Showing posts with label remodeling. Show all posts
Showing posts with label remodeling. Show all posts

Thursday, August 11, 2011

Don't try these home improvements at homes for sale

From building-in more curb appeal to installing more square footage, home improvements can help improve your home's value, provided you do the right thing.

by Broderick Perkins
© 2011 DeadlineNews.Com
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Deadline Newsroom - From building-in more curb appeal to installing more square footage, home improvements can help improve your home's value.

Improved value can allow you to bump up the selling price and speed the sale, provided you do the right thing.

Costs-vs-value studies reveal what improvements can give you the most bang for your buck, but they also reveal which improvements to avoid because of smaller returns.

Remodeling magazine's Cost vs. Value Report 2010-2011 offers a break down for the best and worst rates of return on improvements by both geographic region and by cost level -- a lower cost "midrange" version of each improvement and more expensive "upscale" version.

Based on the more affordable midrange cost improvements in the Pacific market, which includes Alaska, California, Oregon and Washington, here are five improvements that give you the least return for your money, according to Remodel magazine.

Included are some suggestions about better ways to spend your remodeling dollars.

Remember, dollar figures and percentages are average figures for the entire Pacific region.

• Backup power generator addition. For this $17,033 job, you'll recoup $8,878 in added value, only 52.1 percent of the money you'd spend. You'll get 70 amps of emergency power from two 240-volt circuits and six 120-volt circuits. That could come in handy during a major quake or other 2012 end-of-the-world event, but a rooftop solar system for nearly the same investment could be a better deal.

After energy-saving rebates and incentives a $17,579 solar panel system would provide 75 percent of the power needed for a Salinas home with an average $100 monthly utility bill, according to FindSolar.com's solar calculator. Saving $75 a month the, system will pay for itself in 15 years and help save the planet from day one.

• Sunroom addition. For a whopping $87,000, you'll only realize $46,319 in added value, a 53.3 percent recoup of your costs. Sure you'll give buyers that extra square footage with lots of light, but you'll pay through the nose and get hit with a higher property tax bill until you do sell.

You can brighten up your home, give it a more spacious feel and reduce energy costs at the same time with a much cheaper $13,401 window replacement job that will improve your home's value by $10,760, an 80.3 percent return. Spend a little more to upgrade one windowed wall with a bay window and some visual "wow" to the job.

• Home office remodel. For $32, 428, you'll refinish and transform a 12-foot by 12-foot room into a home office with new storage cabinets, desk and computer workstation space and rewiring for electronics cable and telephone. You'll recoup only 63.2 percent or about $31,302.

Wireless laptops, smart phones, touch-screen tablets and a cafés on every corner are making home offices obsolete. Consider refinishing an extra room for much less, as is, so it's easily converted back to a bedroom, den or other use. Hand-truck in a desk, storage and a coffeemaker for your office or rent it out to help pay for a larger remodel, should you stay in the home.

• Bathroom addition. Any addition comes with major upfront costs and added property taxes due to the additional square footage. For a new, full 6-foot by 8-foot bath with marble vanity, ceramic tile and more, you'll pay about $49,508 with a resale value of $31,302 added. That's a 63.2 percent return.

For sale-boosting purposes, remodeling an existing bathroom is a better deal. For $19,490 you can update an existing 5-foot by 7-foot bathroom with ceramic tile and contemporary vanity, toilet and shower-tub. You'll get 79.6 percent of the cost back, or $15,514 in added value.

• Garage addition. Again, additions cost more than the upfront cost. For $73,834 you can get a freestanding, 26-by-26-foot two-car garage, with unfinished interior walls, floors, and ceilings. Your added resale value $48,204 gives you a 65.3 percent return on your money.

Unless you are a collector, mechanic or packrat and especially if you already have a garage, upgrading your kitchen is a lot smarter. For $23,603 you'll recoup $19,854 in added value, a 84.1 percent return.

The job includes replacing the fronts and tops of 30 linear feet of cabinetry and countertops, replacing the wall oven and cooktop with new energy-efficient models; replacing the sink and faucet, repainting and installing new flooring.
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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.

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Thursday, October 8, 2009

Don't skirt the permit process during home improvements

frozen
Batting practice on frozen head
It's penny-wise-and-pound-foolish bottom-line reckoning to circumvent the legal building permit process in an attempt to save money on an otherwise value-boosting home improvement.

by Broderick Perkins
© 2008 DeadlineNews.Com
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Deadline Newsroom - It's penny-wise-and-pound-foolish bottom-line reckoning to circumvent the legal building permit process in an attempt to save money on an otherwise value-boosting home improvement.

Failing to get a building permit when it's required could result in any immediate savings becoming a long term liability.

You must obtain a permit for most home improvements -- do-it-yourself jobs or work that's hired out -- because the permit process triggers building code compliance requirements.

Building codes are a minimum set of standards for the design, materials and building techniques created specifically to protect the health and safety of anyone occupying buildings.

