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They have been increasing my blood pressure medicine while I have been fighting through that as best as I am able. I am working on the home loan, have been looking at properties, doing a few other things, all while trying to maintain some kind of personal life of interest and value. It has been a tightrope. Of course, I have been listening to advice, looking at what is and was available in housing, and somewhat worrying about that. My work is nearly done though, on some things.
I have placed a bid and it has been accepted. I have some time to back out, and the bid is based on a good inspection and appraisal. The house and property, as of the most recent appraisal, is valued at $154,000. The asking was $127,000 plus closing costs. I bid $122,000 plus they pay closing costs. They countered and I countered again. The agreed is $125,000 and they pay closing costs. I will have, assuming all things go through, 1.25 acres (currently under agreement for alfalfa (I believe) crop with a neighbor (that contract ends at my taking of the property, of course). But, until I figure out everything, I will probably maintain that deal. I still have plenty of room for a beginning garden, and (Lord helping) will make use of that land this very spring.
The city, town really, of between 500 and 600 people, does have cable. I am not sure of water. I am secure about the house (depending on inspection of course, but just from a very serious review, speaking with the current owners, and some other things). There is work to be done, but nothing serious, demanding, or fundamental (which is great by me). Little projects, some costs but worthy ones, and of course some elbow grease (though light). If all goes well, the turnover date is set at April 23!
I am sorry, but that is as good as I could do in the time and with the money available. I have been looking for something more rural since I moved here. Nothing in my price range, even stretching it a goodly sum, has been on the market (here in Utah or in Idaho). This is at least equal to anything I have seen on the market. Further, I know the town just a bit. I have driven through it and stopped in it frequently, as it is on the path to the area my friend and myself most usually go to shoot. It is a mere 2 to 3 miles from the range I use.
As I said, given my available cash, the time frames included, and the other factors involved, this is as good as I could have done. And, it is almost done. Scary? Yes. Overwhelming? Of course. But avoiding stepping in and doing what one wants because of fear is not the way. So, I tread in and find out. Who knows, but I will have my own little place very soon... with a spread... a garden... and maybe by next year, goats and a horse? We shall see!
Question for you: is that alfalfa irrigated, or do you get enough natural rainfall to support it?
ReplyDeleteIf it's not irrigated, then that makes a snazzy dryland pasture for livestock! You might want to hire a neighbor to plant a more suitable pasture blend though--I'm not sure if horses can be let out to graze on pure alfalfa.
The seller's property disclosure statement (SPDS) should have discussed the water source and any related arrangements. Take another look, and if not, ask.
You will be having a home inspector to go through the place with a fine tooth comb. Note carefully any items the inspector recommends for further investigation by a specialist! He puts those in to cover his hiney for those items that he's not qualified to judge, and it may be well worth the cost to have a specialist (electrician, plumber, roofer, whoever) take a closer look at those items. Be sure someone looks closely at the well and equipment if you have one. Get bids from local contractors for any work that the inspection shows needing completion. You can use these bids as leverage for further negotiation.
A common tactic is to come back after the inspection and say, "well the X,Y, and Z need replacing per the inspection. I like the house but really need these taken care of before closing." You may be able to get some additional price concessions out of the seller, and if not you can renegotiate the price upward to cover these repairs out of the proceeds of closing. This way they're wrapped into the loan and are not separate expenses you need to bear yourself right away.
(For example, say the repair estimate is $2000 but the sellers won't budge on the $125k. Offer $127,000 contingent on them agreeing to pay the repair bill out of the closing proceeds. It's still a better deal for you that way.)
Thanks, D.C., I will be following that plan. This is the most expensive "thing" I will ever buy (even if I 'move up' in 5 or 10 years assuming that is available and possible, I will not be buying more, just switching and borrowing about the same (or less maybe)).
ReplyDeleteI'm still twitching.
Oh, but honestly, if you had seen what is available and given the constraints, I think you would have been happy. The ones with more acreage were very problematic, house wise (think shacks, and not even orderly ones), and it was not approved by the V.A. The others, too, were quite a bit of work, often where the land needed work too. And none of them were exactly out on their own. I did see a few as described, but... those started at a firm $250k and up. My piggy bank coughed and threatened to run away!
The only one who needs to be happy is you. If the more perfect were less perfect because of price, then they wouldn't do anyway.
ReplyDeleteThe age of that house and its rock construction certainly is a plus from a character standpoint (and perhaps a ghost or two?) You have to know if people lived there back then before electricity and piped gas and whatnot, a person could live there if it should disappear. The thing is figuring out how it was done and seeing to it that it can be done that way again if necessary.
I also have a guess that this small community is probably strongly Mormon? And being semi-rural perhaps they have a better preparedness mindset than the average city Mormon? This is a plus too, if so.