By Seattle Times Jeff Layton

When city dwellers get fed up with the expense and congestion of urban life, they frequently entertain the same dream: pack it all in and move to the country.

Maybe you’ve been thinking about building a small vacation house (or a forever home) on a quiet piece of land, but don’t know where to start. It’s understandable. For those considering constructing a country escape, there’s a steep learning curve.

These four stories contain some of the major factors to consider before taking the plunge, as well as insights I gained from my own experience building a home outside of Leavenworth.

They include information on: picking the right site — and the right crew for a job outside the city; the realities of how much a new build will cost, as well as ways to DIY some projects to stay on budget; understanding the timing of a project that’s at once drawn out and frantic; and things to consider when you’ll be away for long periods at a time.

Finding a buildable property
Locating the right property is one of the biggest challenges of building in a rural area. Not every lot is suitable, or the costs to develop the lot may break your budget. If you’re too far off the beaten path, a huge portion of your budget will go toward an expensive infrastructure such as road building and utilities.

Rural properties must also meet environmental criteria. You’ll probably have to drill a well. The lot must be large enough to place a septic field and the soil must percolate.

Steep slopes, shorelines, and wetlands may dictate where you can build, or whether you can bring in certain construction equipment.

The easiest solution is to build in a housing development, but close neighbors may defeat the purpose of building in the country.

Building for the surroundings
While it may be tempting to choose a design from a catalog, in truth, it’s the site that chooses the house. The Northwest has some wildly different climates, and your house should be able to handle the local conditions.

In the Cascades, houses that handle the snow poorly are nicknamed “westside homes” because snow avalanches over entrances or piles up in huge drifts against the house.

If you’re building near the ocean, the design should handle lots of rain with big eaves and rot-resistant materials. West-facing windows in eastern Washington could make your house unbearably hot in the summer. In the forest, your house will be dark unless you have plenty of windows.

Doing some work yourself
If you have the skills (or want to learn), you can save money by doing some of the building yourself. This is especially valuable with expensive finish carpentry.

General contractors may let you do some of the work; just make sure the arrangement is clearly spelled out in your contract. And don’t underestimate the time demands (or overestimate your skills), or you’ll slow down your project.

Those with construction experience are often tempted to act as their own general contractor. But a local builder is more likely to have relationships with local subcontractors, and can put pressure on them to keep your project on schedule. You may also have trouble sourcing people, and may even be forced to pay extra to bring in workers from elsewhere.

Building your own house is incredibly gratifying, just know that construction skills take practice and your house may not turn out as polished as one done by a pro.

The process is lengthy
Expect a minimum of two years to pass from the moment you decide to build until the time you can occupy the dwelling. If you plan to do some of the work yourself, it likely will take even longer.

Building in the city is relatively simple since you can hook up to water, sewer and power. In the country, an extensive amount of time is spent answering the “Can I build here?” question.

Before you even proceed with plans and permits, you’ll likely have to survey the land, plan a septic field, dig a well and schedule geologic testing.

It’s also rushed
A surprise to many is that the actual building window for new construction is fairly short. You usually have about one year to finish the house after breaking ground.

Building permits don’t stay open forever. Construction loans are even more demanding and require you to finish on time or pay penalties.

That doesn’t mean your house must be 100 perecent finished in a year. You just need an inspector to grant you “occupancy,” which means the major requirements, such as electrical and a working bathroom, are complete.

It can consume your free time
The biggest downside to doing some or much of the work yourself is the time required. Even a simple job, such as installing trim, can take several weekends.

If the whole point of building in the country is to escape city life, do you really want to spend of every weekend and holiday working on your house?

Even if you hire professionals, you can still expect maintenance, decorating and landscaping to consume much of your free time.

Plan to be away
Like cars, houses don’t do well if they sit unused for long periods of time. If you’re building a vacation home, a host of problems can arise while you’re away. A tree can fall on your house, pipes may freeze or mice can infest your house without you knowing it.

Even if nothing dramatic happens, you can expect to spend many weekends fixing and maintaining various issues. It helps to have a trusted neighbor or a property manager to keep an eye on things and help you during an emergency.

Make extra money with Airbnb (maybe)
Many people envision using rental income to pay for their country getaway. In certain areas, offering your house as a short-term rental can pay the mortgage and then some.

Move in permanently
Before making the leap to living in the country full time, you should imagine what it would be like to live there permanently. Will it be lonely without friends nearby? If you dread living without delivery pizza, ballgames or good libraries, it’s probably not a wise move.

Also, most rural areas have poor cellphone service and slow internet. As you imagine living somewhere (or you need to work remotely), you have to decide if dial-up-like internet speeds and land lines are worth the trade-off for a country life.

Jeff Layton

4 Compelling Reasons to File Your Tax Return Even If You Cannot Pay

Should you file the tax return if you can’t pay the tax?

You got to the bottom of your tax return and the amount you owe is bigger than your checkbook balance.

Scared of filing the return for fear of immediate collection action?

Scared of even calculating how much you owe? think an extension of time to file looks good?

Fearful that you’ll be hanging a sign around your neck: squeeze this guy?

