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Buyer’s Resource

Part II of II

As Kyle relocates to Nashville, he’s considering buying a house, rather than paying rent. He asked me what advice I have… and this is what I shared:

When we bought our first home, I created a list of things important to us. Don’t know where that is; however, here are a few key ones I remember:

> Everything is a negotiation, like buying a car. Find out what homes are selling for ($/sf). (In a hot area, they might be going for the list price – or above in California; however, typically it’s less.)

> Your Realtor’s role is to represent you. That said, he/she has minimal financial motivation for you to pay a lower price. Here’s the math:

– $300,000 listing price; Realtor commission is 6% split with Buyer and Seller agent. Agency gets half. So your Realtor receives 1.5%

– 1.5% of $295,000 is $4,425 / 1.5% of $285,000 is $4,275. While you pay $10,000 more ($30,000 over lifetime of 30-year mortgage), the Realtor’s only risk is $150. Think about how many more hours he/she has to work if you don’t get the first contract. More homes to show you, another contract to submit, etc.

> Don’t buy on a main ingress/egress neighborhood street. Too much traffic (risk) with young kids

> Don’t buy a corner lot

> Cul de Sacs are good: privacy and security

> Big backyards are nice; however, it takes longer to do the yard; have a sprinkler system unless you want to spend a lot of time moving hoses

> A pool is costly (maintenance, utility bills, and eventual repairs) and takes time to keep clean all year

> Find out about HOA annual fees

> Pay for an inspection. There might be things you can’t see that need repairing… like A/C or termites. The inspection will turn up something (that’s their job). You have every right to – and should – go back to the seller and ask them to make the repairs or give you a discount on purchase price.

> See if they’ll provide or you can get a home warranty. Usually these are around $550 per year and cover A/C, appliances, etc.

> Lay on your back in every room and look up at the ceiling. See where there might be issues like nails sticking through or cracks. (Might be covered by a fresh coat of paint.) Also, lay on your side and make sure the floor is flat. I remember a How I Met Your Mother episode where a ball rolled across a slanted floor. That’s a foundation issue… and can be really costly

> Check doors and windows by hand to see if there are drafts: increases utility costs

> Walk the driveway, sidewalks and garage for cracks and other issues (like boards that don’t line up)

> Find out when the roof was put on (perhaps when built?) and how long it’s manufactured for (20 or 30 years)

> Drive by the house at different times of the day to see what the neighborhood is like (kids playing or teenagers gunning their engines? young families or empty nesters? anyone running a car lot or repairs out of their driveway?)

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Movin’ Out

Part I of II

At Target today to pick up some things, I saw a lot of moms – and a few dads – shopping for essential back-to-school items. One little boy of about six was smiling and saying how excited he is for what’s ahead. That took me back to making those annual shopping sprees with our own kids.

Of course, they grow up so fast… and before you know it, they leave for college. Then, if things fall right, that first job is back in their home city – and they have an apartment about 15 minutes from the house where they spent those important formative years.

And so it was for our son, Kyle. Until recently… when ExxonMobil informed him that he’s relocating to Nashville. He, too, is excited about what’s ahead… and, as I write this, he’s there looking for a place to live for a few years until the next assignment beckons.

I’ll miss the young man I called ‘Little Buddy’ as a boy and now refer to as ‘Bud.’ I’ll miss my golf partner. I’ll miss the Sunday dinners at our house. I’ll miss having him help with ‘just a few small things’ whenever he visits. I’ll miss seeing his great smile. Yet, I know this is the way it’s supposed to be. We raise our kids to find their own paths and add value to the world.

As the Oak Ridge Boys’ song says: “When you get down on your knees tonight / And thank the Lord for his guiding light / Pray they turn out right / Thank God for Kids.” While there will be distance between us, my relationship with Kyle is a great one. And for that I truly am most thankful.

Next Time: My Home-Buying Checklist

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Like Father

In the midst of a rainy morning in 1983, I inadvertently misjudged a curve on a slick entrance ramp to a freeway near downtown Fort Worth and slid to the right. I bounced off the passenger-side concrete barrier then caromed directly across and hit the driver side. When I got out to inspect the damage, all four corner panels were severely damaged. I was able to drive it a few miles to my father’s furniture store. His reaction upon seeing it: I’m glad you’re ok.

