How safe are the materials that were used to build and finish your home?
There are a number of materials that were commonly used in the home that at one time were considered safe, but are now known to cause health problems. And although some of these materials have been discontinued in residential buildings years after production and use, some can be found in older homes. However, there are other materials that are of concern that are still used in building and furnishing materials.
Lead was used as a residential paint additive for many years to enhance the paints’ properties; it was thought to increase paint durability and speed up drying. Since the acknowledgement that lead has deleterious effects on the nervous system, especially in developing children; there was a push to “get the lead out” of paint and other consumer products. Lead paint was subsequently discontinued and banned in 1978 from residential paints. Today, there are numerous disclosures about the possibility of lead paint existing in homes that were built prior to 1978; homebuyers are provided the opportunity to conduct a risk assessment to determine lead levels in homes where lead paint may exist. Lead certified contractors must be used when making repairs and renovations to homes built prior to 1978 (epa.gov).
Before it was acknowledged that asbestos is linked to a number of serious health issues, including mesothelioma; asbestos was used for thousands of years. The ancients mined and found many uses for asbestos. Considered to be a “miracle mineral,” construction use of asbestos mushroomed in the late nineteenth century. Although there were government bans on asbestos products during the 1970’s and 1980’s, asbestos is still used in some commercial applications (asbestos.com).
There has been a longstanding grassroots concern about vinyl and PVC materials because of the linked health issues thought to be from the off gassing and leaching of phthalates (phthalates are a group of chemicals used in the production of plastics). Vinyl and plastic building materials have also been widely used in homes for decades: vinyl flooring has been used in bathrooms and kitchens; vinyl has been used in laminate flooring; and PVC piping has been used for plumbing. The EPA has been and continues to study the production, use and effects of phthalates (epa.gov).
Imported drywall is a more recent issue that was reported to cause severe respiratory ailments; oxidized jewelry and corroded pipes were also highlighted. Although the bulk of the reports of problems associated with the imported drywall emanated from Florida, the Consumer Product Safety Commission (CPSC) has collected hundreds of reports from eighteen states and the District of Columbia. A majority of the complaints reported that affected homes were built in 2006 and 2007; which coincided with a time when building materials were in high demand due to a considerable increase in construction and the rebuilding of hurricane-damaged states (cpsc.gov).
As a result of the increasing awareness of toxins in and out of the home, the “green building” movement has become popular. Besides helping maintain a healthy environment, a key feature of green building is to also maintain air quality in the home; green building uses natural materials to avoid off gassing of toxins. For example, formaldehyde based materials, which are can be found in some “manufactured” woods and some carpets are avoided.
More information about green building, air quality and safety of building materials can be found at the EPA and CPSC websites.
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.
What’s more important? The number of homes your real estate agent sells; or the customer service they provide?
“#1 Real Estate Agent.” “#1 in Sales.” “Top 1% Nationwide Producer.” If you’ve spent some time with real estate agents, you may notice how many tout themselves as being #1. And although some of these rankings are legitimately given by a recognized organization; many agents may be creating their own production ranking designation to use for marketing purposes.
Ranking designations are used in various industries to demonstrate a superlative product, or excellent service. One of the most recognized organizations that bestow ranking designations is J.D. Power & Associates. J.D. Power & Associates is most notable for ranking customer satisfaction in the auto industry, but they also rank satisfaction and other industries including real estate. In fact, you may see the J.D. Power & Associates ranking on a home builder or national/regional broker.
Production ranking is more prevalent in the real estate industry, however, and there are a number of organizations that rank the production of agents, teams and brokers. With the growth of the internet, unofficial production rankings can be found on many home search and real estate data websites. REAL Trends (realtrends.com) is a company that is dedicated to providing analysis of the residential real estate industry, and offers real estate data online; the site provides agent, team and broker production rankings in the U.S. and Canada
The National Association of Realtors® has been toying with the idea of adding a ranking system on the consumer home search site Realtor.com (operated by Move.com). The pilot program, called “AgentMatch,” has not been received well by many agents. There are concerns about the perceptions created by the displayed production statistics; some critics cite issues about statistics that may not be representative of production, which also may not tell the entire story behind of many transactions.