Depending upon the jurisdiction, permits are required for something as simple as installing a dimmer light switch or water heater installation to constructing a 3,000 square-foot-home.

The National Association of the Remodeling Industry (NARI) also says is a contractor asks a homeowner to pull his or her own permits, that should be a red flag for a homeowner to find a different remodeler.

Having the contractor handle the permitting process, however, can save homeowners time, money and stress.

"A reputable contractor should object to a homeowner pulling his or her own permits," says Darius Baker, of D & J Kitchens & Baths, Inc. in Sacramento, CA.

"It's part of the service that a consumer should expect when they hire a contractor," said the certified NARI member.

(Avoid home improvement headaches that cost thousands in overruns)

Generally, to obtain a permit, you must submit a building plan or for smaller projects, a description of the work to be done, something a professional contractor will create for the job anyway.

Provided the plan complies with the codes, the building department issues a permit, for a fee.

That triggers one or more inspections of the work in progress or upon completion or both. Building inspectors give the job the once over to make sure the job complies with building codes and that you are using the proper materials and building techniques.

The process of getting a permit can generate a flurry of questions from the local building department that you may not be qualified or prepared to answer.

"The homeowner then has to run back and forth between their designer, contractor or architect to answer the questions, and that's not an efficient way to spend time," Baker says.

Let the remodeler do the talking

Also, if you pull the permit, you, not the remodeler, will be responsible for the project and have to answer to local building inspectors during home inspections. The homeowner will then need to consult with their remodeler to sort out any problems the inspector finds.

"In our experience, the remodeler can often correct those issues on the spot and get approvals," Baker says.

Beyond the benefits of code-complying building practices, a compelling reason to obtain a permit is the cost of not obtaining one. And all it takes to trigger that cost is for the building department to discover illegal work.

Along with fires, floods, earthquakes and other disasters that prompt a building inspector to come calling, there are a host of other events that could keep your illegal construction from going unnoticed.

Let's say a savvy home buyer hires a home inspector to examine the condition of the house you are selling. The buyer's inspector uncovers home improvement work and, to protect the buyer's investment, he or she seeks the home's permit record.

Each permit typically includes the address of the building, the contractor, the type of work being done, square footage, inspection dates and status of the work. If the proper permits aren't in place, that could kill the deal.

('Not So Big' approach goes great with green remodeling)

Later in the transaction, an appraiser may also seek permit records to learn if significant renovations should affect the value of a home.

Appraisers say in some regions the lack of permits turns up in 20 to 25 percent of homes appraised. Illegal work can stop an escrow cold.

Also, you and your agent typically are legally required by law to disclose any known conditions that could affect the value or salability of a home listed for sale. If the buyer thinks he or she can prove you knew about the illegal work, but didn't disclose it, you could get sued.

If, after close of escrow, the 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 illegal work can become a point of litigation.

In another scenario, during a building official's scheduled inspection of a perfectly legitimate home improvement, he or she could also turn up older illegal work. The building department could then "red tag" the job and issue a stop-work order.

Danger, Will Robinson, danger

If an inspector suspects illegal work, you could have to pay for the cost of any inspections required to make a further determination. You could have to remove dirt along the foundation so it can be checked or you may have to tear down sheet rock inside so the inspector can look at framing, insulation, wiring, and plumbing.

If the work is deemed illegal, you must legalize the work before you can sell the home and, again, that also could mean tearing out old work.

If the illegal handiwork is yours, costs can continue to mount. The building department could levy higher punitive permit fees as well as fines.

In any event, before you can obtain a legal permit on old work, you'll have to hire an architect, engineer or other professional to help draw up plans for permit approval.

Even if unpermitted work complies with current building codes, building departments often issue only a statement of compliance -- not a permit. Because the statement applies only to the visible work, a lender or buyer may not be satisfied and demand that you obtain a permit.

Again, that could mean tearing out the work and rebuilding with a permit -- which is what should have been done in the first place.

More remodeling, renovation and home improvement tips.


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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:
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Friday, July 3, 2009

Special Report: Roofing isn't so rough

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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
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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.

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© 2008 DeadlineNews.Com



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Get "News that really hits home!" for your Web site or blog from the DeadlineNewsGroup.Com.

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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Thursday, February 19, 2009

Remodel now! Beat the spring rush!

Planning now to get in a contractor's pipeline of work orders for the spring can give a homeowner a negotiating edge for home improvements and remodeling work.

by Broderick Perkins
© 2008 DeadlineNews.Com
Enter The Deadline Newsroom

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

Deadline Newsroom - If there was ever a time to strike a deal on home improvement, remodeling and alteration services for the home, this is it.

A semi-annual survey of 5,000 U.S. homeowners, the"Spring 2009 Remodeling Sentiment Report", from Sunnyvale, CA-based RemodelOrMove.com, reveals four times as many homeowners answered "probably not" when asked if they will remodel this year, as compared to the 2007 survey.

In this most recent survey, 68 percent of participating homeowners reported that they probably would remodel this year, down from 84 percent in the fall 2008 report and 92 percent in 2007.

