Asbestos

We made it through feasibility. The septic study was done and we were approved for a 4 bedroom system. The water quality was fine. The County gave us conditional approval for a building permit. In that conditional approval was the requirement to remove the small 440 square foot cabin that sat on the edge of the bluff. The view was spectacular from those dirty old windows. The cabin didn't have a septic system, just an outhouse. There was no plumbing, but somehow they rigged an outdoor shower head with a pipe ran from the well. No insulation existed in the walls. This quaint cabin which was built 1939 had to be torn down. This was our intent all along, but the fact that it had to happen before we could apply for a permit, that threw a monkey wrench in our way.

Thurston County is known to take their sweet time to process and approve permits. Thankfully I think they had pity on me packing all 5 kids into their office and waiting patiently for my turn to submit documents or ask a question. They had a little kids section with toys in the office and one day when I came in they said, "we added some more kids chairs to our kids area!" Haha! Onto more important topics. In order to get a demo permit, you must first submit an ORCAA demo permit. In order to get the ORCAA demo permit, you must first get the Asbestos Survey done. Once the Asbestos survey is done, you must hire a certified asbestos removal company OR do it yourself as the owner prior to being issued a demo permit!

We submitted our contract early April. By early June we were confident that we could accomplish what we wanted, we were confident we would be buying this piece of property and building and by this time it was just a matter of closing on the sale. So in early June, we began applying for said demo permits. But what about that asbestos issue? The only place that they found asbestos was in the putty of the windows. We contacted the owners and asked if they would allow us to remove the windows (in June!) We expressed our sincerity in this endeavor and explained how it was in their favor as this had to be done regardless of who bought the property. They agreed. We weren't technically the owners yet, but we proceeded as such and removed the asbestos ourselves, or should I say Stephen, (my husband,) did.

Once asbestos is removed, before ORCAA will clear out the permit and let you move on, you must provide proof of proper disposal. This posed another issue. We were contacted with interest in buying the windows. But how would we prove proper disposal? We requested permission from ORCAA to provide proof of removal via photos and then provide a bill of sale showing that we sold them properly and voila! Done.

Asbestos issue, check. Demo permit, check.

Feasibility, The County and Permits.

We found the ideal lot. We contacted the owners. They are ready to sell. Now what? We chose to represent ourselves. We didn't see the need to hire an agent to represent us. We knew what we wanted. We contacted the owner in early January. We negotiated via email and telephone several times over the course of over 3 months. (She was not in a hurry and she also wanted to have the septic study done to know if it was possible as well as what kind of system would be allowed to determine the value of the site.) We agreed on the sum of $200,000. The seller had not yet signed a contract, however, she felt it necessary to pay an agent a small fee to handle the sell and the paperwork involved. By us not using an agent and the seller agreeing with an agent a small lump sum to handle the sell, we saved (by getting a lower selling price) and the seller saved (by not paying fees on a market value sale.) This agent wrote up our contract with a couple of contingencies.

• Feasibility. We needed to be sure that Thurston County would allow us to remove the existing cabin, build where we wanted and would allow a septic system. We also needed to confirm that the existing well provided sufficient water supply.
• Finance. We were pre-approved, however if something came up (such as loss of job) we didn't want to be stuck and forfeit funds.

We originally signed our purchase and sale agreement on 4/21/16 with a 60 day period to close. We had to file two 30 day extensions and didn't actually end up closing until 8/1/16. Feasibility studies, Thurston County permits and construction loans take time! 

Thankfully, the seller began the septic study before we signed our contract. I contacted the septic designer and met him on site to discuss our plans. He planned the septic design specifically for our house before we even signed a contract with the seller! This was a bonus and huge time saver for us when it came to submitting for permits because the conditional approval had already been processed with the septic design for our house footprint and size. 

The next this was testing the well water. Making sure that it was clean and sufficient. We did the test by submitting samples to Thurston County (which is also a requirement prior to being issued a building permit.)

The last item on our list of contingencies is finance. This one was a beast. We were pre-approved, yes. But an owner-builder construction loan takes much more information than a standard loan. You must have bids for each line item that you plan on drawing funds for. And the amount on that bid is the amount that you will have to use for your line item. Estimates and bids began consuming my days. Two things to consider: If you submit the highest of three bids, you are safe to know that you won't go over your budget and may even have funds leftover. However that means you are increasing your down payment. Owner-builder construction loans usually require 20% down. And so choosing higher bids, may mean you are coming up with thousands of dollars more on your down payment. Second, if you submit the lower of the bids but choose to buy more custom materials or go with a more expensive supplier/sub-contractor, you must pay for the overage out of your pocket. Think hard on the best route. We had to submit some lower bids due to cash flow at the start of our project. It's worked out as we came in under bid for some of the first line items but it could make for a rough start if you ran out of cash early on in your project.

Finding the right piece of property.

So you're ready to build your dream home. You have ideals and visions of what it'll be like. Now you have to execute. The one thing that everyone seems to ask is, "How did you find your lot?" Here's a rundown of how it went:

Stephen and I had a checklist of things we wanted:

• At least an acre
• Waterfront
• Trees
• At least 100 ft wide
• In the city of Olympia, WA

Searching for the perfect spot proved difficult. We found a couple of lots on the market but some were extremely narrow (50-60 ft wide.) Others consisted of difficult terrain to build on. Still others may have been wide enough and decent terrain but there would be no view of the waterfront due to overgrown trees and current regulations that prevent said trees from being cut down. 

When my search in the MLS system proved difficult, I turned to zillow's satellite view. I zoomed in on the map and scouted along the waterfront. When zoomed in close enough, Zillow provides a satellite view with lots bordered along with a value Zestimate. If the lot looked as though it wasn't developed I would research it further. I would write down the address and drive by. If it still looked interesting, I would find the owner, (your county's assessor data should be helpful,) and give them a call. Rarely were the properties worth looking into. Usually there was a reason it wasn't developed yet. 

I drove by this run-down cabin several times on my way to a local park. I hadn't really thought of purchasing a lot with a structure before because usually the asking price is too high. But this cabin was tiny. And it was run-down. And it didn't even have plumbing or a septic system. So I called. I left a message. A week passed, and I got a return call. The owner had inherited the property and she was indeed interested in selling! Score! Bingo! Jackpot.