homeowner Archives - Page 3 of 9 - Real Estate News and Commentary

July 3, 2018July 28, 2019

Independence, patriotism and homeownership

Let’s come together to celebrate our freedom and independence. Having innate and inalienable liberties is the foundation of this country. The concept of independence is abstract and usually expressed as intangible actions, such as the freedom from the tyranny of others. However, home ownership has become an icon of freedom that is tangible and obtainable.

Last month I wrote about a few of the benefits of owning a home as part of the recognition of National Homeownership Month. Besides being wealthier, home owners tend to be healthier and happier than their renter counterparts. The history of owning land has been one of wealth and luxury. Renting on the other hand has been associated transition, difficult times, and a hard life. This can be traced back to the middle ages, when serfdom was associated with leasing.

How did owning a home become associated with the American Dream? Richard Mize revealed the truth about the connection in 2013 (Who first dreamed the American dream of homeownership?; Oklahoman,com; June 22, 2013). Mize cites Eric John Abrahamson’s historical biography “Building Home: Howard F. Ahmanson and the Politics of the American Dream” (University of California Press) as the source of the story. Abrahamson attributes the idea of home ownership as the American Dream to the restructuring of local savings and loans after the depression of 1896.

Building and loan institutions during the 1800’s certainly did not have the technology nor the interconnectedness our modern banking system has today. In restructuring the financial system after the 1896 depression, local building and loans were organized to form the U.S. League of Local Building and Loan Associations. The League’s motto was “The American Home: The Safe-Guard of American Liberties.” According to Mize, this was promoted as the American Dream.

Abrahamson attributed the League’s first president, Seymour Dexter, with equating the idea of home ownership to liberty. According to Abrahamson, Dexter felt that owning property was a duty. Dexter believed Thomas Jefferson’s conviction that independent property-owning farmers would “sustain the independence and virtue of the citizenry and the health of the democracy.” Dexter viewed the industrialization of America as a “challenge to democracy.” The industrialized worker was much like the serf of the middle ages who rented a home near their job, and owed allegiance only to their employer (landlord), which was viewed as “politically corrupt.” And to rebuild America of the 1890s, owning a home became portrayed as patriotic and a “civic virtue.”

In 2011, then president of the National Association of Realtors Ronald L. Phipps wrote (Home ownership matters; magazine.realtor; February 1^st, 2011):

“Our commitment to home ownership is not about simple self-interest. Rather it is about a larger purpose. Home ownership has been part of the American experience since the very first breath of the Republic. Today, what we need to do as a nation is connect with our truth and our tradition: Home ownership matters.”

It’s not only Realtors who promote home ownership but government as well. Federal and local government programs exist to encourage home ownership through down payment assistance programs, low interest rate mortgages, and even home renovation programs.

As Seymour Dexter of the U.S. League of Local Building and Loan Associations realized, owning a home is an act of independence and patriotism. It doesn’t only benefit you personally, but it also benefits your community and the economy. The idea of independence transcends all ideology and can be exhibited by owning a home.

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.

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.

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

June 18, 2018January 7, 2020

Modern homeownership

June is National Homeownership Month. In recognition of modern homeownership, National Association of Realtors President Elizabeth Mendenhall stated in a June 1^st press release that “National Homeownership Month is a time to celebrate and promote the modern American Dream of owning a home. Homeownership changes lives and enhances futures, and many Americans see it as one of their greatest hopes. These individuals are counting on the nation’s 1.3 million Realtors to champion and protect homeownership and help make it more affordable, attainable and sustainable (nar.realtor).”

The NAR provides a history of celebrating modern homeownership which goes back almost a century (nar.realtor). The roots of celebrating homeownership go back to the 1920’s when local associations would bring together consumers and brokers during “Real Estate Day” events. In 1955, the National Association of Realtors created a national “Realtor Week” to promote the value of Realtors when buying a home. The celebration of modern homeownership began in 1976 when “Realtor Week” was changed to “Private Property Week.” Then in 1986, the celebration was changed to “American Home Week” to promote owning a home as part of the American Dream. June became National Homeownership Month through a proclamation by President Bush in 2002, which expanded the American Home Week to include HUD initiatives. Although 2008 was the last official proclamation of National Homeownership Month, it has been observed annually. However, last year, President Trump revived the annual proclamation recognizing the significance of homeownership.

Although the idea of homeownership hasn’t changed since the 1920’s, many things have. For example, buying a home is much easier and affordable today than it was then. You can now search homes from your couch, rather than driving to individual broker offices. Additionally, low down payments and thirty-year fixed rate mortgages have made modern homeownership a realty for many.

