Ok Creters- my experience is more citified-- I live in small town
outskirts- pop 27K.
BUT stuff happened with liens, septic systems, property lines, etc
everyone shoud be aware of. so I hope you can add some of my
experience to your "watch out" for list.
1. What motivated you in the beginning. How did you get started?
( bear with me- I read BRITISH fariy tales stories of wee cob or
stone walled houses in the forest , with thatched roofs, tiny
gardens, and hidden nooks in trees- so I wanted a small charming hut I
could develop- not a tract house- ever.)
I dreamed of a little fixer upper, and a small lot to have flower
gardens and fruit trees. I was raised on 3 acres, and that seemed
just right.
> 2. What type of land and what area were you looking for when you started? Did your desires change as the process went forward? What were your critera?
I thought I would take 20 acres, or 1/2 acre-- but RE agents did not
like a wide variance. But I was being OPEN to any possibility- which
they are not interested in. So be firm on what you want. There just
was not 20 acres and an old barn, or house, or it was in a very hot
area 60 miles from town.. I drove around alot, and knocked on doors
too.
So I started looking at fixers closer into town. I made low ball
offers and offended many sellers.. too bad. DO NOT be afraid to lo
ball- especially now. raw land must be paid for in toto. so
negotiate.
> 3. (Optional) If you do not mind sharing numbers, How much money had you saved up for a down payment when you started looking?
I had been saving for 14 years so it was a healthy bundle- about $25K
I ended up putting $18 down. and spent a big hunk of the rest on pest
control, plumbing work, window replacement, other needed
underpinnings. My advice- DO the needed, but unseen work- like new
post & piers, roof fix FIRST- before you spend it all on decorative
stuff. Like dentistry- underpinning work is not seen or
appreciated- but is critical to house health.
> 4. Did you go through a Real Estate Agent? Auction? Personal
Transaction? Other? Why did you make the choice you did?
it was an owner carry- the house needed too much work for a bank to
loan on it- I stupidly used the sellers agent too- mostly because I
wanted to grab the house and make a first offer the minute it went on
the market.
A friend of mine sat on a local Board with the seller- so he knew she
was motivated to get rid of the house- I called her agent the very
night she listed the house, saw it the next morning, and made an offer
immediately. the agent did not like this- she wanted to get a higher
offer. but she was stuck with me- and greedy for the commission on
both sides. an agent really CAN'T represent you both..they try but
her ties with seller over rode me- so I had to fight harder for my
rights.
> 5. Did you hire an attorney? no need in Calif unless other situations occur.
> 6. Did you get a survey? ABSOLUTELY- my neighbors timbered their land, and it was unclear what property line there was..so I negotiated the seller to pay for this, it was $1,000. and they put in metal rods as the legal markers.
> 7. Extremely important. WHAT MISTAKES DID YOU MAKE? Please highlight your mistakes. What would you do differently if you did it all over again?
I hired a flim flam cheap plumber who just ripped off old ladies to
give me a PROPER estimate for repairs- he failed to do so, and I lost
leverage on the purchase price.
I was meaner than necessary to the agent, but I did not trust her at
all, with good reason.
If I had called another Agent immediately to represent me ( that night
even) I may have avoided some problems, but I may have been 3rd in
line with an offer-- there were a dozen people behind me in the next
few days after it listed. it was a steal deal.
> 8. Other than the purchase price of the land, how much money did you spend on fees and professional services.
$ 250 paid to empty the septic ( paid by agent to close the deal) $1K
for survey paid by seller, $450 to refurbish gas burning heat stove (
a relic that worked ) paid by seller, and I paid $400 to re install
the original heater as prime heat.
$700 to have the home fully inspected roof to fdn- good for
negotiating the final price.
IF YOU DON'T CARE THERE WILL BE $20K OF TERMITE DAMAGE, AND A $12K
ROOF FIX NEEDED, THEN Dont get an Inspection-- otherwise it is a big
investment- DONT be so in love you cant walk away from a bad deal=
spend the $250- $700. fee and get some leverage.
> 9. How did closing go? very dicey- in the final 30 days the Title Ins. process turned up that the house had been forclosed on by the US GOV- there was a tax lein against the former owner who had abandoned the property not paying the mortgage- forcing the original seller to relist the house- again! so it was a real dont wanter. BUT I had to wait until the exact date of closing to see if the gov would excercise their right to take the house for back taxes.. they did not.. but it was utter hell trying to sleep the last 2 weeks!! this is why title and land proof is important!! I could have bought the house, and lost it a few years or months later had something gone wrong and the Gov wanted their tax fees paid.. I would have been royally screwed. they would have paid me my down pmt. back I Think, but possibly no other costs - not sure on this.
also the NEIGHBOR tried to buy it out from under me by going around my
agent and offering a higher price!! which is illegal-- turns out they
used to own this same property 30 years ago, and wanted to add it back
to their "compound' I was not sure when Imoved in if they would hate
me for not just letting them buy the house back. But the mom sent me
a nie note welcoming me to the 'hood- she also used to be my mail
carrier so knew me for several eyars berfore I bought the house next
door to her.
( small town.. be careful)
>
> 11. Please share as much detail about other factors or other parts of the process as you feel comfortable sharing.
I had much joy in going to the empty house daily and looking at the
yard, and planning what I would do, peeking in the windows, measuring
all the sides, it was so much fun to plan. The home was owner carry,
and the rate was higher at 7.25%, but manageable. It had a 5 year
balloon. The house sold to me for $25,000 LESS than it sold for 10
years earlier due to the Gov lien, the damage the owners did on
moving out. they sprayed windows orange, they smashed a door, they
exploded food cans on the stove to mess up the kitchen, pork & beans
crusted on the ceiling! I still find bits of orange paint in the
windowsills.
I called a GOV land guy, and he sort of assured me the GOV did not
want to take the house for <$10K in taxes, but I still worried up to
the last second.
>
> 12. A funny story or a joke about your situation is encouraged. Keep it light. I'd rather see us "laughing and learning" than "ranting and @#%ching".
My rescued, tuff boy, barn cat was under the paw of my queen female in
the old rental house. The day I opened the crate and let him out in
the new house.. he strutted out of the cage.. flexed his brawny
shoulders and looked around as if to say-- "New house NEW rules
baby!!" and he kicked her butt all the time after that. He owned
the outside- her the inside. He sat outside the cat door and took a
lively swipe at her each time she exited... payback was fun for him.
--
Ms. Charmaine Taylor/ Taylor Publishing
Toll Free Order: 1-888-441-1632
www.dirtcheapbuilder.com www. papercrete.com
PO Box 375, Cutten CA 95534
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