Nope. It doesn’t work that way.

The IRS does not start harassing nonpayers for money on April 16th. Or even September 16th. They haven’t even posted the returns that have been filed by then.

Relax, breathe deeply, and file the return. There are far more advantages to getting the return on file than risks in admitting you owe money you can’t pay.

Easy tax payment plans available 

If you can’t pay the full amount of the tax owed, send a partial payment with your return. Reduce as much as you can your debt to the tax folks.

Nothing requires that you enter into an agreement for payment. Simply send money regularly toward retiring the tax.

Put your name, social security number and the tax year you want the money credited to on the check.

If you feel the need for a formal payment agreement with the feds, you can set up a payment plan, online, if you owe less than $50,000. (https://www.irs.gov/individuals/online-payment-agreement-application).

Separate penalties for failure to file

If you fail to file a tax return and don’t get an extension, you expose yourself to a separate penalty for failure to file the return.

That’s on top of the penalty for failure to pay as required.

So, it’s expensive to try to drop out of sight.

Filing returns start clock ticking on escape options

Taxes don’t live forever. There’s a collection statute of limitations (generally 10 years with some exceptions) that makes taxes uncollectable. Bankruptcy laws permit the discharge of taxes of a certain age.

But both escape routes for taxes you can’t pay start counting from the filing of your tax return. (More precisely, the SOL starts from assessment, but filing the return is a self-assessment).

Last year’s figures drive this year’s withholding

The most important reason to prepare last year’s tax return now is to get your withholding right for the current year.

Extensions to file are seductive, but dangerous. It puts off squaring up your withholding for the current year, so this doesn’t happen again.

If you put off calculating just how much you owe for last year until October, you have only a few months before next April to get this year’s taxes paid in.

Closing your eyes to an under withholding problem won’t make it go away.

Calculate what you owe, make a plan to pay it if possible, and fix your withholding or quarterly payments so you’re OK next year.

Down payment need for a Conventional Loan?

I used to think you have to put 20% down to have a conventional loan.

With some smaller regional banks you do because their shareholders require it.

20% down is not required to have a PMI (private mortgage insurance) payment through your loan.

Mortgage Banks have more flexibility:

There’s a first time home buyer 3% down Conventional with a mid score of 700+,  Less Debt to Income Ratio’s required . At least one buyer has to take an online class $110 on average.

Keep in mind buyers will have a higher PMI with less down. Also buyers with lower credit scores have higher Mortgage Insurance per month too.

If you don’t fall into these categories…  First time, Low DTI, 680+ credit score…

Then 5% down conventional is your next step with less PMI but still PMI.  Big thing- Scores mean a lot with rates and Mortgage Insurance payments!

Buyers can put down as much as they are able to, to lower that PMI or more buyers refinance once the value of the home goes up and the amount owed goes down.( < 80% Loan to Value) You can also reach out to your lender to remove the PMI.  Sometimes the lender has you provide a CMA from your agent, but most likely they have you pay $100 for a brokers price opinion or $500 for an appraisal. Look at your statement.  If your PMI payment is $50… you’ll get that money back in 2 payments.

FHA Loan is 3.5%+ down.  This program is terrific for first time buyer’s that need that little help getting into a home for the first time.

It has PMI and higher debt to income ratio so more buyers buy FHA.

FHA also offers down payment assistance.  It comes at a higher rate and the down payment isn’t free money (it’s a hidden lien on the home that only needs to be paid off when paying off the home, refinancing or selling the property).

Finally,  USDA– no down payment required , only in rural areas designated by USDA, only brand new mobile homes, lower debt to income ratios, everyone living in the home over 18 must supply their income, and median income limits apply.  Less buyers qualify for this for sure.

Reach out to me for more tips on lending and real-estate. Or apply online LoansByChrisKnox.com

 

Shannon McCain
Blue Summit Realty
253-380-1915
WashingtonHomeHunt@gmail.com
WashingtonHomeHunt.com

1. Going Lazy on Your Gutters 
What It’ll Cost You: You really don’t want to be in a position to find out

It can be so tempting to skip gutter cleanups as winter nears. It seems like as soon as you clear your gutters, they clog right back up again. So what’s the point?

Well, if it looks like you’re living inside a waterfall when it rains, water is missing your gutter system completely. It’s being directed to your foundation instead. And a water-damaged foundation is never, ever cheap to fix.

A contractor can plug foundation cracks for $1,500 to $3,000, says David Verbofsky, director of training for exterior home products manufacturer Ply Gem. But a worse problem, one that requires a foundation excavation or rebuild, can set you back (gulp) $30,000 or more.

Suddenly, cleaning your gutters a few times each fall doesn’t seem so bad. A pro can do the work for anywhere between $70 and $250, depending on the size of your gutter system.

2. Giving Cold Air a Chance to Sneak In
What It’ll Cost You: Nights where you never feel warm, despite sky-high heating bills

“If it were possible to take every crack on the outside of a typical home and drag them together, you’d have the equivalent of a three-by-three window open all the time,” says Lipford. Yikes.

