Am I about to pay too much for my new house?

Asked by Kevin Hayes, Wed Jun 19, 2013

I'm looking to buy a new house. This is new construction listed at 283k. After we negotiated, I agreed to pay 274k. The house is 3 bd, 2.5 bath in 30064 (Marietta GA) sq ft is 2,582 and the house appraised for 279k. The same floor plan sold for 258k back in January of this year on a smaller lot. The house I'm going after is on a "premium" lot (driveway is longer than all others in this 31 home subdivision and can accommodate up to 6 cars whereas the others only accommodate 2). Thoughts?

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Ron Thomas’ answer
Ron Thomas, Agent, Fresno, CA
Wed Jun 19, 2013
Sometimes we are obsessed with buying things at the lowest price possible; it is part of our culture and most businesses drum it into our heads.
If you pay $274, and it appreciates at 5% per year, it will be worth $385 in seven years.
If it averages just 6%; it will be worth $412,000.
Do you see why we say that Real Estate is a long term investment.

Aside from that; you are obsessing on the price, and didn't say a word about what a great neighborhood, or how the house is perfect for your family: What's really important to you?
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Thu Nov 21, 2013
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Patricia Joh…, Agent, Atlanta, GA
Fri Aug 9, 2013
Sounds like a winner to me, your answer lives inside your question. Most people get cold feet after signing the dotted line. It's called buyers remorse. Believe me lots of home buyers question the decision they make when it's such a major decision a high dollar amount as well as the years attached to this decision. A good home is hard to find...you stated its lower than the asking price a premium lot accommodating 6 cars. uuuggh if you don't want to continue I have some clients waiting for such a deal. Email or call me if you don't continue in it please. Prices have gone up in the area since January because there is low inventory and people are paying above asking price for homes especially foreclosures. Thanks for allowing me to share Hollywood 678 502 8238 or hollywood@kw.com
0 votes
Hank Miller, Agent, Alpharetta, GA
Wed Jun 26, 2013
Me thinks you thinks you are and me thinks you probably are as well. A 3BR home to boot?

There are several things amiss that you already know and it seems like you're looking for someone to reassure you. That "premium lot" babble is complete nonsense, just a sucker line to make you pay more. I'm an appraiser as well as agent - since 1989 I can't recall making an adjustment for a long driveway. The agents/builder upsold you.

What is your agent telling you?
Web Reference:  http://www.hmtatlanta.com
0 votes
Bruce Ailion, Agent, Marietta, GA
Wed Jun 19, 2013
It sounds like you added a lot of upgrades given the price difference between list and final price. Understand these are personal expenses. Years ago you could choose to buy a car without power steering, power breaks, air conditioning and automatic transmission. These were considered personal choices. A buyer buying a basic Ford got the same car as the person getting a loaded Ford. Did the loaded buyer over pay? The loaded buyer realized they would not recover the full value of the added items added for personal comfort. So to it sounds as your situation.


Bruce Ailion,
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0 votes
Bob Southard, Agent, Kennesaw, GA
Wed Jun 19, 2013
I agree with Robert that for that much money you might want a four bedroom. other than that your appraisal came back for more than what you're buying it for so what's the question? You're getting a fair deal . a good buyers agent will walk you through these questions before the point of getting to a contract..
0 votes
Robert A Whi…, Agent, Roswell, GA
Wed Jun 19, 2013
Yes I have many thoughts - first and foremost, you should never go into a new home purchase without a very experienced Buyers Broker. Asking about all these figures is impossible to answer without seeing the home and doing background work.

If I were going to spend $275K on any home, it would have 4 bedrooms not 3 bedrooms - you will find it much harder to sell a 3 bedroom in the future.

As for premium lots - that is in the eye of the beholder and often there is nothing special about the lot - its often just another way to jack the price.

Hope you aren't making a big mistake.

Best,

Robert Whitfield
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