Design stage

Things are moving along. I had my first conference call with the builder and the designer this morning. They were pretty well on board with what I want to do. I previously sent them a bunch of pictures and a pdf slide-show of things I like and dislike. Sometimes it seems my "dislike" list is longer than my "like" list and I have to watch what I say because I step on some toes. It looks like I might have the preliminary house plan drawing by this weekend. That is fast but they said I pretty much designed it myself based on what I sent them.

The basic design will be a L-shaped house with open access to the covered portal on the view side from the master bedroom, great room and dining room/nook. There won't be a formal dining room. The garage will buffer the house from the road and also shield the rear portal. Views will be to the rear/east (Sandia Mountain, Rio Grande, Bernalillo and Placitas) and to the north (Ortiz mountains, river valley and Sangre de Christos in the far distance....maybe the Jemez mountains depending on how it is angled). The main entrance will face the west and have a small portal. There will be an enclosed courtyard for Watson. Heated size will be about 1,750 sq. ft. which is about 100 square feet bigger than what I have upstairs in my house now. That is plenty big enough for one person and a cat. There will be a master bedroom and bath, a dedicated guest bedroom and another bedroom that will serve as an office but with room for my futon for additional sleeping space. The second bathroom will have a door from the guest room and from the hall. There will be one fireplace but it will be on the smallish size. The garage will have two bays and will face west so the driveway will come from the street and turn right into the garage.

I also made some progress on the dead air conditioner. The weather has been so nice that I haven't missed it much but it will be getting warmer in a day or so. The insurance company started a claim and the heating/AC company came out to measure and collect information needed for a solid estimate. Apparently Federal regulations are dictating a change in what we can have as air conditioners. By 2010 the current standard AC coolant models won't be available and we will have to go with a different type of coolant chemical that, of course, won't work in our air conditioners. They will still sell the old coolant until 2020 and I guess they think the older units will have all died out by then. Well, mine is 22 years old and was going strong until lightening hit it. You can buy the newer style AC unit now at an increased cost over the old stander type. This reminds me of the crazy TV digital thing that we are going through now.

Also, I'm starting to get some bid estimates for my new roof. It isn't going to be pretty. Some of the plywood will have to be replaced. Ugh! I hope it isn't raining when they do it.

Watson seems to be taking it all in stride. Little does he know.

I can't get out of here fast enough

My excitement about the new building lot and prospects of building a new home have been tempered by the knowledge that my existing house needs a new roof and probably replacement of the plywood sheathing in a couple places. I knew that was going to have to happen pretty quick and I have a contractor I'm trying to get involved with it to see what has to be done. That will run maybe $4-$5000, maybe less.

Today the air conditioner wasn't working. I have noticed that it hasn't been very cool in the house for a couple days -- but it is hot and humid outside and I just made the best of it. Today I noticed that the outside unit wasn't working at all and I had a service guy look at it. He says I got hit by lightening and it destroyed the outside unit. Replacement cost will run about $3,300. In this case, my insurance ought to cover the expense, minus the deductable.

I already had tree trimmers here this month to take down some leftover ice storm damaged limbs.

LET ME OUT OF HERE!!!

5429 Chopin Road 87144

The purchase agreement is finalized. I'm waiting to hear about a closing date. I am happy with the price -- and location. The lot configuration is a little problematic because it is 80' x 272' (+/-) and with setbacks it is a little narrow. We will turn the house so it faces west and not the street (south).

A lot of things must fall into place in short order. There is some urgency because New Mexico is changing its environmental rules on September 1st and I will need a more expensive septic system if I delay after that date...twice the price of current standard septic systems. I don't know if I can make that deadline because of all the work that has to be done and permits granted. I've never built a house in a city so there is another layer of approvals and permits. The state has to approve the septic system.

I went to the local library and got a book on septic systems and wells. It was the only one I found and it is dated 1992 so it might not have anything on the advanced septic systems. I also didn't know that there were so many different ways to drill a well. Since I have some trees on the lot that might be good news for the well. That area is so fractured and faulted that there could be anything below the surface. There is a section in the book on how to select a qualified "water witch"....that's the guy that walks around with a twig that somehow knows where the water is. OK...I guess when all else fails. Apparently the driller guys show up and say "Where do you want us to drill the well?".....They drill, they don't necessarily find.

Here we go again

I finally got the final counter offer this morning...the one I was going to agree to. But I just felt like I needed to make a few more phone calls on other lots for price comparisons. These 1/2 acre lots came in at wildly different asking prices with different levels of utility service and some where the agent had no idea of utilities. Prices were as high as $90,000!!

