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If I knocked on your door out of the blue, and told you that you are living in my childhood home and I want to buy it. I'll give you 6 months to find another place to live.
How much (percentage over) the fair market price would you demand? 10%, 50%?
10X the cost.
Assuming that this was your childhood home (it isn't unless it is build over burial grounds), there are two things that drive up the cost.
First, this is my first house and it is to be my last house.
Second, 6 months? That will be the third move in just over 2 years and I'm not ready to go through that, AGAIN.
If I knocked on your door out of the blue, and told you that you are living in my childhood home and I want to buy it. I'll give you 6 months to find another place to live.
How much (percentage over) the fair market price would you demand? 10%, 50%?
FMV on the house I live in is about $250k. You'd need to give me double that. Or you could take your chances, wait, and hope that we sell it some time and that you can afford to buy it.
I bought my childhood home from my mother and sold it in 2012 for fair market value.
So... to answer the question... I think a 15% premium would do it.
The buyer would also have to pay all of my incidental and moving expenses including packing, unpacking and cleaning.
They would have to offer A LOT of money. We FINALLY feel somewhat settled in this house and we ABSOLUTELY love it. I'm sure we could find another beautiful home maybe even one that I would love even more than I love this house. But, like I said, that person would have to fork over a hell of a lot for us to even THINK about it.
Now, if they offered to buy our other house-we would give it to them at market price. In fact, the house is going to go back on the market in a month or so if the sub-tenant doesn't buy it.
A million dollars isn't exactly a lot of money these days. Google alone makes over 9 billion dollars a year! How about one... hundred... BILLION dollars?
There are places where $1 million gets you an okay house that needs a little bit of work. (Obviously there are places where that would get you a castle with grounds, but there are places where that money doesn't go as far as you think it should.)
I'm never moving again. Expect to find my next house for me (to my specifications) and pack my house yourself.
Just so. Moving expenses could be a big percentage of the value of my home, and the last time I shopped for a replacement, comparable properties started around $1.2 million. In a few years I would love to downsize, but selling out now would far exceed my IRS homestead exemption, so they would have to pony up for the cap gains tax too.
Bought for 120K, could get 160K-170K right now, would sell for 200K for a "make me move" sort of situation. In fact I've thought about listing that number on zillow.
It's this, OP: unless I had already decided to place the property on the market and leave the area, I wouldn't want to move unless I was moving to a better house in a better neighborhood. There is no reason to move unless it is to better my situation. That means more money than my house is worth, plus all the closing costs for the one sold and the one I replace it with,. Plus the cost of moving and probably some cost for redecorating my new house.
I did have someone make what sounded like a good offer on one of mine last summer. Until I started looking to see what I could replace it with and the only way I could get an equal house, let alone a better house, was to move to a nearby less expensive city. When I sell, there are expenses, so I can't take all the money the house sells for to replace it. I am shopping for a replacement with less money than I received.
The house I am in right now will be for sale after the first of the year. So, you could buy it now with a very long escrow, or you could wait until after the first.
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