The House Ethan Chose and Why

The whole house hunting search started because rents are so high in Athens. Monthly budget was one of the major considerations. Would Ethan be able to afford the monthly payment, including the taxes and insurance, with one roommate? If he had a few months without a roommate, would he be able to float things until he got another roommate? However, we were also thinking through both the future rentability and resale of the home. At only 20, Ethan doesn’t know yet if he will be going to graduate school somewhere else or if a future partner or job will take him to another city. He needed to buy a home that would appreciate in value or be easily rentable for enough to cover his monthly costs plus upkeep.

As we first started looking for homes, we did consider condos. There were more condos in his price point but with the monthly HOA fees it often made the monthly costs more expensive than homes. Would condos increase in value in case Ethan needs to sell in several years and would rent for condos remain high? There are tons of apartments being built in Athens which could very well drive down the value, or at least stagnate the appreciation, of older condos. As the apartment housing supply goes up, rents might very well go down. It also became clear that Ethan really wanted a yard and liked some privacy. We prioritized finding a home.

The house in Crawford was a real contender with the low price of $175,000 and no major work needing to be done. However, the layout of the home was much more suited to a family than to a roommate situation. Plus, the distance from Athens also made it less desirable for a roommate. Just because Ethan didn’t mind the drive, it didn’t mean his roommate would be up for the longer commute. Part of why the price was low is because it is in an area that has lower house prices which would carryover if Ethan ever needed to sell it quickly. There just wasn’t much room for sweat equity.

The townhome near Georgia Square Mall was top of Ethan’s list even though it didn’t have it’s own yard. The price point would stretch his budget, but a roommate would be willing to pay a bit more because of the spacious bedroom and private bath. Buying a home in an area that is about to be redeveloped typically is also a good financial move. Newer properties will help drive up the price of well maintained older properties. Unfortunately, this home went under contract the day we first started even thinking of Ethan buying his own home. We didn’t have an answer yet on financing or what numbers would even look like. It is so important to start talking to a lender as soon as you think you might want to buy a home so you will be ready when the right home hits the market. The townhome ultimately sold for $5,000 over its list price at $230,000.

Ethan in his new house after renovations

The Athens A-Frame home was near a higher crime area, but when we checked the Athens Crime Map his street was crime free and tucked out of the way. It felt safe and friendly. Ethan really liked that it was close to work and UGA, loved the flat yard with a concrete pad screaming for a fire pit and big front porch and back deck. One of the biggest pluses though was the potential for more than one roommate since it had 3 to 4 bedrooms. With multiple roommates, Ethan’s monthly costs could be lower than current rents. And, its close location to UGA and potential for four students to rent it, meant that even if Ethan moved away, he should more than be able to cover the mortgage. A smaller, renovated home next door sold for $200,000 the year before. Since the house had been on the market a few weeks, and definitely needed updating, there was potential to negotiate some off the price of the home. I felt confidant that with some simple, inexpensive renovations, he could immediately increase the value of the home.

Ethan weighed all the factors and decided to make an offer on the Athens A-Frame house. He got it under contract under list price with the seller contributing $5,000 in closing costs. After the home inspection which didn’t turn up any deal breakers but some deferred maintenance items, we were able to further negotiate off the price of the home. Ultimately, Ethan paid $172,500 for his new house.

Next up, how did Ethan’s renovations go? I’ll be sharing how much we spent and what we ended up doing. Get ready for some before and after photos!