Friday, October 10, 2008

well, that's a pickle.

We had the home inspection for our chosen house yesterday. Our chosen house which is owned by two of the biggest douchebags in the Chicagoland area, as is only fitting for this entire real estate experience. There was nothing cataclysmic, but a few things that absolutely need to be addressed, will cost significant money, and must be addressed by the sellers (circuits overtapped to the point they're a fire hazard, leaking gas valve on the water heater, just to name the two biggest issues). We asked that these issues be rectified, in addition to a bunch of other stuff that any reasonable person would agree to fix but these people most likely will not. We also let a LOT slide, including major kitchen issues, since we will be gutting the kitchen anyhow.

We are fully expecting our sellers to tell us they will not fix a single thing. We decided, when we agreed to pay more than our original best and final, that if we were not happy with the inspection, we would walk. Someone else could pound sand for a change. Our two other potential choices both have significant drawbacks, but if it got to the point where we would be making a financially irresponsible decision, we'd take the less-than-ideal houses over this mess.

Seems straightforward,right? Of COURSE it's not! I talked to our loan officer yesterday, and she somehow managed to lock us into an interest rate of 5.99%. It's a miracle! ...but we have to have our contract in the computer by wednesday, and it has to be the contract for the house we ultimately buy. Meaning, we can't put THIS contract in the computer, then change houses, and keep the rate. Our sellers have until monday at noon to respond to our inspection demands, and possibly until tuesday, if their attorney chooses to view Columbus Day as a non-work day (our attorney will be working, but theirs could easily say no). So we'd have to move IMMEDIATELY on our second choice, and just pray to have the signed contract in place in time. Interest rates, as of today, are nearly 0.75% higher than our locked-in rate. This will come close to $100/month.

Now it turns into a complicated math problem, where we try to figure out how long we'd have to stay in the house to have the expense of a higher rate outweigh the expense of the repairs the house needs (answer: pretty darn long), in addition to the questions about how we'd feel about one of those second choices, and making sure we're not having a kneejerk reaction to the assholes selling us the house. Because, make no mistake about it, they are truly assholes, but once we close, they are assholes we never have to deal with again. (well. I suppose that, given both our jobs, we could conceivably have to deal with them in the future, but not in a real estate context.)

We're going back sunday to decide which house is our second choice, just in case. I'm not sure how easy it will be to make that decision, since one house is completely gorgeous and amazing, but on a rotten block with no backyard to speak of, and the other is a very small house which we would ultimately outgrow in several years, on a very nice block with an enormous backyard and, oh yeah, one of the biggest high schools in Chicago located directly across the alley. This? Is why we've put up with so much crap with our sellers thus far. Decisions, decisions.

I'm pretty sure this is interesting to nobody in the world except us.

ICE CREAM! Today I did an experiment, and mixed a 100 calorie snack pack of Chips Ahoy with my daily ice cream. It sounds good, doesn't it? It really wasn't. I mean, it wasn't bad, but I wouldn't bother with it again. That's me: attempting variations on McDonald's ice cream so you don't have to. You're welcome.


Donna said...

No, I am totally fascinated by this vein of postings! I totally know you will end up with the right place. Even though we have been at our house three years and two children now, and we haven't even started to: finish the basement, gut the kitchen, add an addition or even put in new doors, I think fixer uppers can be worth it if the location is right (and you have the money to pay someone else to do all the work ha ha :o) ) And thanks for saving me from the Mickey D's/Chip Ahoy ice cream pain. How would it work with the M&M's 100 calorie pack?

Crabby Apple Seed: said...

I know you will think I'm exaggerating here, but seriously, your kitchen is functional, so I can see not having done anything yet (though you guys replaced apliances, right?). The kitchen in the new house is not remotely functional- it's the size of a hall closet, and the only appliance that works is the refrigerator. The counters are cracked, the cabinets are falling apart, it's a total disaster. As for the basement, we didn't really plan on doing anything there immediately, but when the inspection came back with seepage and mold, it seemed more like a health/safety issue, so we'll have to see what we do about that. IF we end up in that house. We're not going to pay for all the electrical and HVAC work it needs, and as for our sellers doing it, well, I'm not holding my breath:(

I bet the M&Ms and ice cream would be pretty good but you'd have to add them slowly, because if you get an M&M McFlurry, the M&Ms freeze and get all hard and unpleasant and also don't taste like anything. I think the problem with the Chips Ahoy is that, even by themselves, the 100 calorie snack packs don't taste all that great. I may try with the oreos next weeks. maybe.

Crabby Apple Seed: said...

oh, and I forgot to add: our attorney couldn't fax our inspection demands to their attorney at all yesterday, because she didn't have his fax number. She spent the whole day calling him, and he didnt' return a single call. I finally got ahold of my mom in Wisconsin, who contacted the agent and got the atty's fax number. She said she's faxing it to him today, but who knows if he'll get it today. I don't know when the sellers will get our demands, and when we can demand a response from them.


Donna said...

Well it's true our kitchen is functional but if we had a maid named Alice who had a boyfriend named Sam then it wouldn't be so bad but as we do not it's very sad. Why must every house purchase be so stressful? At our closing we were literally done and at the very last moment the bank said "Wait, they don't have enough moeny!" and we were like "What?" and they made us all wait (lawyers, your mom, our new next door neighbor who was the seller's realtor) AN HOUR with no word at all while we looked like the biggest fraud shmoes and then finally they were like "Oops, our bad. We just can't add. you're fine." Apparently if we had put less than 20% down then we would have been fine, but since we just had a normal mortgage with the proper amount of money it threw the bankers for a loop. Well anyway I couldn't relate to you guys more since that was me and Eric 3 years ago. Being 7 month pregnant really makes it all the more jolly, doesn't it? Seriously it is going to work out so don't panic (too much.) :o)

diedendidit said...

Hmm, having a normal mortgage caused problems. How did we ever end up with a burst bubble that seemed to let loose tiny pellets of financial misery?

Yeah, no winning.