Here is the true story of priced out.
I sold a home in Jan/Feb 2017 for X amount. We initially purchased that home in Dec 2015 for X-250k. At that time, I wanted to tear-down and build the home with 500k cash. I may need additional 200k for safety in case I run out of cash.
There were two proposals, one tear-down rebuild to live (My proposal)
Or move the home to my son’s name so that he gets the benefits (either primary or rental) as I felt getting such home at X-250k in 2015 is a bonus. My son, being novice, refused.
There were lot of resistance to build a home, all family members except me, as I am novice in building.
In order to make profitable, I just sold at X price, took profit 200k after expenses. I paid of some of rental homes to make full cash flow.
Now, when my son accepted to own a home, we were even thinking to buy exactly similar home,10k lot, bid so far 5-7 homes with same price X, all are failed as the home went off 100k-150k over what we sold.
Recently , we visited the sold home location and entire family, including my sons, stunned to see entire home was tear-down and the new buyer building a brand new home 4400 sqft single story home. The new buyer will sell this home 2.5M+ for sure and make a good profit appx 600k-700k.
I was telling all my family members that I could have made such an excellent home for appx 1.6M had we not sold it. It was my vision to make it.
This is a lesson to show how we are priced out by our own action ! I still made profit and made progress.
I do not want to provide any address or location, either my sold home or bid homes, but this is ground reality in bullish seller market.
Here is the current picture of 4400 sqft single story being built now.