Monday, July 30, 2012

3 mistakes when buying a new home

By Barry Stone
Inman News®

DEAR BARRY: We bought our home when it was brand-new. There had been another buyer before us, but he backed out of the deal because of a foundation problem. The builder disclosed that the problem had been repaired. We were desperate and angry, so we purchased the property. Now we are selling it, and the buyer's home inspector says the foundation was not properly repaired. It seems that we've gotten ourselves into a real mess. What could we have done to prevent this? --Marion

DEAR MARION: You made three critical mistakes when you bought the property. The first was to buy it when you were "desperate and angry." Regardless of why you were feeling that way, a home purchase should never be based on negative emotions. Property is very expensive, and that kind of expenditure should be made only with clear thinking and sober rationale.
The second mistake was to accept the condition of the foundation without written proof of the repair work. Adequate proof would have been an engineering report on the foundation problem and a contractor's receipt for the corrective work.
The final error was purchasing the property without hiring a qualified home inspector. Buyers often assume that a new home does not need a home inspection, and many homeowners have come to regret that unfortunate assumption. Had you hired a home inspector, you might have learned that the foundation was defective. Then you could have had it repaired by the builder, or you could have backed out on the deal.
The question now is whether the home is still covered by the state mandated builders' warranty. You should check with an attorney or with the appropriate state bureaucracy to see where you stand in that regard.

DEAR BARRY: Our buyers hired a home inspector and he has made an expensive mess. While testing the dishwasher, he left room to inspect other parts of the house. We hadn't used the dishwasher in years and the door seals had become dry and cracked. By the time the inspector returned to the kitchen, the floor was flooded, and the hardwood flooring is now warped and must be replaced. Are we stuck with the cost of this repair, or is the home inspector liable? --Ralph

DEAR RALPH: The home inspector has just learned an expensive lesson: Don't leave the room when testing an old dishwasher. Had he remained in the room while the fixture was running, the leaking would have been noticed when it started, and the unit could have been turned off before the flooding occurred.
A good practice for home inspectors is to start the dishwasher first when inspecting a kitchen. That way, the unit can be running while the inspector is evaluating the cooktop, oven, vent hood, sink plumbing, cabinets, countertops, and so on. By the time these other items have been inspected, there will have been time for dishwasher leakage to become apparent.
You should discuss the issue of liability with the inspector, and be sure to ask if he has insurance for this kind of accident.

Saturday, July 28, 2012

Tips for installing wood floor over concrete

By Bill and Kevin Burnett
Inman News®
Q: I have a fun project and I need an expert opinion. I have a 13-by-20-foot outbuilding I use as a garden shed and "man cave." It has a concrete floor that was poured in three sections, so there are seams and some parts are higher than others.
The back of the building faces upslope to a neighbor's yard. After a good rain, a little water seeps in. Last year, I installed drain rock and perforated pipe to route the water away. This has helped, but the building is by no means waterproof.
This summer, I want to put a wood floor over the concrete. My plan is to put shims on the concrete to level it, then add new flooring on top. The new wood floor would also cover any moisture that finds its way in during the rainy season.
I know this sounds cheesy but I want to do this on the cheap. After all, it's just a garden shed. For the top flooring, I was considering 2-by-6 planks but wonder if I might get by with 1-by-6s instead. Again, I'm not looking for high art, just clean and functional.
Is this reasonable? I'd appreciate any suggestions.
A: Your plan is more than reasonable: It's good, but with a little modification. Remember that water is the enemy. Your friends are air flow and water-resistant materials. Good ventilation and using the right stuff will give you a useful and comfortable man cave.
Your idea of using shimmed floor joists to level the floor is right on. But there's a little prep to do before setting the joists and laying the floor. We recommend 2-by-6 pressure-treated boards laid face up for the joists. Joists should be laid 19 inches on center. This will give a minimum 1 1/2 inches space between the bottom of the flooring and the concrete slab, and about 14 inches between joists.
Because some water is seeping into the shed, your first step is to make the slab water resistant. Caulk the seams between the slabs with caulk made for concrete available at hardware stores and home centers. Then treat the slabs with a water-repellent finish. Concrete sealer or concrete paint will do the job. Do a couple of coats.
Your next job is to provide some ventilation. Start by laying out the floor joists perpendicular from the back of the building, but don't set them. Mark each joist location with a pencil. Then drill four 1-inch ventilation holes in each bay between each floor joist at the rear and the front wall.
Clean out the debris from the holes and then nail wire mesh over the holes. Use heavy-duty staples or roofing nails to secure the mesh. This will keep small critters from nesting under the shed.
Now, set the floor joists. Use 2-by-6 pressure-treated wood with the 5 1/2-inch side resting on the concrete. Use construction adhesive and concrete nails set with a .22-caliber concrete nail gun. Level the joist with cedar shims treated with a water-resistant sealer. When the joists are set, caulk the edges to prevent water from seeping under them.
Finally, nail the flooring in place. While 1-by-6 planking would probably work out OK, we'd like something beefier. Rather than using decking, we suggest you use 3/4-inch tongue-and-groove plywood, commonly used for subfloors in new construction. The floor will be stout, to say the least.
This will be cheaper and stronger than single boards. If you don't like the look, paint the floor. Or, if this truly is a man cave, carpet it. Heck, we'd get out the 4-inch hole bit and sink a hole in the corner so we could practice our putting on rainy days.

