House prices are crazy here.

NorthernRedneck

Well-known member
GOLD Site Supporter
Ok. So we are quickly outgrowing the 3 bedroom duplex I moved into last fall and are looking for a bigger place with more rooms. We found a nice house sitting on 1.8 acres of land backing onto a river. 1600square ft. 5 bedrooms. 3 baths. The asking price was $274,900. We prepared two seperate bids. One was lower if we were the only buyers. One was all in at $300,000. That's right...I said $300,000 bid on an asking price of 274,900.

First, lets back this up and set the stage on what the market is like here. It is crazy. People are putting their houses for sale, not doing any showings until a certain date, then not taking offers until a later date. Very competative. My fiancee's house was a 2 bedroom turn of the century home with a finished basement. We listed it for 132,000. Started showing it last friday. Did two open houses to reel in perspective buyers, then set a closing date for offers. We won't be seeing any offers until friday. There is a very good possibility that it will be going for much more than our asking.

Back to the house we're looking at/bidding on. We placed the bid and were outbid at $300,000. That is crazy. I come from a small hick town 3 hrs from here where a house has to sit on the market for a year and you end up losing half the value of the house because the market was soo bad there. We are technically still in the running for the house if the first buyers are unable to meet their conditions. I'm not holding my breath. Apparently, if the first buyer backs out and we get the bid, they want a condition in the offer to purchase that they can continue to list the house for sale even though they accepted our offer. That way, if they get another offer, we have 48 hrs to increase our bid. This would be in effect until the house is sold officially and all the papers signed etc. That doesn't quite make sense to me. It makes our offer not worth the paper it is written on. :ermm:

We went to 5 open houses yesterday in a two hr period. 3 of those houses sold during the open house. We had our eye on 5 houses that we were interested in seeing. They only came on the market friday. 3 of those are sold already. :sad:
 

bczoom

Super Moderator
Staff member
GOLD Site Supporter
Wherever you are apparently has an incredibly high demand.

Apparently, if the first buyer backs out and we get the bid, they want a condition in the offer to purchase that they can continue to list the house for sale even though they accepted our offer. That way, if they get another offer, we have 48 hrs to increase our bid. This would be in effect until the house is sold officially and all the papers signed etc. That doesn't quite make sense to me. It makes our offer not worth the paper it is written on. :ermm:
I'd tell them to stick it (the house, not the offer) up their asses. If they don't take your bid, walk away.
 

REDDOGTWO

Unemployed Veg. Peddler
SUPER Site Supporter
The market here is also out of whack. A house built in 1926 listed for 189900 and not that big. Any thing with a basement or upstairs goes for a minimum of $100 a square foot no matter what the age. A new one in a small town about four miles form the city is over 200K and only 1200 sq feet. The problem is it is not going to get any better here for at least five years, sold almost as soon as on the market unless really over priced.
 

Doc

Administrator
Staff member
Damn, I'd like to be selling in a market like that but surely not buying. That's crazy. Supply and demand at work.
I would allow them to keep showing but none of the one-upmanship with the bidding. If they accept your bid, fine, that price is good through your closing. If for some reason you don't buy they might have another prospective buyer already lined up. They still win one way or the other. To expect you to outbid anyone else who puts an offer on the house when you already have it in contract seems fishy to me. I wonder if that is even allowed here in the states?
 

Kane

New member
they want a condition in the offer to purchase that they can continue to list the house for sale even though they accepted our offer. That way, if they get another offer, we have 48 hrs to increase our bid.
That sux. To put a buyer thru the nail-biting scavenger-hunt financing process, and then accept another offer at the last minute, is really bad form. Been There. Done that.

That sux. Man's Greed knows no limits. Now the guv wants to loosen credit standards AGAIN (so the high-risk folks can buy houses AGAIN) which will put us right back where we were in 2007.
.
 

NorthernRedneck

Well-known member
GOLD Site Supporter
That's pretty much what it feels like. A nail biting experience for sure. I had never heard of that before where they accept the offer but continue to list it for sale and take other offers. To me, if they accept the offer, it's a done deal and the house is yours providing you meet all the conditions. I told my fiancee to forget all about that house even though it was perfect for us. Perfect size in a great location. We are slated to go tomorrow to see another 2 houses. Here's hoping.......

There are a lot of new houses going up here that are average 400+. Whole new subdivisions are being built. What doesn't make sense to me is that the population here has actually declined.
 

Kane

New member
That's pretty much what it feels like. A nail biting experience for sure. I had never heard of that before where they accept the offer but continue to list it for sale and take other offers. To me, if they accept the offer, it's a done deal and the house is yours providing you meet all the conditions. I told my fiancee to forget all about that house even though it was perfect for us. Perfect size in a great location. We are slated to go tomorrow to see another 2 houses. Here's hoping.......

There are a lot of new houses going up here that are average 400+. Whole new subdivisions are being built. What doesn't make sense to me is that the population here has actually declined.
It's best to go ahead and get prequalified up to your max credit limit with a bank of your choice. Then you'll be able to swoop into a sales agreement and schedule closing within 30 days, instead of the usual 90 days. The only missing pieces of the puzzle will be an acceptable appraisal, survey and inspection (if necessary) of the house.
 

