Well we did it. After going back and forth with the sellers for the last few days, we finally came to an agreement in price and have bought the condo next door to us.
This is how it worked out:
List price: $74,000
Our first offer: $62,000 plus $1850 from seller towards closing costs
Seller's Counter Offer: $69,000 plus $1850 paid toward closing costs (The sellers at this point said they wouldn't go any lower because they had a full price offer but the financing fell through so they felt they should be able to get more than this.)
Our 2nd Offer: $67,000 plus 3% of the cost of the house for closing costs. (At this point, I told our realtor we wouldn't go any higher. I don't care what other offers the seller had. That person couldn't get financing and we can.)
Seller's Counter Offer, again: $68,000 plus they would pay $2000 towards our closing costs.
And we ACCEPTED this morning. Home inspection is scheduled for next week. Our closing is scheduled for the beginning of July.
This was a scary step to take. It's a lot of money out of pocket up front but its something we have talked about doing for years. It feels great to finally take the next step and actually be doing it.
We have to put 20% down which will be $13,600 plus pay $300 for the home inspection and will probably have to pay another $1000 towards closing. That's more money than we have ever spent at one time on any one thing and is a huge hit to our joint savings account. We'll have more equity in the investment condo than we do in our own condo that we live in. And its funny that we are purchasing this condo for $68,000 and that is what we purchased our condo for 8 years ago.
Now that everything is in motion and we've come to an agreement on price, I don't feel as nervous as I did when we were going back and forth with negotiations with the seller. I'm excited to be a soon-to-be landlord and can't wait to be able to start advertising for tenants. One of my best friends has properties that her and her husband rent out and she has been a great source of information for me.