That made me feel pretty good based on what I'm going to pay...except for one conversation I had with an agent who, luckily, mentioned the block number for his lot was #136. I know that the paperwork on my lot also shows block #136 and I also know where his lot is and it isn't in the same block as mine. Since everything that can go wrong has gone wrong, I decided to research a little more...something was not right. I found a unit/block map on the Rio Rancho web site and it shows my block number as #135....not #136. Since this is part of the legal description it is a problem if the block number is wrong since (a) you might buy the wrong lot, and (b) the seller probably doesn't own that lot in the first place. So I called Donna, my agent, and told her what I found. None of the subdivision plat maps we have seen are sufficiently legible to read the block number. Donna called the seller's agent who said she would check or have somebody check. About six hours later I hear from Donna that she had to call the other agent again and that agent discovered, while on the phone, that she made a mistake and recorded the wrong block number...so now all of the faxed paperwork is wrong and we have to do it again, hopefully with the right block number. So now it will be tomorrow before it is finished.




My eventual address will be 5429 Chopin Road...two doors down from the corner of Chopin and McCartney. Aren't we musical!

Meanwhile, the bane of my existence, Capital One, sent me a replacement credit card for one of the closed accounts that originally caused my credit records to be so mixed up and me to be deceased on all three credit bureau reports. This is a closed account....and this card has a totally new account number from any of the others so it looks like I have a fourth account with them. Irate letter to follow!

Late Update -- Signed Sealed and Delivered. Faxed back at about 10:30 PM so it next goes from my agent to the seller's agent and then it's done.

Decisions, Decisions

Hmmm...we are at an impasse on the counter offer situation...and we are still $5,500 apart. I looked at other properties for sale and the asking prices are higher than what they countered with. Also Donna looked at median prices and this lot sits right at or slightly below the median price for a half acre.....plus it has utility service and is in the location I want and has great views and is close to a school. Downside is it needs a well ($10,000 to $15,000) and it needs a septic system ($3,500 minimum) and is on a dirt/gravel road.

I asked for an extension on the decision date on their last offer so I can think on it. The dirt road isn't an issue since that is common in rural parts of the city and I'm maybe 600 feet from pavement...which is good.

I'm probably being grumpy because I feel they reneged on something I was told when I first talked with them. Their explanation is reasonable but I'm still pissed.

But on the other hand...I expected to have to pay $75k for a lot and have to get a lot loan at 9% interest and sit on it for a while. Instead, this is a lot I can pay "cash" for out of my home equity LOC and pay only 5% and cover the balance when my house sells and get a tax benefit. (Duh?)

Update -- still dickering on price

Well, we are in the offer-counter offer stage. Apparently a cash purchase offer is pretty unusual because I can't find anyone who knows what closing costs would be on a cash sale. It shouldn't be much...the title company handles the closing. So that is my task for today...find out what closing costs would be so I don't forget that when making these counter offers. Apart from title insurance and recording fees and maybe a survey -- I don't know what else to consider.

Update -- Offer made

Things have straightened out considerably over the past week. I got to Albuquerque on Tuesday afternoon and contacted a RE agent to schedule a time to look at a place called Niklas Ridge. I met with her and looked at several lots. The lots look good and the price was right. Most utilities are in but I'd need a well and septic tank. I tramped all over the lots but didn't see anything that looked bad or that would cause a problem.


On Thursday morning I met with my mortgage banker and we went through the loan application process. Everything is fine with the credit report. The loan process is complicated because I'm buying a lot, building a house and then paying it off over time. That is three loan sequences. If for some reason I'd need a bridge loan because my current house doesn't sell that would add another layer. Since the housing industry is in a mess it could take longer or be more complicated than before when you only had to have a pulse. My mortgage person said try to do a cash price offer and use my home equity line of credit. There are benefits to that...low interest, likely a lower seller price and tax benefits.

Thursday afternoon I met Betty the builder (no relation to Bob) and we went up and looked at the lots. She liked them as much as I did. She also said go with a cash offer from the home equity account. She is a friend to the developer and thinks that might make a difference in price, too, since he wants her to build in his development. We talked about possible floor plans and an offer price. She agreed to make the offer for the cash sale on my behalf.

The only potential problem is the lot dimensions. It is 1/2 acre but only has 80 ft. frontage....narrow and deep. The house foot print might have to be elongated and turned somewhat to fit. It has great views of the mountains and city lights so we would also want to consider that in the alignment.

Today, Saturday, the paperwork was completed and I wrote a check for earnest money. The offer will be faxed tonight and we will wait for a reply.

Fingers and toes crossed.