Resurgence of solar power

House Solar Once considered too costly, solar is getting hot (pun intended). Many factors are making it easier for consumers to choose solar; including lower installation costs and tax credits. Solar energy has also become a selling point for some home builders in sunny states such as California; where builders have offered the option of solar panel installation during construction.

Solar technology has come a long way. Manufacturing advances have not only made the technology more affordable, it has paved the way to new applications as well. Besides the panels with which we have become accustomed, photovoltaic (PV) technology is now available as roof shingles and windows; and some companies that can even apply the PV to other exterior home surfaces.

Is the investment worth it? A recent Washington Post piece (March 26, 2014; Real Estate Matters: Are solar panels worth the investment?) explores the value of installing solar panels – and concludes that it depends on your individual costs and savings. Authors Glink and Tamkin take into account the installation costs, tax credits and a monthly power bill of $120. Assuming that their system would supply all of their electricity needs, they applied the $120/month savings to repay the loan taken to cover the solar panel installation; and based on their calculations – there would be no savings for the first ten years.

However, your actual utility savings can vary on a number of factors, including (but not limited to): the amount of solar power produced; system size and placement; and available sun energy. Additionally, the cost of maintaining your solar panel system can vary; regular maintenance is required to ensure your system is producing power efficiently. Maintaining your system typically entails cleaning the panels (debris, dust, bird droppings can collect on surfaces) and testing other components. Furthermore, because the average life expectancy of a solar panel is about 30 years (depending in manufacturer), you should consider the time you intend to live in your home and resale. Home buyer attitudes on existing systems and possible replacement costs is not entirely clear.

If you’re considering a PV system, Energy.gov offers these tips: measure the amount of sun available; calculate the size of the system to meet your needs; predetermine the best location for the system, as well as making sure it will fit; decide if the system is a standalone or connected to the power grid; and how will the safety needs be met (energy.gov/energysaver/articles/planning-home-solar-electric-system).

Before choosing a contractor, energy.gov recommends due diligence. Ask about the company’s time in business and experience installing the type of system you have chosen (technical differences can exist). Check the contractor/company for complaints, judgments or liens. And, of course, make sure the contractor has appropriate valid licenses; according to the Maryland Department of Labor Licensing and Regulation website, “a home improvement contractor or subcontractor license is required to install solar panels for a homeowner, regardless of whether the panels will be installed on the home or an outbuilding adjacent to a residence, or will be attached to the land next to the residence. A licensed master electrician is required to hook the panels to the electric system.”

Finally, energy.gov also recommends getting multiple installation quotes because panel efficiency can vary depending on the manufacturer. The estimates should include the total cost of getting the PV system up and running, including hardware, installation, connection to the grid, permitting, sales tax, and warranty.

© Dan Krell
Google+

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.

Homeownership, freedom and independence

While we enjoy the barbecues and fireworks that come along with the Fourth of July Holiday, we might take a moment to think about our freedom and independence. And of course – homeownership is an expression of those liberties which is part of the “American Spirit” that drives us to achieve the American Dream.

The American Dream is not dead, as some will have you believe; the dream of homeownership is like a phoenix that is renewed after the fire, and is resumed by a new generation of home buyers. In his April 2009 Vanity Fair article “Rethinking the American Dream,” David Kamp gave a wide perspective of the American Dream; from its origin to diametrically opposed viewpoints. In his conclusion, Kamp states, “…The American Dream should accommodate the goal of home ownership, but without imposing a lifelong burden of unmeetable debt. Above all, the American Dream should be embraced as the unique sense of possibility that this country gives its citizens—the decent chance, as Moss Hart would say, to scale the walls and achieve what you wish.

As we emerge from the housing and financial crises, many are discussing the benefits of homeownership once again. Even after the Great Recession, many prefer owning a home over renting. Survey after survey indicates that a majority of respondents positively viewed homeownership as a desire or goal (Rohe & Boshamer, Reexamining the Social Benefits of Homeownership after the Housing Crisis, Joint Center for Housing Studies Harvard University, August 2013).

So what is it about homeownership that makes it an aspiration for so many of us? Besides the fact that we all need a place to live; a home is an asset that has relative value to the housing market at any given time. Housing is also still perceived by many as an investment that can appreciate over a period of time. Additionally, those who have a mortgage on their home may be able to take advantage of the mortgage interest tax deduction (check with your tax preparer).

Home owners are more inclined to maintain their homes and neighborhoods, as well as being invested in protecting their home and community; which may account for lower incidences of reported crime. Besides stabilizing communities, many of these benefits may also account for positively affecting home values.

Additionally, there has been a lot said about the social benefits of homeownership. A National Association of Realtors® blog post by Research Economist Selma Hepp, titled Social Benefits of Homeownership and Stable Housing lists many of the documented social benefits. She cites that home owners tend to: be more charitable; participate more in their community (including voting); have an increased connection to their neighborhood and neighbors; have an increased general positive life outlook; express an increased self esteem and higher life satisfaction; and be healthier.

There are many studies that also indicate homeownership benefits children. Hepp includes some of the benefits of children living in owned homes, which include: lower teen pregnancy rate; higher test scores; higher high school graduation rate; decreased delinquencies; and an increased participation in organized activities.

Although June was officially declared “Homeownership Month” in 2002; July is a more appropriate month because of homeownership’s association with freedom, independence, and the American Dream.

Protected by Copyscape Web Plagiarism Detector

By Dan Krell
Copyright © 2014


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.