It's the economy, stupid.

Previous Remodeling Sentiment Reports indicate three times more homeowners than two years ago say that the economy is affecting their remodeling plans greatly, and 82 percent report that the cost of the remodel is a major concern.

The report is inline with research from Harvard University's Joint Center for Housing Studies, which says, in most parts of the country, home prices are falling, discouraging discretionary home improvement spending and diminishing the amount of equity owners have in their homes.

"Earlier this decade, the ability to borrow against equity created by rising home prices fueled remodeling activity, as well as broader consumer spending," says Nicolas P. Retsinas, director of the Harvard Joint Center for Housing Studies.

"Now that prices have softened, owners cannot finance home improvement projects as easily. Even those with equity find credit harder to obtain due to tighter standards," Retsinas added.

The good news is that homeowners who choose to remodel their homes could find this is a good time to get the work done.

With new home construction at low levels, more materials and labor are available for remodeling than several years ago, resulting in shorter project schedules and often lower project costs.

Planning now to get in a contractor's pipeline of work orders for the spring could also give a homeowner a negotiating edge.

What's more, in a market with declining home values, home improvements are a good way to protect the value of your home and position it as a good value when it's time to sell.

The Sentiment Report also found homeowners are:

• Excited about remodeling – 52 percent
• Dreading remodeling – 12 percent
• Planning to hire a general contractor – 65 percent

Homeowners' remodeling plans include:

• Kitchen remodel – 52 percent
• Bathroom addition – 55 percent
• Bathroom remodel – 45 percent
• Addition of one or more bedrooms or den – 35 percent
• Enlarge or add a garage – 19 percent
• Finish a basement – 13 percent

Harvard's Joint Center also suggests the best home improvements can help save money and the planet because they are "green."

If we are going to meet the nation’s energy goals, we have to continuously search for ways to improve the residential built environment. The report demonstrates that maximizing energy-efficiency in existing housing may be one of our greatest challenges, but also one of our greatest opportunities given that homes account for almost a quarter of energy consumption in our economy," says Mohsen Mostafavi, dean of the Harvard Graduate School of Design, where attention to green design is a growing focus in the classrooms and studios.

"Consumer demand for sustainable design is on the rise," Mostafavi added.

Like this story? Also see:
• More home improvement news that really hits home!
Sell now! Beat the spring rush!
Buy now! Beat the spring rush!


© 2008 DeadlineNews.Com

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Get news that really hits home for your Web site or blog from DeadlineNews.Com.

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 -- 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 a National Real Estate Examiner. All the news that really hits home from three locations -- that's location, location, location!



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Wednesday, August 6, 2008

Granite Countertops Not Deadly

A recent New York Times story set off alarms about a granite counter top emitting radiation, but failed to mention independent academic studies of numerous granite samples tested and proven safe.

by Broderick Perkins
© 2008 DeadlineNews.Com

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

Deadline Newsroom - Think twice about ripping out that granite countertop because you think it'll give you cancer.

Chances are, one of the most durable, easy-to-maintain and fashionable kitchen countertop materials to come along in decades really won't "heat up your Cheerios" with radiation.

The Marble Institute of America says such comments are "ludicrous" because, while granite is known to contain uranium (which can produce radon) and other radioactive materials like thorium and potassium, the amounts in countertops are not enough to pose a health threat.

Alarms set off by a recent New York Times story "What's Lurking In Your Countertop?" can be quickly silenced by a 2008 report the newspaper failed to mention: "Radon Testing of Various Countertop Materials," by the University of Akron (Ohio) Department of Geology and Environmental Science.

The school sells education. Not granite. Not newspapers.

The analysis of radioactivity in 13 granite samples concluded flatly "Adapting the 4 picocuries per liter of air as recommended by the U.S. Environmental Protection Agency (the EPA recommends taking action if the number is higher) as a reference and the house is not in active use, Crema Bourdeaux (a type of granite) countertop raises less than 7 percent of this action level. The second and third highest radon count stone, Tropic Brown and Baltic Brown can add only approximately 1 percent of this action level. All other countertops adds only insignificant amount of radon to the house. If normal air exchange rate is applied or the house is actively used, then the radiation should be much smaller....If proper resealing is applied once a year or at other frequencies recommended by the industry, the radon emanation can further be reduced."

Here's the scoop.

The late July Times' article begins with the story of a New Jersey woman who purchased a summer home in New York state. An inspection of the kitchen revealed elevated levels of radon, a radioactive gas that can cause lung cancer.

The homeowner, concerned about her pregnant daughter's exposure, immediately has the granite ripped out.

The story reports the comments of the inspector the homeowner hired, "It's not that all granite is dangerous, but I've seen a few that might heat up your Cheerios a little."

But it's not until half way through the story that readers learn the readings in the kitchen were 100 picocuries per liter, only enough to add a fraction of a millirem per hour (a measure of energy absorbed by the body) "provided you were a few inches from it or touching it the entire time," the story says.

