family pic

family pic

Saturday, May 2, 2009

152,000 turkey

this is a long post so beware ...

Nate & the two older yahoos went turkey hunting late thursday afternoon. i fully expected to not see them till late saturday night but by heavens grace they shot a wild one on friday morning and were home by 10am! isnt it beautiful! and so very very dead? i still am on the fence on so many hunting issues but i am so glad nate is home to work on house projects and happy or at least supposed to be happy! ... ok on to what ya all really want to know ...

the house .... so inspection and appraisal are done here at the current home but the appraisal paperwork is not in so we arent sure what it came back at yet but we think it will be ok. inspection is sort of on the fence too. there was nothing major and nothing deal breaking and the few minor things there were nate has already repaired without the buyers even asking for it. but the buyers havent even responded to the inspection report so thats kind of strange. anyhow i dont know why i am all skeptical all the sudden i know this is in the bag in my heart.

and the new house, so some background stats. the house was forclosed on owing over 200 grand. the banks initial listing was at 175, their first contract was at 158 which fell through due to the immense amount of work needed. we offered 135 with a 5000 kickback to help us with the cost of renovation. meaning we were really offering only 130 and with closing costs and agent fees etc.. they would walk away with closer to like 115. so they countered back 152 with no kickback of any kind, they wanted $1600 in ernest money rather then the $1500 we initially agreed to, no FHA repairs (hard to explain but very lame of them and unnecessarily complicating) and changed the dates to closing june 17th anytime before that ... well duh we were hoping to do a simultaneous close on may 21st. but whatever it made our loan denial deadline may 20th which is great we can pretty much back out whenever up to the very end of when we want to close and still get our ernest check back.

so the thought process .... after much thought about the 5000 kickback we calculated that its a $30 difference in monthly mortgage costs, not much but in the end paying only $30 a month on a $5000 debt is not smart. over the life of the loan (however short or long that may be) we would likely be paying a ridiculous amount over $5000. so we decided here as an opportunity to make a wiser decision. we worked some numbers to figure out if we could do the rennos without and decided we likely could if were were smart, frugal, thrifty, and creative so we sort of let that one go feeling like its in our best interest.

now to deal with the price ... are we willing to pay 152? well first we tried to find a lot in orem that was .38 in size in a location we desired for less then 200 grand. not possible. so obviously the land alone is worth nearly what they are asking. then we went back to how much would a house with 3300 sq feet meeting ALL of our requirments be? we have looked at a good few within our price range and non of them met our needs and most were in the 250-300 range that came even close. so how silly does it sound to pass up all our needs and 3300 sq feet for $152? pretty silly. so we didnt pass it up! we signed the contract. because the house is bank owned and because we didnt sign until the evening last night the house is not technically under contract until they receive the contract at the bank first thing monday morning ... but you know a technicality is all that is. still many a things have been changed by a technicality so i still feel on edge. i have a feeling i will feel on edge for the next 3 weeks to come!

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