1) She was paying $1700 in rent for a decent unit in Midtown (but, still a lot of money). the buyer got into contract for $122,750 on a 1890’s Victorian home (just what she dreamed about!). Here housing payments were going to be about $730/month.
2) We got into contract before April 30, 2010 as to qualify for the Federal Tax Credit of $8000.
3) We closed after May 1, 2010 so to qualify for the $10,000 Tax Credit from the State.
4) The appraisal came back at a value of $105,000, so the seller was compelled to come down to that price. Now her payments will drop below $650/month!
Let’s do the math… About $18,000 savings on the purchase price (with a lower deposit amount), $18,000 in tax incentives – that’s a nice, quick $36,000.
5) The home inspection came back very clean and the pest inspection had minor work needed. A few bonuses: We found out that the foundation was redone at some point in the last 10 years; The roof was only about 1-year-old; There is hardwood underneath the laminate overlay, which is part of the buyer’s dream too!
Congratulations Laila! I look forward to champagne this afternoon.
Keith Klassen – Real Estate Broker