Inspection Update: The Importance of Having Someone on Your Side

Words cannot express how impressed I was with the inspector we hired to check out the house we're buying. I've seen inspection reports for other houses where the inspector has taken the word of the seller on many important aspects of the home's condition. Not this guy! For two and half hours, he poked, prodded, and examined every nook and cranny. He made it clear that he was working for us and that he was going to earn every three hundred and seventy-five dollars of his fee.

First, the good news: the stone foundation is pristine and the house is solid.

Now, minor issues aside, here are some of the problems: There's some knob-and-tube wiring that needs to be replaced, the chimney hasn't been cleaned in about 25 years, and there are a few plumbing issues. The porch and mudroom roofs need to be replaced (but not immediately) and almost none of the outlets are grounded. The inspector suggested we get estimates for the chimney, plumbing, and wiring. As long as the smoke pipe hasn't collapsed (something he suggested may have happened), the chimney cleaning should run only a couple hundred bucks. The wiring will probably cost a bit, and there's a problem with the shower body (the faucet knobs leak) in the upstairs bathroom. Most of theses repairs will have to be done soon.

The owner has already come down $10K from the asking price, so unless these repairs are bigger than we suspect, we should still be ahead. Once we get the estimates, we're going to ask if the seller is willing to negotiate on a couple of items. For instance, the oil tank is ¾ full and we are supposed to reimburse her at closing, and also, we're supposed to reimburse her for the pro-rated taxes. If she's willing to eat those costs, we'll probably still have a deal.

House Inspection Day

This morning, Pancake and I are meeting the inspector at the house. Luckily, my father-in-law, who knows a bit about construction, is in town and will be joining us. Hopefully, everything will be fine. I've been in quite a state lately as everyone I know keeps telling me horror stories about everything that can go wrong. Heck with the cereal diet--if you want to lose a few pounds, buy a home!

Have GPS, Will Travel

Three years ago, Pancake and I embarked on a 5,000-mile road trip that took us from Kansas to New York, then down to Florida and back to Kansas. Before we left, we invested in a GPS system that we installed on Pancake's computer. I did most of the driving while Pancake, computer on his lap, connected to the internet via his cell phone (so he could keep an eye on the business) and, thanks to the GPS, let me know every time we were within 25 miles of a Krispy Kreme. Other than pinpointing donut shops, the GPS let us find hotels when we were road weary and call ahead for pricing and availability. We also used it to plot a new route through Georgia when I-95 turned into a parking lot. While I'm not a technophile, if we were to take another trip I would invest in a GPS handheld. I checked out some of the snazzy new gadgets at Northeast Marine Electronics, and they have electronics for camping, hiking, hunting, fishing, boating, and driving. FYI: boating enthusiast can now get free electronic downloads of NOAA's Raster Navigational Charts. The NOAA Web site http://nauticalcharts.noaa.gov contains a fully updated raster chart for each chart in NOAA’s files. If only AAA offered something so cool, I'd be set.

Speaking of Investing in Houses...

On Thursday, we saw the house we've been stalking and loved it. It was listed at $125,000, and on Friday, after consulting with knowledgeable family members, we offered $112,000. Late Friday afternoon, the seller counter-offered with $115,000, and we accepted! It's going to contract today. I have not been this happy in quite some time. Pancake and I are keeping our fingers crossed that all goes smoothly.

Chicken or Beef?

Back when the entire Y2K hubbub was going on, Pancake was in a meeting with some folks from his office and talk turned to protecting your finances against the upcoming fiasco. One guy said that he was putting his money into bullion, to which Pancake said, "Chicken or beef?" No one laughed. But jokes aside, many folks do invest in precious metals, such as gold:

Since 1967, well over one hundred thousand investors have purchased billions of dollars of gold, silver, platinum and palladium bullion and bullion coins from Monex, one of the largest firms specializing in precious metals for individual investors. Investment experts have long-recommend portfolio diversification and that 10% to 20% (and sometimes more) of an investor's assets be devoted to tangible assets such as gold, silver and platinum bullion and bullion coins.

I feel out of my realm when I think about the possibility of investing in precious metals, but really, investing in gold is no different (I would assume) than investing in real estate.

