What a Day!! More House Updates

Well, we got it right.

Our final offer and the offer of the other buyers were almost IDENTICAL, down to the closing date.

We had these two small advantages:

1. They liked our letter :-).

2. We had offered a higher down payment, making things a bit more secure. Actually, I put in for a higher down payment than our own agent had first suggested, as I wanted to make this a competitive offer and had a strong feeling, given the high interest in the house, that this kind of thing might be coming into play.

So they leaned toward putting us in first position.

Only problem is that we had marked that we were going to do a lead inspection. In our state, once an inspection is done, it goes on state record and by state law you MUST get the lead removed. From their perspective, the concern was that if the sale fell through at some point before closing, they'd be stuck with a lead record on file at the state and obligated to deal with it.

So they asked if we would be willing to put off the lead inspection until after the closing. Eyyyyeee! This made me nervous.

If we said yes, that we would put it off, we'd go into "first position," they'd accept our offer, and the other buyer would be the backup. But, it would also mean there would be no possible negotiation for shared cost toward lead abatement, and worse...that we wouldn't be able to back out from the house if we find out the abatement would add up to $50,000 or something! Once we buy it, we are after all, sort of stuck with it.

If we said no, that we needed the inspection done pre-sale, it would mean they'd put our offer in as a backup offer and accept the other buyer's offer. So, quite possibly, we wouldn't get the house.

I quickly called a de-leading agency and got a cost range that is typical for houses of this age and type in this condition in our area. Of course it can vary, widely, so I asked about best and worst case scenarios.

Then I called the foster licensing office, and they said they are not currently requiring de-lead certificates. The woman I spoke with basically indicated that we'd be okay. She just warned me that I would be legally liable if any child in my care got lead poisoning (and they DO do regular lead testing here on all children by law).

She said to make sure that all potential sources of lead were as encapsulated as possible, and to check through the house during the other inspections and make sure that as many things as possible were updated, ranging from replacement of doors and windows to no peeling paint, etc...I think we should be okay on that front (the house has almost all new windows, etc.). We should even be able to avoid an inspection entirely.

So we told the sellers that yes, we'd hold off on the lead inspection, if we end up doing it, until after closing.

They also asked us if we knew about the fact that the roof is old (we had a good feeling it was) and if we knew about the asbestos in the basement (we did...it appears that it is likely all encapsulated). We said yes, and then we received word that they would be accepting our offer.

At 10 minutes before 5pm, I got the fax signing off on our ammended offer. But they also added "All home inspections are for informational purposes only," and were asking for our initial of agreement.

Wow! We weren't expecting that. Talk about elation followed by complete confusion. Say what?!

We pressed the pause button.

I went and talked to our agent in person. Basically, the sellers have a backup offer, and more folks eager to write offers. The house has been shown non-stop since going on the market. They don't feel that they need to get involved in a bunch of petty negotiations after inspection.

Honestly, even if they didn't put that sentence in there, they'd have a total and complete upper hand in negotiating because of the interest in the property and the secure back up offer. So even without the statement added in, its not like successful negotiation is much of a possibility for us in any case.

That said, though the bid document does later state that we have the right to withdraw our offer based on an unsatisfactory inspection within a two day period after the inspection, I felt that the add-in sentence was contradictory, and I didn't want any legal questions to arise about whether one nullifies the other. So before intialing, I wrote in: "However, buyer has the right to withdraw offer based on any unsatisfactory home inspections." Precedent in real estate law should cover the rest. I just felt that my addition to their unexpected addition was a safety measure.

Of course, if there is a major issue (like say, if there is termite damage to the house), as my agent explained today, we'd still try to negotiate it. The fact is, if this was discovered, the sellers would have to take care of it, whether we were the buyers or not. They'd have to disclose the finding to the next buyers, and it's not like a bank would fund a loan for a house with termite damage, so the next buyers aren't likely to pick up the sale at that point. So, *that* kind of thing-- the major stuff-- we'd still be in a position to push a little.

But anything else that might come up during inspection, we have to decide whether it is worth the low-for-area-and-condition-of-the-house sale price or if we will need to pull out.

As seems to often be the case in selling and buying homes, it now "all comes down to inspections."

Awe, more nail biting.

I am sooooooooooooooooo now on the edge of my seat.