Thursday, July 26, 2012

3 mistakes when buying a new home

By Barry Stone
Inman News®

DEAR BARRY: We bought our home when it was brand-new. There had been another buyer before us, but he backed out of the deal because of a foundation problem. The builder disclosed that the problem had been repaired. We were desperate and angry, so we purchased the property. Now we are selling it, and the buyer's home inspector says the foundation was not properly repaired. It seems that we've gotten ourselves into a real mess. What could we have done to prevent this? --Marion
DEAR MARION: You made three critical mistakes when you bought the property. The first was to buy it when you were "desperate and angry." Regardless of why you were feeling that way, a home purchase should never be based on negative emotions. Property is very expensive, and that kind of expenditure should be made only with clear thinking and sober rationale.
The second mistake was to accept the condition of the foundation without written proof of the repair work. Adequate proof would have been an engineering report on the foundation problem and a contractor's receipt for the corrective work.
The final error was purchasing the property without hiring a qualified home inspector. Buyers often assume that a new home does not need a home inspection, and many homeowners have come to regret that unfortunate assumption. Had you hired a home inspector, you might have learned that the foundation was defective. Then you could have had it repaired by the builder, or you could have backed out on the deal.
The question now is whether the home is still covered by the state mandated builders' warranty. You should check with an attorney or with the appropriate state bureaucracy to see where you stand in that regard.
DEAR BARRY: Our buyers hired a home inspector and he has made an expensive mess. While testing the dishwasher, he left room to inspect other parts of the house. We hadn't used the dishwasher in years and the door seals had become dry and cracked. By the time the inspector returned to the kitchen, the floor was flooded, and the hardwood flooring is now warped and must be replaced. Are we stuck with the cost of this repair, or is the home inspector liable? --Ralph
DEAR RALPH: The home inspector has just learned an expensive lesson: Don't leave the room when testing an old dishwasher. Had he remained in the room while the fixture was running, the leaking would have been noticed when it started, and the unit could have been turned off before the flooding occurred.
A good practice for home inspectors is to start the dishwasher first when inspecting a kitchen. That way, the unit can be running while the inspector is evaluating the cooktop, oven, vent hood, sink plumbing, cabinets, countertops, and so on. By the time these other items have been inspected, there will have been time for dishwasher leakage to become apparent.
You should discuss the issue of liability with the inspector, and be sure to ask if he has insurance for this kind of accident.

Tuesday, July 24, 2012

Do pre-emptive purchase offers work?

