Offer
Tue, Dec 19, 2017We’re putting an offer in on the Lincoln Lot. We’re offering about 10% below asking, but are prepared to pay full price if it comes to that. We’ve been back to the other lots and the view at the Lincoln Lot is much better (wider), and it has some views of the mountains to the north too, which the others do not. There are a number of level areas that will become useful later, which are just not available at these other lots. We’re going to be spending quite a bit more than we originally wanted, but I feel we are getting much more too.
We’re making our offer at a good time. We’re hitting the middle of winter and it’s unlikely there are going to be too many people looking at properties in this area, with the snow and all. It’s very likely that there are no prospective buyers from the summer that are still mulling over a decision to buy because the area was surrounded by a large forest fire through all of summer and into the early fall. In fact, Jon, our real-estate agent is pretty sure it would have sold if not for the fire.
Now that we have decided to put the offer in, this whole endeavor has become a lot more real, and the excitement is a little overwhelming. To others it seems like we have moved fast, but to me, this is something that has been in the works for a long time, and so, this moment is pretty impactful.
Our offer has a couple contingencies. Even though the seller has a septic system designed and permitted, it is set to expire next month. He can renew for a nominal fee, and we’ve requested him to do so. If we wait until we own the land, we have to refile, and pay the full fee over again.
We also asked for what is called a feasibility study. This clause allows us to continue our research on the lot, and ensure it is ‘feasible’ for our plans. If we find it is not, we are able to revoke our offer. We still have so much to investigate. For example, there is a shared well, and water on site, but is everything permitted for a home of the size we are considering? If not, what is involved? How much will it cost to revise the floorplan designs? Are all the dues, utilities, etc paid up? What does the HOA’s budget look like? How healthy are the reserves? Etc. Also, we received a geotech report the seller had done, and there appear to be some inconsistencies in what the report concludes, as to whether he is recommending we can build on the excavated site.
As for the financing, we are going with US Bank’s 3⁄1 ARM lot loan. When we apply for a construction loan later, we will include paying off the lot loan with that. I am confident we will be applying within three years, so am comfortable taking on this adjustable rate.
This is the first milestone of many!
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