Of course, some things haven’t changed in a century. A home is still an asset that maintains relative market value. Given regular cycles of up and down markets, real estate can appreciate over time. There are also some tax advantages to owning a home (consult your tax preparer). Furthermore, owning a home stabilizes communities and encourages civic pride, which positively affect home values.

Additionally, there are many social benefits to homeownership. Studies demonstrate that home owners tend to be more charitable, have an increased connection to their neighborhood, have an increased general positive life outlook, express an increased self-esteem and higher life satisfaction, and be healthier. Other studies indicate that children living in owner-occupied homes have higher test scores, higher graduation rates, decreased delinquencies, and an increased participation in organized activities.

homeownership rate — Homeownership Rate (census.gov)

The comparisons of the costs of renting vs. the costs of owning a home hasn’t changed over time. Of course, the debate takes on a different tone depending on the state of the economy. During the Great Recession, many believed that owning a home was folly. Even after the recession, many continued to believe that real estate wasn’t a viable investment, while discounting the other benefits of homeownership. The homeownership rate bottomed to a modern low of 62.9 percent during the second quarter of 2016 (census.gov). However, homeownership is back in vogue. Even with increased home prices and mortgage rates, buying a home today can still be less expensive than renting.

Modern homeownership – your home is a silent witness to your life.

You have a relationship with your home. When you own a home, your relationship with it is intimate and symbiotic, which contributes to an intangible and intrinsic sense of wholeness.

Original published at https://dankrell.com/blog/2018/06/18/modern-homeownership/

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.

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.

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

May 13, 2018July 18, 2019

Hazardous building materials

It’s not unusual that new building materials are produced to make construction and system installations easier, less expensive, and/or safer. However, once in a while, it’s found that the component may fail or can become dangerous as it ages or if installed improperly. Examples of such materials include FRT plywood, polybutylene pipe, Chinese drywall, and most recently CSST.

Fire Retardant Treatment (FRT) plywood was identified in the 1990’s as a potential problem when used as roofing sheathing. FRT sheathing was supposed to help limit fire damage by containing a fire. Some FRT plywood used in roofs during the mid to late 1980’s and early 1990’s was found to become defective over time and deteriorate, subjecting the roof to possibly fail. Although FRT wood is commonly used in roofing building materials, wood joists and other building materials may have also been treated with FRT chemicals and were also identified to possibly have latent problems over time.

Another building component used during the 1980’s and 1990’s that had problems was supposed to make plumbing applications easy to install and less expensive than copper. Many homes built in the 1980’s and early 1990’s had plumbing with polybutylene (PB) pipes. The plastic PB pipe was found to be susceptible to leaking and bursting. The fallout resulted in a class action settlement to assist home owners replace pipes and reimburse for any damages from failed pipe.

During the housing expansion during the mid 2000’s, many builders opted to use imported drywall because it was abundant and cheaper than domestic drywall. The use of imported drywall kept costs down and did not impede building schedules when supplies ran low. However, as the decade wore on, it was found that some imported drywall from China became toxic when exposed in certain environments. Homeowners complained that the imported drywall caused respiratory ailments, oxidized jewelry, and even corroded pipes. Most complaints originated from hot and humid climates, such as Florida, but also occurred in other areas of the country. The complaints peaked in 2008 and resulted in congressional hearings.

More recently, Corrugated Stainless Steel Tubing (CSST) was identified to have the potential to be a hazard if not installed properly. CSST is flexible stainless-steel tubing used in natural gas applications. According to CSST Safety (csstsafety.com), CSST was first used in Japan in the 1980’s and introduced in the US in 1990. The benefits of CSST include speed, ease, and cost of installation, compared to black iron gas pipes. CSST is supposed to resist leaking because fewer joints are needed for installation (most gas leaks are observed at black pipe joints). As of 2012, it is estimated that seven million homes have CSST. It was found that power surges due to lightning strikes may cause CSST to puncture, which can cause a fire.

The standards of practice for Maryland home inspectors (mdahi.org/Maryland-Standards-of-Practice) require inspectors to “describe” the presence of CSST in a home, with the recommendation that “the bonding of the CSST be reviewed by a licensed master electrician.” Washington Gas (washingtongas.com) recommends that you inspect CSST in your home to ensure that it is properly bonded and grounded. “Bonding is provided primarily to prevent a possible electric shock to people who come in contact with the gas piping and other metal objects connected to the grounding system. Proper bonding and grounding reduce the risk of damage and fire from a lightning strike.”

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.