Forum Archive: Posts by: tiny_kitten

Hi… I’m a first time buyer in the middle of trying to negotiate for an apartment and am not entirely sure what to do. The sellers want more than I think I can pay. I’ve looked up comps very thoroughly and there are ones that support both of our positions. I could offer to meet the sellers between our two prices but I’m not sure how to determine if I can afford stretching my budget that far.

Without trying to cut back on my spending I pay rent and put aside to save an amount equal to 50% of my rent. So – I was hoping to pay 1.5x my rent since I’m certain I can do that. If I pay the price that is between their offer and mine, I’ll end up with monthly fees & mortgage expenses (before I run them through the PCA calculator) that are twice my rent now, or expressed differently, 50% of my post-tax salary or about 31% of my gross income.

I’ve read that spending 28% of one’s gross income is a good rule of thumb. Do I compare that to the amount I’ll pay monthly before or after factoring in what I’ll get back from taxes? I’m really not the best at figuring these things out. Can anyone help? Does anyone have a formula they recommend for determining what’s the max one can pay?

Hi!
I’m a first time buyer looking at an FSBO. I’ve been working with a broker up til now. Are there any big differences when dealing with the owner directly? Are we still expected to negotiate the price (ie should I offer slightly under what I want to pay). I’m assuming we write out an offer letter and then hand things over to our lawyers if the offer is accepted. Do you guys know of anything particular I should look out for doing things this way??

I’m about to make an offer on a condo and I’m not entirely sure how much to, er, offer. I know the current owners paid 430k four years ago and are asking 505k. They have done no improvements to the place – the kitchen needs a complete overhaul including appliances, and the bathroom at the least needs a new sink. I feel like I should be offering 450 and expecting 475 in the end. Does that seem right? I kind of feel like it should be less though since I have a friend who just bought in the same hood/same price and his place came with the renovations already done. What do you guys think? Please keep in mind that I’m a total noob at all this. Thanks for any advice you may have!