Assignment 1: Make an Offer on a Home
Case Study: You and your spouse, both in your 40s, work at the University of Washington at the Seattle campus. You have two children. Your annual household income is $280,000 (after tax income of $210,000). Non-housing expenses per month are approximately $8,000, which includes $2,600 of reoccurring debt. You have $120,000 in savings for closing costs and a downpayment. Your aim is to allocate up to 3% of the purchase price for closing costs and use the rest for the downpayment. You plan to stay in the home for at least five years. Your credit score is 790. Search for a home in the Seattle area that fits within your budget and is located within commuting distance of your place of work.
Address of Property (2 points)
Please provide the full address of the property.
Web Link of Property Listing (3 points)
Please provide the link to the website where you found the property. For example, this may be the listing on Zillow, Redfin, or Realtor.com.
Affordability Analysis (15 points)
Describe the method(s) you used to determine how much house you can afford. This can be any of the methods from the readings, online affordability calculators, or other methods you have identified. It is recommended you use more than one method to determine an affordability range.
Offer Price (15 points)
Determine a price that you are going to offer for the home. Describe how you decided on the offer price. What market information did you use and what other factors did you consider in the price determination?
Home Selection (10 points)
Describe why you selected this home and what factors you considered when searching for a home for your family. Discuss the tradeoffs you had to make in order to find a house that fit your budget while still meeting your needs.
Earnest Money Deposit (5 points)
Determine an amount for the earnest money deposit. Describe why you selected that amount and the benefit or consequences of offering more or less for the earnest money.