Yet cracks can be easily and inexpensively sealed with a simple tube of caulk, and it’s available in hundreds of colors to match your window panes, outside siding, and even brick. Not sure where to caulk? Look for visible cracks around:

Window sills
Baseboards
Fireplace or dryer vents
Anywhere something inside pokes a hole to the outside

 3. Not Getting Personal with Your Thermostat
What It’ll Cost You: Money you could spend on something else besides heating

We all know we should, but we seem to have some mental block when it comes to programming our thermostats to align with our schedules. It’s not that hard, and sometimes all it takes is buying a new one that suits you. (Like maybe a Wi-Fi one that’ll give you a little money-saving thrill each time you swipe your app.)

“From a cost-savings perspective, a programmable thermostat is a great investment,” Lipford says — as much as 10% off your energy bill, according to the U.S. Department of Energy.

Related: Get tips on choosing and programming a thermostat

4. Skipping Furnace Tune-Ups
What It’ll Cost You: A furnace that’ll die years before it should — and higher energy bills

“Forget to service your furnace and you could easily cut five years off the life of your system,” says Lipford, who added that five years is a full third of the typical unit’s life span. New units can cost around $4,000 installed, making the $125 annual maintenance charge a no-brainer.

While you’re at it, don’t forget to replace the furnace filter, which cleans the air in your home, and also keeps your furnace coils cleaner, which can shave up to 15% off your energy bill. Johnson suggests at least every three months, but possibly as often as monthly if you have allergies, pets, or smoke cigarettes at home.

5. Foregoing a Fireplace Inspection
What It’ll Cost You: Possibly your life — and your home

“A cozy fire is great, but if you don’t maintain your chimney, a fire can cost you thousands of dollars,” says Johnson, not to mention the risk to you and your family.

Schedule your maintenance appointment as early as you can.”If you wait until the busy season, you’ll have a hard time getting them out there, you’ll pay more, and you’ll get a lower quality job,” says Lipford.

6. Pest Inspection

A pest inspection is a great way to save money. A typical inspection will cost you about $225 and save you thousands.
Rodents along with other pests like to keep warm this winter too. They break through vents in your home, find loose panels to chew through, can crawl through the tiniest of cracks to get in.
Once pests get into your home they can cause thousands of dollars with of damage. Chewing through wires, chewing through heat ducts to heat up your crawlspace and outdoors. Once they chew through your ducts they eventually find their way into your home and get to your food or contaminate your space. Rodents carry diseases and destroy homes.
There are great companies that work with homeowners to advise them on what needs to be done vs what they can do for you.

7. Not Buying a $7 Protector for Your Outdoor Faucet
What It’ll Cost You: Up to $15,000 and a whole lot of grief

It’s amazing what a little frozen water can do damage-wise. An inch of water in your basement can cost up to $15,000 to pump out and dry out. And, yet, it’s so easy to prevent, especially with outdoor faucets, which are the most susceptible to freezing temps.

The simplest thing to do is to remove your garden hose from your outdoor faucet and drain it. Then add a faucet protector to keep cold air from getting into your pipes. They’re really cheap (some are under $2; the more expensive ones are still less than $10). “Get these now,” says Danny Lipford, home improvement expert and host of the “Today’s Homeowner” television and radio shows. “When the weatherman says we’ve got cold coming, they’ll sell out in minutes.”

While you’re at it, make sure any exposed pipes in an unheated basement or garage are insulated, too, or you’ll face the same pricey problem.

Wrap pipes with foam plumbing insulation — before the weather drops. It’s cheap, too, just like the faucet cover (only $1 for six feet of polyethylene insulation). And it’s an easy DIY project, as long as you can reach the pipes.

 8. Instagramming Your Icicles Instead of Preventing Them
What It’ll Cost You: $500 — if you’re lucky; a lot more if you’re not

Those icicles make your home look so picturesque, you just gotta take a few pics. But you better make them quick. Those icicles can literally be a dam problem. (Yes, dam — not the curse word that sounds the same. )

Icicles are a clear sign that you’ve got an ice dam, which is exactly what it sounds like: a buildup of ice on your gutter or roof that prevents melting snow and ice from flowing through your gutters. That’s really bad news because these icy blocks can lead to expensive roofing repairs.

Depending on where you live, expect to pay at least $500 for each ice dam to be steamed off. Leave the ice and you risk long-term damage, which could ultimately cost hundreds or even thousands of dollars to your roof, depending on what type of shingles you have and the size of the damaged area.

How to prevent them? Insulation. “Ice dams, icicles, and ice buildup on the gutters is a symptom of not enough insulation in the attic,” says Chris Johnson, owner of Navarre True Value and several other stores in the Twin Cities area.

And “you need to have at least 14 inches of insulation in your attic, no matter where you live,” says Lipford. If you live in a colder climate, you’ll need more.

If you don’t have the cash to insulate, heated gutter cables, which run between $50 and $150 each, can be a less expensive alternative when temporarily affixed to areas prone to ice damming, Johnson suggests.

Let me know if you need any referrals to get these tasks done!

7 Quick-and-Easy Winter Weather Preparations to Do Right Now