Winter ready home

Winter Ready Home
Be Winter Ready (infographic from cdc.gov)

After several years of brutal winter weather, we were given a reprieve of mild weather last year.  The warm weather trend has moved into the fall with some balmy days.  But you shouldn’t become complacent thinking that winter weather is a long way off.  Yes, it’s the time of year to take stock in your home and prepare for winter.  Is your home winter ready?

Of course, at the center of your winter ready home is the comfort your heating system delivers.  Regardless of the type of heating system you have, have a licensed a licensed professional inspect your home’s furnace.  The inspection can identify any issues that can cause your furnace to be inefficient and/or fail.  The inspection can also root out potential safety issues, such as carbon monoxide buildup.  If the system does not need to be repaired or replaced, the HVAC professional will tune the furnace to optimize the its performance.

Another thought for being winter ready is the fireplace.  Unfortunately, many homeowners overlook fireplace and chimney maintenance.  However, putting off fireplace and chimney maintenance can become a safety issue.  Wood burning fireplaces should be cleaned, inspected, and repaired if necessary.  Gas fireplaces require a licensed technician to inspect the pilot and electronics in the firebox.  Both wood and gas fireplaces require flue and chimney maintenance.  Creosote buildup can combust and cause a chimney fire.  Birds and other animals or debris can lodge in the chimney and prevent proper venting.  Defective fireplaces or improperly vented fireplaces can produce excess carbon monoxide in your home, which can be deadly.

You’re not winter ready unless you’re prepared for emergencies.  Test the smoke and carbon monoxide detectors in your home, replace them if necessary.  If your heating system and/or fireplace burns liquid, solid, or gas fuel, then you need to have carbon monoxide detectors installed.  Carbon monoxide is invisible, odorless and tasteless and prolonged exposure can result in brain damage and death.  Experts recommend installing carbon monoxide detectors throughout the home, primarily near bedrooms.

Hose bibs are often ignored because many people don’t use them, or are not aware of how to maintain them.  However, hose bibs that are not winter ready are probably the number one source of winter pipe leaks.  If not winterized properly, the pipes leading to the hose bibs can freeze and expand.  This expansion can cause the pipe to burst, creating an unwanted winter leak.  If you’ve never winterized the hose bibs, or are not sure how, contact a licensed plumber.  Attempting to operate pipe valves that have been idle or not operated in a while can create or exacerbate an undetected leak.

Make sure your home’s roof system is winter ready.  Have a licensed professional inspect your home’s roof.  If shingles are not secure, melting and freezing snow can create ice dams.  Ice dams can lift and dislodge shingles allowing water to penetrate your home.  Water penetration from ice dams can cause damage to your home’s interior.  Besides damaging ceilings, water penetration can also damage walls and windows.

While your roof is being checked out, inspect the roof flashing, gutters and downspouts.  Roof flashing is often ignored, however is as important as shingles.  Roof flashing is used to transition from shingles (or other roofing) to other materials (such as brick, metal or PVC).  The flashing prevents water to leak between the roof and chimney or vent pipes.

Clean and repair clogged gutters and blocked downspouts.  Poorly maintained gutters and downspouts won’t allow for proper drainage of water from snow and rain.  Improper drainage can allow water to penetrate the foundation, creating structural and mold issues.

Preparing for winter will reduce the probability of having surprises.  Being winter ready will allow you to enjoy the winter months in your own winter wonderland.

Copyright© Dan Krell
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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.

Misguided house makeover

house makeover
House Makeover (Infographic by Allianz Australia Home Insurance allianz.com.au)

Do you really need to spend money to make money?  Deciding what renovations and updates to make prior to your home sale can be tormenting.  It’s easy enough to say that your home needs a facelift; but, the repairs, updates, and painting costs money – and usually lots of it.  The suggestion of making renovations and updates to your home before you sell is everywhere, it’s on TV, the internet, and magazines.  And if you ask friends and real estate agents, they will also give you a list of “must do’s.”  Regardless of how you decide to do a house makeover before the sale, chances are that you’re not doing it right.

There is no doubt that many home buyers are looking for a turn-key home.  If your home is not “out of the box brand new,” you probably need to freshen it up, as well as make some repairs and updates.  But before you embark on the house makeover by making those renovations, you need to ask yourself two important questions: “How much money can I realistically allot for a makeover?” and “How much am I expecting to net from my home sale?

Does a house makeover really get you top dollar? Spending money on renovations will certainly make the home sell faster, but not necessarily make you more money.  And there is no guarantee that the house makeover renovations you make are to home buyers’ tastes.  So if you’re goal is to get top dollar, don’t look at the sale price.  Instead keep your eye on your estimated net (the amount you’re left with after the sale minus total renovation costs).

Of course, the best way to maintain your home’s value is to perform regular maintenance.  It would certainly make the home prep easier too!  But the reality is that many home owners defer maintenance until they feel it’s absolutely necessary.  Deferring maintenance can actually cost more in repairs down the line, and lower your home sale price.  Spending money to correct all the years of neglected repairs and updates prior to the home sale won’t necessarily get you top dollar.