All that said, this does take the anxiety of more negotiations ahead nearly out of the picture. After some reflection, I am realizing that knowing the seller's bottom line actually puts us in a more secure position.

Plus, this should go quickly...we wrote into our original offer that we'd do inspections within seven days because we felt it showed in good faith that we wanted this to move fast. Only seven more days, and we'll know if we can move forward or not. Then, if we can move forward, all we have to worry about is financing...and THAT, we will indeed!!

Galileo

First, one more picture from work. It is not a good one, but it's a little slice of nature anyway.



Various notes...

House

1. Our offer is in on the house. Within 24 hours, we'll know whether it has been accepted (but even if it is accepted, of course, that doesn't mean we're in the "clear" because then there will be inspections and further negotiation, etc). I think we put in a very competitive offer. Someone could still beat us out, but we were trying to also be as gentle as we could be on our bank account despite the good chance that this will be a bidding war in the end. My agent said she'd call if she heard anything at all about another offer coming in so we could re-write our offer if desired. No call yet, so baited breath...

2. With the offer, I submitted the letter. I asked my agent about letters, and she said they were a fine thing to do, and that sometimes personalizing the offer helps. After reading it, she said she could go either way. On further discussion, we eliminated only this: "We will present to you the best offer we can afford..." We kept the letter exactly as-is otherwise, and went ahead and put it in with the offer.

3. If all goes well, we'll be moving next month.

4. Things I am thinking about now:

• Giving notice to our landlord


• Pool safety and also pool covers-- options. Also, caring for pools, salt water system conversions, etc.


• The lead inspection-- how to minimize costs related to lead abatement.


• The utility bills. For heat and hot water, given the use of oil and single zone heating, we are looking at a huge monthly bill. We're wondering if converting to gas is possible in this house, but I didn't notice a gas line. Maybe at least converting to zones? Electric? What's the cost of all this? When can we do this? It is anticipated that next year's oil will go up to $7/gallon! Those predicting the fossil fuel economy is crumbling before our eyes, starting with oil, just might be correct yet!


• Other environmental-economical issues on the domestic front: Is biking/bussing to work now an option (it is a flat and straight shot, but I am a little concerned about safety because the streets out here are crazy and the drivers are crazier). How far is the nearest grocery store from this house, and can we walk there with a wagon...what kind of sidewalks or lack thereof would the route involve? Can we get a wood stove and start stockpiling wood for next winter in case there is a fossil fuel crisis? Can one build a small raised bed vegetable garden on a small plot of concrete...and how does a novice with no natural gardening abilities go about getting started with such a project? How much does a push mower cost and where can we get one so we can replace our old gas mower (which we liked a lot for our former large lawn)?
• The roof-- how much life is left on it and what to do next and will this become part of the negotiations.


• Dog poop-- where will our dog go poop? *That* is the question.


• Neighborhood schools-- will I ask to visit our new neighborhood school and consider a placement for M. there next year in the preschool he gets via his IEP?


• Tax money. We could use some for closing costs, etc. Have we received any yet? What is on its way? What will we be waiting for, for a while?


• How to stay focused at work with all this going on! I can't stop my mind from going a million miles a minute right now. Eeek.


• How will I cope with the disappointment if this doesn't work out? If our offer isn't accepted or if things come unraveled in negotiations?
• And where or where is my trusted Virgin Homeowners Manual? I love that book and want to dig it out before inspections, which I need to get working on scheduling right away if our offer gets accepted tomorrow because we set our deadline for seven days.

Other

Remember the band Queen? Remember Brian May? Did you know he is Dr. Brian May, astrophysicist? I heard him on NPR today http://www.npr.org/templates/story/story.php?storyId=90273890, and I loved hearing him talk about the way his worlds intermix. What a joy!

Yep!!

That's THE ONE.

I loooooooove it.