Local level home owner and buyer protection

Chevy Chase Real Estate

Home owner and buyer consumer protection exists at all levels of government. For example, the creation of the Consumer Financial Protection Bureau (consumerfinance.gov) in 2010 brought together in one department oversight and enforcement for federal consumer financial laws. Likewise, Maryland has a Consumer Protection Division housed within the Office of the Attorney General (www.marylandattorneygeneral.gov); which provides information to assist consumers in making educated decisions, as well as offering mediation services to resolve consumer complaints. Some of the housing related consumer advocacy offered by the CPD includes: the administration of the Home Builder Registration Unit; and education about the Maryland Foreclosure Counseling Services Law, as well as “flipping scams.”

Many local governments also have a number of specific protections for home owners and buyers. An advantage of living in Montgomery County MD is the availability of housing related services and assistance with specific housing issues to home owners, buyers, renters and landlords.

To assist home buyers in understanding the associated costs of home ownership, Montgomery County requires sellers to disclose utility and estimated property tax information. Enacted in 2007, Bill 24-07 requires home sellers to provide an accurate estimate of what the property tax would be for the first full year of ownership. Home sellers and real estate agents access the estimated property tax information from the Montgomery County Office of Consumer Protection website (montgomerycountymd.gov/ocp).

The OCP also enforces the County’s utility bill disclosure law that requires home sellers to provide a history of the prior 12 months of electric, gas, and heating oil bills for a property, or a usage history for the same time period. Additionally, the seller must provide Montgomery County Department of Environmental Protection approved information to help the buyer with energy conservation choices and options. If you’re selling your home, your listing agent can provide you with the approved Greater Capital Area Association of Realtors® forms to fulfill these obligations.

County residents finding themselves at odds with their Home Owners or Condo Association can ask for help from the Office of Common Ownership Communities. Housed within the OCP, the OCOC offers information and a dispute resolution program for home owners, boards, management companies, and managers. The OCOC pledges transparency, integrity, and a commitment to the highest ethical standards.

If you’re buying a new home in Montgomery County, you are provided with an extra layer of protection through Montgomery County Code Chapter 31C, which requires new home builders to be licensed by the Montgomery County OCP as well as provide a new home warranty that meets specific criteria.

If you own rental property or are a tenant within the County, you’ll find the Office of Landlord – Tenant Affairs (housed within the Department of Housing and Community Affairs) a resource of valuable information. Besides publishing a Landlord – Tenant Handbook, the commission provides information on licensing, security deposits, evictions, leases, and rent increases. Besides informing of general rights and responsibilities of landlords and tenants, it offers a free and quick avenue for tenants to seek amicable dispute resolution (http://montgomerycountymd.gov/DHCA/housing/landlordtenant).

Home owners and tenants who have issues with their cable TV provider can seek assistance from the Office of Cable and Broadband Services (montgomerycountymd.gov/cable). Housed within the Office of Technology Services, the “Cable Office” administers the County’s cable TV franchise agreements; the office investigates and resolves subscriber complaints.

Check with your real estate agent about local home owner and buyer protections. Many consumer protection agencies (such as those listed above) have websites where information is posted to educate consumers.

Dan Krell
© 2014

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.

Can a home make you sick?

ConstructionHow 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.

Protected by Copyscape Web Plagiarism Detector

By Dan Krell
Copyright © 2014

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.

Debt ceiling, default, and fear; how housing market will react

home - Georgian Colonial
There are no courthouse default notices, and it is unlikely for real estate investors to go knocking on the white house doors to try to purchase it as a short sale. Although a government default is not quite the same as a default on your mortgage, a government default will nonetheless have consequences in the housing market.

A U.S. default would be uncharted economic waters; there is no way to know exactly what will happen – but it will most certainly not be good. When speculating about the consequences of a government default, some talk about 1930’s Germany and 1990’s Russia; these defaults occurred for different reasons and had different outcomes.

Experts discuss a possible consequence of a government default to be an almost immediate economic recession, which could rapidly evolve into a depression. The resulting shock from a possible economic contraction would filter through the economy and would no doubt result in mass layoffs. And just like the most recent recession, mass unemployment had deleterious effects in the housing market and real estate industry resulting in waves of foreclosures and property devaluation.

Other possible outcomes of a default could be runaway inflation, sky high interest rates, and/or general economic calamity. In these scenarios, forget about a housing recovery; home buyers could find it exponentially difficult to obtain a mortgage to buy a home. Homeowners who have fixed rate mortgages should be safe from payment increases; however those with adjustable rate mortgages could possibly see interest rate increases hitting adjustment caps.

In an October 9th article, Morgan Housel wrote (“What Happens If the U.S. Defaults on Its Debt?”; fool.com); “…Those holding bad mortgage debt fared the worst in 2008, but financial pain spread throughout the entire financial system, and to areas that had nothing to do with real estate. The reason was fear. If the global financial system is built on credit, it is supported by trust. When you remove trust, people hide now and ask questions later. The system freezes. I don’t want to lend to you because you might hold something bad, or be lending to someone who is holding something bad, or be lending to someone who is lending to someone who is holding something bad. So people just wait. Credit stops flowing, and as we learned in 2008, that simply devastates the economy… But a credit crisis doesn’t need to last long to bring the house down. Lehman Brothers was well capitalized two days before it was bankrupt…”

Fear is a very powerful emotion that can be used to influence popular beliefs and behavior. As congressional budget talks have been at a standstill, talk of a government default seems to be on everyone’s mind as we approach the debt ceiling. And although we fear a government default, the distinction must be made between default and debt ceiling.

Put in a very simple way: raising the debt ceiling is akin to asking for an increase in your credit card limit. However, you don’t default just because your credit limit is not raised; you default when you fail to make payments on your debt. Even if there is no debt ceiling increase, many experts agree that a chance of a U.S. default is slim; it has been estimated that treasury revenue is much more than the amount needed for debt servicing. Regardless, the fear of a government default is enough to chill the housing market.

Protected by Copyscape Web Plagiarism Detector

By Dan Krell
Copyright © 2013

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.