Question for all you investor buyers out here in the Puget Sound region: What has been the biggest challenge you have faced in this sellers market the last 3 months?
From up north, the over-inflated value individuals are giving their property. I've seen units that should be condemned and torn down going for over 200K because of "land value." Its horse crap, but it is what it is. I find it is especially bad in the multi-family, with 3-4 cap rates going for 600k+ with less than 4k gross rents. It is rediculous.
Hi @Robert Freeborn ,
That has been very frustrating to me and my buyers as well.... especially in the land arena. You can only sell a house there for $600k.... but the seller wants $300k for the lot..... those numbers do not work.
I had a seller tell me that he had 4 lots (NOT divided yet), and the houses would sell in the $650k region, and he wanted $1M for the land........ His argument was that the developer would make $1M off the sale of the other two houses once the first two sold and paid for the land....... Had no knowledge or understanding of the other costs involved in getting one lot to four smaller build-able lots.
I share your frustration in that area....
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