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Real Estate Outlook: Positive Signs of Recovery

admin — Fri, 19 Mar 2010 01:13:47 +0000

by Kenneth R. Harney

Published: March 15, 2010

Positive signs on employment and national economic growth should start being felt in the housing market in the coming several months, say top economists.

The Labor Department reports that there were 2.7 million job openings last month — 200,000 more than in the same survey the month before.

Meanwhile, the consensus forecast among private and government economists for the main barometer of the U.S. economy’s health, gross domestic product or GDP, is for a very solid 3 percent during the first quarter.

Alan Levenson, chief economist for T.Rowe Price Associates, said the latest reports are “indicative of a labor market and economy that is in the midst of recovery.”

That’s hugely important for real estate because expanding employment created by a rowing national economy are the essential fuels to power housing demand and sales.

Even though harsh weather conditions knocked the wind out of pending home sales and real estate shopping in many areas during January and February, analysts say the spring and summer market should be strong.

Lawrence Yun, chief economist for the National Association of Realtors, says the $8,000 and $6,500 federal home purchase tax credits that expire at the end of April for signed contracts — and the end of June for closed deals — should squeeze a lot of sales volume into the spring and early summer months.

Assuming slow but steady improvement in the jobs picture, Yun forecasts a solid second half of the year as well.

On the home pricing front, evidence continues to mount that in most parts of the country, home values have either bottomed out or have turned positive.

The most recent Case- Shiller index numbers on the top 20 metropolitan markets bear that out — and last week’s Zillow home value report found values essentially flat on a national average basis. They were down by just three tenths of a percent, but up in some major markets of note.

For example, Boston’s home values are up nearly two percent year-over-year, according to Zillow, and Los Angeles, San Diego, Denver and Philadelphia have registered gains after long periods of negative numbers.

Two other statistical hints that conditions are improving: The difference between listed prices and selling prices of home nationwide is now smaller than it’s been in a year, according to real estate research site Trulia.com.

And Realty Trac fond that foreclosures, which are clearly still a massive drag on the market — dropped by two percent last month — the second straight month of decline.

In a tough market, I guess we should appreciate even the smallest of improvements.

FSBO Woes: Why It’s So Hard to Sell Your Own Home

admin — Thu, 18 Mar 2010 22:59:09 +0000

For most people, a for-sale-by-owner transaction simply isn’t in the cards

By Marcie Geffner

Granted, some people are able to sell their own homes without the services of a real estate agent. Some of these successful do-it-yourselfers are very experienced home sellers. Others are transferring ownership of their home to a child, a coworker or a tenant who’s already living in the home. These circumstances are the exception, not the norm, however. For most people, a for-sale-by-owner (FSBO) transaction simply isn’t in the cards. Here are five reasons why.

1. FSBOs can’t list their home in the MLS. FSBOs aren’t permitted to put their home in the multiple listing service (MLS) because these industry membership organizations are open only to licensed real estate brokers and agents. FSBOs are also locked out of many home search engines and Web sites, including the gigantic Realtor.com. Sure, a determined FSBO can put a for-sale sign in his or her front yard and run a tiny advertisement in the local newspaper, but the home won’t receive nearly as much exposure as it would through the MLS.

2. Agents won’t show FSBO homes. In a typical home sale, the buyer’s agent receives a percentage of the commission that the seller pays the listing agent. Without a listing agreement, there’s no guarantee that the buyer’s agent will be compensated for his or her services, unless the buyer has signed a buyer’s brokerage agreement that specifically provides for such compensation. Even if a FSBO offers to pay the buyer’s side of the commission, most agents won’t want to go through a transaction with an unsophisticated self-represented seller across the table. That means the pool of potential buyers for FSBO homes is limited primarily to unrepresented and probably unqualified prospects.
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3. FSBOs usually overprice their home. Like most homeowners, most FSBOs honestly believe their own home is worth more than comparable homes in the same neighborhood. Usually, they’re wrong. A real estate agent can provide an update on market conditions, an assessment of the likely selling price of the home and tips for improving the home’s buyer appeal. Overpricing a for-sale home is a sure way to deter potential buyers.

4. Buyers will feel intimidated. Potential buyers will spend less time in a for-sale home if the owner is present during the showing, and they’ll be shy about discussing its pluses and minuses with their own agent if the owner is within earshot. Buyers will also be less inclined to make an offer if they know they’ll be negotiating directly with the seller. Having an agent on each side creates an effective emotional buffer between the seller and buyer.

5. FSBOs are likely to stumble into legal trouble. Real estate transactions are fraught with potential liability for unwary sellers, particularly in states that have extensive disclosure requirements (such as California). A FSBO who overlooks even one required form or legally mandated disclosure could face a protracted and expensive buyer lawsuit after the transaction closes.