By Dian Hymer
Inman News®

The home-sale market has come to life this spring for the first time in years. Inventories of homes have dropped, interest rates are near all-time lows, and buyers feel the market has hit bottom and they'd be wise to buy now before prices rise.
It's impossible to call the peak or valley of a market cycle until after the event has occurred. In some hot micromarkets, like the housing markets around Northern California's Silicon Valley, the market may have bottomed a while ago.
In Silicon Valley, the inventory of homes for sale is too low to satisfy the demand of eager, newly made millionaires. The result is multiple bidding contests and sale prices over the list price, sometimes hundreds of thousands of dollars more.
Silicon Valley is an extreme example, but there are low-inventory niche housing markets around the country, which is good for sellers and tough on buyers. Reminiscent of the bubble of 2005 and 2006, buyers often have to make offers on more than one listing before they have an offer accepted.
Sellers in a low-inventory market may list their home on the low side of market value hoping to stimulate multiple offers and a higher price. In this case, a date is often set for offers to be heard. The date is usually after the house has received market exposure; giving the sellers more of a chance that more than one buyer will make an offer.
Some sellers don't feel their property has received enough exposure until it has had two public open houses. They might decide to hear offers a few days after the second open house.
HOUSE HUNTING TIP: Buyers competing in a market that's short of inventory have the option of trying a pre-emptive offer. A pre-emptive offer is one that is made before the seller's predetermined offer date.
Let's say that you, like the sellers, feel that a home you want to buy will receive more than one offer. You want the house badly enough that you're willing to make an offer before even knowing if there will be multiple offers or not.
Even though the sellers have told their real estate agent that they don't want to hear an offer before a certain date, some do. There is no guarantee that your early offer will be accepted or even reviewed by the seller. Some sellers will stick to their word and wait until the official offer date.
There's also no guarantee that you will successfully avoid competition by making an offer before the due date. Recently, sellers who said they would wait until after the second Sunday open house to entertain offers changed their mind when they were told that an offer had been written before the first open house.
This buyer made a full-price offer and gave the seller until 2 p.m. the next day to respond. That night the listing agent received a call from another buyer's agent who wanted to know when offers would be presented. Upon hearing that an offer had already been made, the second buyer made an over-asking-price offer that was accepted.
If you're going to make a pre-emptive offer on a property that you think is well priced, you might want to offer over the asking price to make a positive impression on the sellers. Your offer should be good enough that the seller will be encouraged to carefully consider it even if there isn't another offer.
Your financing should be in order, and include a strong preapproval letter from a lender. To maximize your chances of acceptance, make sure that your offer isn't littered with contingencies.
THE CLOSING: Keep it simple and back it up with confirmation of your sincerity and ability to perform.

