Friday, June 29, 2018

Summer

I say goodbye to my vehicle next week when she gets traded in for a 2012 Subaru Outback.  It cost an extra $3800 out of pocket to make it happen.  Other expenses will include floor mats, winter tires and rims.  Hoping to find the rims used.  Have my winter tires and rims to sell as well.

Will definitely miss driving my SUV.  It will be a difference of over 200 horsepower less...plus the level of finishes including quality of vehicle glass.  Incredible how well mine blocks out heat without being dark.  I very much appreciate great engineering and design.  So am reverting back to vehicle purpose to be getting one safely from A to B along with performance in the snow.   I did get to enjoy her for the last 7 years.

Car insurance will only drop a couple hundred or so a year as both vehicles are considered very safe despite the big difference in vehicle cost.  But we will be back to using regular gas and gas mileage will increase significantly.  Now that the cottage won't be part of our lives much longer, the longer drives won't be either.  We'll be turning in our 407 transponders (toll highway).

New news with respect to cottage sale.  Got a request from the buyers to move up the closing date by 1 1/2 weeks.  We don't have a problem with that and in fact prefer it.  D will only need to go back up once more to complete everything.  Our lawyer confirmed it is possible timing wise so we are awaiting paperwork to amend the agreement.

Currently considering making a change with D's car as well, to something more practical (higher clearance) to eventually leave out west.  Found another possible choice and will head out of town for a viewing, assuming it is still available.  Same brand of vehicle I was supposed to test drive last month when it sold.

Sold a couple more handbags.  Have a few fall items to bring in when the time comes.  They had been "pre-approved" with the summer lot so are good to go.  Constitutes the last of my luxury items.  Currently have a couple still listed that are at the higher end I'm hoping will sell before their time runs out (all items have a 3 month expiry).  Will consider marking them down.

D had been organizing household items for a garage sale.  It will be his solo endeavor because I'm not into it.  Because of all the stuff that has been going on, it hasn't happened yet.  He's still committed to it for July/Aug.  Any proceeds will go towards his next volunteer trip.  I'd really like him to experience a Habitat Global build. 

Saturday, June 23, 2018

June

I recently got over a monster of a cold that had me cycling from one fever to the next and sleeping 10 - 12 hrs daily for a solid 5 days.

It was something and luckily, due to the timing, I only had to miss a day of work.  Could have been a lot worse.  Pretty sure it was the 3rd work day I've ever missed due to illness.

The timing of it could be seen as a coincidence, however just as likely to be one of those things that have been known to happen after large worries and stressors fall away, exposing the effects of deep chronic strains on the immune system. 

  • D confirmed that the lack of water described by our Realtor was due to the breaker being turned off to the pump.  Once on, all was well.
  • The results of the water test we wanted done came back perfect. 
  • We didn't have to go through with the water testing as it was not a condition of the sale but wanted to for ethical reasons.  We braced for any potential bad news that would mean a new water filtration system, pump or worst case, a new well. 
  • It still bothers me that perspective real estate buyers in a competitive market have to compromise so much in order to "win".  The offer we didn't want to engage with, that had a lot of conditions was the type of offer I would go in with, and have gone in with.  
  • People are feeling like they have to carry all the risk to get what they want.  Leaves them potentially vulnerable to nasty surprises.  It's a risk I wouldn't want and because of that, wouldn't engage.  And the ones who are being careful, like I would be, are losing out.  I feel bad about that.  
  • Having a high enough volume of people go through the cottage meant floors were dirty and bedroom carpets (off white) left pretty soiled.  D will steam clean before closing. 
  • Our lawyer's office has received the agreement and have officially started working on our end.
  • I completed my course required by a volunteer agency.  Am not truly done as the material requires repetition.  Will give myself some time off before starting again.  
  • Have put my Spanish studies on the back burner so would like to catch up again this summer.  Fortunately our teachers and others we know in Guatemala made it through the eruption alright.
  • A few more consignment items sold -- Two purses, a pair of heels and a skirt.
  • I have the next 2 months off of travel.  Am excited to hang out at home this summer.
  • Not having a lot of success digging up older receipts related to cottage capital expenses -- Towards the calculation of the adjusted cost base.  
  • My fault for not separating them and the real early receipts have been shredded.  And calls to the plumber etc.  have not been fruitful as they only have the last 7 years of receipts.
  • So the number I have for capital gains tax is likely the one we live with.

