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October 8, 2016July 14, 2019

Domestic robots in your home

Domestic Robots in Home — Domestic Robots (infographic from NSF.gov)

Today’s smart homes are still a far cry from the futuristic visions of the last century. Home automation has certainly advanced over the last one hundred years. Think about the washer and dryer, and even the personal computer. It’s time for domestic robots in home. If you’ve seen episodes of the 1960’s TV show The Jetsons, you remember how their domestic robot. Rosie the Robot cooked, cleaned and was a companion for Elroy. Rosie’s legacy has set the bar very high for domestic robots – and we are approaching that standard rapidly!

Today we take for granted many of the automated systems in our home. What takes minutes with the help of our modern appliances, took hours with early rudimentary counterparts; and most likely an entire day without any automated assistance. Certainly the average person fifty years ago would not have imagined their home being automated by programming their appliances, and certainly not on a cell phone. The 1962 and 1964 World’s Fair introduced the futuristic smart home to the average person; and to some extent, we’ve already surpassed those expectations. We were introduced to the idea of a centralized “brain” that controlled the home in 1962; and computerized appliances and time saving devices in 1964.

Many home automation tools that were developed through the 1960’s were not available to the average person because of costs and/or technological limitations. Consider that remote controlled television was developed in the 1950’s, and color television became widely available during the 1960’s. The personal computer as we know it was developed in the 1970’s, but wasn’t widely available until the 1980’s. However, as home automation rapidly progressed with the technological jumps of the last half of the twentieth century, devices became more affordable and common place. Fast forward fifty years, virtual reality is the home entertainment trend and many refrigerators have more computing power than the PC’s developed in the 1970’s!

As smart homes advance, robotics will be an integral part of your life. In fact, you can buy a robot today. Of course, you’ve heard of Roomba the floor cleaning robot. Roomba’s parent company, iRobot (irobot.com) also sells a pool cleaning robot and other robotic devices for the home. There is the Litter-Robot (litter-robot.com) to clean after your cat. And although they’re not like robots portrayed in the movies, there are humanoid robots for sale today that can be programmed for simple tasks.

Tumotech, a defunct online magazine about future disruptive technologies and innovations, declared the rise of domestic robots in a May 12, 2014 article “The robot revolution – The rise of domestic robots.” Initially, it is thought that advances in robotics will allow robots to clean homes, take care of the lawn, be a security patrol, and even tend to those who are ill.

As robotics and other technologies rapidly develop and merge, it is conceivable that we will have humanoid robots doing much of our daily tasks and interacting with us as companions in twenty years! However, having humanoid robots in the home may not be as wonderful as we anticipate. In their chapter “If I had a Robot at Home… Peoples’ Representation of Domestic Robots,” psychologists Scopelliti, Giuliani, D’Amico and Fornara suggest that robots taking over our daily tasks and moving in to our homes may be detrimental to our self-esteem and personal identity (Designing a More Inclusive World. Edited by Keates, Clarkson, Langdon & Robinson, Springer, 2004).

By Dan Krell
Copyright© 2016

Original published at https://dankrell.com/blog/2016/10/08/domestic-robots-in-home/

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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.

September 30, 2016December 13, 2022

Mortgage modification future

CoreLogic’s (corlogic.com) latest monthly foreclosure report indicated a continued downward trend. In fact, July’s national foreclosure inventory rate of 0.91% was the 57^th consecutive month (almost 5 years) with a lower number of foreclosures nationwide. Even the current 2.9% national rate of home owners considered “seriously delinquent” is also lower from last July. (Maryland’s foreclosure inventory and seriously delinquent rates are higher than the national average at 1.2% and 4.1% respectively.) All thanks to mortgage modification and foreclosure alternatives.

Frank Nothaft, chief economist at CoreLogic, contributed the decline of foreclosure inventory to a combination of loan modification, foreclosures, and a strong housing market. Additionally, he stated that “The U.S. Treasury’s making home affordable program has contributed to the decline through permanent modifications, forbearance and foreclosure alternatives which have assisted 2.5 million home owners with first mortgages at risk since 2009.”