That said, here's the obligatory pros and cons list:

PROS

• The location is good, both for re-sale and for our purposes. There is stuff we can walk to, including a park.
• This house is totally move-in ready!
• The house is vinyl sided, so we won't have to worry about painting it. In this climate, this is a big issue because here houses need to be painted frequently.
• Most of the windows are updated.
• There is a new furnace.
• There is a lovely little inground pool-- K. will LOVE it.
• It is the perfect size. Not impossibly large, but not too small for our purposes either.
• Our agent thinks this house is likely underpriced, but it is not a foreclosure or a short sale. She just listed a house (without a pool) in this same neighborhood. It didn't have a garage and was listed at $267,000. She immediately received six offers. This is a DEAL (though the downside to that is that we're probably going to have to fight for this one, and it is already the top of our price range).
• All appliances are included in the price, and they are newer appliances.
• The mantel on the fireplace is beautiful, there is a window seat in the living room looking out to the front street (M will love it!) and there are a few nice built-ins and storage spaces throughout...including a nice built in bookcase in the smaller bedroom.
• The staircase is nice and wide (easier for moving furniture, and feels more comfortable too)
• There are a lot of windows, for great ventilation. The ceilings are somewhat high, which adds to the house's good open feeling.
• The house has been well maintained and feels like it is in good condition. The floors are also in relatively good shape.
• The master bedroom, while it doesn't have its own bath, is very close to the bathroom and is very large: 14x20 at least. A second bedroom is also a good size.
• There is a lovely sunroom type space on the first floor that could be used as an office or playroom, or for any number of purposes. It's great!
• There is an enclosed sunroom type porch next to the pool.
• The driveway is shared. Often this would be a big draw-back. However, there is still a two car garage (apparently with a garage door opener), the driveway is well maintained and wide enough for its shared use, and it also means maintance is shared with the neighbors (and word is, the neighbor's sons shovel it).
• The seller's agent is in the same office as our agent, which may give us some advantage in getting an offer accepted.

CONS

• This is at the top of our price range, and the taxes on this property are also rather high.
• There is not a real back or side yard. There is the pool, which is gated. Then there is also a paved area that the current owners have set up as a nice children's play space. In addition, there is a small area outside of the paved and pool areas. It currently has stones as well as a stone walkway, and a patio-swing. The no-yard factor is actually a pro for us because experience shows we can't maintain a yard very well. We have a very hard time with that. However, we do have a large dog to think about. On the other hand, our dog is 12 years old (so not buying a house because of her may not be adviseable), and there is a place for her to go outside even if not ideal.
• There is asbestos on some pipes in the basement. However, they are encased, so it would only be an issue if we decided to do updates. We'll talk to the inspector about it during the inspections.
• The roof appears to be older. It may need to be replaced in the next few years (we'll find out in inspections).
• The heat is by oil, and there is only one heating zone=expensive. This is something, however, that we could probably address in the years to come given that there isn't major work to do elsewhere in the home aside from the roof.
• One of the bedrooms is very small, probably 8x8 or something. And there is no room for expansion. This is an issue for foster licensing, but because one of the bedrooms is very large, if G. and I were willing to take the smaller one at some point, we should be able to continue being licensed for the number of children we would like to care for.
• There is likely lead paint inside that we'll need to get removed.
• There will be costs associated with maintaining the pool, though the good news is that it seems well-maintained currently and they have done some updates on it.
• There is no open, neighborly porch.
• The basement does get some water, which is VERY common in this city, particularly with this type of foundation (however, there is a sump pump and a dehumidifer already installed).

I've called our agent, and she is at a doctor's appointment right now. She is going to call the selling agent and get a feel for urgency. If there is not an offer on the table yet and no word of one yet, I will meet with our agent tomorrow at 11am to write one. Otherwise, her brother (another agent) will be writing the offer with me later today, or she may do it after her appointment. Updated at 4:30 to say that she checked with the selling agent and we were the first to come in. The next showing isn't until tomorrow at noon, so we'll be able to write our offer tomorrow at 11am. I am so nervous about getting this offer right, so we are competative but don't break the bank. I really, really, really WANT this house, and I KNOW it will get other offers. It is unfortunate that I will do this without G. having seen the property, but she said it sounds GREAT, so she is on board and excited. She just can't wait to see it.

Side note: The bad news is I was basically out of my office all day. I worked much of the day Monday (my usual day off), and a lot of Tuesday (despite missing my day off). My assistant had to be out both days for personal reasons. Today I was running late because I was seeing G. and the kids off to New York. Then G. called late this morning to say she got a flat tire. She usually can change a flat tire, but was having difficulty getting the tire off. She was on the Mass Pike and AAA said that when you are on the Mass Pike, they can't send somebody out. The state police have to come. The state police came, called somebody to help, but the folks were taking forever, and it was past the kids' nap time, and everyone was in quite a state. So I stayed on the phone with her until help arrived. Part of the time she had me on speaker phone talking to the kids, who were miserable, while she kept working to try to change the tire.

