home owner Archives - Page 6 of 16 - Real Estate News and Commentary

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.

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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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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
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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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