Get the necessary permits

Are you planning any home improvements in the near future?  Get the necessary permits.  I can already hear some of you grumbling about it, complaining that it’s just a money grab, but the truth is that the permitting process has a purpose.

Get the necessary permits
Home imporvements

The permitting process assures that buildings, land and home improvements adhere to the building and zoning codes within your locality. Building and zoning codes exist to ensure that homes and other improvements are safe, structurally sound, and help maintain health standard.  If you think you’re savvy for avoiding the permitting process on your home improvements, read on. 

If you’ve circumvented the permitting process when building your improvement, chances are that there will be consequences in the future.  If you’re lucky, the permitting inspectors will catch up with you during your construction project. If you’re still in the process of your construction, you’ll likely get a notice to cease the project and go through the permitting process.  However, if your required to reconcile with your local permit office after the improvement is completed, the process can vary depending on your local permit office and the age of the improvement.

Unpermitted improvements are red flags for home buyers and their agents. When you decide to sell, there’s a good chance that home buyers will ask you about permits on your improvements, especially if it is touted in the listing. Don’t think you can hide it, permit info is typically readily available online or calling the permit office.  Your home sale price can be affected, depending on the size and scope of the unpermitted work.

Unpermitted improvements can also be a potential problem for your insurance company.  For example, any claims that concern an unpermitted improvement could potentially be denied.

A common issue I come across more than you think is that although permits were issued, there was never a final inspection by the permitting office. Many contractors also fail to follow through to the final inspection. The consequences of not passing a final inspection could potentially have the same effect as not having a permit at all. 

Regardless of the type of home improvement project you do, make certain the appropriate permits are obtained and finaled. The same applies when you hire a licensed contractor, make certain the appropriate permits are obtained and finaled.

By Dan Krell
Copyright © 2022

Protected by Copyscape Web Plagiarism Detector

Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.

Renovate Your Home

renovate your home
Home improvements from the American Housing Survey (census.gov)

Once thought of as a supporting actor in the housing industry, home remodeling is poised to take the spotlight.  The growing fascination with home remodeling is generating new renovation trends and research. It’s time to renovate your home! If you aren’t yet thinking of remodeling your home, chances are that you will be planning a home improvement project in the next five years.

Plaut & Plaut’s conclusion to their study (Decisions to Renovate and to Move; Journal of Real Estate Research; 2010; vol. 32; p.461-484) states, “Housing renovation is an important component of housing supply, yet one often ignored both in empirical analysis and in policy discussions about housing.”  They point out that that renovating a home was becoming a “substitute for moving.”  A possible cause for the trend in 2010 was twofold.  First, many homes fell into disrepair during and after the Great Recession.  During that time, many home owners could not keep up with regular maintenance, let alone emergency repairs. And second, there was a lack of quality homes for sale immediately after the Great Recession.  As foreclosure and REO home sales subsided, many homes for sale showed signs of neglect through deferred maintenance. 

Renovate your home.

Fast forward to 2019, home sale inventory continues to be a major problem for the industry (and will likely continue into the next decade).  But home remodeling is picking up the slack to improve the nation’s home stock, as well as help increase quality home sale inventory.  However, industry experts are learning there are other reasons that home owners are remodeling instead of moving.  Trends that have been identified include seniors who are “aging in place,” and multigenerational homes. 

Although a recent Freddie Mac study identified seniors who are “aging in place” as a cause of the ongoing home sale inventory shortage, aging in place is also stimulating home remodeling!  Homeownership rates for seniors are much higher today than in past generations.  Instead of moving to retirement communities or stereotypical senior housing, older home owners are staying put and renovating their homes for comfort and style.

Multigenerational homes became popular again after the recession, when grandparents, parents and adult children pulled resources to live in one home.  The trend continues as aging parents are moving in with their children, and young adults are moving back into their parent’s homes.  Remodeling a home to accommodate several generations may require turning a basement into an apartment, adding a main level bedroom and bathroom, or possibly building an addition to the existing home.

Even home owners who decide to move are remodeling their homes.  According to NAR’s Remodeling Impact Report (nar.realtor), functionality and livability are the top reasons to renovate for a home sale.  Most home buyers want a turnkey home that is functional, comfortable and energy efficient.  Home sellers who improve their homes before selling typically sell faster and for more than those who sell their home “as-is.”

While “going green” has become a standard in home improvement, a Joint Center for Housing Studies of Harvard University (jchs.harvard.edu) publication “Healthy Home Remodeling: Consumer Trends and Contractor Preparedness” identifies healthy home remodeling as a growing trend.  Healthy home building practices are intended on maintaining the physical and emotional wellbeing of the home’s occupants by using healthier building materials, such as “low-VOC paints and formaldehyde-free woods.”

When planning to renovate your home, home improvement experts recommend: create a budget and stick to it; only hire licensed contractors; and make sure your improvements have permits.

Original article is located at https://dankrell.com/blog/2019/09/28/renovate-your-home

By Dan Krell
Copyright© 2019

If you like this post, do not copy; instead please:
link to the article,
like it on facebook
or re-tweet.

