Re: a strategy for affordability
From: Sharon Villines (sharonsharonvillines.com)
Date: Tue, 25 May 2010 07:16:47 -0700 (PDT)

On May 25, 2010, at 7:45 AM, Megan McDonough wrote:

Banks only want to mortgage houses that they will be able to resell if
forced to foreclose.  Banks may resist mortgaging super tiny houses.
However, if you are talking about super tiny - you may not need a mortgage.

Or be able to find a private lender.

Our smallest units almost always have bidding wars. We've sold 4 in the last two years. Three had bidding wars and one sold at what i think was an outrageous price -- 615 SF for $140,000 when two other units 625 SF sold within the last year for ~$87,000. The one that did not have a bidding war sold to someone who had been waiting for a unit for 2 years and he was generous. And had an immediate sale plus a comparable on the unit next door that was only a few months old.

The lower priced ones had no balconies and the higher priced one had a very small backyard and is on the green. $50,000 is still a high premium for that. He started at $97,000, I think.

There is a huge market for small units because people can afford them. Perfect for starter homes, singles, and the over 60s downsizing. Particularly if you don't entertain, which is what the CH is for. I have 825 SF and I get claustrophobic with three other adults or more than 2-3 children. Alone, it's feeling too big.

Sharon
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Sharon Villines
Takoma Village Cohousing, Washington DC
http://www.takomavillage.org





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