Home I Sold Just Re-sold for Another $105,000

[Chris Pascale]

I sold my house in Sept, 2020 for $430,000. It sold again in December, 2021 for $535,000. He did some work (new fence and leveled backyard), but the place still only has 1 bathroom, and the 5th bedroom isn't really a bedroom.

The home I live in is supposedly worth 40% more in under a year.

A home across the street from me has the following sales history:

 - 2003: $446,000
 - 2012: $440,000
 - 2022: $640,000

[JAYSLOL]

That’s nothing, lol.  I’m in BC, Canada, 10 years ago a house we looked at, but couldn’t quite afford went for $350k, 3 years ago it went for $550k, and this year it’s $1M.  I’m thinking we won’t be buying that place anymore. 

[Paper Chaser]

There's a home on my street that sold for $240k on 11/15/21. It's a well kept, solidly built home but was a tad dated inside (90s era). Whoever bought it painted some interior walls with more neutral colors, laid new vinyl plank flooring, then listed it for sale again on 1/21/22 for $290k. They had an accepted offer in 3 days.

[nereo]

We’ve seen some insane jumps in properties here too… one home we looked at sold in 2019 for $275k. It went back on the market in 8/2021 with maybe $20-30k worth of renovations. It
We were outbid and it ultimately sold for $415k, just 26 months later.

[Dicey]

There's a home on my street that sold for $240k on 11/15/21. It's a well kept, solidly built home but was a tad dated inside (90s era). Whoever bought it painted some interior walls with more neutral colors, laid new vinyl plank flooring, then listed it for sale again on 1/21/22 for $290k. They had an accepted offer in 3 days.

After fees and carrying costs, that's a pretty slim margin.

[FINate]

We bought our house in Boise right before the pandemic hit in early 2020. In two years it has appreciated a little over 50%. Too much too fast, would prefer prices stagnate for a while or even decline a bit to teach speculators a hard lesson.

[nereo]

We bought our house in Boise right before the pandemic hit in early 2020. In two years it has appreciated a little over 50%. Too much too fast, would prefer prices stagnate for a while or even decline a bit to teach speculators a hard lesson.

Kinda how I feel about the stock market too…

[Paper Chaser]

There's a home on my street that sold for $240k on 11/15/21. It's a well kept, solidly built home but was a tad dated inside (90s era). Whoever bought it painted some interior walls with more neutral colors, laid new vinyl plank flooring, then listed it for sale again on 1/21/22 for $290k. They had an accepted offer in 3 days.

After fees and carrying costs, that's a pretty slim margin.

Possibly. Not sure who paid closing costs on either end of the deal. It's the same realtor that sold it in Nov and listed it in Jan, so it wouldn't surprise me to find out there's some kind of discount going on there.
I looked at the pics of the current listing again, and they left the original carpet in most of the rooms. I see a new backsplash in the kitchen, some new interior paint, and vinyl plank in the kitchen. Not sure if they DIYd the limited work or paid a pro, but either way there's likely no more than $5-7k worth of work there (it's a LCOL). Taxes are $1000/yr. Utilities in a house with well/septic that nobody is living in are probably under $200/mo. Insurance for a couple of months might be $500. Obviously there are a lot of important details missing that could really alter the rate of return, but for the limited amount of work done I wouldn't consider $50k gross to be bad. Even if they clear $20k on the deal that's pretty good for a week of leisurely work over a 2 month time frame in a location where mean income per capita is below $30 grand/yr.

The larger point is that here in the middle of nowhere, somebody looked at this house and decided that a little paint, a backsplash, and inexpensive kitchen floors could make the house worth $50k more than what they paid for it. And then less than 3 months later, another person (the new buyer) seemingly agreed with them. The sale in 2021 was basically average for $/sqft for the neighborhood so it wasn't priced at a bargain before the "flip". Now they're cool with a 20% increase. If that represents the new going rate per sqft here, then my house is about to jump 200k in value

[Weathering]

I’m surprised that the appraisals are keeping up with the sales prices. Back in the 2005 housing bubble the appraisals were sometimes coming in under the sale price and that caused issues (until the banks started offering loans at 120% of the appraised value). Recently, I haven’t been hearing of appraisal issues so I’m wondering if appraisals are even relevant anymore?

