Home Buying in Ewa Beach>Question Details

Investment?, Home Buyer in Ewa Beach, HI

I`m about to purchase a brand new home..but the asset value is $10,000 less than the asking price..do i buy the home?

Asked by Investment?, Ewa Beach, HI Thu Jan 14, 2010

The bank will finance the asset value of the home

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I think you've stated that your purchase price is $10,000 above the assessed value (your terminology of asset value is unclear). If this is the case, you must ask yourself why you want to buy this home instead of another one where the price might be equal to or lower than the appraised value.

It may be that this home is special to you and well worth paying more than the appraised value. Only you can make that determination.

Phil McCollum
BRC Realty Group
0 votes Thank Flag Link Fri Jan 15, 2010
There are several things to consider:
1. How does your home compare to others (try to compare 3 BR/2 baths with 3 BR/2 baths, interior unit, same square footage, lot size, etc.).
2. Any improvements since the home was built? These can affect the value a lot without increasing assessed value.
3. Do you like the home and more importantly can you afford it?
4. Why did you choose this area? Have you tried the commute during rush hour?
5. What is the trend for home values there? You can take the percentage of the final sales price to the assessed value to give you one ratio. There are other ways to compare as well.

Call or email if you have questions.
~ Frank Diaz, MBA (RA), e-PRO
East Oahu Realty
808.723.0900
0 votes Thank Flag Link Fri Jan 15, 2010
Do you mean assessed value or appraised value? The bank financing is based on appraised value. Do you have enough cash to make for the difference between the price of the home & the amount the bank will finance?
Your ability to purchase the home will depend on your answer to the second question. If you have the money to make for the difference, you have to make the decision for yourself whether you want the property or not. Have you looked at other homes in the area? In the same price bracket, is the new home the best one for you?
0 votes Thank Flag Link Thu Jan 14, 2010
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