Sunday, July 22, 2012

5 signs real estate markets are improving

By Bernice Ross
Inman News®

We're in the midst of spring selling season and mixed among all the negative news about unemployment and the worrisome news from overseas there are signs that the real estate market has begun taking its first tentative steps to recovery.
Could the horrible housing recession that we have been experiencing since 2007 finally be coming to an end? The answer depends upon your local market; however, there are a number of national trends that bode well for almost everyone.
1. Price increases lag behind inventory declines
According to the S&P/Case-Shiller National Composite, an index of national home prices, housing prices peaked for the nation as a whole during the second quarter of 2006. But prices continued to increase in some housing markets in 2006 and 2007. Normally, inventory increases result in decreasing prices. In some areas, it took almost a full two years after the inventory started to climb before the prices began to decline. It appears that in many areas, the exact reverse of that situation is happening now. Even though inventories are down, prices in some areas are still flat or declining slightly.
As the market absorbs the inventory and multiple offers continue to occur, prices will start to increase. Normally when this happens, buyers who have been sitting on the sidelines realize the bottom of the market has passed them by. This can trigger a buying frenzy that causes prices to increase even more.
There's an even stronger impetus, however. Mortgage rates have never been lower. As of last week, rates on30-year fixed mortgages were almost a full percentage point lower than they were a year ago, which translates into nearly $1,200 less in annual payments on a $200,000 loan.
Low rates have sparked another refinancing boom, but many would-be homebuyers are unable or unwilling to take advantage. The Mortgage Bankers Association expects purchase loan originations will climb by nearly 73 percent next year, to $706 billion. But the trade group recently lowered its purchase originations forecast for 2012, from $415 billion to $409 billion, citing lower home prices and weaker sales than previously expected.
Low interest rates are also driving another trend: It is now cheaper to buy than rent in more than 90 percent of the major metropolitan areas in the United States.
Moreover, the Zillow Real Estate Market Report for April showed monthly home-value appreciation in 88 of 166 metropolitan areas tracked. (Even though prices are increasing in certain areas, Zillow estimates prices are still down 24 percent since their 2007 peak.)
2. A major improvement in the foreclosure market
RealtyTrac is reporting that in April, the number of U.S. homes subjected to foreclosure-related filings dropped to the lowest level since July 2007. Due to the robo-signing scandal, however, the judicial foreclosure states may have a glut of foreclosure property coming on the market very soon. Prime areas of concern include Florida and a number of states in the Northeast. The robo-signing issues delayed lenders from making foreclosures thereby creating a major backlog. Now that the robo-signing issues are resolved, these properties have already begun to come back on the market now.
On the other hand, most other states have continued to push through their foreclosure glut and are in the process of climbing out of this mess. In fact, many report that their markets have stabilized.
3. New-home sales are up
Newly released data from the Department of Housing and Urban Development and the U.S. Census Bureau show that newly built, single-family home sales increased by 3.3 percent in April. This is good news for builders who have cut back production. Currently there are only 5.1 months of new-home inventory available nationally, which is suggestive of the early stages of a seller's market.
What's particularly interesting about the data is that "McMansion" sales are back. These are large houses on relatively small lots with top-drawer amenities. Homebuilders are reporting an uptick in the sizes of homes they are building. The Census Bureau is reporting that the average size of new homes built in metro areas has jumped from 2,382 square feet in 2003 to 2,550 square feet last year.
4. Freddie Mac and Fannie Mae make banks toe the line on short sales
In an attempt to shorten the short-sale process, which RealtyTrac reports takes an average of 306 days, new regulations governing short sales kick in on June 15 for mortgages held by Freddie Mac and Fannie Mae. Lenders will have to respond to a short-sale request within 30 days. If the lender cannot answer the homeowner within the 30-day period, the lender is required to update the homeowner weekly until the short sale is accepted or declined.
The National Association of REALTORS® has also jumped into the fray by recommending that lenders put more effort into doing loan modifications that allow families to stay in their homes, reduce defaults and stabilize neighborhoods.
5. Increased affordability
According to the National Association of Homebuilders/Wells Fargo Housing Opportunity Index, 77.5 percent of all homes sold in the first quarter of 2012 were affordable to families earning the national median income ($65,000). This is an increase from 75.9 percent in 2011.
Again, while these national signs bode well for the real estate market, what is happening in your local market is influenced by the amount of inventory, the number of foreclosures and REOs, as well as the demand. The easiest way to track this is to watch the number of months of inventory. If the inventory is declining, chances are there is good news for your market in the very near future. If there are still too many foreclosures and REOs, you still may have some rocky times ahead.

