2007 July

Archive for July, 2007

The Best $35 I Spent This Year

July 31st, 2007 categories: Central Connecticut News & Information

This summer has been crazy. It has been my most productive and lucrative summer yet.

But being busy with business means that my husband has to pick up my slack. Cooking dinner, giving the baby a bath, laundry, etc. So, he is overwhelmed with doing things I normally do and is then strapped for time to do the things he usually does, like the lawn.

Last week, I decided to hire a company to do my lawn. My husband didn’t want me to waste the money. I don’t think it was really about the money, though. My husband comes from a long line of do-everything-yourselfers who always have too much to do. Letting go of a task is like leting go of a piece of his identity. He’s always the guy with too much to do and not enough time. I’m exactly like him so I can identify the mental illness when I see it.

A few people on my street have lawn services so I called one smart landscaper who has his phone number on his truck. Landmark Landscaping in South Windsor came out the very next day and gave me a quote - $35 per week for mowing. We agreed on a day and what do you know? He actually showed up! First thing this morning, he mowed the lawn, did some weed whacking, sprayed for weeds, and blew away the extra trimmings.

It took him a half hour and saved my husband about an hour and a half of work. My husband may choose to fill up that extra time he has with color coding his sock drawer each week but that’s OK with me. It’s still the best $35 I spent this year.

The Escrow Money Saga

July 16th, 2007 categories: Home Buyers

My poor clients. They are the victims of the single worst escrow money debacle I’ve ever experienced or even heard of. Here’s the story:

My clients agreed to purchase a home in January. At the inspection, the septic inspector noted that there was a “water conditioning” system that was dumping waste water into the house’s main septic system. This situation was not to code and he so noted it. The remedy for the situation, according to two contractors, was to install a separate septic system for this “water conditioner” at the cost of around $1500 when the ground thaws.

Since it was February, the contractor would have charged double to do the work before closing, or $3000. Amazingly, I had to fight tooth and nail to get the mortgage lender to not require this. They wanted the borrower to spend twice as much money to have this separate septic system installed in the winter. Eventually, they agreed to set aside $2000 in escrow at closing for both the separate septic system and another repair.

Right before the closing, the listing agent told me that the seller was totally baffled by the situation since the “water conditioner” was in fact a water filter for iron. Upon hearing this, I called the company that made the filter, had them come out to the property and they disconnected it altogether, at a cost of nearly $200 to the buyer. They confirmed that the item in question was a water filter that did not backwash anything into the system - it just filtered iron out of it.

So, the water filter isn’t discharging anything into the septic system and we provide documentation to the lender. Still, they require the $2,000 be set aside in escrow from the buyer’s funds. Because the terms of the agreement with the seller, we had to close on time and couldn’t argue with the lender any longer.

In order for the buyer to get the money back, they need to provide documentation that the repairs have been made. But what if one of the repairs was unneccessary because the inspector made a mistake? This is what I and the buyers have been fighting with the lender over for almost 5 months.

Since the closing, the buyer had one of the required repairs made because this was not in dispute. The other repair, we argue is unneccessary. I even had the town health department come and inspect the water filter and write a letter saying that it is a water filter and that it is to code. This was three months ago…

Still, the lender refuses to release the buyer’s money unless a new septic system is installed - even withholding the money for the repair that was made. According to the lender, the new septic system has to be installed because the closing documents say so (not a joke).

The Best Wedding Gift You Can Ask For - Your First Home

July 11th, 2007 categories: Home Buyers

According to a survey of wedding consultants, 80% of the engaged couples in the United States have already set up house on their own and have most of the items customarily given as wedding gifts – flatware, dishes, linen and appliances. What many couples do not have but want is the actual home – one that has their name on the title.

If you are planning on getting married and want to buy a home shortly thereafter, you’re not alone. More than two-thirds of engaged or newlywed couples are renters who intend to buy a home within the first couple of years of marriage. Many of these buyers find their biggest hurdle to homeownership to be saving enough money for a down payment and closing costs.

The median home price in Connecticut is around $250,000. Ideally, buyers should have 20% of a home’s cost to put down as a down payment and another 2-4% to pay for closing costs. If you can’t put down 20%, there are alternative mortgage programs that allow you to put as little as 3% down or even zero down. The downside to putting less down is that you may have to pay private mortgage insurance or get a first and second loan, with the second loan usually having a higher and/or variable rate.

Saving for a home purchase is challenging. But with some planning before the wedding, you may be able to get your wedding guests to help contribute towards the purchase of your home.

Asking for Money the Right Way

While money has been a long accepted wedding gift around the world, etiquette in the United States, up until recently, has called for an actual gift instead of money. In response to changing attitudes, the increase in the average age of engaged couples and the fact that many engaged couples already live outside of their parents homes, more people prefer to give money and more couples prefer to receive it.

Asking for money as a wedding gift is perfectly acceptable now, as long as it’s done politely and guests are given a choice. Generally, it is not appropriate to include your preference for money (or even your registry information, according to etiquette) in your wedding invitation because it is considered presumptuous to expect your guests to bring a gift, although almost everyone does.

What is appropriate is to enlist your friends and family to help spread the word about your plans to buy a house. Train members of your family, close friends and wedding party to politely suggest to guests, if asked, that what you really would prefer is money to help you buy your first home. Most guests will talk to a member of the wedding party about your wedding or to ask about a gift registry. Your guests want to give you a gift you can use and will likely feel more comfortable giving you money if they know what it will be used for.

Also consider that some guests just won’t feel comfortable giving you money. To give those guests an alternative, set up a small gift registry of items you could use and tell your family to mention it as an option for your guests.

If you don’t think it’s worth it to ask for money in lieu of gifts, think again. According to the Association of Bridal Consultants, the average amount spent per wedding gift is $85 and the average couple receives 100 gifts. $8,500 won’t be enough for 20% down on a house, but it will cover 3% down on a $250,000 purchase price with a little left over for closing costs.