Page 33 - EQ Magazine Issue #3

FIRST-TIME HOMEBUYER RESOURCE (CONT’D)
roofs hold up better than shingles or ceramic tile roofs;
which means you are going to pay more for the metal
roof. Water intrusion is an ongoing thing, so keep a
case of clear sealant. When the rains come, find the
cracks and quickly seal to avoid interior water damage.
Your utility costs
may be higher too.
“It can be more
expensive to live by
the water. Newport
electricity is based
on how close you
are to the water.
That ends up being
double and strictly
based on the value
of the house,” as stated by Julie. So, if you can afford a
house by the water, you can afford to pay a higher rate
for electricity.
Property taxes are very expensive as well as insurance
coverage. Julie advises getting insured appropriately. The
risk of living on the water and storms, “I know I can get
wiped out.” The insurance takes longer to get to ensure
everything is covered including flood and tsunami.
Interestingly, if the house is in a designated landslide
zone, insurance can be tricky. Lenders in this region
require more extensive insurance coverage.
Using a local home inspector should be a top priority.
The property Julie purchased is on stilts. “Hire a home
inspector that’s used to inspecting those types of homes.
He was able to look at the construction of the stilts and
their foundation. If I would have hired an inspector I
know, they would not have been an expert in that.” I
asked if most of the homes were on pillars?
“Not all are. The coastline’s so rugged and different. It’s
untamed, rugged and wild. We have massive hills and
mountains and used to have giant trees on our
coastline. There are very few ocean front homes here
that you walk out the back door and land on the sand.
I’d say about 20-30% on stilts. Some built into the rock
or on top of the cliff or something that doesn’t require
stilts.” The styles include single story, two-story and
those with a basement are “nestled into the cliff. They
have a daylight basement so you can capture the view
from both levels,” according to Julie.
There are pivotal moments during a transaction which
can drastically change the outcomes. The first one is
during negotiation. Circumstances such as divorce or
32 | www.equitymovement247.com
death can affect the emotional investment on the part
of a seller. Second, details of a property causing sellers
to feel they can sell for more than area comps
substantiate. Third, a home inspection.
In Julie’s case, the property had been in the family for a
long time. The property was built by a family physician
in 1965 reminiscent of Chinese architecture constructed
from redwood. The house is designed to withstand
winds due to its double octagon shape. When the winds
hit it, the winds go around the property. The roof trusses
are slightly lifted allowing winds to flow thru the
property working with the elements. The interior
floorboards are held down with customized wood pegs.
The initial negotiations extended over a three week
period which almost caused the Baldino’s to back out.
The next hurdle resulted in a significant benefit to the
Baldino’s and affected the seller’s bottom line. During
the home inspection, the sellers were present. Their
agent emailed them and told them not to be present,
especially since they didn’t live in the property. This
could be a double edged sword if you find yourself in
this situation. The Baldinos were able to get costly items
repaired or replaced as well as other items they didn’t
expect the seller to pay for. However, since the sellers
became emotionally invested in the process, it cost them
money. Lesson: Listen to your agent who will represent
your interests. “Leave the negotiating to the agents. We
do it for a living, right”? is Julie’s advice.
Finally, determine up front if you are the type that can
take on renovations, or hire someone to do the work.
Make sure you have more than you think you’ll need for
renovations.
Figure out elements or conditions that are unique to
where you are buying. For example, in this region wood
boring beetles are prevalent. The beetles drill into the
support beams and lay their eggs. Not only are they not
easy to get rid of, they will weaken a property’s support
beams. Consider your travel time to and from work if
you plan to make it your primary residence.
For the Baldino Family, this a gift to themselves which
they will enjoy for many years to come. If cooler
temperatures, and a rugged outdoor ambiance is
appealing to you, the Pacific Northwest will be worth
considering.