Eleven Easy Steps to Protect Your Auto from Thieves

When it comes to protecting my car, I admit that I have some bad habits. Luckily, my car has never been stolen, but I am going to make an effort to change my ways. I also know that many of my readers live in metropolitan areas and that's why I'm posting the follow eleven tips recommended by Nancy Pierce, regional vice president of GEICO's San Diego location:

1) Keep your vehicle locked at all times, even while driving.
2) Never leave your keys in the car.
3) If possible, park in busy, well-lit areas. Thieves prefer to work in the dark. Leave your car in park or in gear with the wheels turned toward the curb or some other obstruction, so thieves won't be able to tow it easily.
4) Avoid leaving valuables inside your vehicle where passersby can see them.
5) Install an anti-theft system in your vehicle if it doesn't have one. A mechanism that locks onto the steering wheel can be a very visible sign that you've taken steps to protect your vehicle. Ignition cut-off systems prevent a car from being started. Some new cars come with passive alarms that activate automatically when the key is removed from the ignition. One system emits a signal that can be tracked by the police. Thieves are reluctant to steal vehicles that can be tracked and recovered quickly. Many insurers offer discounts for these types of systems.
6) Beware of the "bump-and-rob" technique. Carjackers bump your car from the rear, then steal it when you get out to look for damage. When stopped at a traffic light, leave room to maneuver around the vehicle ahead if you need to. If another car bumps yours and you feel threatened, drive to a populated area. If you have a cell phone, call the police for assistance.
7) Do not leave registration or title in the car. Too often a car thief is pulled over and gets away from the police because he or she can produce the auto registration. If multiple drivers use the vehicle, the best suggestion would be to hide the registration in a secret location that only the owners know.
8) Look around. Be aware of your surroundings, especially in garages, parking lots and gas stations.
9) Know where you're going. Avoid known high-crime areas even if the alternate route takes a little longer.
10) If confronted by a carjacker, do not resist. Cars can be replaced; you can't.
11) Have your car's vehicle identification number (VIN) etched on each of the windows.

While I never leave my keys in the car, I am guilty of driving with my doors unlocked, storing my registration in the glove box, and leaving CDs and loose change in plain view. Visit CarInsurance.com for more information about protecting your auto and lowering your insurance rates with free auto insurance quotes. There are some useful articles in the Learning Center, such as "Which Car Should You Own to Keep Your Rates Affordable," and "Should I Buy Rental Car Insurance?"

Skype Goes Free

Pancake uses Skype and received an email that from now until the end of the year, all US and Canadian calls using Skype are free:

Starting from today it doesn't matter if it's a Skype-to-Skype call or a call to landline or mobile phone - it's free as long as you're calling from within the US or Canada to US or Canadian phone number.

I've never used Skype, but Pancake swears by it. He says the reception is better than cell, VOIP, or landline.

Revamp Your Tired Music Collection: Trade CDs at lala.com

Pancake turned me on to this new service that is about to launch that lets you trade your old CDs for new-to-you CDs. Here's how la la works:

• Registering for 'la la' is FREE! You can browse member collections and play lists, search for specific artists and albums, or sample 'la la' recommendations. There are no upfront commitments.
• Pay only $1 for a CD.
• Once you decide to start trading, you only pay for CDs received from your Want List. There are no hidden costs or monthly fees. Every CD you receive costs only $1 plus a standard shipping charge of $0.49. The number of CDs you receive will depend on how many CDs you ship to other members.
• You're NEVER obligated to ship CDs in your Have List. When someone requests one of your CDs, you decide if and when to ship the CD. The more you ship, the more you get.
• 'la la' provides you with stamped envelopes, so all you need to do is drop your CD in the mail! You never pay anything to send CDs.

I'm definitely going to give this a try. I've bought and sold CDs on half.com, but I like the idea of trading. You can't go wrong at $1.49!

House Update

We've been waiting for a few more houses to become available before we ask to see the one I wrote about in previous posts, but I think we're going to ask to check the one we've been stalking later this week. We drive by the place every day, and I don't think anyone is living in it. A few days ago, the front door was open, and there was an ashtray on the porch rail, which leads me to believe that the owners may be making a few improvements.

According to the National Association of Home Builders, "At a median age of 33, U.S. homes are older than ever before. Since a flood of new homes hit the market during the real-estate boom, curb appeal is a big factor for older ones." This older home (pre 1900) definately has curb appeal—newer vinyl siding, updated windows, freshly painted trim—which, according to the National Association of Home Builders, is becoming very important for sellers as the market cools.

I found some helpful advice from the folks at New Castle Realty on negotiating with sellers at Naperville Real Estate, as well as many other useful articles for anyone either buying or selling a home in Naperville (or anywhere in the U.S.). Hopefully, we'll have our place soon!

