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2010-01-22 06:36:31
Cost vs. Value, Financing Can Add Value to a Home

The Mortgage Terms Can Add Value to a Home; Trade Your Current Home For This New One!

We have a listing in Eden.  It is a beautiful home for sale and it is new construction.  It has a great kitchen and great room, and has never been live in.  It is minutes away from some of the best skiing and snowboarding in the country.  It is located in the Preserve which is a new and upcoming neighborhood in what resident’s call the “Valley”.  As people come to Utah to enjoy our winter sports and venues they often find time to drive around to see the local real estate and are surprised at the values they find in comparison with other major ski areas.  For example, I received a call from one out of state buyer as he called from our yard sign.  He even had asked an agent to show him some homes which the agent did.  Afterwards he did some additional driving on his own and find this home.  We sent him a virtual tour link of the house and we continue to converse about a possible offer.

In this conversation we talked about the price of the home (its actual listing amount of $465,000) vs. the value of the home which can be viewed differently.  For example, when the home was in the pre-construction stages it appraised value was $700,000 because the market was better at that time.  The market at some time will return to normal so any purchase of this home now would put a buyer into an enviable position to gain some equity relatively quickly.

Another value for this property is that the seller (Golden West Credit Union) has special financing for 4.99% for a qualified buyer.  This very competitive rate would make the monthly payment $2,167 with property taxes, principle, and interest on a 30 year amortization schedule.  When we talk of cost we have to also consider not only the price of the home but also the price of financing.  This home has both a great cost and value ratio.  To further add value, Golden West is willing to take a trade of a buyer’s current home to move up to this home.  That means a home owner owning a $275,000 to $350,000 home now could trade up to this home in the Preserve in Eden without worrying about selling their home now.  Given this market, that would be a great benefit to a buyer of this home because they wouldn’t have to worry about selling now.  It is easy to see how having great financing will add value to a home just as much as the price of the home?

Steve Harney, one of our Leading Real Estate Consultants, recently explained in one of his blog posts how Interest Rates Effect Your Mortgage Payment.  For more detailed information on Cost vs. Value please read his information.

For up-to-date information on this home please contact me!

Previous Blogs on this home

This blog posted by Steve Randall

 
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