The story concedes, "The average person is subjected to radiation from natural and man made sources at an annual level of 360 millirem , according to government agencies...To put this in perspective, passengers get 3 millirem of cosmic radiation on a flight from New York to Los Angeles."

A rebuttal from the Marble Institute of America says the story "follows the playbook used by two of the largest synthetic stone manufacturers who seek to increase their own sales by raising fears about natural stone."

The institute also says the story fails to mention venting as an EPA recommended solution for and radon infiltration. The institute also says the story seeks to excite rather than provide academic or scientific information.

Says the institute, "The piece fails to point out that repeated studies have found that granite most commonly used in home countertops is safe. Instead, it vaguely mentions one or two stones that someone deemed to be problematic, then goes on to suggest that the only solution is to remove granite from the home."

The EPA calls radon "The Health Hazard with a Simple Solution" and suggests anyone with concerns take the sensible approach and contact their nearest state or regional Indoor air-quality agency for help with radon testing and remediation.

© 2008 DeadlineNews.Com


© 2008


What’s Lurking in Your Countertop?
By Kate Murphy

Shortly before Lynn Sugarman of Teaneck, N.J., bought her summer home in Lake George, N.Y., two years ago, a routine inspection revealed it had elevated levels of radon, a radioactive gas that can cause lung cancer. So she called a radon measurement and mitigation technician to find the source.

“He went from room to room,” said Dr. Sugarman, a pediatrician. But he stopped in his tracks in the kitchen, which had richly grained cream, brown and burgundy granite countertops. His Geiger counter indicated that the granite was emitting radiation at levels 10 times higher than those he had measured elsewhere in the house.

“My first thought was, my pregnant daughter was coming for the weekend,” Dr. Sugarman said. When the technician told her to keep her daughter several feet from the countertops just to be safe, she said, “I had them ripped out that very day,” and sent to the state Department of Health for analysis. The granite, it turned out, contained high levels of uranium, which is not only radioactive but releases radon gas as it decays. “The health risk to me and my family was probably small,” Dr. Sugarman said, “but I felt it was an unnecessary risk.”

As the popularity of granite countertops has grown in the last decade — demand for them has increased tenfold, according to the Marble Institute of America, a trade group representing granite fabricators — so have the types of granite available. For example, one source, Graniteland (graniteland.com) offers more than 900 kinds of granite from 63 countries. And with increased sales volume and variety, there have been more reports of “hot” or potentially hazardous countertops, particularly among the more exotic and striated varieties from Brazil and Namibia.

“It’s not that all granite is dangerous,” said Stanley Liebert, the quality assurance director at CMT Laboratories in Clifton Park, N.Y., who took radiation measurements at Dr. Sugarman’s house. “But I’ve seen a few that might heat up your Cheerios a little.”

Allegations that granite countertops may emit dangerous levels of radon and radiation have been raised periodically over the past decade, mostly by makers and distributors of competing countertop materials. The Marble Institute of America has said such claims are “ludicrous” because although granite is known to contain uranium and other radioactive materials like thorium and potassium, the amounts in countertops are not enough to pose a health threat.

Indeed, health physicists and radiation experts agree that most granite countertops emit radiation and radon at extremely low levels. They say these emissions are insignificant compared with so-called background radiation that is constantly raining down from outer space or seeping up from the earth’s crust, not to mention emanating from manmade sources like X-rays, luminous watches and smoke detectors.

But with increasing regularity in recent months, the Environmental Protection Agency has been receiving calls from radon inspectors as well as from concerned homeowners about granite countertops with radiation measurements several times above background levels. “We’ve been hearing from people all over the country concerned about high readings,” said Lou Witt, a program analyst with the agency’s Indoor Environments Division.

Last month, Suzanne Zick, who lives in Magnolia, Tex., a small town northwest of Houston, called the E.P.A. and her state’s health department to find out what she should do about the salmon-colored granite she had installed in her foyer a year and a half ago. A geology instructor at a community college, she realized belatedly that it could contain radioactive material and had it tested. The technician sent her a report indicating that the granite was emitting low to moderately high levels of both radon and radiation, depending on where along the stone the measurement was taken.

“I don’t really know what the numbers are telling me about my risk,” Ms. Zick said. “I don’t want to tear it out, but I don’t want cancer either.”

The E.P.A. recommends taking action if radon gas levels in the home exceeds 4 picocuries per liter of air (a measure of radioactive emission); about the same risk for cancer as smoking a half a pack of cigarettes per day. In Dr. Sugarman’s kitchen, the readings were 100 picocuries per liter. In her basement, where radon readings are expected to be higher because the gas usually seeps into homes from decaying uranium underground, the readings were 6 picocuries per liter.

The average person is subjected to radiation from natural and manmade sources at an annual level of 360 millirem (a measure of energy absorbed by the body), according to government agencies like the E.P.A. and the Nuclear Regulatory Commission. The limit of additional exposure set by the commission for people living near nuclear reactors is 100 millirem per year. To put this in perspective, passengers get 3 millirem of cosmic radiation on a flight from New York to Los Angeles.

