premium for coh./dnpment/value
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] 
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