Thursday, August 7, 2014

House Update - Appraisal

Phew, buying a house is daunting. I should know this, it's practically my third time doing it but being the only one signing on the dotted line has become a tad overwhelming. I'm starting to realize that the 650 sq ft I live in right now is really not that small after all - having my laundry 2 steps from my bedroom is actually quite convenient. I'm a tad nervous about having almost 2200 sq ft (plus a basement, which I have heard you are not technically suppose to count - but add another 941 sq ft to that last number if you dare) to not only decorate - but to also clean, furnish and the most important, pay for. Between application fees, inspection fees, appraisal fees, insurance premiums, another fee to get something from the city that says they'll allow me to rebuild if the house burns down because it's less than 50 feet from the road, I'm wishing my savings account had been a bit stronger before I dove into all of this. Hate to say but my dad was right, I should have kept a better cash stash. But what's done is done, let's move on!

Sidenote: I've debated using actual numbers when talking about the house and I think it's important because not only will you see I'm not buying a lavishly priced home, but my goal is to keep all of my projects within an attainable budget (I won't be spending 5k on a new stove - I spent $630 on a new one actually, from the clearance and damaged section at Lowe's no less) and feel that numbers are important.

I was anxiously awaiting the appraisal and that came back this week. Here are the numbers.

$85,000 Purchase Price
$5,000 Credit from seller
$30,000 Repair estimate for required repairs
$120,000 Appraised Value

The required repairs include: fix the foundation, repaint the entire exterior, repair all windows, repair the roof, replace the gutters, replace the furnace and water heater and a few other small things the city says I have to fix. My financing is through the Neighborhood Finance Corp and they provide a $10,000 forgivable loan (over a 5 year period) to use towards repairs the city deems necessary (because it's a city funded program). They also offer the option to borrow up to 95% of the appraised value so I also plan to borrow an additional $15,000 so I can finish up these large repairs that I can not (or do not) want to do myself; some things are best left to professionals that you could sue if you needed to. 

So that's where I am right now. Bleeding money and crossing my fingers this is not a sign of what is to come.

1 comment:

  1. Fingers crossed!! So excited to keep up with your new project and come visit along the way!!!


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