A “hot” granite countertop like Dr. Sugarman’s might add a fraction of a millirem per hour and that is if you were a few inches from it or touching it the entire time.

Nevertheless, Mr. Witt said, “There is no known safe level of radon or radiation.” Moreover, he said, scientists agree that “any exposure increases your health risk.” A granite countertop that emits an extremely high level of radiation, as a small number of commercially available samples have in recent tests, could conceivably expose body parts that were in close proximity to it for two hours a day to a localized dose of 100 millirem over just a few months.

David J. Brenner, director of the Center for Radiological Research at Columbia University in New York, said the cancer risk from granite countertops, even those emitting radiation above background levels, is “on the order of one in a million.” Being struck by lightning is more likely. Nonetheless, Dr. Brenner said, “It makes sense. If you can choose another counter that doesn’t elevate your risk, however slightly, why wouldn’t you?”

Radon is the second leading cause of lung cancer after smoking and is considered especially dangerous to smokers, whose lungs are already compromised. Children and developing fetuses are vulnerable to radiation, which can cause other forms of cancer. Mr. Witt said the E.P.A. is not studying health risks associated with granite countertops because of a “lack of resources.”

The Marble Institute of America plans to develop a testing protocol for granite. “We want to reassure the public that their granite countertops are safe,” Jim Hogan, the group’s president, said earlier this month “We know the vast majority of granites are safe, but there are some new exotic varieties coming in now that we’ve never seen before, and we need to use sound science to evaluate them.”

Research scientists at Rice University in Houston and at the New York State Department of Health are currently conducting studies of granite widely used in kitchen counters. William J. Llope, a professor of physics at Rice, said his preliminary results show that of the 55 samples he has collected from nearby fabricators and wholesalers, all of which emit radiation at higher-than-background levels, a handful have tested at levels 100 times or more above background.

Personal injury lawyers are already advertising on the Web for clients who think they may have been injured by countertops. “I think it will be like the mold litigation a few years back, where some cases were legitimate and a whole lot were not,” said Ernest P. Chiodo, a physician and lawyer in Detroit who specializes in toxic tort law. His kitchen counters are granite, he said, “but I don’t spend much time in the kitchen.”

As for Dr. Sugarman, the contractor of the house she bought in Lake George paid for the removal of her “hot” countertops. She replaced them with another type of granite. “But I had them tested first,” she said.

Where to Find Tests and Testers

TO find a certified technician to determine whether radiation or radon is emanating from a granite countertop, homeowners can contact the American Association of Radon Scientists and Technologists. Testing costs between $100 and $300.

Information on certified technicians and do-it-yourself radon testing kits is available from the Environmental Protection Agency’s Web site at http://www.epa.gov/radon, as well as from state or regional indoor air environment offices, which can be found at http://www.epa.gov/iaq/whereyoulive.html. Kits test for radon, not radiation, and cost $20 to $30. They are sold at hardware stores and online.
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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 Group -- DeadlineNews.Com, a real estate news and consulting service and Web site and the new Deadline Newsroom, DeadlineNews.Com's news back shop. In both cases, it's where all the news really hits home.


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Tuesday, July 29, 2008

Housing Crisis Hits Remodeling

Many home owners who perform home improvements now will be in good shape for the next home price spurt, but they may first get only use-benefits without the added value.

by Broderick Perkins
© 2008 DeadlineNews.Com

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

Deadline Newsroom - It's a good time to negotiate a bargain on a home improvement -- even if it won't do a lot for your home's value.

Many homeowners are reluctant to put money into a home improvement for fear their home value will decline anyway.

Home improvements, once used to help boost the value of homes, are the latest victim of the housing crisis.

Harvard's Joint Center for Housing Studies says home improvements are set to decline by an annual rate of more than 11 percent into the first quarter of 2009.

Kermit Baker, director of the Remodeling Futures Program of the Joint Center blamed weak home sales and the growing inventory of unsold homes for discouraging upper-end remodeling in many areas.

Weak home sales and swelling inventories are the byproducts of a housing market plagued by foreclosures and tight underwriting standards.

The fallout prevents new home purchases and refinanced mortgages that often result in cash pulled out for home improvements.

The same areas with the worst foreclosure conditions, California, the Southwest and Florida, are also finding fewer homeowners engaging in home improvements.

Still, long term forecasts expect industry growth, Harvard projects a 44 percent inflation-adjusted increase in the remodeling business nationwide from now through 2015.

Homeowners who make home improvements now will be better positioned for the next spurt in home prices.

© 2008 DeadlineNews.Com

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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 Group -- DeadlineNews.Com, a real estate news and consulting service and Web site and the new Deadline Newsroom, DeadlineNews.Com's news back shop. In both cases, it's where all the news really hits home.


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Wednesday, May 28, 2008

How To Get the Goods on 'Regreening'

halfhome
Divorcees' divvied up domicile.
'Regreening' -- green remodeling -- requires some extra homework to make sure the materials, design and contractor all come with true green practices and guidelines.