What You Should Look for When House Hunting

admin — Thu, 18 Mar 2010 21:55:25 +0000

Keep your eye on these big-ticket items when shopping for a home

If you’re shopping for a home and can afford to buy one, you couldn’t be in a better position right now. In many parts of the country, housing inventory is high and both home prices and interest rates are low and as a buyer, you can take advantage of that.

With so many properties on the market, you can probably take a more leisurely approach to house hunting without getting into a fast-paced bidding war. There is a caveat, however. The best homes priced properly for the market conditions will always be in higher demand.

As you begin your search for the right home for you, it pays to keep in mind things you need to check carefully so that they don’t cost you big bucks in the long run.

Kitchen

If kitchens matter to you, you might want to be fairly selective about them when looking for a new home. The2009 average price for a minor kitchen remodel for a midrange home is more than $21,000 and the cost for a major remodel is more than $57,000 and the costs are substantially more for higher-end homes.

Look carefully at the appliances, cabinetry, counters and floor. Those are the elements that cost more to replace. If possible, you want newer appliances to save money on repairs and energy costs; solid-wood cabinets; and solid-surface counters, such as granite, stainless steel, butcher block or engineered stone. Your floor choices include wood, cork, laminates and tile and it’s a matter of what’s comfortable and durable for your lifestyle.

Bathrooms

Following kitchens, bathrooms are also expensive rooms to remodel at a 2009 national average of more than $16,000 because of the fixtures and plumbing. Make sure you see no leaks or evidence of leaks in tubs, toilets and flooring. Sharing bathrooms can be one of those pain points for families so make sure you get what you need.

Roof

A roof is a big-ticket item with an average 2009 replacement cost of more than $19,000 although adding a second layer to a roof is not nearly as expensive as replacing the entire thing. Inside the house, you can check the attic, ceilings and skylights for signs of water damage, look for places where the roof deck is sagging, and see if you can detect any light coming through. If you do see light coming through, it is likely not a problem if the roof is made of shake shingles. Outside, inspect for cracked, ripped, curling or missing shingles and damaged flashing. Also look for rotting, buckling, blistering or algae growth, which could also be signs of trouble.

HVAC

An old heater can be hard to repair and eats up energy at a pace faster than newer units. Furnaces can start at about $5,000 to replace and if you buy a combined unit with the air conditioner, add on several thousand dollars. You may need to replace the heat pump or air conditioner if it’s older than 10 years and a furnace or boiler if it’s more than 15 years old.

Basement

The extra room you gain may be a huge headache if the basement floods. Look for water marks and find out if the house has a system for removing water.

Other areas of concern that might cost money down the line are the driveways and sidewalks, chimneys, insulation and windows.

If you find a house and your offer is accepted, you’ll be dealing with a home inspector who can fill in the gaps with a professional’s eye. The thing is, if you really want the home, you don’t have to let problems deter you. You are in position to negotiate a price reduction with the seller or insist repairs be made to the property before your offer is finalized.

If you can afford a house, you can afford the luxury of taking your time to find the right one for you.

Home Buyer Tax Credit & The IRS… What You Need To Know

admin — Thu, 18 Mar 2010 21:02:39 +0000

The Internal Revenue Service has recently released the new form that eligible homebuyers need to claim the first-time homebuyer credit this tax season and announced processing of those tax returns began in mid-February. The IRS also announced earlier this year what the new documentation requirements to deter fraud related to the first-time homebuyer credit will look like.

The new form and instructions follow major changes in November to the homebuyer credit by the Worker, Homeownership, and Business Assistance Act of 2009. The new law extended the credit to a broader range of home purchasers and added new documentation requirements to deter fraud and ensure taxpayers properly claim the credit.

With the release of Form 5405, First-Time Homebuyer Credit and Repayment of the Credit, and the related instructions, eligible homebuyers can now start to file their 2009 tax returns. Taxpayers claiming the homebuyer credit must file a paper tax return because of the added documentation requirements.

The IRS expects to start processing 2009 tax returns claiming the homebuyer credit in mid-February after it completes the updating and testing of systems to meet the law’s new requirements. The updates allow the IRS to put in place critical systemic checks to deter fraud related to the homebuyer credit.

Some of these early taxpayers claiming the homebuyer credit may see tax refunds take an additional two to three weeks.

In addition to filling out a Form 5405, all eligible homebuyers must include with their 2009 tax returns one of the following documents in order to receive the credit:

A copy of the settlement statement showing all parties’ names and signatures, property address, sales price, and date of purchase. Normally, this is the properly executed Form HUD-1, Settlement Statement.
For mobile home purchasers who are unable to get a settlement statement, a copy of the executed retail sales contract showing all parties’ names and signatures, property address, purchase price and date of purchase.
For a newly constructed home where a settlement statement is not available, a copy of the certificate of occupancy showing the owner’s name, property address and date of the certificate.

