Deadline Newsroom: 02/13/2008

Wednesday, February 13, 2008

SoCal Wildfire Recovery Update

Since last year's wildfires in Southern California destroyed 2,200 homes, home owners have found relief from some unexpected places.

by Broderick Perkins
© 2008 DeadlineNews.Com

Deadline Newsroom - What does the housing slump, home builders and Garth Brooks have in common?

They've all provided benefits for Southern California's 2007 wildfire victims.

Since last year's wildfires in Southern California killed 10 people, charred 800 square miles and destroyed 2,200 homes, home owners have found relief from some unexpected places.

With Southern Californian's slumping housing market sending builders back to the drawing board, homeowners have found subdivision builders willing to take on single-site projects.

Mick Pattison, head of Barratt American said the slow down in home building has freed up builders to help wildfire victims quickly rebuild lost homes. He also said the misfortune of others was also creating jobs for construction workers.

The Associated Press reported homeowners have accepted offers from developers offering new custom homes at a discount. Home owners are also using insurance money to buy existing tract homes in locations other than original home sites.

California law, enacted after wildfires in 2003, allows fire victims to use their full policy coverage amount to build or buy elsewhere.

Insurance companies have moved quickly too, already paying out $1.27 billion for wildfire damage. That's more than half the $2.26 billion in total claims filed.

The Northridge, CA-based Community Assisting Recovery nonprofit reported insurance claims processing speed was the fastest ever following a wildfire in the Golden State's southern region.

Insurance company complaints are few with less than two dozen related to underpayment by insurers. That's far fewer than complaints filed after the 2003 fires.

Reconstruction is fastest in hardest hit San Diego County where losses from wildfires reached nearly $1.2 billion. Some $1.1 billion in claims have been paid, according to
California's Department of Insurance.

Putting songs in the hearts of wildfire victims, country-western giant Garth Brooks recently put his retirement on hold and performed a series of concerts in Los Angeles' Staples Center. He pledged more than $3 million to the wildfire relief effort.

Brooks, from Oklahoma, said he's experienced grass fires and was familiar with the devastating effects of wind and fire but was moved to perform the benefit because he'd never witnessed anything like the Southern California Fires.

San Bernardino County suffered $276 million in losses; Los Angeles County, more than $101 million; Orange County, more than $29 million; Riverside County, $9.2 million and Ventura nearly $3 million.

The wildfires resulted in 37,117 insurance claims filed.

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Broderick Perkins, an award-winning consumer journalist of 30 years, is publisher and executive editor of San Jose, CA-based DeadlineNews.Com, a real estate news and consulting service, and the new Deadline Newsroom, DeadlineNews.Com's new backshop. In both cases, it's where all the news really hits home.

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Buyers Not Likely To Pay For Improvements

Home improvements can add value to your home, but probably not as much as you'd expect if you complete them shortly before you sell your home. Here's why.

by Broderick Perkins
© 2008 DeadlineNews.Com

Deadline Newsroom - Cost-vs-value studies consistently reveal how you can use home improvements to boost or retain the value of your home, in just about any market, but not if you expect buyers to pay for them.

If you look close at the methodology in cost-vs-value studies you'll find that the best value impact is based on, among other things, the job you choose to do, local market conditions, the condition and age of other similar homes in your neighborhood, and, perhaps most importantly, holding onto your home for a while.

Even when you choose the best cost-vs-value job for the market and for the neighborhood, if you don't give that improvement time to season and position your home as above par with other similar homes on the market, rather than a done deal, your home improvement could be a dumb deal.

Real estate experts say when its time to sell your home, it's a better idea to leave the major improvements to the new buyer and concentrate on curb appeal, landscaping and interior work that transforms your home into a model home, rather than the Taj Mahal.

Here's why, according to the experts.

Appraisers say, you may be ahead of the curve upgrading your home, but if your home improvement doesn't reflect what's been done to other homes in the neighborhood it may not pay off. If comparables don't come with the work you performed on your home, the selling price isn't going to fully reflect what you paid for the work. Not only can't you increase your sales price enough to cover the cost of the work and time, second-guessing what the buyer will want in appliances, decor style and finishes could cost you the sale.