Another NAR initiative in agent ranking is a pilot program called the “Realtor Excellence Program.” Currently the program is being tested in several U.S. markets; and as a recent Chicago Tribune article (Realtor group testing agent ratings program, March 15, 2013; by Mary Ellen Podmolik) reported, it is being received well. What’s different about the “Realtor Excellence Program” from other agent ranking programs is that this program provides agent ranking through customer satisfaction. A quote from Laurie Janik, general counsel of the Mainstreet Organization of Realtors® says it all, “I’m looking at reducing liability. I want happy sellers and happy buyers…Right now we measure agent performance based on how many deals they did…But was (the transaction) a train wreck?”
This distinction between agent production and customer satisfaction is an important one. Although you might think that high volume production and customer satisfaction are not mutually exclusive, the relationship usually has some negative correlation; customer satisfaction typically takes a back seat when production goals increase. If a high volume real estate agent or team is invested in maintaining or growing their production, you need to ask about their commitment to customer satisfaction.
Many agents use national averages to determine that they are in the top percentile in production. Using these averages and stats, I also find myself in the “top tier” of various categories. Be that as it may, many consumers deem self promotion about production in a service industry as gauche and trivial. Many consumers are less interested in hiring agents whose focus is about being #1; rather, consumers want to be treated as #1.
Home buyers would like to consider themselves as being financially savvy. Of course, I often hear the question about buying a home without title insurance, which usually arises from the advice they may receive from some questionable source debating the necessity of title insurance. However, the importance of title insurance is highlighted by recent ownership disputes that have occurred in the last five years due to foreclosures, improperly recorded deeds and mortgage modifications.
Historically, title insurance came about as a necessity. According to the American Land Title Association (alta.org), title insurance resulted from a landmark court case in Pennsylvania in 1868, which found that home seller was not be responsible for a erroneous title opinion. Subsequently, the first title insurance company was formed in 1876 in Philadelphia. The company promoted itself by claiming that they would insure “the purchasers of real estate and mortgages against losses from defective title, liens and encumbrances;” thus increasing the speed and accuracy of the property transfer process.
Prior to the availability of title insurance, title examinations were conducted similarly to how they are today with the purpose of ensuring title marketability (ensuring title is free of unpaid liens, mortgages, and other encumbrances). However, prior to the offering of title insurance, property owners were often held responsible for title blemishes. Of course, unresolved tile disputes were often settled in court.
Initially, title insurance was often a local process. However, the title insurance industry surged along with an expanded housing market after World War II ended. Additionally, the use of lender’s title insurance grew along with the secondary mortgage market; because as the number of nationwide mortgage holders increased, lenders found that title insurance was necessary to protect their interests.
Researching a property’s title relies on the “recordation system.” Although the recordation system has been in use in most of United States in some cases before the formation of the country, many countries use a land registration. Land registration systems used in some countries typically do not provide the same recourse as does the recordation system when disputes arise; where the registering government may resolve these disputes.
Title insurance is a result of our recordation system that continues to this day, where property ownership can usually be determined by conveyance. Although the recordation system relies on transfer instruments that indicate a grantor, grantee, and property description; the system is not perfect. Issues can arise from unrecorded deeds, as well as erroneously recorded documents; fraud may also occur by recording falsified transfer documents with a complicit or unsuspecting clerk.
There are two types of title insurance that are offered: lender’s and owner’s. A lender’s policy is usually required by a mortgage lender and is thought to protect the interests of the lender by validating the lender’s validity and enforceability of the mortgage. The lender’s policy is typically issued for the mortgage amount and coverage decreases as the principal is paid down.
An owner’s title insurance policy is understood to protect the owner’s interest in the property, however there may be limitations. You should consult with your title attorney about the policy coverage and limitations. Policy coverage varies– so check with your title agent for pricing and coverage levels.
A Consumer Guide to Title Insurance is available from the Maryland Insurance Administration, the local State agency that regulates title insurance producers (insurance.maryland.gov).
“Be different and be damned…” is a telling quote from Margaret Mitchell’s Gone With The Wind. Social commentary aside, the quote can be somewhat of a warning to those who build or purchase that unique, unusual, and one of a kind home. Although it is just a quote from one of the highly celebrated novels of the twentieth century, “damned” is a strong word to use in a real estate column. However, because of the many considerations of owning a unique home, there may be an occasion or two you might feel “damned.”
When would you consider a home as being unique? Mostly, the degree of uniqueness can be to a person’s perception of a home as well as what they consider to be unusual. However, there is some consensus to what is generally accepted as “mainstream” in the real estate industry; and if a home falls outside these norms through its construction, size, floor plan, etc – it may be considered as unusual/unique.
