|Posted: January 3, 2016, 1:54 pm - IP Logged|
lol....the advantage of owning real estate is that you can list it for whatever you want....doesn't mean someone will pay it.
I have been looking at rentals in my area and I inquired about a house that is over 30 years old and property value assessed at only a couple hundred Ks. I couldn't believe the realtor is asking $3K a month to rent this place. It doesn't even have a garage. She claimed it has a market value of half a million. Would you believe people are actually stupid enough to pay the asking price to rent this place? The reason, apparently, is that it is located in a good school district.
On an unrelated note, I bought my first lottery ticket of the year today and won 3x my money (2x profit). No Powerball for me :)
Well that's definitely true. When I see ridiculous mark ups on properties for no apparent reason than the seller's greed, I know I'd personally shy away from doing any business with that person. I wouldn't be inclined to negotiate the price down, I'd simply look for something else. Making a great profit is good business. But when a mark up is to the point where it borders on insanity? I see that as so far north of greed that I question how ethical the seller is and what other unethical things might happen during the sale.
Now, higher than the norm prices for terrible properties because it's in a fantastic school system? That I get. I've seen enough obsessive parents do financially ridiculous things to get their kids into the best schools they can, so those prices in a high demand school district don't surprise me at all.
Watched an episode of House Hunters some years back and saw these people willing to spend over a million dollars for a 3 bedroom 1 bath tiny, unbelievably dated house just because of the school district. I thought they must be nuts. But I keep seeing stuff like that happen so that's what they're willing to pay. They aren't paying for the property, they're solely paying for the location.
I might wake up early and go running. I might also wake up and win the lottery.
The odds are about the same.