home owner Archives - Page 6 of 15 - Real Estate News and Commentary

June 24, 2018April 30, 2019

Basic home repair

I often preach about regular home maintenance. However, home owners should also have basic home repair skills. Basic repairs are those items that you can do safely, and usually don’t require a professional. Basic home repair skills are sometimes useful as an emergency stopgap before the licensed contractor can make it to your home.

Basic home repair requires a few tools. Keep a toolbox well stocked and know where it is so you can easily find it when necessary. Besides the standard hammer, Philips and flathead screwdriver, your toolbox will need more items depending on your skill level. If you’re in doubt about your ability to make a basic home repair, call a licensed contractor (you can do more damage if you don’t know what you’re doing). As a precaution and in case of emergency, you should know where the emergency shutoffs are in your home for water, electric and gas.

One of the first repair skills that I learned as a home owner is how to “snake a drain.” Bathroom drains, specifically, get clogged with hair and soap. Chemical products are a common solution, however you should always follow the directions and read the “cautions and dangers.” Chemicals don’t always work well, however. If used improperly, chemical drain products can also damage basins and pipes. Following the instructions, you can easily clear most clogs with a drain snake. A small drain snake should be part of your tool box. These are cheap to purchase and readily available at the hardware store.

Have you ever needed to change your door locks quickly? I have, once when a lock failed (the mechanism broke), and another time when someone stole our keys. Although most locks can be changed out easily with a screwdriver, specialized locks require a locksmith. Most locksets are designed as components that easily install. However, you should note that standards change over time, so make sure the lockset you purchase is the same size as the one being replaced.

Patching drywall is one of those repairs that is so basic that you can find “how-to” tutorials everywhere. Basic drywall patching requires a few basic tools, such as a “spackling tool,” utility knife, sand paper and spackle. Spackling tiny pinholes is easy. However, a larger hole may require some time for the repair as well as the clean-up. Damage to large areas of drywall will most likely require sections to be replaced.

Can’t find the leak from your sink or tub? There’s a good chance it’s coming from water that is seeping through old caulking. Caulk is used as a sealant in plumbing applications. It seals the fixtures and perimeter of sinks, tubs and shower stalls, which prevents water from trickling through. As it ages, caulk shrinks and can become brittle, which allows water penetration and leaking. A tube of caulk should be in your toolbox in case you need it for an emergency repair. You don’t need a large caulking gun, as caulk is available in many forms, such as squeezable tubes and even tape.

Plastic sheathing and duct tape are both good to have in your toolbox in case of an emergency. Duct tape, specifically, has many uses and is widely used as an adhesive and sealant. These two items are useful as a short-term repair for broken windows and doors. Plastic sheathing and duct tape can easily cover the affected areas until they are replaced, as well as help maintain cooling or heating in the interim.

By Dan Krell
Copyright © 2018.

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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.

June 14, 2018April 30, 2019

Specialty rooms for all interests

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.

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May 29, 2018May 5, 2019

Air conditioning maintenance

Did you know that the first commercial application of air conditioning was in 1902? And yet, residential central A/C didn’t come into its own until the 1960’s. According to the US Department of Energy’s History of Air Conditioning, A/C use skyrocketed in the 1970’s. Since then, systems have become more efficient, such that new air conditioners use fifty percent less energy than units from the 1990’s. Additionally, new technologies are making A/C units increasingly environmentally friendly. New developments in air conditioning include non-vapor compression technology, which will be fifty percent more efficient and doesn’t use Hydrofluorocarbons (energy.gov).

Summer is around the corner. But I would venture to say that many of you already have your air conditioning running. We take for granted that our home’s air conditioning runs without fail. But proactive care of your A/C unit will keep it running efficiently while you stay cool through the hottest summer days. Here are some air conditioning maintenance tips from the US Department of Energy (energy.gov):

Regular maintenance of your home’s air conditioning system will ensure air flow. Regularly changing air filters can keep your system clean and keep the air flowing. A clean filter can reduce energy consumption by five to fifteen percent. Filter change requirements can vary from home to home, due to home conditions.