See all "regreening" stories
.

by Broderick Perkins
© 2008 DeadlineNews.Com

Deadline Newsroom - It makes good sense to go green when you make home improvements and renovate your home.

Green remodeling, dubbed "regreening," includes design and construction that reduces the environmental impact of the work itself. That includes the impact on energy, water, and materials consumption; waste generation; and harmful emissions -- indoors and out -- according to the U.S. Green Building Council (USGBC).

The council also says a green home is one that uses less energy, water and natural resources; creates less waste, and is healthier for the people who live there.

If being politically correct isn't enough to make you see green, with today's attention to global warming, consider this: regreening can also increase the amount of green backs you get when you sell your home.

But how can you be sure the green approach you use is the best green you can find for your home improvement?

To assist homeowners who want to cultivate a green home improvement lifestyle the American Society of Interior Designers (ASID) and the USGBC have teamed up to create Regreen, a resource for green home renovation best practices and guidelines.

ASID is a community of designers, industry representatives, educators, and students committed to interior design. USGBC is coordinating the establishment and evolution of a national consensus to provide the industry with the tools necessary to design, build, and operate buildings that deliver high performance inside and out. It's also a leading organization representing the building industry on environmental building matters.

The partnership says to get true green, begin with these tips.

Consider composition. When choosing a green product, consider the raw materials used to create the product and their origin. For example, some composite decking manufacturers use recovered wood fibers and recycled plastic grocery bags, milk jugs and detergent bottles to create their materials. Products using recycled rather than virgin materials help by creating less waste, by keeping materials out of landfills and by reducing the need for costly raw materials like petroleum.

By comparison, decking products made polyvinyl chloride (PVC) come with the promise of lower maintenance, however the material is problematic.

"PVC is the worst plastic from an environmental health perspective, posing unique and major hazards in its manufacture, product life and disposal," according to The Healthy Building Network. The network also says PVC poses unique and significant risks in its production, product life and disposal, and defies the greater desire for a healthy environment and improved quality of life.

Consider a product's life cycle. To reduce environmental impact, seek long-lasting products that also can be repurposed or recycled at the end of their life. Some can even be returned to the manufacturer to be recycled into future products.

Consider sustainability. Products should also have the ability to be maintained sustainably. For building products that will be used outdoors, look for durable products that can withstand the regional climate over an extended period. Sustainability should also be practiced by the manufacturer and during the production process. Manufacturing processes can use a great deal of energy and resources, as well as release toxic chemicals and gases. Look for sustainable companies that have implemented environmental processes and procedures to reduce emissions and energy, as well as reduce the amount of waste through recycling, reusing and other environmentally responsible practices.

Consider value. While green home improvements are inherently good for your home's value, ensure you'll get the most from your regreening by looking for a life-cycle cost analysis of green products. The analysis calculates the approximate maintenance cost over its lifetime compared to the initial product price.

For more information, download Regreen ASID & USGBC Residential Remodeling Guidelines, check out USGBC's Green Home Renovations, visit Healthy Building Network's Web site and see Consumer Reports' GreenerChoices.org.

• DeadlineNews.Com offers more green news that hits home.

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© 2008 DeadlineNews.Com

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Wednesday, February 13, 2008

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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© 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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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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© 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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Sunday, January 6, 2008

Know How Long Your Home Will Last?

Knowledge of components' life expectancies is what homeowner associations use, in part, to build a reserve fund designed to spread, over time, the cost of the inevitable.

by Broderick Perkins
© 2008 DeadlineNews.Com

Deadline Newsroom - One way to prepare for the costs of owning a home beyond the mortgage payment, insurance and taxes, is to know the expected life expectancy of your home's components.

Such knowledge doesn't supercede the use of a home inspector when buying a home, new or old, but it can help you develop a savings plan so you are prepared for the inevitable.

Sooner or later you'll have to repair or replace many of your home's parts -- inside and out.

Knowledge of components' life expectancies is what homeowner associations use, in part, to build a reserve fund designed to spread, over time, the cost of the inevitable.

When the roof goes, the appliances conk out, or the paint begins to fade, it's a lot easier to come up with the cash if you've already got some socked away for just this kind of rainy day.

Last year, the National Association of Home Builders, along with the Bank of America developed the "NAHB/BoA Home Equity Study of Life Expectancy of Home Components" to help you take the guess work out of preparing for the worst.

The report suggests you use the timelines as a general guideline. Local weather conditions, use habits, regular maintenance -- or the lack of it -- can all affect the life expectancy of many components.

Personal tastes for contemporary upgrades, remodeling needs and other factors may also dictate replacing parts before their useful life time is up.

In any event based on a comprehensive telephone survey of manufacturers, trade associations and researchers NAHB developed information about the longevity of housing components.

From the foundation to the rooftop, here's a quick look at how long, on a national average, some of the most common home components are expected to last.