Some homes are so extreme in their construction, either in size and/or building materials, that it is clear they are unique and one of a kind; there are other homes that may have been converted from commercial or industrial buildings that may also indicate a unique flair. However, there are many homes that appear to fit in their respective neighborhood, but the custom nature expresses a specific style and preference; which is often found in the luxury home market.
Some considerations you might think about when purchasing a unique home include: financing, insurance, maintenance, and resale.
If you’re set on purchasing a home that is unique, check with your mortgage lender about financing; lenders may have objections on lending on an unusual home. It is also not unheard of that extreme unusual homes appraise lower than market value due to uncertainty of value. Unusual homes, including the “Über-luxury” market, may require specialized loan products that are offered by specialized lenders.
Additionally, you should consult with your insurance agent as the home may not meet your underwriting guidelines for home owners insurance. Many people don’t realize that insurance carriers may rate your home based on construction materials, zoning, size, etc, which can affect the premium. And it’s not unheard of that an insurance carrier may also limit or even deny coverage because the home does not meet their underwriting standards.
Maintaining a unique home can sometimes be challenging too. Many unique homes are constructed with materials that may be exotic, uncommon, and/or can be found in commercial applications. Repairs and labor costs can be much more than the typically constructed home. Finding replacement materials and qualified contractors to work with those materials may also be difficult.
Home ownership is often a labor of love for the home, and that emotion can be carried into the resale. You could easily be disappointed in the time it takes to sell the home as well as the sale price. Be prepared for an extended time on the market because your unusual home may have a very limited pool of buyers, and negotiation could be long and dragged out due to variances in perception of value.
“Doing it your way” may be the theme of a popular song and an advertising campaign for burger joint; but when it comes to building or buying a home – being unique and unusual can sometimes come at a cost.
Take action – consequences of deferred maintenance can hurt home sale.
As we slowly emerge from one of deepest recessions that has hit in generations, one of the top issues facing home owners (especially those who plan a home sale) is deferred maintenance. Although a lack of financial resources could be a main reason for postponing repairs and/or regular maintenance, other reasons for doing so may include a home owner’s lack of time as well as a home owner’s psycho-social issues getting in the way of carrying out maintenance (as in the case of severe hoarding).
Deferred maintenance in a home is simply putting off repairs and timely upkeep of its systems. Delaying maintenance may turn today’s minor repair into tomorrow’s major problem. Of course not all minor repairs turn into major issues, but even minor issues can be a nuisance.
Preventative maintenance can help prevent the elements from entering the home. If delayed, issues can develop and affect other home systems. Maintaining caulking and seals around windows and doors as well as flashing on roof components can prevent water penetration into the home. Putting off repairs may allow water leaks, which can seep through walls and ceilings deteriorating drywall and even possibly weakening floor trusses/beams. Openings in seals and caulking may also allow pests to enter the home, which can also create additional issues if not addressed.
Many home owners do not pay much attention to the exterior because they spend most of their time indoors. The roof, gutters, and downspouts are often neglected due to a lack of awareness; many home owners don’t often check these systems and usually put faith in that they are doing their intended job. Home owners may not even know there is a problem with these systems until it’s too late. Water penetration from these systems can not only create problems as described above, but if left unchecked can also create problems in the basement and foundation.
Water does not have to penetrate from the exterior to create problems, it can originate from unrepaired plumbing leaks as well. In addition to causing staining on walls and ceilings, plumbing leaks if left unattended may likewise, weaken floors.
Another regular maintenance item that is not often performed is HVAC servicing. Ideally, a home’s furnace and air conditioning system should be serviced in spring and fall. Regular servicing of the HVAC systems can not only possibly extend the systems’ life but also can help identify safety issues (such as carbon monoxide leaks in some systems).
Deferred maintenance issues often decrease a home’s value and can prevent a home from selling for top dollar; sometimes preventing a home from selling at all. If you’re planning a sale and recognize that there may be deferred maintenance issues, you might ask your agent about having a pre-sale home inspection or home audit to determine the home’s condition and urgent repairs. Your agent can provide guidance on repairs and pricing your home.
If you’re like many home owners, you might have deferred maintenance on your home. Some experts recommend a “home audit” to determine your home’s condition. It’s never too late to start budgeting for home maintenance; to meet regular and emergency maintenance needs, some experts recommend an annual savings of one to three percent of the home’s value. Planning ahead can make home maintenance easier as well allow you to make informed decisions to possibly lower your maintenance costs.
How safe are the materials that were used to build and finish your home?
How safe are the materials that were used to build and finish your home?