Staging experts say better ideas include cleaning up, removing the clutter, adding a new coat of paint, installing carpeting, manicuring landscaping and updating fixtures, windows, doors and other cosmetic touches to put your home in the best light at a small cost.

That also means completing deferred maintenance. Make repairs to fix or replace broken items and systems. Use your cash to put the home and its components in good working condition by replacing missing roof shingles and broken or cracked windows. Repair driveway cracks and straighten listing fences. Make sure doors, gates, lights, plumbing fixtures and other items are all working properly.

Beyond the cosmetic touches and functional upgrades, but far short of full-fledged alterations and additions, the best home improvements that help net sellers full market value include a new roof, kitchen and bath remodels and only those alterations and additions that brings your home in line with the others in the neighborhood.

You should, however, right wrongs -- even if the work won't garner you a full return on your dollar.

If you or the previous owner completed work on your home without a permit, make it right before you attempt to sell the home to comply with building code and disclosure requirements.

Ultimately, you could be required to have the local building officials inspect existing conditions to obtain a permit to correct any work that's not to code. Otherwise, if the work doesn't comply with building codes, especially if it's a health or safety hazard, you could be forced to tear out the work.

And that's not the worst of it.

If, after close of escrow, a buyer discovers work completed without a permit and the local building department decides not to approve the work, a chunk of the home's value could become a legal issue. Any difference in value based on what was not permitted at the time of sale, could become a point of litigation.

Finally, it's sometimes in your best interest to let the buyer take care of any necessary construction.

If an inspection or appraisal turns up the need for major corrective work, consider leaving money in escrow with instructions for the escrow officers to pay the contractors once they complete the work.

Let the buyer select the contractors based on several fair bids and have the work done after the close of escrow to avoid a construction zone in your home while you are trying to sell it. If the buyer supervises the work, you don't incur any liability and the lender knows the property will be restored to its proper condition, which enhances loan value.

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How To Stop ID Theft, Cold

Consumers are proving they can turn back time on identity theft by following a prescribed program of diligent document protection and criminal deterrence.

by Broderick Perkins
© 2008 DeadlineNews.Com

Deadline Newsroom - A well-measured program of preventive steps can protect your identity from theft.

ID theft-related fraud fell by 12 percent in 2007 and 300,000 fewer adults were victims, according to the latest from Javelin Strategy & Research, the longest-running ID theft study in the nation.

At the top of the list of reasons for the decline is "greater consumer vigilance and awareness," according to the report.

When someone steals your identity, you don't wander around aimlessly like some John or Jane Doe. Someone pilfers enough of your personal identifying information --name, address, Social Security Number, drivers license, credit and financial account numbers and the like -- then masquerades as you to make purchases, withdraw cash or otherwise undermine your financial assets and your name.

ID theft can cost you time and money (averaging $691, according to the report) to correct the misdeed and it can ruin your credit enough to prevent you from making major purchases including buying a home.

Companies that manage personal information have improved their ID theft protection measures, but consumers who protect their own personal information is the first line of defense.

Here's what Javelin suggests.

• Move your financial transactions online by turning off paper invoices, statements and checks, including paychecks, and replacing them with electronic versions where offered by employers, banks, utilities or merchants. Avoid mailing checks to pay bills or deposit funds in your banking account. Instead, pay bills online and use remote deposit check imaging services on online banking sites.

This effort rubs out the paper trail. Crooks are more likely to steal information on paper, from personal belongings and through telephone calls, rather than online.

• Monitor your accounts regularly online at bank and credit card websites. Americans who monitor their accounts online are most likely to uncover suspicious or unauthorized activity early.

• Likewise, review your credit information frequently. You can do so three times a year for free at the federally-sanctioned AnnualCreditReport.com by getting one report, from each of the three major credit reporting agencies -- Equifax, Experian and Transunion -- in turn, every four months.

• Reduce unnecessary access to your personal information wherever possible. For example, don't carry Social Security cards, unused credit cards or checks, and don't leave sensitive documents out in the open.

• Never provide sensitive financial information over the phone or Internet, including Social Security numbers, passwords, PINs or account numbers, unless you placed the call directly to a verified and trusted location, such as the number on back of a credit card or statement.