I came to my office this afternoon and found a note from my assistant saying she wasn't coming in tomorrow but would be in on Friday, and that she wouldn't have time to get several things done. I don't mind at all. But I called to check and make sure everything was okay, and she seemed short with me. I have been in late a lot lately, and I know that makes her work harder because we can't chat in person about stuff. I value her so much, and I am terrified that I have really let her down. I have such a knot in my stomach. I hope everything is okay with her and between us as well. She is amazing! I have always been paranoid about my own inadequacies, and whenever anything like this happens, I always assume I am making someone's life miserable and that our relationship is coming undone. I know there are a thousand other things that could be happening, but boo hoo! I am having super, super anxiety.

The House-Hunting Report

Here's what I wrote on one of my message boards tonight:

We exhausted ourselves looking at houses today. It was completely, utterly tiring. Honestly, I would be willing to put an offer on any of them (they all have good points and bad points), but none of them make both G. and me smile except for one:



http://www.remaxadvantage.com/search.asp?search=standard&agentid=104861

MLS# 70 55 9 738 (take out the spaces)

Both G and I walked into this one and just felt really comfortable there. We like the layout, and it just FEELS good. I wanted to sit down and stick around. G. literally left *beaming.* She smiled ear to ear all evening thinking about it. The problem is that it is somewhat of a rehab project.

• It will need a new roof.
  
• All the shutters need replaced.


• Some of the windows still need replaced.


• The lead and asbestos need to be removed.


• It may need a small amount of electrical work (though it does have a brand new electrical panel).


• The kitchen will need some major work, and as a part of that project, we'd probably end up converting a "bonus" room right next to the kitchen into a bathroom and laundry room combo.


• The basement is very wet. It has an ancient drainage system that would need to be replaced and it needs a sump pump or two.
• There is an old oil furnace (luckily sans asbestos). It would be in our best financial interest to update the heating system, converting it to a multi-zone gas-powered system (fortunately the house is gas metered).


• The (small) yard needs work and needs to be fenced.
  

Eventually the driveway will need to be repaved. It also needs a lot of cosmetic updating.

Much further down the line...we'd knock out that front entryway (it is unuseable right now...very, very, very musty...though rest assured that the rest of the house doesn't have that smell), and we would hopefully put in a porch or a deck.

I'm unsure about taking on a house like that right now. And I worry about the wet basement, in terms of longterm structural issues. I also think a rehab loan might knock us out of the running because right now I've heard they require 30% down and are more expensive loans.

Actually, there are some other downsides to the house as well, which would impact re-sale value. It is on a very busy street and right behind the house (next door, basically, as it is a corner lot), are several business (rather than more residences).

BUT we LOVE the house. It is a comfortable size and very likeable in soooooo many ways. And the location is very good (besides the busy street, which we actually appreciate because our kids like watching cars go by). And it is much cheaper than many of the other properties we've looked at.

I'm gonna talk to one of our mortgage people tomorrow and see if this is at all possible financially. The house has been on the market for a year. Most houses that have been on the market when it hit bottom have now sold. Not this one. The seller is motivated (although we have to consider that when they first listed, the house was listed at $240,000). I am really tempted to put in an offer of $180,000 or $185,000 (or less if the price of the work adds up enough to justify doing so) and just see what they do.

That makes dw nervous because she loves the house and wants to start offering at $190,000. I'm not ready for that yet. There is so much work.

Our agent is gonna give us the contact information for a contractor who will give us estimates for all the work. This will give us an idea of what is a fair offer and whether we can afford this either as a rehab loan or by reducing our downpayment to help cover the costs out of pocket.

We also have one other property that just came back on the market that we've asked our agent to see. We'll see what we decide to do. Stay tuned.

House Hunting This Weekend!

I am getting anxious about buying a house.

My agent says that buyers are coming back to the market in droves at the moment (after I asked her because it seemed like every house we liked got an offer before we could get in to see it).

I don't want to have sold at the absolute bottom of the market only to have to buy when the market is in full upswing.

I'm irritated.


So I asked our agent to show us a handful of houses on Sunday. I picked them out. Let me show you the one I like the best right at the moment:

Why do I like it so much?



