costs of a fully professional move, including packers and unpackers, insured
Add another 10% to account for any taxes, hiccups, new furniture you might need
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Old 08-06-2021, 11:03 AM   #70
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What it should be:

Price of the house you'd be thrilled to move up to (not zillow price, but the highest of the last 3 sales in that neighborhood since that would be higher)
Add 10-15% to that to account for the time before you'd be able to put in an offer...and realize that everything is getting bid higher
Add the costs of a fully professional move, including packers and unpackers, insured
Add another 10% to account for any taxes, hiccups, new furniture you might need
OK, if you say so. Although I have no first-hand knowledge of it, I believe what I've heard about the residential RE market being extremely hot right now.

Of course this is all just an intellectual exercise. The likelihood of anyone offering me $600k for my house is almost exactly nil. But it was fun to think about what it might take to get me to sell.
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Old 08-06-2021, 11:06 AM   #71
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OK, if you say so. Although I have no first-hand knowledge of it, I believe what I've heard about the residential RE market being extremely hot right now.

Of course this is all just an intellectual exercise. The likelihood of anyone offering me $600k for my house is almost exactly nil. But it was fun to think about what it might take to get me to sell.

Because of my broke friend I am watching the market he lives in MSP metro, many houses are just sitting on Zillow and I'm finally starting to see price drops.



I think we might have peaked, in our area anyway.. YMMV.
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