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.

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!"