I have to thank HGTV!

Whether you start your process by interviewing an architect, a draftsperson, or a builder, it's a good idea to interview three potential prospects.  We loved the HGTV shows, "Designer's Challenge" and "Landscaper's Challenge."  When these shows were first on, we didn't even own our retirement property, but quickly realized what a good idea it was having three plans and quotes to choose from.

We started our project with a draftsperson since we started with a stand-alone garage. (More on draftspersons and architects in a later blog). We designed it and re-designed it.  And re-designed it again.  In retrospect, we would have saved ourselves some money by buying plans for this project.  It's not an unusually shaped building, there were things we wanted that may not be totally normal in a garage, like a storage space upstairs that was nice enough to be used for overflow overnight guests, if needed.  But still, we probably didn't have to design it from scratch.  Also at the time we didn't realize our builder was so experienced and qualified, we could have purchased plans and changed them just by discussing  it with him.  Oh well, live and learn.

two works in progress


But back to the theory of three....  We decided to start with the builder/contractor.  You can find builders from ads in the local papers, from your realtor, or from looking at open houses in the area and finding out who built the ones you like.  And, of course, the yellow pages.  In the book, "Designing Your Dream Home" by Susan Lang, she suggests sending out a letter to the three, explaining you are considering them for your project, telling them some basic information such as your timetable, approximate size of the home, the address, and add in a questionnaire, which includes questions such as, how many homes have you built, what is the largest, what is your home construction background and experience, how many homes are you currently building, how many are you currently bidding on, can you provide a copy of your certificate of insurance, and your license to build in this state.  (For more, buy or borrow a copy of her book - it's extremely helpful!) 

We called three companies, set up appointments, and then asked all our questions in person, rather than doing this separate step of mailing questions.  We wanted to meet each builder we were considering right from the start, since both John and I like to get a sense of the person from talking with them.  Either way is fine, you have to go with what you are comfortable with.  Our process was helpful for both us and the builders since we met them right at the site. We were able to assess their reaction to the property, and they could see for themselves exactly where our project was.  Then we went over our list of questions with each....and a long list it was.

More on these next time.

Let's Begin

John and I began our designing and building of our retirement property a little backwards.  We started (and are still in the midsts of) the outbuildings and landscaping some of the property, and will then move on to the "dream home" - in a couple years. 

I read a quote the other day, "It's called a Dream Home because it winds up costing twice as much as you ever dreamed it would."   Well, from experience I can tell you this has been true of everything.  Sometimes 10% more, sometimes 70% more.  But with the higher amount, some of it was because we were so new at the process and didn't take into account the cost of work that needed to be done even before the building.  (Like raising up the land so it doesn't flood - it's waterfront property.)

But, I'm getting ahead of myself.  It's a good idea when you're starting out with your project to get yourself a few binders or folders so you can keep your information organized.  One of the books I've read (I'll review books in a future blog) suggests getting folders, binders, and a rolling suitcase to carry it all.  That may be a bit extreme, but the general idea is good....organization is the key.

John's binders are of the "phase's" of our project. Plus one for all contracts and bills. I have four binders,  "outside the house", things like windows, doors, stairs, docks,  info on a wind turbine and solar panels, etc.; "inside the house", including pictures of kitchens, bathrooms, molding, ceilings, paint, wood floors, etc.;  "floor plans," including pictures of the outside of houses that I like, and the last one, (for now) is "landscaping and the backyard."   However you decide to assemble them, they will be a great help as your project moves along.

Now is the time you will go through all sorts of magazines, and the web, of course, and tear out everything you love and may want to put in the binders.  You will cull through it later, but add it all!   It will also be helpful, I have found out, when you'll be sitting down with your architect or draftsperson or designer (more on this in the next blog) to have a file with a few things you really don't like.  It will help eliminate right up front some of the styles you're not interested in, saving time, and therefore, saving money.  A very good thing.

A Closing, and a Beginning

Yes, I did want to say "A Closing and an Opening", but it didn't make as much sense.

Just a few words about the "closing".  John and I have closed on numerous houses and properties.  Not only for ourselves, but while helping our parents.  And this is one thing we've learned.  There is no "correct" way to close on a property.  We've sat with our lawyer in his office with both the seller,  the seller's lawyer, and our realtor.   We've sat in our lawyer's office just  him and us.  We've closed on the phone, and we've closed through the mail!  Whichever way it works out, the one constant is to make sure your lawyer looks over every piece of  paper. 