Snowtrac Nome

member formerly known as dds
GOLD Site Supporter
that's kind of how it is here rent for studios is up to over a grand a month.
 

NorthernRedneck

Well-known member
GOLD Site Supporter
It's best to go ahead and get prequalified up to your max credit limit with a bank of your choice. Then you'll be able to swoop into a sales agreement and schedule closing within 30 days, instead of the usual 90 days. The only missing pieces of the puzzle will be an acceptable appraisal, survey and inspection (if necessary) of the house.


That's what we are currently working on now. We had two conditions on the purchase of the house. First was the sale of the other place(which will not be an issue after friday). Second being prequalified. (which should be no problem after friday as well).

Yesterday, we were having lunch and contacted our realtor about another house we wanted to go see. She set it up for us. Minutes later, she sends a text to get the deposit ready for the first house(which we love). Looks like the buyers first in line aren't going to meet their conditions so now its our turn. And by the look of it, we won't have any condiions.

We still went to see the other house though as a backup. We liked that one too but decided that we will pursue the first one while we have a chance. The first one is 600 square feet bigger and is sitting on a nice property. The second is nice and totally remodelled wth 5 bedrooms but is in town on a 50x115ft lot.
 

muleman

worn out farmer
GOLD Site Supporter
Groomer, get some land when you buy. You have too many interests to be cooped up on a tiny lot.
 

NorthernRedneck

Well-known member
GOLD Site Supporter
Groomer, get some land when you buy. You have too many interests to be cooped up on a tiny lot.

I agree. That's why we are pursuing the first one with the large property. With a camper, boat, 2 atv's, and whatever else finds its way home in the future, I need the yard space.:w00t2:
 

NorthernRedneck

Well-known member
GOLD Site Supporter
Just a quick update. We didn't get the first house we wanted. So, we kept searching and found another one we really liked. Went back a few times to see it. The more we went back, the less we liked it. There was simply not enough cupboard space for a family of 6. The rest of the house was alright. We passed on that house after much debate.

So we went to a few open houses and a few more showings and found another house that met all of our needs. It is in move in condition. Nice newer garage with a nice sized yard and big deck. We told our real estate rep that we'd like to make an offer right away. She contacted the other realtor. Too late. They had an offer already. So After another let down, we talked ourselves into the second house we liked. We called our realtor and were advised that it had a current offer in the works as well. So we were rather dissapointed to say the least. This afternoon, our realtor contacts us and says the deal fell through on the third house we really like and that we now have a chance at that one. Our bid on the house is in the works right now.

Oh, and somewhere in there, we managed to sell my fiancee's place last night. Her's was only on the market since april 5th.
 

NorthernRedneck

Well-known member
GOLD Site Supporter
The search is over!!! We have purchased a new home. It's nice! 1050 square ft with a 51.5x125 lot and 1.5 car insulated and heated garage!!! Large covered deck in the back. 3 bedrooms up and 1 down(will be 2 when I'm done). Fenced yard for kids to play in and still have room for my toys. We move in July since the owners asked for a later closing date as they are in the process of building their own home.
 

NorthernRedneck

Well-known member
GOLD Site Supporter
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Here it is. We met all the conditions today with a deadline of 6pm this evening. The house will officially be ours July 2nd.
 

NorthernRedneck

Well-known member
GOLD Site Supporter
Time is fast approaching for when we get the house! We've been busy packing for the past couple weeks. We get the house on the 2nd but will be away on vacation that week out at camp. We just have to come in to town to sign papers. When we get back on the 8th, I plan on spending the evenings during the following week over there painting and doing some very minor renos and moving the garage stuff over first.(hey....gotta have the important stuff there first, right?) It's only about 5 blocks from where we are living now. Even at that, I splurged and rented the largest moving truck I could find available for local moves and booked it for the 13th. We've got 3 small trailers but I'd rather just load up the truck with everything in the house, make one trip over, unload and be done with it. I learnt my lesson last year when I moved to the city. I worked my a$$ off for a month packing during the week and making trips to the city every weekend with a 10ft enclosed trailer. That was a 3 hr drive each way. 5 trips to the city moved all my things.
 

NorthernRedneck

Well-known member
GOLD Site Supporter
What a long day. Between walking the picket line this week, I've been bringing over loads of smaller items/boxes in dads enclosed 12ft cargo trailer all week. This was in preparation for today. I rented the biggest uhaul truck available and gathered a couple of other people to help. We started at 8:30am today loading the truck. By 1pm, I was ready to drive it over to the new place and start unloading. We had a friend helping me move the big stuff while the misus and one of her female friends from the church cleaned and packed the remaining smalls. Everything went smoothly until I stupidly locked the freakin keys for the moving truck inside the truck. Ah well. These things happen from time to time.

Of course not everything is unpacked but I'd say 95% of the stuff is moved now. Still a few things left to grab at the old place. I'm beat.
 
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