Ive posted this as well on the journal section in my journal but hoping to get broader community feedback here. My partner and I have just seen a house today that has come up that we are really interested in. Its 3 bedroom 2 bathroom and 2000 sqft in the Kootenays in BC where we live. Its about a 10 minute walk to town but just out of town on roughly 1/2 an acre. The house itself is exactly what we would want, we wouldnt want to change a thing about it. It also has a garage, a greenhouse, and the ability for us to have a tiny home on it if we want and chickens. Its currently priced at $439k.
The downsides are its on a community well and septic system, it is part of a rural neighborhood but has a lumber yard and mechanic close by that could be a bit noisy. Its not a bad location, but it isn't the most ideal. The other downside is it would be about a 10 minute bike to the trail network (far considering where we live).
It just went on the market yesterday and I am trying to decide the best offer to make, as we are strongly considering making an offer. When we look at BC assesment (what the government values the property at) it comes in at $360k. The BC assesment is also dated back to July meaning interest rates have risen since then which means the property could be valued lower or a potential market correction would happen in the further.
Im inclined to offer somewhere between $380-$400k, houses have recently have had a pattern in our market of sitting for 2-3 months and selling for $20-$40k under asking. I think we would feel comfortable offering $400k to guard ourselves a bit against a potential market downturn, and knowing that price is probably more in line with the appraisal value. $400k woudl also be a pretty manageable housing cost for us given our income.
Right now I am inclined to go $400k on a 25 year amoritization at our current pre approval rate of 4.9%. with a 20% down payment of $80k. Also willing to provide the added bonus of the seller picking their closing date as we have a flexible rental situation. Obviously our offer would include contingiencies on septic inspection, home inspection, nd financing.
Talk to me about:
-Is 20% the right amount to put down, why or why not?
-Is 10% below asking on the second day on the market a non starter for the seller?
-Any advantages to 30 yr amoritization? Or any other mortgage tips?
-Im also not immune from recieving additional housing advice as we are first time home buyers