[FINate]

We bought our house in Boise right before the pandemic hit in early 2020. In two years it has appreciated a little over 50%. Too much too fast, would prefer prices stagnate for a while or even decline a bit to teach speculators a hard lesson.

Kinda how I feel about the stock market too…

True. This applies to any asset class that's expected to only ever increase in value. It's our own collective fault that we keep conditioning people to make this assumption. But the whole real estate as a speculative "investment" is particularly bad since shelter is a basic human right and people are increasingly priced out.

[Mr. Green]

Homes pretty much everywhere popped 20-25% last spring from the combination of low interest rates and skyrocketing lumber costs. I'm not surprised at the figures you see.

[tct]

I’m surprised that the appraisals are keeping up with the sales prices. Back in the 2005 housing bubble the appraisals were sometimes coming in under the sale price and that caused issues (until the banks started offering loans at 120% of the appraised value). Recently, I haven’t been hearing of appraisal issues so I’m wondering if appraisals are even relevant anymore?

Most winning bids are cash offers or enough cash to waive appraisal.

[nereo]

I’m surprised that the appraisals are keeping up with the sales prices. Back in the 2005 housing bubble the appraisals were sometimes coming in under the sale price and that caused issues (until the banks started offering loans at 120% of the appraised value). Recently, I haven’t been hearing of appraisal issues so I’m wondering if appraisals are even relevant anymore?

Most winning bids are cash offers or enough cash to waive appraisal.

On the last place we purchased we wound up including a waiver promising to cover the difference up to $30k if the appraisal came up less than the loan amount.  Another way that having assets allowed us to be in a position of strength.

However - it appraised as expected, and the comments from our lender were basically "everything is appraising right now, they are just running 7-10 days later than normal".  It's supposed to be an independent process but it certainly doesn't feel like it is.

[JAYSLOL]

I’m very much regretting not buying an amazing property I was renting 3 years ago, landlord wanted to just let it go for what he owed on the mortgage.  I passed because it was more property than I wanted to look after and the $400k he wanted, while a very good deal was on the high end for us at the time.  3 years later and the property is worth a million dollars.  So that’s probably my biggest financial mistake up to this point.  Had no clue just how much values would skyrocket here. 

[joenorm]

I’m very much regretting not buying an amazing property I was renting 3 years ago, landlord wanted to just let it go for what he owed on the mortgage.  I passed because it was more property than I wanted to look after and the $400k he wanted, while a very good deal was on the high end for us at the time.  3 years later and the property is worth a million dollars.  So that’s probably my biggest financial mistake up to this point.  Had no clue just how much values would skyrocket here.

Everything is crystal clear in retrospect. I should have bought everything and anything in my neighborhood before the pandemic. I would have been rich.

[clarkfan1979]

I’m very much regretting not buying an amazing property I was renting 3 years ago, landlord wanted to just let it go for what he owed on the mortgage.  I passed because it was more property than I wanted to look after and the $400k he wanted, while a very good deal was on the high end for us at the time.  3 years later and the property is worth a million dollars.  So that’s probably my biggest financial mistake up to this point.  Had no clue just how much values would skyrocket here.

No one is perfect. However, as a lesson to everyone else, if a landlord offers to sell you a rental house at a discount that you currently occupy, you buy it. You continue to live in it for another two years and then sell it tax free. If you don't buy it, there is a good chance you are going to have to move when the house goes up for sale.

I am looking at mountain properties in Park County, CO (about 30 minutes south of Breckenridge). A house sold for 351K in July 2020. Now 18 months later the new sellers are asking 605K and will probably get it. That's an increase of 72% over 18 months. As far as I can tell, no improvements were done.

