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Old 04-14-2016, 08:09 AM   #61
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Wow! That's crazy high. I know the gov't changed the rules about flood insurance recently, but in our case even though it nearly doubled the premium it was only from ~$450 to ~$800. We're not in the most dangerous zone, though. Hope you can get that straightened out.
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Old 04-14-2016, 09:11 AM   #62
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Would you want to write flood insurance? It seems like likely the only "affordable" flood insurance for a river frontage home would be taxpayer assisted. Flooding has been a common problem up here, and climate seems to be changing in ways that are not likely to make flooding less frequent or serious.

Fermion, I hope your guys gets what he needs to buy your place.

Ha
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Old 04-14-2016, 09:15 AM   #63
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Would you want to write flood insurance? It seems like likely the only "affordable" flood insurance for a river frontage home would be taxpayer assisted. Flooding has been a common problem up here, and climate seems to be changing in ways that are not likely to make flooding less frequent or serious.

Fermion, I hope your guys gets what he needs to buy your place.

Ha
At $5,000 for $250,000 of coverage for a house that has a 0.1% chance of suffering any damage, yes, I would love to be able to write flood insurance.

And technically I guess I could. If I do owner financing and don't require flood insurance, then essentially I am providing them flood insurance and taking the premium in the form of a slightly larger interest rate. Well, not really. They would not have coverage for their possessions in the event we get a biblical flood and if they walk away from the house after it is destroyed, they would have lost their deposit.
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Old 04-14-2016, 09:47 AM   #64
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At $5,000 for $250,000 of coverage for a house that has a 0.1% chance of suffering any damage, yes, I would love to be able to write flood insurance.

And technically I guess I could. If I do owner financing and don't require flood insurance, then essentially I am providing them flood insurance and taking the premium in the form of a slightly larger interest rate. Well, not really. They would not have coverage for their possessions in the event we get a biblical flood and if they walk away from the house after it is destroyed, they would have lost their deposit.
Well, I have no idea what the house's exposure is, so you are likely correct in your assessment.

If you agree that no flood insurance is needed for your owner financing, will the buyers still want to go to close?

When I first moved here from CA, I was interested in a place along the Cedar River. If you come from someplace dry, a river is really attractive. My wife said, no way, José.

But really, in Seattle area we are all in a similar and perhaps more exposed position, with earthquake rather than flood, or perhaps earthquake followed by flood.

Ha
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Old 04-14-2016, 01:50 PM   #65
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Sounds like fun.
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Old 05-11-2016, 02:47 PM   #66
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I got a contract on the house today. I guess this might really happen. I forwarded it on to the lawyer I found to do the closing. I'll have to do a few things before the sale. The buyer wants the septic tank inspected and pumped, and the furnace inspected. I don't think the septic needs pumping, as the house has sat empty for the past two years and before that it was just my mom. But I'll get it inspected, anyway. The furnace is a good idea, as it also hasn't been used in the past two years. I don't know if having a full tank of oil sitting for that long is a problem or not. I hope not.

I was out there this past weekend with my family to spread Mom's ashes in the river. My 8 month pregnant daughter was with me, so I turned on the water in the house since she needs to pee every 10 minutes. In the process I discovered a pipe had frozen and burst over the winter, even though we turned off the water and blew them out with an air compressor. So I've got to get that fixed too.

Other than that, it sounds like a likely deal. This will be my first no agent sale. It should be interesting. I hope it works out easily and without complications.
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Old 05-11-2016, 05:42 PM   #67
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Congrats on the offer, Harley! I hope everything goes smoothly for the sale. And that you find no more surprises like the busted pipe!
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Old 05-11-2016, 07:35 PM   #68
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Nice, grats harley.

Our sale seems to be going along smoothly now and closing is in 2 weeks, then we are homeless.
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Old 05-11-2016, 08:16 PM   #69
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Great news, Fermion and harley!
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Old 05-11-2016, 09:34 PM   #70
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Yes, congratulations to you both. If this were easy more people would do it.