Unfortunately, the insurance company totaled that loaded 1978 Olds Cutlass my parents had given me three years earlier. (We’re talking 8-track, AM-FM stereo, bucket seats, power windows and power locks loaded.)

I needed new wheels and after a few days went with my dad to the local Toyota dealer and purchased a new white Celica GT hatchback with a rear window louver. Since I didn’t know how to shift a manual transmission, my father drove us home. The next morning – having had 10 minutes of shifting lessons from dad – I left for the 30-mile drive to Dallas… and ended up stalling several times trying to get into first gear on a small hill near my office. It was embarrassing, although I don’t recall anyone honking or having road rage because of my ineptitude.

Reflecting on my 23-year-old self’s decision to spend $13,000 on a new car when my salary was a whopping $18,000 per year, I’m surprised by my decision. I wasn’t trying to keep up with my friends – none of them had new wheels – and I’m not a car guy. I just liked that Toyota and decided to get it.

Last month, my son bought his first new automobile. I helped him navigate the nuances of car shopping… and our day together brought back great memories of an enjoyable experience with my father. Perhaps some 35 years from now, he might get to have a similar outing with his son.

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Great Thoughts

Ideas have flowed through my brain my whole life. I once had a list of about 20 that might be worth pursuing. A few I followed up on. Most fell by the wayside after a little research and further discernment.

(Nobody wanted to fertilize their lawns by placing a pellet in their sprinkler system… all because they worried about it backing up into their water supply. Who knew?)

One idea tuned into a home run: Anthony Travel… a sports travel company. One turned into this 15-year journey of fun: Success Handler, LLC. One appeared in the last 90 days and I was so certain it had legs I immediately reserved the URL for two years.

I shared this idea with a few trusted sources and the response was positive. A couple folks even helped me clarify exactly what I wanted to achieve. I was excited, yet moved slowly, because, well – you know – I have this other gig.

If you ascribe to the theory that the universe is one big giant humongous source of energy, then you might agree that when you have an idea, you’re actually tapping in to the consciousness that already exists. In other words, it ain’t original.

Thus, I shouldn’t have been surprised when six weeks after I came up with this wonderful bit of ingenuity… one of Oprah’s good friends published a book on the same subject.

So I moved on. Just you wait though. I’m thinking about one now that could be big. We’re talking really big.

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Pressing Issues

Ten years ago, shortly after Independence Day 2008, I wrote the piece below for my monthly newsletter. When I read recently a decade has passed since that sad event, I wanted to share my missive again. Amazing how time flies… and how many things – including our challenges as a nation – are always there.

Tim Russert died suddenly last month. The longtime host of “Meet The Press” was named one of the 100 most influential people in the world earlier this year by Time magazine. He had an outstanding reputation as a fine man and superb interviewer, always willing to ask the hard question in a respectful way. A lot of famous people weighed in with praise about his life, which ended way too soon.

On the following Sunday’s edition of “Meet The Press,” his chair sat empty for the first time in 17 years. Tom Brokaw hosted a tribute that included reflections from close friends James Carville and Mary Matalin, and reminiscing by former colleague Maria Shriver, the first lady of California.

What struck me most was how little I knew about Tim Russert… and how much we shared: love of sports and devotion to our teams; careers in journalism; educated in Catholic schools (and still attend Mass); and, among the biggest fans of the same rock star.

It seems around 1973, Russert was promoting concerts at his alma mater while attending law school. He booked a little-known performer for $2,500 to play on campus. Guy turned out to be Bruce Springsteen, and they were friends for years.

The Boss is touring in Europe and was unable to attend the memorial service. However, he sent a video and sang Russert’s favorite song, “Thunder Road.” Introducing it, he said, “Tim had a real belief in that Promised Land and the American idea, and that was the passion that you heard behind all those tough questions on Sunday morning, and in that big smile.”

During this month when we celebrated the 232nd anniversary of our nation’s birth, it would be good to pause for a few moments to consider that belief and passion. The last line of “Thunder Road” is: “I’m pulling out of here to win.” I’m confident the win will come. Keep the faith during these current lows. The time for learning is ahead.