Remanufactured Ink Cartridges: When the Best Price Doesn't Save You Money

A few years ago, I bought a remanufactured ink cartridge from an online supplier and it didn't work. I should have returned it, but for reasons I can't recall, I didn't. I never ordered from that company again and decided that remanufactured cartridges were unreliable. Flash forward to a couple of weeks ago when we needed ink cartridges to get ready for the convention. We made a trip to our nearest city which has an Office Max, and I saw that Office Max was selling remanufactured cartridges under their brand name. I trust Office Max because I've always had good experiences with their products, so I bought the cartridge without hesitation. We printed the items we needed for the convention without incident, and then, this weekend, my printer started acting oddly, making these god-awful clunking noises and refusing to print more than one page before locking up. At first I thought it was the PDF I was trying to print, and then I thought maybe we'd damaged the printer when we brought it to the convention. Eventually, it dawned on me that it was probably the cartridge. Last night, we exchanged the Office Max cartridge for an HP, and now my printer is happy again.

So how much did this lesson cost? The remanufactured cartridge was $5.50 less than the HP cartridge, but our nearest Office Max (or any office supply store for that matter) is twenty miles away. We would have lost money on gas alone, but we needed to go to the city anyway to buy a birthday present for my niece. Gas aside, though, my husband and I probably spent a combined three hours troubleshooting before we figured out that it was the cartridge. (Doh!) I'm sure that there are folks out there for whom remanufactured cartridges work—there must be or they wouldn't sell them—but not for me. I asked the Office Max manager if problems were common, and he reluctantly told me that they've had a number of returns and that remanufactured cartridges are always a risk. I really like Office Max and hope that the remanufactured cartridge business doesn't tarnish their brand name.

Money Changes Everything

I've been feeling strange lately, and not just because I've had a wicked cold, which explains the lack of posts to this site. For the last ten months my life has been in a holding pattern, and it's all directly related to money and our lack thereof. I am a writer—a fiction writer. I have an MFA in creative writing from a decent university and a handful of publishing credits. I wrote a novel a few years back (still unpublished) and completed a short story collection (also unpublished), and last year, before we moved, I started work on a second novel. Other than this blog, and an article I wrote for a local magazine, I have not been able to write in almost a year. I have always been extremely disciplined, writing everyday, twice a day (one session in the morning and another in the afternoon), all while managing an art gallery and keeping the books for our three companies. I know that a large part of the problem is not having my own space; we've been living at my in-laws' camp and everything I own is in the garage out back. My former discipline relied on routine, and I just can't seem to get my act together.

What I can do is obsess about money, and this scares me a bit. I've always been interested in personal finance and frugality, but I also had a healthy perspective and didn't let it rule my life. Now, it's all I think about. I know that my obsession is filling the space that used to be devoted to writing, and I also know that once I start writing again, it will resume its proper place in my life. I hope. Not all of it is my own doing. There's a hierarchy of needs—we need our own house; I need my personal possessions; we need health insurance; I need to have my eyes examined and get new contact lenses; we need to register our car—and writing is not at the top of the list. Our needs consume me. And I'm tired.

Please excuse the excessive introspection, but I don't recognize my own life. The way I am living right now is not who I am. And I hate the fact that I've wasted an entire year. I just feel so lost.

Help! First-Time Homebuyer Needs Advice

We have our eye on a three-bedroom, two-bath house in our village, but we don't know how to go about making an offer. The house is listed at $125,000 and has been on the market for almost a year. The backyard is miniscule (luckily, we don't have kids) and there is no garage or real driveway (just an asphalt strip to park the car). I want to make an offer, but I don't want to insult the seller. Is there a ratio of the asking price that is appropriate to offer—for example, 10% of what they're asking? Obviously, we want to get the best price, but so do the sellers. What constitutes a low-ball offer? A medium offer? Help!

Dove Free Sample Bonanza!

Visit the Dove Web site and choose from a variety of free samples. Enjoy!

Boy, What a Week!

The last time I posted, I was getting ready to leave for a convention on Cape Cod, and we were waiting to hear if we'd been pre-approved for a mortgage. It was a crazy four days, and the Cape was cold and cloudy all weekend, and then it rained on Tuesday. I returned home to a pile of work and an inbox full of emails, and promptly came down with a sinus infection. I'm not better, but I'm back. And, yes, we've been pre-approved! The rate is pretty high because of our business debt, but, according to the lender, there are a couple of things I can do to get it reduced. And we can always refinance once our credit history improves. Our down payment is in A/R, and as soon as it rolls in we're going to take a look at a house that's been on the market for almost a year. It looks great from the outside, and I'm keeping my fingers crossed that the inside proves just as nice.