And now, comes the new beginning.  It's a journey, navigating our retirement.  For our purposes, I will be concentrating this blog on building a home. You, however, may decide to purchase a house, or a condo.  But our course is similar.  We are taking a new road.  Scary?  A little.  Exciting?  Definately!  And fun.

John and I have spent many happy hours, talking about our new property, how we want to design the house, or landscape the property.  And I seriously mean hours and hours.  For the entire four hour drive to that property we discuss, and plan, and argue and compromise.  It may be a long road. But we are elated!  And that old saying is true; for us, it's the journey, not the destination.

Making an Offer

Hopefully, after all your looking and researching, you will find a place that you love.  It speaks to you, and offers all sorts of possibilities for your future retirement life.  It's exciting, and scary both at once.

Well, the advice I have for you now is to try and approach the offer process without that emotion.  It's difficult, but if you truly want to get the best deal, be prepared to walk away.  Of course, that's sometimes easier said than done.  And truthfully, as my husband John likes to say, what makes a good deal is when both parties walk away happy.  But in the past, we have applied this to a couple of real estate transactions, and we were successful, even though our realtor suggested we raise our offer amount!

I asked John to give us some advice, here's what he had to say -

"As we're all aware, there's been no better time in recent history to be a buyer in the real estate market.  When you're ready to make an offer, look at both the listing price and how many days it's been on the market.  These days, it's not unheard of to offer 20 to 25% less than the asking price.  Yes, some realtors might consider that insulting, but by law, they have to bring that offer to the seller.  Also, if you have your funding all set already, and you  can close quickly, then you may be in a much better situation to get the property at a better price."

This low offer tactic actually worked in our favor twice in our purchasing history.  The first time our realtor was horrified!  She tried to talk us out of it, and said the seller wouldn't deal with us anymore.  But for some reason we weren't that concerned, and knew if we didn't get that property we would find another.  We told her to present the offer and we'll just see what the sellers come back with.  Well, to all of our astonishment, they accepted it right off the bat!

We also did it with the property we bought now, our beautiful retirement property.  The sellers bought the house to flip, but didn't winterize it, and it was totally damaged.  Which was fine with us, since we just wanted property.  This time, we offered about 30% less because it had been on the market awhile, and  the house was uninhabitable.  We went back and forth quite a bit with the sellers, but the sellers wanted to close within three weeks, and since we had our funds available, we came to an excellent agreement, we got it for close to 25% less than they were asking.  Were we shocked?  Yes.  Were we prepared to walk away?  Again, yes.  But we have been happy and thankful every time we see the place!

John now continues, "Include that your offer to buy is subject to a clean title, and inspection (if it's a house) or a survey if it is property.  You may have to give your realtor a good faith down payment at this point, and sign papers proving it's a legitimate offer.  Also, if you don't know a lawyer in the area, ask your realtor for a few names.

These principles are just guidelines because every situation is different.  Some people, especially early in the listing, do not want to budge from their listing price.  And sometimes, your emotional attachment to a place is so strong, that you don't want to lose it!  In that case, don't worry that you didn't get the absolute lowest price you could have gotten.  If you're happy, and the seller is happy, it was a good deal!"

Search for Property Records

Most of the information you will need about a property you are interested in, or a home for that matter, will be given to you by your realtor.  Eva, our realtor, had all sorts of information, including in many cases, the back story on the property owners.

Your realtor will be able to tell you how long the seller has owned the property, how much the seller originally paid, and how much is owed against the property. They can find out how many days it has been on the market, if it was on previously, and then withdrawn and relisted, or if it has recently sold and is now a "flipper".

This information is very useful, and you should not consider making an offer without it.

There are times, however, you may want to get more information than your realtor has given you, and then you must do a little searching on your own. 

You can go into the town hall, to the county assessor's office.  Or there may be another office where these records are kept, for instance, the county courthouse or city hall.  There will be one place where the public can go to search for information on a property.  You can find out the owner, the tax records, the assessed worth, the size, zoning information, and find out if the seller has filed for bankruptcy.

You can also so some searching online, although many I have attempted to do for this article, ran into a "pay for information" situation.   But, here are some suggestions:

http://www.publicrecords.onlinesearches.com/

http://www.nationalpropertyrecord.org/

http://www.zillow.com/

www.freeprf.com/property.html        (this site doesn't include all 50 states)

All these facts will help you make a realistic and successful offer.

Till next time.