[theoverlook]

I’m very much regretting not buying an amazing property I was renting 3 years ago, landlord wanted to just let it go for what he owed on the mortgage.  I passed because it was more property than I wanted to look after and the $400k he wanted, while a very good deal was on the high end for us at the time.  3 years later and the property is worth a million dollars.  So that’s probably my biggest financial mistake up to this point.  Had no clue just how much values would skyrocket here.

Everything is crystal clear in retrospect. I should have bought everything and anything in my neighborhood before the pandemic. I would have been rich.

For sure. So many "I should have bought that" moments have happened in the last few years.

[joenorm]

I’m very much regretting not buying an amazing property I was renting 3 years ago, landlord wanted to just let it go for what he owed on the mortgage.  I passed because it was more property than I wanted to look after and the $400k he wanted, while a very good deal was on the high end for us at the time.  3 years later and the property is worth a million dollars.  So that’s probably my biggest financial mistake up to this point.  Had no clue just how much values would skyrocket here.

No one is perfect. However, as a lesson to everyone else, if a landlord offers to sell you a rental house at a discount that you currently occupy, you buy it. You continue to live in it for another two years and then sell it tax free. If you don't buy it, there is a good chance you are going to have to move when the house goes up for sale.

I am looking at mountain properties in Park County, CO (about 30 minutes south of Breckenridge). A house sold for 351K in July 2020. Now 18 months later the new sellers are asking 605K and will probably get it. That's an increase of 72% over 18 months. As far as I can tell, no improvements were done.

Semi-local sale I just noticed: $392K in 2020 just sold for $700K less than 2 years later. Smaller home, no improvements.

[ChpBstrd]

This whole thread is screaming at me "GTFO!"

[Telecaster]

We bought our house in Boise right before the pandemic hit in early 2020. In two years it has appreciated a little over 50%. Too much too fast, would prefer prices stagnate for a while or even decline a bit to teach speculators a hard lesson.

In 2019, the wife and I were looking buying a rental in Boise with an eye on perhaps retiring there.  Even then it didn't make sense.  We want to remain in the west, but it seems like there aren't any low cost towns anymore.

[Tyson]

Same thing happened in my neighborhood in west Denver.   When we bought the place 7 years ago it was $450k, then when my wife left 3.5 years ago it was $700k (and I had to buy her out if I wanted to stay here).  Now it's $900k and rents in this area are insane.  Not only that, it looks like the upward pull is going to continue as they are knocking down houses left and right, and putting up giant mansions in their place.  Crazy.

[FINate]

We bought our house in Boise right before the pandemic hit in early 2020. In two years it has appreciated a little over 50%. Too much too fast, would prefer prices stagnate for a while or even decline a bit to teach speculators a hard lesson.

In 2019, the wife and I were looking buying a rental in Boise with an eye on perhaps retiring there.  Even then it didn't make sense.  We want to remain in the west, but it seems like there aren't any low cost towns anymore.

Yep. We didn't buy in Boise because it was cheap. We love the sense of community and civic pride, the proximity an urban downtown and nature, and the overall lifestyle the place affords.

There are still low cost towns (relatively speaking) in the west. These tend to be small, geographically isolated, and have limited amenities like diverse dining options (mostly meat and potatoes kinda thing) and such. Basically, they're great if you're a homebody and/or really love the great outdoors.  Places like La Grande OR, Baker City OR, and Salmon ID. Somewhat larger cities with more amenities that are still fairly affordable include places like Idaho Falls and Pocatello ID.

[Dicey]

This whole thread is screaming at me "GTFO!"

And go where?

As a homeowner and LL, these prices make me laugh in the face of inflation.

[waltworks]

My house more than doubled (from a cool million bucks, no less) in one year during the height of the Covid remote work madness. In the ~2 years since the start of covid it's up something like 150%, give or take.

