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

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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.

Catch up with deferred maintenance

After the Great Recession, the country’s housing stock deteriorated.  Many financially strapped home owners could not afford the cost of maintaining their home.  Many of those home owners deferred maintenance thinking they would do it when their financial picture got better.  Others abandoned their homes, willing to face foreclosure to have a fresh start.

deferred maintenance
Home quality

As a result, the housing stock deteriorated as time passed. Foreclosed homes deteriorated during the foreclosure process.  And many others decided to sell their deferred maintenance home.  It wasn’t until five to seven years after the recession that “the cost of doing nothing” was realized.

However, the antithesis was the many home owners who opted to update and remodeled their homes in lieu of moving.  The decision to stay and “make do” was primarily because of the depressed home sale market. Many home owners who wanted to move couldn’t because the potential sale price would have been much lower than what the home owner needed to move.  Additionally, there were many who were “under-water,” meaning that their mortgage payoff was higher than what the home was worth at that time.

As the market improved, home sellers realized that their well maintained, renovated/updated homes, sell faster and for more. Real estate agents quickly embraced the idea of renovating prior to putting the home on the market.  The pay off for this strategy was evident in the recent sellers’ market (2020-2022), where well maintained and updated homes garnered a lot of attention, received multiple offers, and launched home sale prices to double digit increases.

Just as remodeling can increase the value of your home, deferring maintenance will decrease your home’s value. Unfortunately, many home owners, and their agents, believe that years of deferred maintenance can be overcome with simple and inexpensive renovations.  The truth is that years of deferred maintenance deteriorates the condition of your home, making it vulnerable to the elements, pests, and time.  Deferring maintenance also makes repairs and updates more costly down the road. 

If your home has deferred maintenance, it’s not too late to catch up.  If there are many projects with which to catch up, prioritize the most important.  You will find that as you catch up with deferred maintenance, your comfort and enjoyment of your home increases.  And if you’re planning a move in near future, keeping up with home maintenance will make your home sale preparation straightforward and easy.

By Dan Krell
Copyright © 2022

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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.

Living with your HOA

If you’re buying a new home or a resale within a planned development (or already own is such a community), it’s very likely there is a home owners association, also known as HOA. The HOA has rules and covenants to live by, so to speak.  So, you’re not only living with your community, but living with your HOA as well.

Living with your HOA
Home buying process

Most residents and owners living under the umbrella of their HOA are interested staying within the lines of the rules and covenants. However, it’s difficult sometimes to be aware of all the rules as they sometimes change.  Getting an infraction notice isn’t the end of the world, as it’s just the HOA’s way of reminding you of the rules.  Most infractions are resolved without a fuss. 

It’s not unreasonable for you to want to live quietly in your own home.  Nonetheless, when you move into a community that has a HOA, you agreed to be living with your HOA rules and covenants.  

There may be occasions where the home owner feels that the HOA’s notice is a nuisance.  Sometimes home owners feel the HOA is unfair, they may feel singled out, and their voice is unheard.  It’s not uncommon that a home owner may feel as if the HOA is engaging in selective rule enforcement.  You may not agree with the HOA action or decisions, however seeking a resolution is mutually desirable.

Responsible community management is not a one-sided affair. It’s also the responsibility of the home owner to maintain the rules and covenants.  However, when there is a dispute, what can you do?  Fortunately in my area, there are neutral resources to assist in mediating disputes between community management companies, boards of directors and home owners. 

The Montgomery County Commission on Common Ownership Communities (housed within the Montgomery County Office of Consumer Protection) was established in 1991 and is committed to providing owners, tenants, residents, boards of directors, and community management companies with information, assistance, and impartial dispute resolution programs.  Statewide, the Consumer Protection Division of the Maryland Attorney General can receive complaints under the Maryland Condominium Act, as well as the Maryland Homeowners Association Act for resolution.

By Dan Krell
Copyright © 2022

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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.

New Years Resolution

new years resolutions
Remodeling this year? (Infographic from nar.realtor)

It’s a new year, and there are numerous media pieces giving you the same old and trite New Years resolution.  Here are three New Years resolutions that may have meaning for you this year.

Selling a home this year?  Your New Years resolution is to not overpay on real estate commissions.  Although I have written a lot about real estate commissions this year, it’s a topic I have addressed through the many years of this column.  2019 is was the year when consumers finally became aware that they have control in how much they pay when selling a home.  Although home sellers have always been able to negotiate with real estate agents, agents are increasingly transparent about costs giving sellers more clout in deciding what’s fair compensation.  There are a number of ways of selling a home today.  Besides negotiating real estate commissions with a traditional real estate agent, consider all your options and do your due diligence.

Have you been putting off repairs?  Make home maintenance your New Years resolution.  If you’re thinking of deferring maintenance projects another year, ask yourself “What’s the cost of doing nothing?”  Putting off those small projects can be costly.  Deferring home maintenance is cumulative over time.  What may seem to be localized areas or systems that need attention, could spread to other areas and systems over time.   

