06-10-1985 Council Packet - Laserfiche WebLink

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Mayor Mary C. Butler and et. al. June 5, 1985 Page Four b.) We had not met nor had any connection with the sellers, Erik Lee Elstad and Jerielynn Ruth Elstad, before we viewed the house in the purchase process. We saw them but twice, at the viewing and at the closing, and we have not seen them since. The sale was handled through a realtor. It was an arms -length sale. c.) As we were moving into the area from out-of-state and needed a place to live, we, unfortunately, did not inspect the prop- erty as thoroughly as we should have. Since we purchased our home, we have become aware of a number of problems with the house which now make it apparent that we paid too much for this property. Sc-,e of these problems are: the roof vents are inadequate and havE caused moisture staining on the ceilings; there were no storm doors; the house n• ided painting both inside and outside; the roof raf!ers are under -sized for the span and the roof is now sagging; there is in- adequate insulation which causes increased heating and cooling ex- pe. es; in addition to the roof vent moisture problems, there are other moisture problems giving rise to mildewed u.-ji., ,3per and car- peting; there were no handrails on the staircases. d.) The personal property which was included in the sale was a water softener; two refrigerators; a 12 H.P. John Deere lawn tractor with a 36 inch mower attachment and a 42 inch snow blower attachment; a double oven/range; lighting fixtures and bulbs; car- peting; (1- peii_es and curtains; mirrors, garage door opener and dual cc 3, etc. The value of those items which was set forth on the icate Of Real Estate value which was executed at the closing .000.00. However, at that time we did not understand the legal ition of personal property and now that we are know- ledgablE i t area we believe that the value of the personal property ir, Aed in that sale was substantially higher. e.) The price we paid for this property, real and person- al, was $165,000.00, which consisted of the payment of $71,606.14 in cash and the assumption of the unpaid balance of a mortgage in the amount of $93,393.86. This mortgage had an interest rate of 8 3/4% which definitely made us willing to pay an appreciably higher price for the property than we felt it was worth. The fixed rate conventional mortgage rates at the time of our purchase was 14.75%. This 68 spread in interest rates over the remaining 23+ years of the term of the mor tge gave rise to a difference of $393.26 per month in payments a to a total of $110,112.80 over the remaining term of the mortgage. When one applies the mathematical formula to ascertain the "present value" (which is monetary equivalent of the amount of money it would require at the time of our closing to give rise to that total amounti the result is nearly $33,000.00. This calculation does not take into account the "points" we would