In the immediate aftershock of the foreclosure and subsequent financial crises, which began almost nine years ago, the government stepped in to help out at risk home owners. The rollout of HAFA, HARP, and HAMP was bumpy and it took time for the programs to work efficiently. Of course, these programs were not intended to continue on forever, and in fact were supposed to end several years ago. Fortunately, Congress, the Treasury and the FHFA have recognized the need for continued assistance and extended the programs. Providing foreclosure alternatives and mortgage modification reduces vacant homes, bolsters communities, and helps maintain a healthy housing market.

Although these mortgage assistance programs were intended to be temporary, it’s clear that a permanent solution is necessary. The notion that a foreclosure crisis won’t or can’t happen again is naïve. Historically, housing downturns and recessions are cyclical. And when an economic decline occurs, a home owner assistance program should be available to provide borrowers with alternatives to foreclosure.

The Federal Housing Finance Agency (FHFA.gov) announced in an August 25^th press release that HARP will be extended through September 2017. But that will be the end of Home Affordable Refinance Program (HARP) as we know it, because a new program is slated to begin October 2017. The new program is to be a streamlined version that will also allow those whose mortgages exceed Fannie and Freddie’s loan limits to refinance.

FHFA stated that specifics for the HARP replacement will be released as the rollout date approaches. However, it is anticipated that the program will not require a minimum credit score; will not place limits on the borrower’s debt-to-income ratio; nor will it limit the mortgage to a maximum loan-to-value. And unlike many refinance programs, an appraisal may not be required. And improving from the HARP program, there won’t be cut off dates, and borrowers can use the program multiple times.

The Home Affordable Modification Program (HAMP) unfortunately is slated to conclude at the end of the year without a viable replacement. However, the Mortgage Bankers Association have stepped in to create a streamlined solution to fill the gap. A September 23^rd press release (MBA.org) announced its successor to HAMP: “One Mod: Principles for Post-HAMP Loan Modifications.”

J. David Motley, CMB Vice-Chairman of the Mortgage Bankers Association, stated, “With Treasury’s HAMP program soon coming to an end, we all recognized that investors, borrowers, and servicers need a replacement program that provides clarity and simplicity to homeowners experiencing difficulty maintaining their mortgage payments…One Mod could meet that challenge by providing affordable and sustainable payment structures that improve the likelihood of success for participating borrowers.“

Original published at https://dankrell.com/blog/2016/09/30/mortgage-modification-future/

By Dan Krell
Copyright © 2016

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September 23, 2016July 13, 2019

Notice to home buyers and sellers

I have always found it curious that area agents feel a need to be licensed in three state jurisdictions (Maryland, DC, and Virginia) as if there is never enough business in any one area. I get the idea that it potentially helps them make more money. Maybe they are putting home buyers and sellers at risk. Home buyers and sellers should be on notice.

Being a competent real estate agent requires more than just a license. It also requires more than an understanding of the neighborhood housing market nuances. A competent agent knows the jurisdiction and local statutory requirements where they are doing business. They should also be knowledgeable of and use the latest contracts and disclosures.

It’s more than a full time job to be a local expert; following sales trends, knowing the latest home listings, and keeping up with specific statutory requirements. It’s very difficult (maybe almost impossible) to be a local expert in more than one county, let alone three states! And as more state and local legal, zoning, and disclosure requirements for buyers and sellers become enacted – Home buyers and sellers at risk from incompetent agents.

For example, the statewide requirement of licensees to ensure home improvement contractor referrals are licensed is a consumer protection that many are unaware. The requirement ensures that consumers can go to the MHIC if the work is faulty and/or there are issues with a licensed contractor. If your agent unwittingly recommends an unlicensed contractor for home inspection repairs, (besides any potential action against the licensee), a home buyer could demand you make additional repairs and/or obtain certification from a licensed contractor that repairs were completed properly.

And effective October 1^st, Maryland is altering its agency law again. Among the requirements, agents conducting an open house must conspicuously post a notice from the Maryland Real Estate Commission. The notice (sounding like Miranda Rights) states that any information provided to the open house agent is not considered confidential and buyers are “entitled” to representation. What would your reaction be if your agent was unaware of this and the buyer is now seeking to void your contract because they were not given their “Real Estate Miranda Rights?”