• Add your name to the federal Do Not Call registry and direct marketing opt-out lists to reduce solicitations that could be bogus.

Even as overall ID theft has fallen, "vishing," criminals using telecommunications, voice over Internet protocol (VoIP) and like methods, is on the rise. That's because, as more consumers shift more transactions to secure online services, thieves are becoming more creative on the telephone claiming to represent non-profit and charitable operations.

In the same vein, wireless phone accounts have become the most frequent types of new accounts opened fraudulently by criminals using stolen data. The trend exceeds that of fraudulent new credit cards, loans, checking or savings accounts.

• Install and regularly update firewall, browser, anti-spyware, and anti-virus security software on your personal computer, and keep operating systems updated. Updates typically come with spyware, virus and other protections.

• Consider placing a credit freeze on your credit report or your child's credit report if you know you won't be using credit for some time. Child ID theft is on the rise because thieves know you and your kid aren't likely to check the child's credit report for some time due to a lack of credit use. Check your state's "credit freeze" law. The cost may be nominal or free. The three credit reporting agencies offer the service for a fee.

• If you are an ID theft victim, report it to the police, affected accounts, and call any one of the three credit bureaus to have a fraud alert placed on your account to prevent future infractions as you sort out the mess. Contact one bureau to place a fraud alert on your credit report and that company is required to notify the other two so that they too can place an alert on their versions of your report.

More ID Theft news that really hits home.

Also see DeadlineNews.Com's ID Theft Archives

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Cool LEDs Getting 'Green' Light

LEDs are poised to take over your home's lighting chores. Here's what you should know about this new bright technology designed to also lighten the load on your wallet.

by Broderick Perkins
© 2008 DeadlineNews.Com

Deadline Newsroom - Just about ready for prime time, the LED is lighting the way to what will become the greatest cost savings yet in household illumination.

Getting a boost from global warming and the need to squeeze more savings out of lighting in general, the tiny LED needs only to match upfront costs with its size to make its energy-efficient lighting technology more economically viable.

LED is short for "light emitting diodes," tiny devices that resemble a very small computer chip sandwiched within thin layers of glass or plastic. When charged with electricity the diode emits light.

LEDs were originally developed as a cheap, reliable solution for both indicator lamps and character displays, say on electronic devices, where they are still used. They are found in consumer electronics, motor vehicle dashboard displays, or any tiny, tight, enclosed area or component requiring a long lasting light source but is not readily suitable for disassembly, repair or replacement.

LEDs are also found in commercial signage and lighting, traffic lights, flashlights, nightlights, book lights as well as jumbo-trons, those massive video displays in Times Square and sporting arenas, according to American Lighting Association

Most LEDs are entering the home today as holiday decorations, small-area task or directional lighting, as well as new lighting fixtures and mainstream, screw-in replacements for compact fluorescent lamps (CFLs) and older incandescent bulbs. It's the mainstream screw-in and fixture replacement area were LED cost premiums create, at first glance, a cost barrier.

For example, a 60-watt incandescent bulb costs less than a buck while a comparable 2 watt LED light bulb, generating an equal level of lumens, costs more than $30.

But don't stop at the upfront cost of a single LED lamp to get a true comparison of the savings. Lamp life, electricity use, and maintenance costs over the expected life of the LED product also must be considered.

• LEDs don't have a filament. Instead of burning out they get progressively dimmer over time.

According to the U.S. Department of Energy good quality LEDs in properly designed fixtures can last as long as 50,000 hours. Some researchers say LED life can be double that. But even DOE's estimated LED lifespan, compared to an incandescent lamp that lasts only 1,000 hours, makes it much more affordable. If it takes 50 incandescent bulbs to match the lifespan of one LED, the replacement costs for the incandescent lamp, at $50, wind up costing more than LED lighting.

CFLs stack up better against LEDs, lasting up to 10,000 hours and larger fluorescent tubes and lamps in fluorescent fixtures can last up to 30,000 hours and more, but there's ballast replacement costs and maintenance to consider.

• Incandescent filament bulbs also waste energy generating heat to create light. Only about 5 to 10 percent of the energy consumed by filament bulbs is used to create light. Because LEDs have no filament they generate very little heat. A much higher percentage, 80 to 90 percent of the electrical power goes directly to generating light in an LED.

