No caveats, but this game won't go over well if you make 50% low-ball offers and comments degenerate into a discussion of reality.
She's ugly as sin, but that's where I'd like to start to make her ours.
Original list price: $579,000
Current list price: $539,000
2010 BC-assessed value: $446,000
House square footage: 2560 finished, 273 unfinished
Lot size: 9000 square feet
Built in 1963, has 2-bed suite with separate laundry and meter
I'd do the deal at: $450,000, slightly more than 16% below the current listing price. Why I'd do it?
- it's a project to make it right for my wife and I
- the location, while not perfect, would likely work fine for the duration of our home-owning lives
- the suite income at that purchase price will be more than half the mortgage costs*
- the mortgage cost, without accounting for suite income, based on 20% down, 21 year amortization at today's 5-year non-discounted posted rate (5.29%) is manageable ($2,289/month) given our current incomes
- the actual mortgage product we'd use (closed variable at 3%* @ $1800/month) would allow us to make an extra $400 per month principal payment while maintaining other savings allowing us to reduce the mortgage to 16 years
What deal would you do?
UPDATE: must read in the G&M today The long shadow over Canada's housing market (H/T OMC)