An Offer

image from matchbook magazine dec, 2011

I put in an offer on the North Stonington Farm this afternoon!

I couldn't help but smile as I autographed the contract about 25 times.  I feel really good about the offer.  I know that the owners aren't going to accept it, but I'm hoping they come back with a reasonable negotiation.

My saint of a real-estate agent met with a team of advisors and spent the day crunching numbers on the house.  They estimated the current appraised value (it was last appraised in 2005), did a market analysis of comparable homes on the market as well as comparable homes that have sold in the past year, and compiled everything into an easy-to-understand chart.  Nothing makes this girl more confident than submitting an offer with a chart to support it.

One of the hardest things about determining whether or not I could actually afford to purchase a farm was that I couldn't find any finances to compare to.  I understand that finances are private, but I wanted to share where I am at in the process.  Please don't use these numbers to judge - this is only what I (and my growing team of advisors) think will work.

Asking Price: 399,000 for sale by owner (originally listed at 680,000 in 2009)
Appraised Value: 349,000 (2005, before market crash)
Maximum Loan Amount through USDA FSA Program: 300,000
Comparative Market Analysis - Average: 273,000
My Offer (12.5.11) - 265,000

My real estate agent has a meeting with the homeowners late tomorrow afternoon, and they have until this Saturday to respond.  Neither of us have any idea how it will go, but I will admit that I'm excited.  It's only an offer, but it's a really solid step in the right direction.

I know I've been doing a lot of finger crossing lately, but this time it's for real!  :-)