Not all buyers are looking for renovated homes.  One of Stephen B. Billings conclusions in his recent research (Hedonic Amenity Valuation and Housing Renovations; Real Estate Economics; Fall 2015, 43:652-82) was that during the past “healthy” housing market, there was a balance between renovated and non-renovated homes that sold.  However, he also found there was an increase in renovated home sales during the housing downturn of 2007.

Selling your home “as-is” would certainly decrease your sale price, but could net you the same or even more if weighed against extensive renovations of the house makeover.  Consider that you would only recoup a fraction of the cost of a minor kitchen and bathroom remodel; which averages about $20,122 and $17,908 respectively (according to 2016 Cost vs Value Report; remodeling.hw.net).

Concentrate on the basics of decluttering first. Decluttering can make your home look different and feel larger.  Decluttering can set the stage for fo you decide on renovations, and maybe even home staging.

If you decide on freshening up your home before the sale, start with the basics.  Focus on deferred maintenance, and make necessary repairs.  Consider a fresh coat of paint, and maybe new carpets.  Wood floors don’t necessarily have to be replaced or sanded; flooring professionals use state of the art processes to “renew” wood floors.

If you decide on a house makeover, focus first on making repairs and freshening your home. Work out a budget and get several quotes from licensed contractors.  Don’t automatically go for the cheapest quote, even if you’re on a tight budget.  Focus on quality, even if it means limiting the scope of work.  Poor workmanship can sabotage your home sale by making your home look shabby and in need of additional repairs and updates.

Copyright © Dan Krell
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Property Brothers option to home buying

If you’re looking for the perfect turn-key home, you may find that the already limited home inventory is further limited by the many homes with deferred maintenance and those that are in need of updates.  If you’re like the many frustrated home buyers in today’s market, you may decide to take the route of buying a home that includes the Property Brothers option.

As you know, HGTV’s Property Brothers is one of the most popular real estate shows on cable.  What makes the show work is the concept of transformation; creating a model home from one that is crying out for TLC.  Of course, the magic of TV makes it seem easy; home buyers appearing on the show put their trust into the dynamic duo to find the right home and to make it perfect.

A warning, however, this process is not for everyone.  Undergoing this type of project (buying and rehabbing a home) is taking an already exasperating process and making it an emotional and financial challenge.  It is also a time consuming, as you’re totally involved – from buying to rehabbing the home.  Your experience may be similar to those on TV, nevertheless it is more likely to feel like the movie “The Money Pit” or somewhere in between.

Unlike the Property Brothers, you don’t need your real estate agent and your contractor to know each other.  Each has a distinct role; one is helping you acquire the home, and the other is remaking it.  However, it’s a good idea to make sure each is licensed and experienced in this type of process.  Ask for references; some contractors will even have a portfolio of their work.

Before you begin taking the Property Brothers option, make sure you have the funding and your real estate agent and contractors are ready for action.

Talk to a lender about a renovation loan.  Besides providing the money to buy the home, a renovation loan will provide funding for renovations.  Loan programs and mortgage limits vary, so it’s a good idea to get qualified before you write a contract to buy a home.  Make sure your contractor can provide details about the renovation, as the underwriter will review the plans.  Consider a FHA 203K program, which also offers a “streamline” version for less expensive renovations.

Working with a top notch real estate agent is key in not only finding a home, but also negotiating a price.  The ability to think outside the box is very helpful in this phase.  They should be able to find the “diamond in the rough,” that provides suitable space at the right price.  If you’re communicating well with your agent, they will understand your requirements.

Once you identify a home (and before you write the offer), meeting with the contractor will determine if your vision is possible, and its price.  Be realistic and flexible.  Be prepared for bad news and to move on to another home.  Sometimes the home needs too much work and/or the cost of the renovation could be beyond your budget.

Even if you have lots of cash to spare, it’s recommended that you start by creating a budget.  Besides the acquisition cost, consider the renovation costs and carrying costs (if the project is long term).  Also decide on your limitations.  You may decide on limiting renovations to kitchen and bathrooms; or you could broaden the project to be more ambitious.  Consider creating a short term and long term plan for the house; focusing on critical repairs immediately, and making other updates over time.

By Dan Krell
Copyright © 2016

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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 owner savvy

The playwright Oscar Wilde must have been fond of the idiom “nowadays people know the price of everything and the value of nothing,” because he used it in back to back works; first in The Picture of Dorian Gray, and then a variation in Lady Windermere’s Fan.  Today, corrupted forms of Wilde’s phrase are wrongly attributed or misquoted – but the point is well made.  More psychologist then poet, Wilde seemed to characterize a core consumer behavioral trait of seeking short term gain vs long term value – which applies to home owner savvy!

Consumers in the 19th century were much like consumers today, such that they sought out to get a bargain; often times overlooking the costs from which it comes by.  And what may have been in Wilde’s time a conflation of price and value, is still common today – especially for home owners.  While many home owners pride themselves on their frugality in home maintenance, they don’t realize the consequences of their poor choices when it comes time to sell their home.  Home owner savvy is also knowing about value.