Protected by Copyscape Web Plagiarism Detector

Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.

Home sale renovations

home sale renovations
Interior Home Sale Renovations (infographic from nar.realtor)

According to the National Association of Realtors (nar.realtor), the average time a homeowner stays in their home is ten years.  This is higher than the seven-year average prior to the great recession (but is less than the thirteen-year average immediately following the recession).  Needless to say, many homeowners are approaching (or have exceeded) their ten-year stint, and are likely selling their home during the spring and will likely be doing home sale renovations.

Any home sale preparation in today’s housing market should include some home sale renovations.  If you haven’t replaced the home’s systems (such as the roof or HVAC) while you lived in your home, there’s a good chance that they are approaching or have exceeded their average life expectancy.

Additionally, the décor and fixtures in your home are likely outdated.  The home sellers who make the mistake of not updating or renovating before they list inevitably face home inspection issues.  They ultimately find that the home takes longer to sell at a reduced price.

Let’s face it, remodeling can be expensive and overwhelming, especially when it’s for home sale renovations.  According to the NAR’s 2017 Remodeling Impact Report, about $340 billion was spent on remodeling projects in 2015.  Although a majority of homeowners would remodel their home themselves, thirty-five percent would prefer to move instead of remodeling their home.

The Report cited functionality and livability as the top reasons for home sale renovations.  It’s a no-brainer that home buyers prefer homes that are functional, comfortable, and sustainable.  Aesthetics is not enough for a home to be appealing to today’s home buyer, it has to fit their life style.  Additionally, home buyers want efficient systems in their new homes that can help save on utility costs.

Home sale renovations should focus on functionality and livability

What projects will get buyers who will pay top dollar into your home?  It should be no surprise that the number one interior project, listed by the 2017 Remodeling Impact Report, is a complete kitchen renovation.  Other essential interior projects include renovating bathrooms, installing new wood flooring, creating a new master suite, replacing the HVAC system, and finishing a basement or attic.

It also shouldn’t be a surprise that the Report listed replacing the roof as the top exterior project. Other exterior projects in high demand include new windows, new garage door, new siding, and installing a new front door.

If you want to add value to your home, even if it’s not for home sale renovations, check the 2018 Cost vs. Value report (costvsvalue.com).  The report can give you insight to which remodeling projects are the most popular, and estimates how much of the cost you can potentially reclaim when you sell your home.

There’s no doubt that renovating your home can be expensive.  Although the costs of home sale renovations can tempt you to cut corners, don’t.  Cutting corners on renovation projects can actually cost you more.  You may have to repair, or even re-do the project if not finished adequately.  Home buyers are savvy, and can spot low quality materials and poor workmanship.

Also, make sure to get permits when required.  If the home buyer doesn’t ask you, the home inspector will likely recommend that the home buyer check for permits.

Although many homeowners don’t mind a DIY project, many hire home improvement professionals.  When hiring home improvement professionals, check with the Maryland Home Improvement Commission (dllr.state.md.us/license/mhic) to ensure they are licensed contractors.  You should also ask for proof of their insurance, including Workman’s Comp insurance, in case there is an accident on your property while completing the project.

If you hire a contractor who will accept payment when the house sells, read your contract carefully and thoroughly. Do your due diligence.  There may be provisions in your contract that you may not be aware of, such as added costs, charging interest, and setting/lowering the sale price.

Original article is published at https://dankrell.com/blog/2018/11/17/home-sale-renovations

By Dan Krell. Copyright © 2018.

If you like this post, do not copy; instead please:
link to the article,
like it on facebook
or re-tweet.

Protected by Copyscape Web Plagiarism Detector
Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.

Specialty rooms for all interests

specialty rooms
Home improvement spending is increasing to include specialty rooms (infographic from census.gov)

Prior to the Great Recession, home owner spending for remodeling and renovations was very strong.  Besides remodeling the kitchen and bathrooms, many home owners also created specialty rooms (also known as special function rooms) in their homes.  Specialty rooms such as home theaters and media rooms were not just trendy because they were cool to have in the house, but they also added resale value.  According to Kermit Baker writing for Harvard’s Joint Center for Housing Studies, post-recession home remodeling spending dropped off by as much as 28 percent between 2007 and 2011.  That spending decrease meant that while home owners focused on saving and paying their mortgages, specialty rooms were no longer a necessity.

The return of the specialty room can be measured by the increased home remodeling spending over the past few years.  Specialty rooms are increasingly in demand.  The recent LIRA press release projects that home remodeling will remain strong at least through 2019.  Chris Herbert, Managing Director of the Joint Center for Housing Studies stated:

“Strengthening employment conditions and rising home values are encouraging homeowners to make greater investments in their homes…Upward trends in retail sales of building materials and the growing number of remodeling permits indicate that homeowners are doing more—and larger—improvement projects.”

Prior to the Great Recession, specialty rooms were a must for home owners.  However, many of these specialty rooms were primarily added for display and resale.  Home owners have since moved away from the large gaudy specialty room and are opting for more practical spaces focused on enjoyment and function.