Friday, July 20, 2012

4 ways distressed homeowners can start fresh

By Tara-Nicholle Nelson
Inman News®

Clearly, thankfully, the market is looking up. Way up, actually.
In many markets, tales of multiple offers and a dearth of homes vis-à-vis the numbers of buyers who want them are becoming commonplace. Now, many analysts point to the banks' intentional decision to keep many foreclosures off the market as artificially driving this demand.
But if you're a seller on today's market, the dynamics underlying the demand are much less important than the fact that your chances of getting your home sold at a good price are better than they have been in a long, long time.
The news for buyers is not all bad, either: For the first time in a long while, buyers are not faced with the double-edged sword prospect of buying into a declining market; appraisals are coming in at the agreed-upon purchase price; and mortgage rates are still uber-low (fingers-crossed).
But with all this fresh market optimism, there is an ugly elephant in our collective room, which is that many, many homeowners and former homeowners are still dealing with the lingering remnants of the subprime market mess and the real estate recession. Many are still upside down, still struggling to make the too-high payments on loans left over from the last peak of the market or trying to recover financially and otherwise from a recession-era foreclosure or short sale.
For those folks -- a huge, if silent, number -- here are four routes to a fresh slate:
1. Sell. Fact is, the vast majority of underwater homeowners who could stay put did. Walking away was very much the exception and not the rule. The result? There are hundreds of thousands of homeowners out there with homes that lost value during the recession who are still holding on to subprime loans that have long since reset. While these loans' rates tend to be low, if you had a short-term, interest-only, adjustable-rate mortgage in 2005 or 2006, chances are good that your payment actually increased steeply when you were required to begin paying the principal.
For sellers who have scrimped and saved, taken on second jobs, rented out rooms or allowed important expenses like property taxes or other bills to go unpaid in order to make a too-high mortgage payment, the current market dynamics may present a good opportunity to divest of an unsustainable mortgage obligation by selling or even short-selling the place.
Buyers are out en masse and prices are on the rise, meaning that you might not be as upside down as you were last year or the year before. Banks are moving short sales through much more quickly and efficiently than in years' past (though never as quickly or efficiently as we'd hope).
The income tax exemption on debt forgiven through a short sale is still valid through the end of this year (an extension is probable, but by no means guaranteed).
If you know or believe that your current home is simply too expensive for you to afford with financial integrity, and there is no end in sight, talk with a local agent and a tax professional about how you might be able to get a clean slate by selling the home.
2. Settle old seconds and HELOCs. If you lost a home to foreclosure in a nonrecourse state and you had a second mortgage or home equity line of credit, it's entirely possible that your second is still a lingering debt. (Your first mortgage can foreclose and repossess the home, leaving the second mortgagor holding nothing but paper.) Many second-mortgage holders are not actively collecting on these loans, but they simply stay on your credit reports and eventually rear their ugly heads when the time comes for you to try to qualify for a car or a mortgage.
Some recommend bankruptcy as an expedient way of extinguishing these loans for little or nothing, but the blemish bankruptcy leaves on your credit may defeat the purpose of getting rid of the old loan in the first place. I've been talking with some of these banks and servicers, and many of the banks will settle these unsecured second mortgages or home equity lines of credit for as low as 10 or 20 percent of the outstanding balance.
Contact the servicer of your former home's second or HELOC to discuss a settlement. Again, the taxes you would normally pay on the forgiven debt will be exempt through the end of this year, for most borrowers, so if you can settle this soon, it's in your best interest to do so. If you don't know what bank or servicer even manages this loan (many are sold and resold), check your credit report and seeing who is reporting the debt, if anyone, or take out your old documents with the loan number and researching the trail starting with your original servicer.
3. Check your credit reports and dispute expired derogatories. It might be hard to believe, but the first foreclosures from the last real estate recession began happening circa 2005-2006, so they are set to be timing off of credit reports right about now. If you had an early-recession foreclosure or short sale, check your credit reports now to ensure that they are being reported correctly, or not at all, if the seven-year expiration time frame has run. In fact, even if your short sale or foreclosure was not that early, it may make sense to pull your credit reports and understand how things are being reported and the impact these items are having on your credit score. You might be surprised, in one direction or the other.
4. Refinance and lock in low rates. If you lost value in your home during the recession, it might have been nearly impossible to refinance it to take advantage of lower rates and bring your payment down. With sales prices on the upswing and rates still low, though, you may have a new opportunity to refinance a "bad" loan and lock it in a today's uber-low rates.

Wednesday, July 18, 2012

Q & A: Home addition raises plumbing concerns

Q: My 1950s home was originally built with three bedrooms and one bathroom. Sixteen years ago I added another two bedrooms and two bathrooms. A couple of re-piping companies suggested I replace the drainage line in the old part of my home although they have not found any leakage. I am not sure if it is something I must do, or they just want to have the business. Please advise. --Sim Y.

A: The issue is one of capacity more than leaks. When you add two bathrooms, you are increasing the amount of water and waste flow that the old sewer pipes have to handle. It could be that the companies you talked to feel that the original pipes are too small for that extra load, or they could have become partially clogged over the years.
If you are showing any signs of slow-running drains or other problems associated with drainage from anywhere in the house, and you are able to determine that it is not an isolated problem such as a single clogged sink drain, then you would next want to check and see if the existing main lines are damage or clogged.
There are companies that can put a camera down the line to check for cracks, leaks and clogs. If there is any damage to the pipes or if simple cleaning doesn't get the flow back up to normal, then new drain lines are probably the only answer.

Q: I have a bathroom with a textured ceiling, from which sparkly stuff has come down on the area over the shower. I need to scrape off the texture and install a vent fan.
I would like a smooth ceiling. How is the best way to accomplish? Pull down the whole thing? The area is not too large, maybe 8 feet by 12 feet square. --David R.