If the CA, NY, and TX people would all pack up and leave I'd be happy to hand back the equity.

Get ready for a totally frozen market once rates get a little higher and nobody can qualify for a loan, but sellers don't want to cut their prices.

-W

[ChpBstrd]

This whole thread is screaming at me "GTFO!"

And go where?

As a homeowner and LL, these prices make me laugh in the face of inflation.

The laughter turned to tears in 2008. The things to GTFO of were everything but cash and treasuries. I don't have the guts to do that now, but that's the message I hear when people are bragging on the internet about their six-figure paper gains on house prices, in an environment of rising interest rates and low affordability.

[jinga nation]

Get ready for a totally frozen market once rates get a little higher and nobody can qualify for a loan, but sellers don't want to cut their prices.

There's hardly any inventory in my area. 1100 people per day moving to Tampa Bay. You have tons of corp relocations here. The software/IT/CyberSecurity sector is booming here, as well as healthcare.

People are buying homes sight unseen for cash, then moving here. Unknown who da faq has 500-800k cash, but I'm seeing listings going pending under 4 hours. Closings in 15 days.

My wife has been tracking some homes that we were outbid on pre-Covid. They've been flipped in under 2 years for 40-50% more.

Locals are selling and moving out of state; many are in the skilled trades.

[iris lily]

We have a house listed close to $1 M on my block.

When we moved in decades ago,  needle addicts lived in the homesless shelter across the street and street people regularly broke into the boarded up houses two doors down from me.

I THINK our house is worth a leeetle more than when we bought it. Haha.

[YK-Phil]

In many areas of Canada, the markets are absolutely overheated. We just sold our vacant acreage on Gabriola Island for almost four times what we had paid for it in 2015. When we bought it, the prices were ridiculously low compared to the "mainland" and elsewhere in BC. Our original retirement dream was to build a nice net-zero house in the forested area of the property and do some permaculture and raise a few animals in another part, but at some point in the past few years, we realized our dream did not check all our boxes even if it is one of the nicest in the country. Every year especially at land tax time, I lamented to my wife how much this place cost us for nothing...Now even after factoring carrying costs, annual expenses, and about $20Ks of improvements I did over the years, we are in for a big capital gain -and a good tax bill for 2023. We received four offers within the first 24 hours, all well above the listing price, and took the best non-conditional offer since we want to put a cash offer on a small house on Mexico's Pacific coast where we've been living since 2020.

[Dicey]

This whole thread is screaming at me "GTFO!"

And go where?

As a homeowner and LL, these prices make me laugh in the face of inflation.

The laughter turned to tears in 2008. The things to GTFO of were everything but cash and treasuries. I don't have the guts to do that now, but that's the message I hear when people are bragging on the internet about their six-figure paper gains on house prices, in an environment of rising interest rates and low affordability.

Hmm, I owned two homes in 2008. I wasn't crying, because I'm a mustachian.

Have you tried to get a mortgage since 2008? Lenders have toughened up their standards. Stated Income (aka Liar's) Loans don't exist any more. Hell, FIRE folks with high net worth can't get mortgages easily without an actual pay stub. Buyers have a lot more skin in the game. It's going to take a lot more to cause people to walk away from their homes the next time the markets face a serious downturn. Even job loss might not be the whammy it once was, now that so many jobs are remote.

Oh yeah, if you bought a house any time between 2008 and about mid-2013 in CA, the value has more than doubled. And that's without doing a thing to it.

[LearningMustachian72]

I’m very much regretting not buying an amazing property I was renting 3 years ago, landlord wanted to just let it go for what he owed on the mortgage.  I passed because it was more property than I wanted to look after and the $400k he wanted, while a very good deal was on the high end for us at the time.  3 years later and the property is worth a million dollars.  So that’s probably my biggest financial mistake up to this point.  Had no clue just how much values would skyrocket here.

Where if you don’t mind?