erscheint go to the end of the clause, or does it switch places with
es to be the second idea?
The word order is correct (note the missing comma as mentioned in the other answers.)
This is an unintroduced subordinate clause. In its introduced form (e.g. introduced by the subordinating conjunction
dass), the word order would switch to the following:
Ich weiß, dass es seltsam erscheint.
In this case the two forms can be used interchangeably. The only slight shift to the meaning that I would see is that the introduced form emphasizes the fact that you know that its strange.