Over time, the A/C unit’s coils can become dirty, which will reduce its efficiency. Dirt on the coils can reduce airflow and prevent it from absorbing heat. The outside condenser coils will likely become dirty from being exposed to the elements. It’s recommended that the area around the outdoor unit be clear of debris, leaves, and have about two feet of clearance for ideal airflow. Make sure that the air conditioner condenser drains are not blocked. A clogged drain can create excess humidity, which can create conditions for mold growth in basements and utility closets.

Window A/C units require maintenance too. You should inspect the seal between the unit and the window to ensure there are no air leaks. Window A/C units should be covered during the winter to prevent dirt and debris from penetrating the unit.

Some maintenance requires a qualified HVAC technician. If you hire a HVAC tech to clean and service your air conditioning, make sure they have a current HVAC license. Hiring a professional doesn’t have to be expensive, as many HVAC companies run maintenance specials this time of year. Besides checking the refrigerant in the system, the tech will run a number of diagnostics as well as clean the system if needed. They will also make necessary repairs, such as sealing leaks.

Air conditioning maintenance assistance programs

If you’re on a modest income and cannot afford to service or upgrade your air conditioning, you may qualify for Montgomery County’s Homeowner Energy Efficiency Program. The program is in partnership with Habitat for Humanity Metro Maryland, Inc to assess applicants’ eligibility and identify their needs. According to a Tuesday county press release, “homeowners benefitting from the program will receive free energy-efficiency upgrades to their home which may include attic insulation, upgraded furnace and air conditioning units, water heater replacement, LED light bulbs, a solar-powered attic fan, a programmable thermostat and new appliances.”

The program is open to all Montgomery County homeowners. Eligibility requirements include; owning and occupying the Montgomery County home for which they are requesting services; they must be a PEPCO customer; and meet income criteria. For more information see the program website (habitatmm.org/montgomery-county-energy-efficiency-program).

By Dan Krell
Copyright © 2018.

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April 30, 2018May 6, 2019

Maintenance free homes

I talk about home maintenance quite a bit. And there is a reason. Maintaining your home is important, not just to keep you comfortable but to also preserve your investment. But many people loath the idea of spending their weekend checking their home’s systems, replacing air filters, mowing the yard, washing the siding, cleaning appliances, ad nauseum. They are called chores for a reason. But maybe sometime in the near future we will eliminate the chores and live in maintenance free homes.

Rapid technological advances are certainly making our lives easier. We can do many things in our homes, even when we’re not home! Our homes can even do things while we’re not home. So how about increasing the quality of our lives by reducing the time spent maintaining our homes?

Maintenance free homes

Home design and materials tech are leading us to a home where maintenance is minimal or non-existent. Tech innovations has brought us new materials to enhance our homes’ appearance and decrease maintenance. Many of the new materials not only look good, but they are also green which makes our homes more efficient. Many material improvements have been primarily for your home’s exterior. For example, new no-maintenance or minimal maintenance materials for siding, decking and roofs are aesthetically pleasing and can last decades. However, low or no maintenance materials for your home’s interior are increasing in popularity too. Examples include quartz for counters, and prefinished wood for flooring.

The desire for maintenance free homes is not a new phenomenon and can be directly observed by housing choices. New home buyers like the idea that there will be minimal maintenance for the first year. They like feeling confident that everything in the home will work as expected without spending money on service calls, or expensive emergency repairs. Condo buyers like the idea of not having to deal with exterior home maintenance, especially lawn care. Additionally, active adult communities are designed with low maintenance in mind to make living easy and increase quality of life.

Unfortunately, because of their design, some mechanical systems still require care. For example, experts recommend that HVAC systems be serviced twice a year. The service not only checks and tunes the system to operate efficiently, it can identify potential hazards as well. However, to help keep maintenance at a minimum, many homeowners decide to sign up for a service contract. The service contract may also schedule the maintenance for you, which can also help you with time management. Not all service contracts are the same, and due diligence is recommended before you sign any agreement.