A: There are a couple of steps involved in accomplishing what you want to do, none of which are overly difficult. You just want to be sure you take your time with each step to be sure you get good results.
First, though, a word of caution. Asbestos was a commonly used ingredient in ceiling textures until it was banned in 1978. However, existing stocks were still allowed to be used up, so it appeared in homes that were being built well into the 1980s. If your home was built any time prior to around 1985, you need to have a certified lab test the ceiling material for the presence of asbestos prior to scraping. You can get more information about asbestos and testing procedures at the Environmental Protection Agency's website:www.epa.gov/asbestos.
If the material doesn't contain asbestos, scraping the old ceiling is step one. Drape the walls and floor with plastic sheeting to contain the mess (this is definitely a messy process). Wear protective clothing, including goggles and a dust mask. Use a spray bottle of water, and spray a small area of ceiling texture to get it fairly damp, but not saturated. Then, use a 6-inch drywall taping knife to scrape off the material. Hold the knife at a low angle relative to the ceiling so you don't dig into the drywall.
Work your way across the ceiling, scraping everything off. You'll quickly get a feel for how much water to use, how much pressure to apply, and how big an area you can work with at one time. Be sure you get all the old material scraped off.
Next, you'll need to evaluate the condition of the drywall. Ceiling texture can cover a lot of flaws, so you'll probably be facing some drywall work. Use premixed drywall compound and 6-inch and 12-inch taping knives as needed to smooth out any bad seams or other flaws. Take your time, especially if you're not experienced with drywall work. Allow each application of joint compound to dry, sand it smooth, then add a little more as needed. Since you want a smooth ceiling, any flaws you leave behind in the drywall will show through the paint, so again, take your time with the application and the sanding.
Finally, apply a good coat of primer over the finished ceiling, then one or two coats of good-quality finish paint, ideally to the entire room. Use a satin or semi-gloss paint to best resist the bathroom's moisture. Your home center or paint store can assist you with the best choices for paint and primer.

Q: My new tub is not level. On the vertical plane water drains well, but the surround is shimmed out 1.5 inches in order to get a good fit at the rim of the tub. I have mortar on the slab for extra support of the fiberglass hanging tub. Will I have any problems other than the tub and surround leaning out away from wall? --James P.

A: Yes, there is the potential for problems with an installation like that. I would recommend that first you remove the tub and surround from the opening. Next, either remove the framing in the tub alcove and redo it, or else shim it so that it's both plumb and level. You may need to take two-by-two or two-by-four lumber and rip it on an angle to create the long shims necessary to get the faces of the studs plumb. Once everything is plumb, then you can reinstall the tub and surround, again using a mortar bed under the fiberglass tub for stability.

Tuesday, July 17, 2012

The Foreclosure Report - June 2012

Foreclosure Inventory Continues To Decline
June 2012 Foreclosure Sales were significantly down in the three largest foreclosure states in our coverage area. California Foreclosure Sales were down 13.4 percent over last month, and down 48.8 percent vs. June 2011. Arizona Foreclosure Sales were down 18.5 percent over last month, and down 42.1 percent vs. June 2011. Nevada Foreclosure Sales were down 14.6 percent over last month, and down 72.1 percent vs. June 2011 driven by the new regulation that took effect in October 2011. In addition, Foreclosure Filings are flat to down in all states in our coverage area, both on a month over month basis and vs. previous year. Arizona Notice of Sales were down 27.7 percent over last month, Nevada Notice of Defaults were down 22.7 percent over last month, and California Notice of Defaults were basically flat, being down 0.9 percent over last month.
We already have significantly low home sales in the market today, and with the declining level of Foreclosure Sales the inventory will continue to decrease. In California, banks take on average 272 days to resell properties they take back at auction, thus, Realtors, investors, and homebuyers should brace themselves for significantly less inventory in next years' selling season.
"California Governor Jerry Brown signed into law the Homeowner Bill of Rights, an anti-foreclosure package which naively thinks that slowing foreclosures will benefit homeowners and the economy by leaving those owners stuck in their prison of debt," stated Sean O'Toole, Founder & CEO of ForeclosureRadar. "We've long said negative equity, not foreclosures, are the problem, and this bill does nothing to truly help underwater borrowers. Fortunately this bill was watered down significantly from its original form, so we don't expect it will have the same impact that we've seen from more aggressive legislation in Nevada. The most ironic part of this bills passage is that foreclosures have already plummeted, and that the real housing crisis in now a lack of homes available for sale. Next spring, we expect there will be half as many REO's available for sale in California, significantly impacting overall home sales and hurting homebuyers, investors, real estate related services and the economy."
California Foreclosure Timeframes