Location...Location...LOCATION
+a front porch *and* a back deck!!

To see the full listing, go to http://www.remaxadvantage.com/search.asp?search=standard&agentid=104861, scroll down to where it asks for the MLS number, and plug in the following (but take out all the spaces):

70 744 9 18
(note: at some point I will take this down)


This house just might have the potential to make the house-hunting process joyful again. When I think about it, I get butterflies in my stomach.

BUT, it is not perfect. Here is the ol' pros and cons list:

PROS

• It is within our price range in a location I ADORE! I like the location because it is in an area of the city considered broadly to be desireable (good in terms of an investment), but it is in a more economically mixed portion of that area (good in terms of our souls). There are trees and sidewalks in the neighborhood (you'd be surprised by how little of that there is out here), and there appear to be families with children around. It is walking distance to a lot (at least in comparison to everything we've found in this city so far). I haven't even seen it all yet. A new vegetarian restaurant (seriously unheard of out here) just opened up a few blocks away (I swear we could single-handedly keep it open)!! From what I could tell, we could walk to at least a couple different restaurants (granted one is a faster-food type chain), to at least one if not two pharmacies, to a youth center with a basketball court and a very tiny park (see below under cons for some issues), to a "corner store," and MORE! You just don't get that kind of thing in most areas of this strip mall city. It is on a side of town that really appeals to me, despite being very congested through the route to my work...however, it is in the perfect spot because there is a short-cut I can take. It should be a ten minute drive to work, I think. The location makes me want to put an offer on it site unseen, for crying out loud! I swoon.
• As I said, it has a really cute porch! PLUS a nice looking, big deck!
• The backyard is perfectly level, very well-maintained and seemingly low maintance, and seems to be of decent size. It appears to be fenced, though the back portion of the fence would need to be replaced with something more dog-proof.
• It has a newer boiler, newer water tank, replacement windows, and vinyl siding.
• Supposedly the kitchen and bathroom have been updated.
• All appliances are included.
• Heating is by gas (much cheaper than oil), and the water heater also works by gas. Given the smaller size of the house, heating should be affordable.
• The house is pretty darn cute. Even cuter in person than in the photo.

CONS

• While I love the location, there are some issues with the location. On the next street over, there is a medium-size liqour store. Across from that there is a trashed out, ill-maintained Rite Aid (pharmacy). Though the house is less than a half mile from a park, it hardly deserves the title. The park is right on a majorly busy street. There is graffiti all over the park, and all it consists of a lonely slide and a few swings and *a lot* of litter. Though it is next to the youth center, it feels very sketchy, especially as night begins to fall. Also, across the street from the park is a commercially owned (though small) stadium. On one hand, I want to get involved in cleaning up and adding to that playground, but part of me thinks it's hopeless.
• This is another house with potential size issues. Again it is one the same size as our old house that we felt we had outgrown. I do feel that having porch and deck space increases the size of a home on some level, but we are a growing family.
• Also, a big red flag here is that the listed square footage differs greatly from public record (it is listed with a few hundred more square feet).
• The room sizes are not listed, and the rooms look small...especially that rinky, dinky supposedly updated kitchen. If any of the bedrooms is smaller than 10x10, we can't buy this house due to foster licensing.
• The bedrooms are divided between two floors. Ack! I don't know if I can handle that.
• Right now there are carpets everywhere. It says there are hardwoods under all carpets, but there is no way to know what condition they are in or even if this is true.
• There is only one bathroom, there is no fireplace (Waaaaaaaahhhhh...I really, really, really want a house with a fireplace damnit! A lot! How much does it take to add one?), and though there are four off-street parking spaces, there is no garage.
• There is likely lead, which means for foster licensing we'll be sinking a bunch of money into the house right away to de-lead. On the other hand, this is an issue with most of the houses out here.
• There is only one heating zone (more expensive, less efficient, and less environmentally friendly), and the heat is also by steam which is a potential issue with M's asthma.
• I am not a fan of wallpaper personally, and it has wallpaper in every room.
  

So what does it mean when you love the location in so many ways, but there are also other glaring location concerns?

And they say to always buy for location, but when does location trump other downsides?

I know, I know. I haven't seen it inside yet, and I could end up hating it. Plus, for all I know they'll already have accepted another offer by Sunday. And knowing my luck, this won't work out. But for now I can't stop thinking about it.