Friday, June 15, 2018

Sold

The cottage was listed the day after we left Canada.  We went with the pricing recommended by our realtor as neither of us had any idea what this year's market was like.  With no real current comparables at the starter end of the spectrum, told her that our goal was to be fair, not greedy.  Plus we believed too, that the market will correct errant pricing either way.

By the time we got settled a couple of days later, we found out about the 10 booked showings.  By the end of the week, there were 20, with 5 registered offers plus 2 others that withdrew for various reasons.   As we were in an a region with rolling blackouts and unreliable internet, we had to make the decision to postpone review of offers until our return 12 days later.

I particularly felt horrified that it would appear as if we were trying to take advantage of the interest to delay, in order to encourage a bidding war, so had to hope that our realtor would be able to relay our situation clearly to the parties involved and trust they would believe us.

D wasn't as concerned as I.  He felt that in this day and age, a simple google of both our names would easily land on my office website with a vacation notice and his LinkedIn and Facebook page.  Just like we would be doing the same with their names later to try and see who we were dealing with.

The world of real estate has changed a lot since our last engagement years ago.  We were impressed with the new software allowing date stamped binding signatures to be made on agreements with simple clicks and a choice of writing styles.  That part was actually fun!  And how the agreement gets emailed to subsequent owners to sign once one person has completed their signing.  Very sleek.

Neither D or I have ever been in a multiple offer situation.  You read about it and see it on the numerous real estate shows but I have to admit, it isn't as glamorous as it appears.  It's pretty nerve wreaking.  There were a couple that gave 1 hour non revocables.   Four out of five changed their conditions and or pricing on the last day.  One sent a personal note.  And we felt very rushed.  It wasn't all that exciting.

D decided to call the bluff on the highest offer (34K over asking) and it worked.  They were not serious, wanted an extension that we were not willing to grant and created a lot of noise and drama for about 40 min.   I didn't have a good feeling about the offer and could have done without that whole interaction.

The second highest offer (10K over asking) didn't get a chance due to lack of time and having the most conditions.  Their realtor called inquiring about status as they were anxious about the outcome.  I felt bad that we didn't engage with them but offering more money did not balance out the sheer amount of steps they needed for a really short closing request (2 1/2 weeks).

We really liked the idea of a quick closing, but to make it work would have involved signing back and trying to change too many things and I didn't want this process to continue all night or into the next days.

We passed on the lowest offer.  There wasn't enough interest to negotiate.  Which left two offers priced the same, one that came a note explaining why the financing clause was present.  We deferred to our realtor's experience with such clauses.

It is getting harder to qualify for 2nd mortgages for recreational properties and it usually involves a bank assessment and she had not been contacted by anyone about that.  In her experience, the whole process has taken up to 10 business days.  She cautioned on any offer that contained it.

When I made my purchase, I used the equity of my then house to self finance it, so avoided that whole application process.  Recreational properties are considered to be higher risk to the bank as they are the first to be defaulted on when things go bad financially.

In the end, the "cleanest", strongest offer (firm, 10K deposit, 6 week closing) was chosen, as is, with no sign back from us requesting more money.  It was for a touch over asking, with no conditions other than to leave it in clean condition with personal effects removed.

They (and everyone else who offered) wanted all the furniture, appliances, everything in the shed and garage, which is what we had hoped, as it meant less work.  Most every major item are in newer condition, within 5 years, so it is move in ready.  D will continue to head up biweekly to enjoy the remaining time as well as maintain the lawn etc.  until closing.

The whole process took about 3 hours the evening after our return.  And I couldn't sleep after, probably from all the adrenaline.  We are super glad that our realtor is experienced and her years of wisdom made all the difference in our interpretation and response to the various parties.