Most of my blog entries have had a clear point and trajectory before
I sat down to write them. This one did not. When I started this blog entry, I knew
I had something to say, but I really didn’t know what. When my writing students
talk to me about feeling stuck with nothing to say – and an assignment in which to say it – I tell them to just start writing. It's more productive than staring at a blank screen. So rather than continue trying to
plan it all ahead, I cranked up my computer.
Carl and I in the part of the process when we are making payments
on the overages and upcharges. Mike Salvador gave us a base allowance on a
number of elements (flooring, lighting, appliances, etc.), and every time we want
something more expensive than his specifications allow, we need to pay for the difference.
Some of these expenses we worked into the Purchase and Sale Agreement, but not
all.
I’ve been very focused on the cash flow, trying to
anticipate extras. Our household bills and budget are part of my contribution
to our partnership. It still blows my mind that I can write a check, as I did
today, for more than $5500 to pay for the new appliances for our house. Refrigerator,
range, microwave, dishwasher, washing machine, and dryer, in one swipe of the
pen.
The only checks larger that I have written in recent years were
the ones paying for the first 10% of the cost of this house, which was our down payment
during construction. Bear with me while I explain the situation in a bit more
detail. I say we are building a house, but that's not exactly true. Normally, when someone builds a
house, they purchase the land and hire a contractor (or contract the work
themselves) – usually with a construction loan. The idea of doing this work
made me cringe, and I was doubtful that my marriage would survive, since Carl
and I have very different processes for Getting Things Done.
Mary Rose Wells, our realtor, helped us find a different
arrangement. Mike has the land, and Mike owns the house at this point. But because
we have paid 10% in the early stages of construction – and signed a contract to purchase it once it is complete – he is
letting us make the decisions about the house. He assumes the risk at this point, not
us, and this arrangement means that he could choose to “fire” us and sell to
someone else. At the same time, we don’t have to try to arrange for a
construction loan, and Mike manages the subcontractors and schedule. And no
divorce lawyers will be necessary.
This situation also means that we have to afford anything
beyond what Mike was already planning to build. In negotiating our P&S, we
included costs for “infrastructure”: extra insulation, Andersen 400 windows,
CAT 6 wiring throughout the house, etc. These costs will be part of our
mortgage. On the other hand, we opted to buy the appliances ourselves outright
because it makes no sense to amortize the cost of appliances over 30 years when
the machines certainly won’t last that long. In calculating the cost of the house,
Mike gave us a credit for what he would normally spend on the appliances.
Other elements are in between. Our lighting, for example. In
the P&S, there is a $2200 allowance for lighting. Based on a recommendation
from our realtor, we chose to work with a different lighting vendor, and Mike is
ok with this arrangement as long as the vendor gets him the fixtures when he
needs them. So Mike will give us the $2200 to cover lighting expenses, and we’ll
pay the remainder directly to Hansen Electrical Supply. All those lighting choices
have added up, and we’ll end up paying more than $6500, less Mike’s $2200
contribution.
In other cases, we are using Mike’s vendors, so there is a
base level of coverage and then we pay the overage directly to the vendor. We
made some adjustments to the electrical system, for example, including a number
of dimmer switches and outlets in the basement which were not in the spec. As
soon as Kevin Petrie sends me his invoice, I’ll be writing a check for him –
half now and half upon the installation of the fixtures.
In my writing here, I have figured out that this entry is
about the change I have felt in my financial well-being. I remember a time in
my life when I bought groceries on my credit card because I did not have the
cash for food for my kids. I remember keeping track of partial payments for bills
due a week before my next paycheck. We never didn’t eat, and I have never been
in the situation where my housing was in real jeopardy, but I know the feeling
of trying to ignore the ringing phone, sick to my stomach because I was sure the
call was a creditor that I couldn’t afford to pay.
Today, I wrote a check for more than $5500 to Belcher's Appliance Center, and I still felt
a little nervous at the time – with some residual nervousness clinging in the pit
of my stomach even now. But ultimately, I am happy. We did our homework, and I believe
we made the best choices for ourselves. But more than that, for the first time
in my life, I can afford this. I do not know how to describe the joy and the
relief that I feel at this realization.