Ha
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Old 05-11-2016, 10:45 PM   #71
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Congratulations on selling FSBO. We just closed on our lake house by owner and it went very well. Saved a bundle on commission. This is our fourth sale by owner. It takes some work and the right personality but it is possible to sale by owner. Now to contract the new lake house without a builder.
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Old 05-12-2016, 02:06 PM   #72
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And now come the inevitable potential problems. The buyer is using a VA loan, and according to my lawyer the VA won't approve a loan unless the house is in pristine condition. Which it's not. It's an "as-is" sale. The big specific problem has to do with the underground oil tank. Supposedly it has to be pulled out of the ground inaccordance with EPA and Va. DEQ regs, and inspected by a licensed engineer. I'm not sure if it gets put back afterward or if they want an above ground tank. But in as much as it's in the back of a house on the side of a mountain it would be a PITA to remove. And I'm sure not paying for it.

I don't know if all these issues are real or not, just a heads up from the lawyer. I've passed the information on to the buyer so he can talk it over with his loan people. Now we wait.
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Old 05-12-2016, 02:14 PM   #73
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And now come the inevitable potential problems. The buyer is using a VA loan, and according to my lawyer the VA won't approve a loan unless the house is in pristine condition. Which it's not. It's an "as-is" sale. The big specific problem has to do with the underground oil tank. Supposedly it has to be pulled out of the ground inaccordance with EPA and Va. DEQ regs, and inspected by a licensed engineer. I'm not sure if it gets put back afterward or if they want an above ground tank. But in as much as it's in the back of a house on the side of a mountain it would be a PITA to remove. And I'm sure not paying for it.

I don't know if all these issues are real or not, just a heads up from the lawyer. I've passed the information on to the buyer so he can talk it over with his loan people. Now we wait.
Underground oil tanks are quite common among older homes in the NE and Midwest, and I've never heard of any requirement to pull one out for inspection when a house is sold.
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Old 05-12-2016, 02:20 PM   #74
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Before I accepted our buyer's offer, I made sure they had a conventional loan with 20% down. No FHA or VA BS for an as-is sale. The only real issue we had was the high flood insurance, which was fixed with a simple new survey plus me uncovering the vents (reduced the rate they were getting quoted from $5300 to $380)
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Old 06-08-2016, 07:38 AM   #75
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Update: Got the signed contract. There will be an inspection of the oil tank, but just a check for leaks, and I'm sure there aren't any. Now comes the tricky part for the buyer, getting the VA to sign off on the loan. Not my problem, but I hope it goes well. The timing sucks, since DGD#2 will be entering the world in a few days, and I'll be at DD's house for a few weeks. Mostly just standing around or doing handyman projects while DW does the heavy lifting of helping with the baby, but still, I'll be distracted and not at home where all the paperwork is. I'll just keep my fingers crossed that it all goes smoothly.
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Old 06-08-2016, 07:51 AM   #76
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Good luck, harley! Sounds like everything is going as smoothly as possible. Real estate deals are usually extremely stressful for one reason or another, IME anyway.

In another 2.5 weeks it will have been a year since I bought my present "dream home". I still can't believe it actually happened! It seemed like so many obstacles were in the way but the sellers and I made it through closing (last June) and all parties were so happy and relieved that it happened as planned. Real estate drives me crazy, though, so I don't envy you right now.
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Old 07-12-2016, 02:54 PM   #77
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Update: I never would have believed it, but it appears the sale is going through. The buyer received his VA assessment at a few thousand dollars more than the contract price, so after the title search and termite inspection we'll schedule the closing. This is going to go down in my personal history as a great year! New grandbaby and got rid of my Mom's house without having to do hardly anything! Not counting my chickens yet, but must to admit to a bit of heart quickening.
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Old 08-04-2016, 06:29 PM   #78
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Another update: I drove down yesterday and signed all the papers, then went and picked up all the stuff we want from the house (5'x8' Uhaul stuffed to the ceiling). The closing is supposed to be tomorrow. If it goes through I'll be pretty darned happy. No agent commission, and not that much work involved. Mostly just waiting and watching. Top dollar (IMHO) and the only closing costs were the lawyer ($600) and some taxes. Pretty cool.
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Old 08-04-2016, 06:43 PM   #79
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Good for you harley!

Ya gotta love it when a plan comes together.
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Old 08-05-2016, 08:28 AM   #80
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Done! Woohoo! As usual, my best financial moves are the result of doing nothing.
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