Monday, July 16, 2012

4 rules of gutter replacement

By Arrol Gellner
Inman News®

I've seen homeowners spend weeks agonizing over which shingle color and texture is best for their new roof. Then, after going to all this effort, they simply leave it to the roofing company to install any old piece-of-junk gutters.
Since rain gutters and downspouts can be even more conspicuous than the roof itself, you should choose new ones with at least as much care. But before you do, make sure they actually need replacement. Too often, they don't.
In the course of bidding on a reroofing job, many a roofing contractor will say something like, "You know, as long as we're at it, this would be the time to replace your gutters." This is a bit like your barber saying, "As long as I'm cutting your hair, I should give you a nose job as well."
To be blunt, installing new gutters in conjunction with reroofing is simply a way for roofing contractors to make a little extra profit, while freeing their workers from having to protect the existing gutters from damage during the job. These are both perfectly valid reasons to replace your existing gutters -- but from the contractor's perspective, not yours.
What's more, the quality of most replacement gutters and downspouts is typically worse than that of original gutters in sound condition. Hence, homeowners who agree to lump in gutter replacement with their new roof often wind up with a flimsier, less attractive, and quite unnecessary "improvement."
I've even come across some clueless homeowners who allowed a roofer to rip out superb old custom-made steel gutters and ornamental downspouts and replace them with utterly inferior prepainted aluminum dreck.
The rules of thumb regarding gutter replacement are simple:
1. If your original gutters are straight, solid and don't leak, they don't need replacement, period.
2. If they do leak, there's a fair chance they can be repaired. In the case of steel or copper gutters, contact your local sheet metal shop. For redwood gutters, have a good handyman determine if they can be caulked or patched.
3. If you do decide on replacement, demand gutters that are at least equal to the originals in quality. Ask a knowledgeable but disinterested party (not the roofer doing the work) to recommend the best material.
4. Lastly, put at least as much thought into choosing the gutter profile (the cross-sectional shape) as you do into choosing the roofing material. Don't let the contractor make this choice for you; many will simply fall back on the style of gutter that's the least trouble to install.
If you're replacing your home's original gutters, simply choose the profile that best matches the original.
Traditional home styles typically have more ornate profiles; for example, the familiar ogee gutter (or "K-style" as it's known in the trade) looks more or less like a fancy molding when installed.
Another common traditional profile -- often found in Spanish and English Revival homes -- is the beaded half-round gutter, which has an almost medieval appearance and is typically installed with round downspouts.
All of these styles are commonly available, so don't let anyone tell you that what you want is obsolete. That just doesn't hold water.

Saturday, July 14, 2012

Pros' guide to deck refinishing

By Bill and Kevin Burnett
Inman News®
Q: It's time to refinish my sun-pounded deck, and I was wondering whether you'd recommend sanding it down again. I did so about three years ago, and although I love the freshly finished look, I'm not sure how many times I should sand the wood.
So I'm hoping that I can just seal it well and be done with it. The last time, I used a Cabot product called Pacific Coast Redwood-Clear. I liked it, but it's worn down now.
A: Pick a nice couple of days -- not too hot or too cold -- and get the refinishing part out of the way.
You did well to get three years out of the Cabot product. We usually suggest a product we've had good luck with: Superdeck by DuckBack. But since the Cabot product works for you and you like the look, stick with it.
We understand the concern about continuing to sand the deck. But the little bit of wood fiber removed with a sander won't affect the structural integrity of the decking. A 1 1/2-inch deck board can take a dozen or more sandings with no problem.
That being said, sanding is a lot of work. You can get the same clean, fresh surface with a good pressure washing. A pressure washer removes the deteriorated finish and some of the decayed wood fiber leaving a like-new surface after the wood dries. This machine attaches to a garden hose and sends out a pressurized stream of water that makes short work of old finishes, surface dirt, mold and mildew.
To look its best and prolong its life, a deck should be cleaned and treated with a preservative every one to two years depending on exposure to weather and use. A maintenance program consisting of cleaning the deck, removing any mildew and applying a new coat of preservative is the ticket.
We recommend using a pressure washer that can produce a stream of water of at least 1,500 pounds per square inch (psi). A word of caution here. Nozzles are adjustable from a stream the size of a pencil to a broad fan. For deck cleaning use the fan setting and be sure to keep the wand moving so you don't blast softer wood away from the surface and leave a rippled effect on the deck.
If your deck is really showing its age, consider using a chemical deck cleaner. Cleaners are available where pressure washers are rented or sold. We've had good luck with a product called Restore-X.
Pressure washers can be multitaskers, useful for washing the car or blasting moss off a shady sidewalk. So purchasing as opposed to renting might make some sense. If you have good neighbors, consider making a communal purchase and sharing.
Once cleaning is complete, thoroughly rinse the deck with clear water if you used a chemical cleaner, and allow the deck to dry for several days. Lightly hand sand the decking to provide some tooth for the preservative to penetrate. Apply the Cabot product you like according to package instructions. If a second coat is allowed, do a quick sanding between coats.
It's a fair amount of work, but we're confident you'll get another three years out of this job.