I am not dissing those homeowners who love to work on and around their homes. Don’t get me wrong, there is a satisfaction from doing chores and repairs. But there are many who don’t care for it. And not to mention that there are many homeowners who don’t maintain their homes, because of cost and/or inability. A major benefit to living in maintenance free homes is reducing the value-reducing effects of deferred maintenance.

Tech advances in home design and building materials have eliminated a great deal of the maintenance requirements that was necessary in the past. And although some systems in the home require regular care, newer systems increase in reliability. It’s fascinating that because of maintenance free exteriors many homeowners today don’t know what it’s like to paint the exterior of the house every two to three years. Likewise, maybe sometime in the near future, we won’t remember what it’s like changing air filters.

By Dan Krell
Copyright © 2018

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March 22, 2018November 23, 2021

Negative equity stats likely erroneous

Before the Great Recession, there was the foreclosure crisis of 2007. That was the year that the housing bubble popped and home negative equity soared. Many home owners negotiated with their lenders to keep their homes, while others lost their homes to foreclosure. The Mortgage Forgiveness Debt Relief Act of 2007 was one of the first measures to assist distressed homeowners during the financial crisis. The Act initially was to end in 2009 but has been extended annually. The Act was recently retroactively extended for 2017.

The purpose of the Act was to address tax liabilities that distressed homeowners faced when they tried to save their homes. Because debt forgiveness is typically considered taxable income, a mortgage balance reduction via mortgage modification or short sale would have resulted in a tax bill to a homeowner who was already experiencing a financial hardship.

Recent home equity gains in the housing market should help many home sellers who would have otherwise needed a short sale. Highlights from CoreLogic’s Q4 2017 Home Equity Report (corelogic.com) indicated that about 4.9 percent of mortgaged homes have negative equity (which is a huge improvement from the almost 31 percent reported in 2012 by Zillow’s Negative Equity Report). Additionally, CoreLogic reported that the national average of home equity gained by homeowners over the past year was in excess of $15,000. However, there is disparity in home equity growth by region.

Dr. Frank Nothaft, chief economist for CoreLogic stated:

“Home-price growth has been the primary driver of home-equity wealth creation. The CoreLogic Home Price Index grew 6.2 percent during 2017, the largest calendar-year increase since 2013. Likewise, the average growth in home equity was more than $15,000 during 2017, the most in four years. Because wealth gains spur additional consumer purchases, the rise in home-equity wealth during 2017 should add more than $50 billion to U.S. consumption spending over the next two to three years.”

The National Association of Realtors testified on March 14th to the U.S. House Ways and Means Subcommittee hearing on “Post Tax Reform Evaluation of Recently Expired Tax Provisions” to make the Mortgage Forgiveness Debt Relief Act permanent. In his testimony, Realtor Barry Grooms discussed the plight of many homeowners who are surprised to find that they are upside-down on their mortgage despite national home price gains.

Grooms made an argument why the Mortgage Forgiveness Debt Relief Act should be permanent. The Act has been retroactively extended each year in recent years leaving many short sellers “sweating it out” until the end of the year. Part of the decision-making process for a short sale is a potential tax liability. Many home sellers take the chance that the Act will be renewed retroactively. But others do not want to take the chance of incurring a large tax liability.

Negative equity statistics are likely to be erroneous. The number of homes with negative equity is probably under-represented due to deferred maintenance.

Yes, home prices have significantly increased, which has grown home equity. But the statistics for home equity assume that all homes are worth “retail value.” The retail value of a home is the full price a home can sell. In today’s market the home must be in better-than-average to excellent condition to sell for retail value. We don’t know the real value of any home until it’s sold.

In his testimony, Grooms touched upon a number of issues why homeowners are selling for less than they owe. However, not addressed by Groom is the number one reason why homeowners are under-water and why many home sellers need to sell via short sale. Property condition. The property condition crisis was highlighted in a February 2013 article by the Harvard Joint Center of Housing Studies entitled “The Return of Substandard Housing.” The lack of updates and/or deferred maintenance in a home can significantly decrease its value.

By Dan Krell
Copyright © 2018

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