Special Report: Roofing isn't so rough

Worms go viral as anal ooze

Getting roofing right means taking steps necessary to avoid scams and pitfalls, including waiting for the fall, getting good referrals and throughly checking out the contractor.

by Broderick Perkins
© 2008 DeadlineNews.Com

Unauthorized use of this story is a copyright violation -- a federal crime

Deadline Newsroom - Roofing doesn't have to be 'over your head.'

But a new one can help your home hold value through the recession.

Celia Kuperszmid Lehrman, deputy home editor for Consumer Reports, has more than 20 years of researching and writing about contractors, including roofers.

She offered to The Roofery the following list of suggestions to avoid scams and pitfalls.

• Beat the rush. Summer is the busiest season for roofers. Waiting until the fall may save money. Contractors also may have weeded out less experienced workers by the fall. That means you'll get a more experienced crew.

Roofing for less. Click here.

• Word of mouth. Get several referrals from family, friends, co-workers and others you trust who've had a recent satisfactory experience with a roofer.

• Ask questions. The National Association of the Remodeling Industry also offers these questions to ask any contractor.

• Get lots of information. Look at ratings and prices of different roofing products and know what the contractor is going to use so you can lock in a price upfront. Know the work they will do. Find out who will actually do the work, the person making the bid or a subcontractor.

• Check for insurance. Get the carrier and policy number, make sure it's current and that it covers the company and its workers.

• Check licenses, certifications and trade group affiliation. Make sure they are properly licensed and/or certified to do the work by the book according to either the National Roofing Contractors Association, the National Association of the Remodeling Industry, or any other state or local organization. Check the local Better Business Bureau for any complaints and how long they have been in the business.

• Get familiar with the work to be done. Understand what work is a matter of course and what work will require special skills or materials. Make sure they are not going to take any shortcuts such laying a third layer of roofing over two existent layers. Two is fine. Three can overloading the roof.

• Do your own inspection. Carefully get up on the roof or use binoculars to check for cracked, curled, or missing shingles and other signs the roof is nearing the end of its useful life. Check the chimney and skylights for cracks where water can seep. In the attic, look around the chimney and the boards you can see for any signs of water intrusion.

When is it time for a new roof? Click here.

• Get a detailed contract. Get as detailed a written contract as is possible and then build in some wiggle room to incorporate possible unanticipated costs by creating plausible what-if scenarios.

• Get a permit. It is best if the contractor holds the permits because most local jurisdictions consider the permit holder to be the party ultimately responsible for the work. If the contractor holds the permit, he is responsible for the work and the building inspector can in some cases act as something of an intermediary between the two of you.

• Get a lien release. This will protect you from a contractor who owes a supplier for supplies after you have already paid the contractor. Essentially, if the contractor has your money but hasn't paid for the supplies, you will be liable for what is unpaid.

• Inspect the work. Ask the contractor if they allow for or if it is standard practice for a manufacturer's rep or industry organization member to come after the work is finished to do an inspection to ensure the work is up to manufacturer and/or industry standards.

• Stick with it. "No matter what the project, changing your mind is always expensive," Lehrman says.

"Put it into the professional's hands to do everything from the tear up and shingling and clean up because these professionals know how to protect the property and how much to tear off to keep it water tight and so on. Better off not to be penny wise and pound foolish," Lehrman said.

• Click on the keywords below for more stories on this subject.

© 2008 DeadlineNews.Com

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You are reading a sample of "News that really hits home!", now available from several beats and published in a growing number of locations.

Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group, including DeadlineNews.Com, a real estate news and consulting service and Web site, and the Deadline Newsroom, DeadlineNews.Com's news back shop.

Perkins is also the first Examiner to cover three beats for the Examiner.com news service:
• National Offbeat News Examiner
• National Consumer News Examiner
• National Real Estate Examiner

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Ins, Outs Of Equity Sharing

The symbiotic relationship spawned by equity sharing requires a nurturing housing market and a well-orchestrated contract if it is to evolve into an American Dream.

by Broderick Perkins
© 2008 DeadlineNews.Com

Deadline Newsroom - Consider equity sharing a symbiotic relationship -- as well as a legal agreement -- between two or more people holding title to one home.

Las Vegas-based Creative Real Estate Online publisher, J. P. Vaughan, also a trial lawyer and real estate investor says, properly designed, the creative financing strategy can be a triple-win proposition.

An equity sharing deal is typically struck help sell a home, often in a tough market, but a tough market isn't a prerequisite. It also helps enable a home purchase when it might not otherwise be possible. And it is used to provide an investment with a financial return.

• Typically savings-poor, but income-rich, one person becomes the occupying homeowner with no or little money down.

• A second participant, the investor, provides the initial leverage usually in the form of a down payment stake. With time, he or she can enjoy a joint venture-like return on his or her money.

• The seller, in a slow market, can choose to become the investor or otherwise use the creative financing strategy to quickly seal a deal.

Deals vary, but in its simplest form, an equity sharing agreement works something like this:

• The buyer-occupant generally lives in the residence, pays the mortgage and other costs associated with owning and operating a home -- including taxes, insurance, maintenance and the like. He or she gets to deduct a portion of the mortgage interest, property taxes and others.

• The non-resident, often an investor, perhaps a family member, trusted friend or professional investor, provides all or part of the down payment, and in return gets tax deductions for her or his share of the mortgage interest and property taxes.

• Title to the home can be held in a variety of ways -- joint tenancy with right of survivorship, tenancy in common, partnership or as a living trust.

Equity sharing deals should be legal and binding contracts designed to provide an equitable means to an end. It should also include provisions for any disputes or disagreements that might arise during its term.

Contracts generally indicate that the parties cannot extract any returns until the deal is over. Escape clauses can come with stipulations providing for cash penalties for early outs or other resolutions.

At the end of some specified period, five, seven, ten years or so, the net proceeds from the sale are split between the buyer and investor, again, based on contractual provisions.

Generally and theoretically, through appreciation, an equity deal is set so that the occupant eventually earns a share sufficient to allow him or her to buy a home without help and to give the supporting investor a shot at a profit. Other resolutions can be contracted.

The creative financing tool isn't perfect for every market. While tight money markets can make equity sharing a viable financial avenue to homeownership, a market with flat or reverse home prices requires a deftly drawn contract with a term long enough to allow the deal to gel.

As is the case with any major financial transaction, assistance from a professional experienced in equity sharing agreements is paramount. In addition to the transactional contractual considerations, tax implications abound.

Entering an equity sharing deal with a verbal agreement and or non-binding contract is like searching for fools gold without a pickax.

Referrals from trusted resources -- real estate agents, tax professionals, accountants, other finance experts, and the like, are good resources to tap. Most professionals have a network of peers involved in various aspects of real estate.

The Internet's vast reach can also help make it easy to find qualified help. Keep in mind, the Internet is no better than the Yellow Pages if you don't thoroughly check out professionals' credentials, experience and track record for success.

A few resources include:

• Marilyn D. Sullivan's Home Equity Share network.
• J. P. Vaughan's Creative Real Estate Online.
• The Don Reedy, Peter Haglund, Howard Schwartz and Richard Borkowski BuyHalfAHouse.com team.
• The DirtLawyer.com team at Hoge Fenton Jones & Appel, Inc.
• Andy Sirkin's Sirkin Paul Associates.

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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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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.

• More wildfire news right here
• Still more wildfire news

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© 2008 DeadlineNews.Com

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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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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© 2008 DeadlineNews.Com

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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