• Foundations. Poured concrete block footings and slab foundations should last a lifetime, 80 to 100 years or more provided they were quality built. The foundation termite proofing, 12 years, provided the chemical barriers remain intact.

Properly installed waterproofing with bituminous coating should last 10 years.

• Flooring. Natural wood flooring has a life expectancy of 100 years or more with proper care. Marble, slate, and granite, likewise, but again, only with proper maintenance. Vinyl floors wear out in 50 years, linoleum about 25 years, and carpet between 8 and 10 years, tops.

• Electrical system. In the electrical system, copper plated wiring, copper clad aluminum, and bare copper wiring are expected to last a lifetime, whereas electrical accessories and lighting controls are expected to fail not much longer than 10 years.

• Outside materials. Outside materials typically last a lifetime. Brick, vinyl, engineered wood, stone (both natural and manufactured), and fiber cement typically last as long the house exists. Exterior wood shutters get 20 years, well maintained gutters, 50 if they are copper, 20 years if they are aluminum. Copper downspouts last longest, 100 years or more, while aluminum ones give out after 30 years.

• Doors. Exterior fiberglass, steel and wood doors will last as long as the house exists, while vinyl and screen doors have a life expectancy of 20 and 40 years, respectively. Closet doors are expected to last a lifetime, and French doors have an average life of 30 to 50 years.

• Windows. Wooden windows last longer than aluminum ones -- 30 years compared to only 15 or 20.

• HVAC systems. Heating, ventilation, and air conditioning systems require a religious regimen of maintenance. Still, most components give up within 25 years. Furnaces break down in 15 to 20 years, heat pumps 16 years, and air conditioning units 10 to 15 years. Tankless water heaters can go for 20 years or more, but electric or gas water heaters only 10 years. Thermostats have a 35-year lifespan but are often replaced for more efficient models.

• Appliances. Appliances' life expectancies depend largely on how much they are used, but they are typically replaced long before they are done. One must keep up with the Joneses. Among major appliances, gas ranges live15 years, dryers and refrigerators die at 13, compactors, dishwashers and microwave ovens might last until they are 9 years.

• Roofing. The life of a roof is largely dependant upon local weather conditions, proper building and design, material quality, and adequate maintenance. Slate, copper, and clay/concrete roofs have the longest life expectancy, 50 years or more. Wood shake roofs, go for 30 years, fiber cement shingles last 25 years, asphalt shingles give up at 20.

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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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Sunday, December 23, 2007

Equity-Saving Home Improvements

by Broderick Perkins
© 2007 DeadlineNews.Com

Deadline Newsroom - Housing market conditions are squeezing the equity out of homes, but the right home improvement on the right home can help shore up equity and even improve the home's value.

That could mean a higher price when it's time to sell.

The Federal Reserve's third quarter 2007 U.S. Flow of Funds Accounts report says the amount of equity homeowners nationwide hold in their homes slipped in the third quarter to just over 50 percent, the lowest level on record.

Falling home prices, a surge in cash-out refinances, home equity loans and the increase in low- and no-down payment loans from the past housing boom have contributed to deteriorating home equity.

Economists say the equity-holding share could drop below 50 percent by the end of this year, due a soft housing market.

However, homeowners who perform improvements that bring their home up to par with other homes in the neighborhood -- or make them slightly above par -- stand the best chance of holding onto equity and even increasing home value.

"Upgrading what you have in your home now will always gain you something, either enjoyment and a return on your investment or a quick turn-around in the market," says Cindy A. Carey, co-owner of Starburst Construction Co. in San Jose.

That's especially true if homeowners perform home improvements that provide the greatest cost-vs-value return for the money and Hanley Wood's Cost vs. Value 2007 report helps take the guess work out of deciding which job provides the most return.

Here's a look at the top cost-vs-value jobs in the report's tri-state Pacific Region. The numbers are not absolutes. Do not overlook the impact your local community or neighborhood market conditions have on home improvements' value.

Each brief job description includes: 1) the Pacific region's average cost for the job, 2) the region's average dollar amount added to your home's value and 3) a percentage that represents how much of your original expenditure is returned to you in the form of increased value.

• Wood deck addition: A 16-by-20-foot deck using pressure-treated joists supported by 4x4 posts anchored to concrete piers, including a built-in bench and planter of the same decking material, stairs, and railings, $12,812; $13,836; 108 percent.

• Minor kitchen remodel: Updating a 200-square-foot kitchen with 30 linear feet of cabinetry and countertops. New cabinet and drawer prefacing; energy-efficient wall oven and cooktop; laminate countertops; mid-priced sink and faucet. Repaint trim, add wall covering, new flooring, $22,698; $23,494; 103.5 percent.

• Wood framed window replacement: Replace 10 existing 3-by-5-foot double-hung windows with insulated wood replacement windows, $13,120; $13,497; 102.9 percent.

• Vinyl window replacement: Replace 10 existing 3-by-5-foot double-hung windows with insulated vinyl replacement windows, $12,164; $11,978; 98.5 percent.

