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I'd suggest looking for someone who is accustomed to teaching piano skills to entering music majors at the college level

Good idea. We live in a college town.

I know what you mean about the investment. I'm hesitant as well, exceot for a couple things:

1. We were very close to just paying for "the rest of" her (nice) rental instrument. $450. It's hard for all of us to say goodbye to it, and regular music. We have all thought about it what this means, her most of all. She says--I will not play it alone. It's an ensemble instrument. I will play piano alone. We should spend money on a piano. I can't argue with this. It seems right.
2. My parents have a decent piano and she seriously looks forward to visiting THE PIANO with almost as much excitement as looking forward to seeing them. Yes, she has a keyboard, but it's not very good and the full, nice-sounding piano really makes her happy.

I mean, we are not buying a concert grand, though. Can I buy a semi-decent used piano for $500 or is that a ridiculous pipe dream? Weird fact--my dad is a self-taught piano tuner (owns all the tools) who hasn't practiced in years. Is he actually trustworthy? IDK, but he's sort of a freaky autodidact. He's probably pretty good.