Recent home seller requirements in Montgomery County are further example where you could be at risk if your agent is unaware of the local statutory requirements and ordinances (such as utility costs and radon test requirements). Non-compliance and/or non-disclosure could possibly result in a fine. And of course any future ordinances (such as a sign ban) furthers the risk. Who knows? Maybe the County Council will devise a local registry of agents doing business in the county to promote real estate agent competency and protect consumers.

Do yourself a favor and hire a competent real estate agent who is not only aware of sales trends and neighborhood values, but the local practices and regulations as well.

Increasing statewide and local regulation is making local real estate sales a specialized endeavor. And as a home buyer or seller, you should bear this in mind when hiring real estate agent. If you’re not being advised properly as a home seller, you’re at risk of non-compliance with statutes, regulations, and/or ordinances – which has potential for fines and a contract dispute. If you’re not being advised properly as a home buyer, you’re at risk of missing specific local disclosures and notices that could affect you financially and/or physically as a home owner. You’re on notice.

Original published at https://dankrell.com/blog/2016/09/23/home-buyers-and-sellers-at-risk/

By Dan Krell
Copyright © 2016

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September 16, 2016July 13, 2019

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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September 10, 2016July 12, 2019

Home price impact of power lines and cell towers

Anyone who has bought or rented a home has been told about lead paint, radon, and maybe even asbestos, as well as other potential hazards in the home. But what about potential hazards brought about by technology, how do they affect home prices? Many shirk away from homes that are close to power lines or cell towers because of health concerns; while some are repelled by the aesthetics. Regardless, there’s probably a home price impact when in close proximity to power lines and cell towers.

What is considered to be necessary for modern living, power lines and cell towers are fundamental to our lives. And although many are wary of the health effects from living nearby these devices; they will still have wi-fi, and a microwave oven in their home, and they probably also use a cell phone. All of which emit similar types of radiation.

According to the American Cancer Society (cancer.org), the type of radiation emitted from power lines and cell towers are non-ionizing radiation, like the electronic devices mentioned above. Non-ionizing radiation does not remove particles from atoms, nor does it directly change DNA. Power lines emit ELF (extremely low frequency radiation), which is a lower energy radiation than visible light and infrared.

Cell towers, on the other hand, emit radiofrequency (RF) radiation that is between FM and microwaves. Although very high levels of RF can be damaging to body tissue, the American Cancer Society website states that cell phones and towers emit RF at much lower levels (of course, one should not stand next to a cell tower). More about power lines, cell towers, and health concerns can be obtained from the American Cancer Society website.

What is the home price impact when you sell your home?

Findings of a 2005 study conducted by Bond & Wang (The Impact of Cell Phone Towers on House Prices in Residential Neighborhoods. The Appraisal Journal. Summer 2005.) indicated that about 40% of the control group were concerned about health effects of living in close proximity to a cell tower; which compared to 13% of respondents already living nearby a cell tower. Nevertheless, both groups were highly concerned about future property values: 38% of the control group would lower asking price by as much as 20%; while almost two-thirds of the respondents living close to a cell tower would lower the home price by as much as 19%. Certainly you can see that there are concerns that may have a home price impact.

Maybe a home price impact is minimal. Roddewig & Brigden’s review of the research into property values surrounding power lines was enlightening (2014. Power Lines and Property Prices. Real Estate Issues, 39(2),15-33.). They stated that the appraisal industry does not automatically reduce prices just because of a property’s proximity to a power line, even though there has been history of concern over the environmental impacts. And caution home owners, buyers, and real estate professionals to not substitute opinion for analyses of actual home prices.

They concluded that if there is a home price impact, it is a small reduction. They explained that “the real estate appraisal profession has been studying those prices since the 1960s. Some of the many published studies have found adverse impacts to property prices and values while others have found no impact or statistically insignificant impacts despite media attention given possible health effects of exposure to EMFs.”

Roddewig & Brigden also found that the long history of research suggests that negative impacts on property values from power lines can be limited by proper “land use planning and subdivision layout procedures.”

Original published at https://dankrell.com/blog/2016/09/10/home-prices-power-lines-cell-towers/

By Dan Krell
Copyright © 2016

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