• Attic bedroom remodel: Convert unfinished attic space to a 15-by-15-foot bedroom with 5-by-7-foot bath with shower. Include a 15-foot shed dormer, four new windows, closet space under the eaves, more, $55,306; $54,186; 98 percent.

• A basement remodel, bathroom remodel and major kitchen remodel all returned, to the value of the home, more than 96 percent of the money spent.

Jobs including full additions, a new roof, siding and a home office remodel all returned about 90 percent or less.

"A sure fire return is on any green improvements in the home's energy performance. From here on out, home buyers will be likely to purchase the remodeled home that has included these energy savings improvements," said Clayton Nelson, a residential remodeling contractor and owner of Clayton Nelson & Associates in Los Gatos.

Hanley Wood concedes, for any project, the true cost-vs-value depends upon a host of factors -- the condition of the rest of the house, the value of nearby similar homes, the rate of local property value changes, the urban, suburban, or rural setting, the new home market and more.

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© 2007 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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Wednesday, November 7, 2007

Silicon Valley Home Improvement Bargain Alert

by Broderick Perkins
© 2007 DeadlineNews.Com

Deadline Newsroom – Keep an eye out for home improvement bargains.

A national trend is pointing to more homeowners sitting on the fence over home improvements and that could mean it'll get easier to drive a hard bargain and negotiate to get more work done for less.

Homeowners are still bullish on home improvements, but with the brakes on appreciation and the squeeze on mortgage money, more and more homeowners are thinking twice about getting work completed.

Local contractors say stores of built up equity earned during the last housing boom is keeping the trend away from Silicon Valley, but that may not last.

"These days, my remodeling clients are a lot more cautious, deliberate
and circumspect about their remodeling goals and monetary outlays," said Clayton Nelson, a residential remodeling contractor/owner of Clayton Nelson & Associates in Los Gatos.

The Leading Indicator for Remodeling Activity (LIRA), at Harvard University's Joint Center for Housing Studies projects home improvement expenditures in 2007 will fall 2.3 percent compared to 2006.

By the second quarter of 2008, expenditures will be down 4.2 percent from the previous four quarters and the downturn is expected to continue further into 2008.

"The recent problems in credit markets are expected to dramatically reduce the level of cash-out mortgage refinancing activity," said Kermit Baker, director of the Remodeling Futures Program at Harvard's Joint Center.

"Given that equity withdrawals have been a key source of funding for home improvements, market spending is expected to suffer," he added.

Home improvements are always a good way to sustain and bolster a home's value in any market.

Seventy-four percent of consumers recently polled by Opinion Research Corporation said that making renovations or home improvements now will help them get the most money when they decide to sell.

Sixty-seven percent said they plan to initiate a home improvement in the next 12 month, but because they are pinching pennies, the majority plan to paint, rather than take on larger remodeling jobs.

The poll asked consumers where would renovations give them the most return and 63 percent of homeowners said a kitchen do-over while 51 percent said just buying new or refinished kitchen cabinets will add to resale value. Sixty-seven percent said painting the interior or exterior will add value. Other jobs frequently mentioned were bathroom remodels, 58 percent; new carpeting, 54 percent and new or refinished hardwood floors, 49 percent.

Dan Fritschen, Sunnyvale founder of the RemodelOrMove.com and RemodelEstimates.com Web sites said preliminary results from his Remodeling Sentiment Report, a semi-annual survey of 5,000 homeowners nationwide, shows a trend similar to Harvard's study.

Preliminary breakouts for Silicon Valley, however, "shows a divergence from
the national data," says Fritschen, also author of the book "Remodel or Move" (ABCD Publishing, $15.95).

"Silicon Valley is interested in the same types of projects as the national numbers as well as larger remodels, more than 20 percent of the home's value – but due to the increase in home prices in Silicon Valley, the wealth effect is still strong and Silicon Valley homeowners are not following the nation in finding ways to economize," said Fritschen.

That may not apply to all regions in Silicon Valley, including east, central and south San Jose, where prices and home values have fallen. Silicon Valley's median price is rising because sales in high-end homes have been a larger-than-normal slice of the sales pie this year.

As sales continue to plummet at record levels, even high end homes are likely to feel the pinch. A recent 12-page Goldman-Sachs report says California home prices are over-valued by 35 to 40 percent.

"As homeowners become increasingly concerned about falling house prices and a slowing economy, home improvement spending is dragging," said Nicolas P. Retsinas, director of the Joint Center for Housing Studies.

But in Silicon Valley, the tech money factor helps overcome equity loss for many, says Cindy A. Carey who, along with husband Phil operates San Jose-based Starburst Construction.

Market conditions aren't lost on Carey who says the company is marketing to increase exposure to current clients. However, the company continues to enjoy conditions unique to Silicon Valley.

"There are a lot of people in this valley who do not rely upon their home for home improvements. People in our area have a lot of opportunities, via stock options, bonuses and more to pay for their home improvements," Carey said.

DeadlineNews.Com's Home Improvement Center


© 2007 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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