Thursday, July 12, 2012

Home prices at new lows for downturn

A national home-price index that captures about 75 percent of U.S. properties in all nine Census divisions showed home prices falling 2 percent during the first quarter to a new post-crisis low.
The S&P/Case-Shiller National Composite is down 35.1 percent from its second-quarter 2006 peak, Standard & Poor's reported today. Two other S&P Case-Shiller indexes, the 10- and 20-city composites, are also at new lows for the housing downturn, although both were little changed from February to March.
Seven of 20 metros covered by the 20-city composite saw price declines from February to March, compared with 16 in last month's report. Five -- Atlanta, Chicago, Las Vegas, New York and Portland -- are at new lows for the downturn.
"While there has been improvement in some regions, housing prices have not turned," said David Blitzer, chairman of the Index Committee at S&P Indices, in a statement.
Blitzer noted some improvement from last month's report, when nine metros hit new lows. The annual rate of change deteriorated in just three of 20 metros in March: Atlanta, Chicago and Detroit. Seven cities posted annual gains: Charlotte, Dallas, Denver, Detroit, Miami, Minneapolis and Phoenix.
"This is what we need for a sustained recovery: monthly increases coupled with improving annual rates of change," Blitzer said. "Once we see this on a broader level we will be able to say the market has turned around."
S&P/Case Shiller indices March 2012
MetroMarch 2012 index levelChange February-March (percent)Change from year ago (percent)
Atlanta
82.53
-0.9%
-17.7%
Boston
145.92
-0.2%
-1.0%
Charlotte
109.40
1.2%
0.4%
Chicago
102.77
-2.5%
-7.1%
Cleveland
94.65
0.4%
-2.4%
Dallas
114.49
1.6%
1.5%
Denver
123.66
1.5%
2.6%
Detroit
66.66
-4.4%
2.3%
Las Vegas
89.87
0.0%
-7.5%
Los Angeles
159.73
0.1%
-4.8%
Miami
140.76
0.9%
2.5%
Minneapolis
109.21
-0.9%
3.3%
New York
157.87
-0.9%
-2.8%
Phoenix
106.38
2.2%
6.1%
Portland
129.01
-0.5%
-2.8%
San Diego
149.68
0.4%
-2.7%
San Francisco
125.94
1.0%
-3.0%
Seattle
131.23
1.7%
-1.3%
Tampa
125.49
1.3%
-1.0%
Washington, D.C.
176.48
1.0%
-0.6%
Composite-10
146.61
-0.1%
-2.8%
Composite-20
134.10
0.0%
-2.6%
National
123.33
-2.0%*
-1.9%
*Change from fourth-quarter 2011 to first-quarter 2012. Index has a base value of 100 in January 2000. Source: S&P Indices and Fiserv.
In March 2012, Phoenix posted the largest annual rate of change, 6.1 percent, while home prices in Atlanta fell the most over the year, down 17.7 percent.
The indexes emphasize non-seasonally adjusted figures, although seasonally adjusted figures are also provided for reference.
"Since we are entering a seasonal buying period, it becomes very important to look at both monthly and annual rates of change in home prices in order to understand the broader trend going forward," Blitzer said.
The indices have a base value of 100 in January 2000. So the national composite's current index value of 123 translates to a 23 percent appreciation rate since January 2000 for a typical home.
Atlanta, Cleveland, Detroit and Las Vegas were the four metros in the 20-city composite where average home prices were below their January 2000 levels.

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