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Old 03-14-2009, 08:30 AM
 
1 posts, read 2,190 times
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I am considering making an offer on a house this week in the Broadview/Bitterlake neighborhood, just a few blocks west of Aurora Ave. I currently rent in Greenlake/Greenwood area, and I haven't spent much time in Broadview.

I am single, and the home is the perfect size for me. However, I will likely sell/upgrade within the next 4-6 years, so I'll want a property that I can resell.

Is Broadview a safe enough area? Do I need worry about being within a few blocks' walk of Aurora? Are the public schools in the area OK? Is there a strong sense of community in the neighborhood? What else do I need to know before deciding to buy there?

Thanks!
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Old 03-14-2009, 12:30 PM
 
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Seattlight, Most of the Broadview/Bitter Lake area is just fine, other than a tiny patch just off Aurora, and a tiny patch on Greenwood where there a few not very nice apartment buildings. But...home prices are continuing to drop, and seem to averaging a drop of about 1 percent per month, and it does not appear to be hitting the bottom anytime real soon. I'm not saying don't make this offer. I'm just suggesting that a 4-6 year timeline might be a little bit overly optimistic. For example, one entirely plausible scenario...you pay 350 thousand for this small house, putting down 70 thousand and 7 thousand in closing costs and loan fees. Four years from now you can only sell the place for 310, plus another 25 in closing costs and commission. After paying off the remaining loan balance which might be 260, you're left with 25 thousand, not good for someone who started out with 77 thousand. If you really like the house and are certain that you're getting it at a significant bargain, then your risk is minimized, and there are some good deals out there, but some of the traditional measures like home price to rent ratio and home price to median household income ratio suggest that prices haven't finished falling. If your real estate agent suggests that we've hit bottom, ask to see the evidence.
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