Although average home prices have steadily increased since the end of the Great Recession, many home sellers have found that years of deferred maintenance, and lack of have been an impediment to selling their homes.  Homes for sale that are in need of repair typically take longer to sell and will sell for less than their updated and well-maintained counterparts.

Because many home buyers want turn-key home, many home owners and real estate agents believe that years of deferred maintenance can be overcome with addressing some of the home’s issues.  Making a few updates and minor repairs can improve the appeal of a home.  But unless the all deferred maintenance issues (and updates) are addressed, the home sale price may still be less than what is expected. 

Thinking of making updating your home?  Make a resolution for a healthy home.  A 2017 exposé revealed that green designed and energy efficient homes can be bad for your health.  To explain the potential hazard, Marisa Mendez uses the analogy of opening up the air-tight sealed bag of clothes from last summer and getting a whiff of the stale, plastic air (Breathing Easy: An Introduction to Healthy Homes; remodeling.hw.com; June 22, 2017).  But the green and efficient building trend has moved to make homes healthy environments with an emphasis on good indoor air quality.  Mendez stated that the good indoor air quality can be achieved by continuously exchanging the indoor air with conditioned outdoor air.  There are physical and environmental benefits of a healthy home, which include increased emotional wellbeing and reduced respiratory distress.

Bill Hayward of Hayward Healthy Home has been a leading voice of the healthy home movement.  In a 2016 Builder Magazine interview, he discussed how his own experience transformed his life (Advocating for Fresh Air in Homes; builderonline.com; September 29, 2016).  He started Hayward Healthy Homes after he realized his home made his family ill.  Hayward stated “After my family got sick inside our home, I started researching. Thirty percent of the population has allergies and is physically affected by the indoor air quality. The worst air that Americans breath right now is the air within their house.” For more info on a creating a healthy home, visit Hayward Healthy Home (haywardhealthyhome.com).

Original article is published at https://dankrell.com/blog/2020/01/31/new-years-resolution/

By Dan Krell
Copyright© 2020

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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.

Holiday Home Safety

holiday home safety
Holiday home safety (ifographic from cpsc.gov)

For some, the holiday season is a time of enjoying family and friends.  For others it’s a time of giving.  Regardless, many agree that it’s a time we wish each other joy and happiness.  Here’s some thoughts on holiday home safety keeping your holiday safe and enjoyable. 

Holiday home safety includes protecting your home from fire.  According to the Consumer Product Safety Commission (cpsc.gov), from 2014 to 2016 there were “about 100 Christmas tree fires and about 1,100 candle fires that resulted in 10 deaths, 150 injuries, and nearly $50 million in property damage each of those years.”  If you have a live tree, make sure it has plenty of water so it doesn’t become potential tinder.  If you have an artificial tree, make sure it’s “fire resistant” (check the label).  Keep your tree away from the fire place and candles.  If you’re using candles, keep an eye on them as they burn.  Make sure they are away from curtains or other flammable items.  Remember to blow out candles when leaving the room.  To lower the fire risk, consider using “flameless” candles.  When using holiday lights, check to make sure they are safety rated by a “nationally-recognized testing laboratory.”  Throw out your old lights if they have: cracked sockets, frayed insulation, bare wires, and/or loose connections.  Make sure your holiday decorations are flame retardant. 

Holiday home safety is also about avoiding accidents. More stats from the Consumer Product Safety Commission indicate that the potential for accidents increase during the holiday season.  Consider that there were five holiday decorating deaths during the 2018 holiday season.  There were about 18,100 holiday “decorating-related injuries” during the 2017 holiday season.  Since many holiday injuries are the result of falls, make sure you use a proper ladder or step-stool when decorating.  Also consider having a helper to help stabilize the ladder or step-stool. 

Children are typically at high risk for injuries, especially during the holiday season.  The Centers for Disease Control and Prevention (cdc.gov) recommends to keep an eye on children during the festive season.  During the holidays, be mindful of age appropriate toys, some toys can be choking hazards to young children. 

Holiday season is prime time for thieves, so don’t make it easy for them.  Secure your home just as you would any other time of the year.  Security experts concur that it typically takes sixty seconds for a burglar to break into the average home. Because their risk of being caught in the act increases with every second, they will likely move to the next house if they can’t get in within a minute or two.

Don’t forget to deploy your deterrents and other preventative measures to discourage burglars from breaking-in, especially if you’re traveling.  Besides the usual measures, there are other precautions to consider during the holidays.  Don’t allow would-be thieves see your presents, place them out of site.  Be aware that trash and recycling can also reveal your new and expensive items.

If you’re expecting deliveries when you are not at home, plan ahead to thwart porch pirates.  Consider having your packages delivered at work or to a neighbor who is home during the day.  Use parcel lockbox that keeps the package out of site and locked away.  Install a camera to see front door activity.

More information about holiday home safety can be obtained from the CPSC, CDC, and your local government agencies (such as the Montgomery County Fire and Rescue Service, and the Montgomery County Police Department).

Original article is published at https://dankrell.com/blog/2020/01/02/holiday-home-safety/

By Dan Krell
Copyright© 2019

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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.