Today’s home owner’s frugality comes honestly as a result of the great recession.  A McKinsey Global Institute consumer sentiment survey from a year and half ago sums it up in the title: America the frugal: US Consumer Sentiment Survey (Martinez, Motiwala, and Sher; mckinsey.com; December 2014).  Martinez, Motiwala, and Sher wrote in their economic analysis that “…Multiple years of austerity have left consumers with altered views about spending. Almost 40 percent say they will probably never go back to their prerecession approach to buying…

While looking to spend less on maintenance and home repairs, home owners often ignore the effects of their thriftiness on the long term maintenance costs of their home.  Trying to spend less often means becoming reactive to maintenance issues, instead of proactive.  Reactive maintenance typically means that the plumbing, electrical, or roof issue the owner is repairing, may have been an ongoing problem that may have also affected other systems of the home.  However, proactive home maintenance is an ongoing process that can prevent minor problems from becoming costly major issues and is home owner savvy.

John Riha invoked Ben Franklin’s “An ounce of prevention is worth a pound of cure” when writing about home maintenance and house values (How Much Value Does Regular Maintenance Add to Your Home?; houselogic.com).  He repeats a common theme that regular preventative maintenance doesn’t only save you money down the line, but can add to a home’s sale price.  Riha quotes University of Connecticut and Syracuse University studies that implies the value of a regularly maintained home may increase by 1% a year!

Riha recommends a “proactive maintenance strategy” to help stay on top of necessary repairs and system replacements.  He suggests saving 1% to 3% of a home’s cost for regular maintenance.  To help keep it “interesting,” he suggests repairing and updating one room per year.  If you are unsure where to begin, a home inspection may help identify areas of immediate concern; as well as develop a regular maintenance schedule.  Also, keeping records of ongoing repairs and upgrades will cement in a home buyer’s mind the amount of care you had for your home.

Home owner savvy is not necessarily about being frugal with home maintenance, which is also not about knowing the price of everything; but in reality, diminish the value of their home.  Regular home maintenance can not only keep you comfortable and safe through the year, it may help you sell your home faster and for more!

Original published at https://dankrell.com/blog/2016/06/17/home-owner-savvy/

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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.

The roof overhead

How to know your roof needs to be replaced (http://phoenixroofingteam.com)

People often ask why I frequently talk about home maintenance, and specifically the importance of maintaining the roof. The reason is simple; many issues can develop with an improperly maintained or neglected roof. Besides allowing water to penetrate directly into the inside of your home from a leaky roof, water can also penetrate a basement when the roof and gutters are not properly directing water away from the foundation.

Besides leaving unsightly stains, water entering the home from a leaking roof can seep through walls and ceilings deteriorating drywall and even possibly weakening floor trusses/beams. Water from improperly moved water can create standing water around the home, and enter into the basement. Additionally, any water penetration into the home has the potential to promote mold growth; which not only can affect your health but your home’s structure as well.

It’s obvious that a leaking roof is a problem; and now you know how an unchecked leak can damage your home over time. The good news is that proper maintenance can prevent major leaks and resulting damage. Visually checking the roof (from the ground) regularly can make you aware of general condition of the shingles, flashing, gutters and downspouts. Curling, lifting, broken or missing shingles as well as missing or broken flashing are potential water entryways into your home; and it may be an indication that you should call a licensed roofer to further inspect and repair the roof.

Debris on the roof can not only damage the roofing material, it can also clog or damage the gutters and downspouts. The purpose for gutters and downspouts is to carry water away from the home so as to prevent soil erosion around the home’s basement and foundation; which is a common cause of outside water penetration into the basement. Clogged or damaged gutters and downspouts should also be repaired in a timely manner. Experts recommend to clean and inspect the gutters and downspouts twice a year to ensure proper function.

The two most common roof types are the flat roof and the pitched roof. Flat roofs are typically covered by a membrane, and are thought to be more vulnerable to weather than pitched roofs because of the limitation of gravity’s water draining action. Pitched roofs can be covered in a number of materials. Although shingled roofs are very common, metal roofs are becoming more popular because of its durability. Shingles can be made of many different materials for aesthetic and architectural needs (including solar panel shingles); but in our region the asphalt shingle is most common, and generally has a life expectancy of twenty to fifty years (depending on the quality).

If it’s time to replace the roof, have several roofing contractors provide you with estimates detailing the materials used and estimated labor. A cheaper estimate may not only be the difference in the quality of shingles; but also may not remove the old shingles, leaving them intact under the new roof. Make sure your estimate includes contractor clean up, so you’re not left with piles of old roofing material in your yard.

Always hire a Maryland Home Improvement Commission (MHIC) licensed contractor. The MHIC maintains a Guaranty Fund that compensates homeowners for actual monetary losses due to poor workmanship or failure to perform a home improvement contract; however, The Fund only applies to work done by licensed contractors. The contractor’s license can be checked on the MHIC website (dllr.state.md.us/license/mhic).

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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.