Right now, that makes LEDs energy efficiency on par with fluorescent lighting, according to the DOE. But fluorescent efficiency has just about capped out as LED research and development continues to improve efficiency. New generations of LED devices become available approximately every 4 to 6 months, according to the DOE.

• LED's are much more durable and resistant to vibrations and than both incandescent and fluorescent lamps which are prone to breakage, according to the New York State Electric & Gas Corporation. The corporation also said the life span of both fluorescents and incandescent bulbs are shortened by frequent on and off switching.

• Finally, aging baby boomers need more light with less glare and LED lights, which tend to focus and beam light with a reduced glare, fills the bill.

There are many larger energy guzzlers in the home. Lights only account for 25 percent of the home's electric bill, according to the American Lighting Association. But homeowners often tackle light efficiency first because it is energy use you can see, fixtures are easy to get at, change is generally cheap and the savings immediate.

Keep an eye out for LED advances and other technological improvements that really hit home on the DeadlineNews.Com web site.

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Good General Contractors Outnumber Bad Ones

There's plenty consumer complaints to go around in the general contractor business, but there are many more kudos for competent contractors.

by Broderick Perkins
© 2008 DeadlineNews.Com

Deadline Newsroom - Typically more than 40 percent of complaints against general contractors and building and construction trade companies hired by homeowners go unanswered, according to statistics from the Better Business Bureau.

But guess what?

There are far more builders who are good at what they do.

It's up to the homeowner to separate the chaff from the wheat.

Begin with referrals from family, friends, co-workers and other trusted people who've recently enjoyed a satisfactory home improvement project. There's nothing like a referral to a paid contractor who's just off an approved job.

Spend time checking out the background of several contractors you're considering for the job and do a background and financial check on any subcontractors.

Check the referrals through your state licensing agency. The license typically only comes with approved education and or experience and adherence to regulations. It also means you have somewhere to go to complain and seek redress should something go amiss. Don't hire an unlicensed contractor. He or she doesn't care enough to abide by the law. You don't want an outlaw in your home.

Run other checks on your referrals.

Experian, known more for credit reporting services, offers a ContractorCheck.com service. It allows consumers to search for contractors in their area, check a specific contractor's business background, his or her bonded status, the status of his business license and insurance, how long the company has been in business, and if the contractor has any judgments or liens against him.

Other operations, including Angie's List; the League of California Homeowners and the National Association of the Remodeling Industry all offer similar services that take some of the guess work out of checking contractors' professional standing. There are plenty more.

Also check the contractor's standing with his or her local trade group. If you can successfully run your contractor's credentials through the state regulatory agency, consumer advocacy groups like ContractorCheck.com and a trade group, chances are you'll know if you've got a winner or loser.

But there's even more you can do.

Avoid door-to-door solicitors, those who only accept cash, contractors without a listed business number in the local telephone directory (licensed or not) or Web site, or contractors offering deals to do your project with materials "leftover" from a previous job.

Likewise reject contractors who want you to obtain required building permits or those who offer a referral fee if you find them new customers.

Beware of offers that appear too good to be true, including exceptionally long guarantees or offers to do your home as a "demonstration project."

Take your business elsewhere if a contractor pressures you for an immediate decision to hire or insists you borrow money for the project through his preferred lender.

Good contractors will give you a binding estimate in writing. They also won't work without a written contract. Don't accept verbal agreements.

Get a contract that clearly spells out, in easy-to-understand terms, exactly what the project will cost, what will be accomplished the anticipated time frame for completing the job and a payment plan.

Accept only payment plans that let you pay as you go. Never pay for work upfront. Never fully pay for the job until the work is complete, inspected and satisfactory.

Don't hesitate to get an attorney to review the contract before you sign it, especially if you are dealing with a high-price-tag project.

• Get more home improvement news that really hits home from DeadlineNews.Com's Home Improvement Section.

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Wednesday, February 13, 2008

SoCal Wildfire Recovery Update

Buyers Not Likely To Pay For Improvements

How To Stop ID Theft, Cold

Cool LEDs Getting 'Green' Light

Good General Contractors Outnumber Bad Ones

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