|premium for coh./dnpment/value||<– Date –> <– Thread –>|
|From: Judy (BAXTER%EPIHUBVX.CIS.UMN.EDU)|
|Date: Tue, 3 May 94 17:08 CDT|
Rob Sandelin wrote: The difference between the appraisal value and the actual cost must be made up by the buyer. This difference can usually be used as a downpayment amount. In a $120,000 home, the typical downpayment amount is 10% or $12,000. Many groups I am familiar with charge at least that amount, if not more ($25-35K) for pre-development costs per person. This is usually cash upfront for planning, land acquistion or site control, architects, lawyers etc and is required before a bank will loan a nickel on the project. These cost risks are what separate out the theoretical groups from the real projects. ====================================================================== It's an interesting question (values)to me (Judy Baxter). I think we have to keep in mind the difference between appraised value and value to us. As I understand it, the banks typically will only loan x % (frequently 90%, or less) OF APPRAISED VALUE. So if the actual costs exceed the appraisal, it means the down payment requirement is increased. If you can handle that, it should be o.k. (am i right, you experts, out there?) It's my impression that New View has a waiting list, so you should be able to tell US, are people willing to pay more than the appraisal? We aren't at that stage yet, for new homes, but may well have to face that problem. I think Rob is right that some of us are willing to pay more and put in lots of time and money, more than people just looking for a home, not valuing the community aspects. I don't really know how much my home in Monterey CoHousing is worth - and I hope not to find out by needing to sell it. I'm sure some people would not think it is worth what I paid/will pay (we don't know the total yet), and some would. I think, to look at the earlier question (Jim Salem: how much more would we pay) - it depends a lot more on our circumstances than the particular home. We have some very very small homes at Monterey CoHousing, and people willing to live in them. I don't know how many others would be. But they are very committed to living in a cohousing community. Judy Baxter, Monterey Cohousing Community,(MoCoCo) Twin Cities Area, Minneapolis/St.Paul Minnesota e-mail: baxter [at] epivax.epi.umn.edu
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