Several years ago, panic rooms were in demand for protection.  It wasn’t just to protect from a home invasion, as portrayed in the movie “Panic Room,” but also to  offer shelter from severe weather.   FEMA even provides information on creating a safe room in your home.

Yes, specialty rooms are becoming popular again, but not in the way they were prior to the recession.  According to the 2017 AIA Home Design Trends Survey (aia.org), creating an outdoor living area is the currently the most popular specialty room today.  The outdoor living area is a way to extend indoor space and amenities (such as kitchen and home entertainment) to your back yard or roof top deck.

But home owners are opting for other specialty rooms too.  Building a fabulous mudroom comes in second in the AIA Home Design Trends Survey.  No longer that meager alcove separating the garage and kitchen, the mudroom has become a multi-purpose functional suite.  Obvious coat hooks, benches, and shoe cubicles are standard.  But mudrooms have become larger to accommodate storage units and desks, typically with high-end flooring and moldings.

Other specialty rooms mentioned in AIA’s survey include the home office and in-law suite.  However, other types of specialty rooms that are popular include fitness rooms and wine cellars.

As the economy improves, home owners have more money to spend on their passions.  Currently, there is a trend to build specialty rooms to help home owners pursue hobbies and talents.  Hobbyists are creating spaces for their collections and interests.  Many home owners are designing dedicated rooms as art studios.  Music lovers and musicians are finding that technology has made the music listening room and recording studio easy and affordable to create in their homes.

Over time, the home has evolved from a Spartan shelter to a space where we relax and express our personalities.  It is likely that specialty rooms will continue to evolve based the home owner’s lifestyle, finances, as well as technology.  Specialty rooms will also vary based on societal norms (consider formal dining and living rooms) and economic conditions.

By Dan Krell
Copyright © 2018.

If you like this post, do not copy; instead please:
link to the article,
like it on facebook
or re-tweet.

Protected by Copyscape Web Plagiarism DetectorDisclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.

DIY Do It Yourself

DIY
Do it Yourself projects may need permits (infographic from census.gov)

Home owners are spending more on home improvements.  “Do-it-Yourself” (DIY) projects are becoming popular again.  Besides being inspired by the increasing number of DIY home improvement shows on TV, there are numerous books, online sources and YouTube videos to show a DIYer how to take on almost any project in the home.  Being a DIY is ambitious and exciting, but for many becomes overwhelming and costly.

The notion of DIY is more than just being proud of getting your hands dirty.  For many home owners it’s really about money.  DIYers have a reputation for being thrifty, but a revealing research analysis asserts there’s more to it. Ryan H. Murphy (The Diseconomies of Do-It-Yourself; The Independent Review; Fall 2017; pp.245–255) provides ample evidence that many who engage in DIY have an anti-market bias.  Those who engage in DIY home improvements believe it is a zero or negative sum game, where there is no benefit from money spent on the home improvements.  He concludes that unless home improvement is your vocation, you’re better off sticking to your profession and hiring a (licensed) professional home improvement contractor.

One of the issues that is often noticed with DIY projects is that the result may be substandard.  The home owner may decide that although the project is not completed, it is “good enough” to save time and money.  Sometimes, the “good enough” attitude is evident by jerry-rigged components.  This can obviously be a problem when selling the home.  Home buyers have a keen eye and will be turned off by poor workmanship.  Even if the home buyer misses it, you can count on a home inspector to flag it.

Permits seem to be another issue for many DIYers. Some believe that obtaining a permit (when it’s required) is costly and time consuming.  However, inspectors are getting better at sniffing out unpermitted projects, so it is common for the DIYer to get caught before completing their improvements.

The permitting process may increase the time and cost for your DIY project, but it’s there to assure that buildings and home improvements adhere to the building and zoning codes within the city or county.  Building and zoning codes are devised to help ensure that buildings are safe.  Finishing a project without a required permit can potentially cost you more money and time down the road.

If you are required to get your unpermitted DIY project inspected after completion, don’t be surprised that you may have to make alterations and/ or corrections to your work.  If you built a structure that is deemed unsafe or even encroaches on a neighbor’s property, you may even have to demolish the project and start over.  You may even have to hire contractors to assist you.  If you are selling your home, the home buyer may require you to have your work inspected.  It can be even more costly if the project was completed during past code cycles, because, rather than send county inspectors, you may be required you to hire experts to inspect your work.

If you’re planning a DIY project and not sure if it needs a county or city permit, check with your municipality’s permitting office.  Here in Montgomery County MD, the Department of Permitting Services’ website lists additions and alterations that require permits (permittingservices.montgomerycountymd.gov).  However, if you live in one of Montgomery County’s county’s incorporated cities, your city may have different permitting requirements.

By Dan Krell
Copyright © 2018.

If you like this post, do not copy; instead please:
link to the article,
like it on facebook
or re-tweet.

Protected by Copyscape Web Plagiarism DetectorDisclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.