Hi All,
I am house hunting and have found a unit 1.4 miles from work. Where I live traffic is a real concern and I want to be as close to work as I can be. The commute for this unit would be super sweet and would not cross any major roads.
This is also the 'cheapest' unit I have looked at. It is a 1/1. Everything else is a 2/1 or 2/2, priced 30k+ higher, farther away (3+ miles), crosses major roads, and generally needs a lot of renovations in order to be livable.
The market is super competitive at the price point I'm considering ($160 or lower.) Most units have been in the $130-$145 range (and need major updates) and this one is listed at $110k (and needs almost no updates.) I've lost 2 other units because my bids were not high enough (I offered list price.)
The seller bought it for $75k and claims they put $25k into the unit in renovations. The unit appraised at $100k for another buyer whose deal fell through. The seller is unwilling to accept anything less than $105k. They claim they would be in the red below $105k. This unit would cost me an additional $5k in cash to purchase over the 80% mortgage ($25k total to close.)
Pros: super close to work (I could bike to work,) very inexpensive, smaller than other units (will help me keep my stuff collection to a minimum,) If I pay my current rent to the mortgage I would have this paid off in less than 10 years, it's almost completely updated so I won't have to do much (not very handy,) it faces the correct way so I wouldn't get too much afternoon sun, I would finally be done and settled in a home (I'm currently in an apartment and don't feel settled.)
Cons: $5k above appraisal, limited to no wiggle room if something comes up on the inspection (although there was no response to inspection on the previous contract,) I have been feeling a strong urge to get settled here (I moved across the country) but I don't want to settle for something because I'm desperate.
Questions:
- Are there ever times paying above appraisal is acceptable? The explanation I received for the lower appraisal is that due to limited inventory the appraisers don't have enough comps at the moment.
- Are there other things I'm not considering here?
- What would you do?
Other notes:
- Seller has said they might rent it rather than taking less than $105k - this might be a tactic
- I still have questions about the health of the HOA - so this might all be for naught once I get my questions answered about their budget.
- This area has the potential to be impacted by climate change, so spending less is ideal in case things really hit the fan and a future sale isn't possible
Thank you!
Kats