In addition, the new law allows a long-time resident of the same main home to claim the homebuyer credit if they purchase a new principal residence. To qualify, eligible taxpayers must show that they lived in their old homes for a five-consecutive-year period during the eight-year period ending on the purchase date of the new home. The IRS has stepped up compliance checks involving the homebuyer credit, and it encouraged homebuyers claiming this part of the credit to avoid refund delays by attaching documentation covering the five-consecutive-year period:

Form 1098, Mortgage Interest Statement, or substitute mortgage interest statements,
Property tax records or
Homeowner’s insurance records.

The IRS also reminded homebuyers that the new documentation requirements mean that taxpayers claiming the credit cannot file electronically and must file paper returns. Taxpayers can still use IRS Free File to prepare their returns, but the returns must be printed out and sent to the IRS, along with all required documentation.

Normally, it takes about four to eight weeks to get a refund claimed on a complete and accurate paper return where all required documents are attached. For those homebuyers filing early, the IRS expects the first refunds based on the homebuyer credit will be issued toward the end of March.

The IRS encourages taxpayers to use direct deposit to speed their refund. In addition, taxpayers can use Where’s My Refund? on IRS.gov to track the status of their refund.

More details on claiming the credit can be found in the instructions to Form 5405, as well as on the First-Time Homebuyer Credit page on IRS.gov. If you have questions regarding the tax credit, income taxes or what forms you should file, please contact a qualified CPA or the IRS.

Making you home More Assessable, GRAB BARS: What You Need To Know

admin — Wed, 13 May 2009 23:49:13 +0000

by Jane Hampton, CID, CAPS, Access Specialist

Before beginning the installation process of your grab bars for bathroom installation, it is important to know what type of tub or shower you have. The type of shower determines the installation method and products needed to have a successful installation.

Installing Grab Bars for Your Bathroom to Code
Installed grab bars for bathrooms need to sturdy enough to support your weight. State Building Codes and Federal accessibility guidelines for public buildings require grab bars be installed to support a minimum 250 pounds.

In most cases, additional wood or structural material needs to be added to the shower walls such as installing plywood between the shower unit and wall studs, or solid wood blocking between the wall studs. If you install a grab bar into an existing bathroom wall without providing the proper support, the grab bar installation will not secure properly. This could cause you great harm in the event you are relying on the grab bar for support and it pulls off the wall.

The easiest way to install proper support is to open the wall, either from the toilet room side of the wall, or if possible, through the back side of the wall from the adjacent room. This will require some patch and repair work to the wall after the support has been installed.

Molded Fiberglass Shower
If you have a molded fiberglass shower, installation of grab bars for bathrooms is more challenging. Most prefabricated units use a thin fiberglass plastic wall material that is not strong enough to support grab bar installation. If this is your situation, it’s best to rely on a professional installer who has previous experience drilling holes through a fiberglass wall.

Grab Bars for Bathroom Tools
It is important to have the proper tools to ensure the shower wall does not “crack” or become damaged. The structural issue of concern for grab bars mounted on a fiberglass shower is the air space between the fiberglass wall and stud wall. There is a product on the market which called “The Solid Mount” that attaches to the wall stud, filling the hollow space, sealing the hole and leaving a mounting surface to which a standard grab bar can be safely attached.

If you have tile walls, consider using a professional installer for grab bars to avoid shattering or cracking the tile when you drill screw holes.

Styles and Sizes of Grab Bars for Bathrooms
Sizes of Grab Bars – As far as grab bar size and styles, a variety of grab bars is available on the market. They come in different diameters and clearances to the wall, various lengths, shapes and finishes. You need to find a grab bar that has a 1-1/4 inch to 1-1/2 inch diameter (whichever fits your hand size best) and when mounted on the wall, provides a clearance no greater than 1-1/2 inches. If the clearance to the wall is greater than 1-1/2 inches, there is a safety concern. If you were to lose your balance your arm could slide between the wall and grab bar. You could get “wedged” between the wall and grab bar or even break your arm.

Styles and Finishes of Grab Bars – Grab bars don’t have to look institutional. Attractive finishes and decorative flanges and screw cover plates are available. Grab bars are available in various colors to match your décor, as well as brass, antique brass, chrome, bronze, oil rubbed, etc. Some of the higher end plumbing showrooms carry the more decorative finishes and cover plates. In addition, some grab bar manufactures offer “non-slip” surfaces which work well in wet areas.

Though at first glance grab bars by different manufacturers appear to be comparable, the quality varies. Here are some questions to ask yourself to determine if you can use a less expensive grab bar or need a higher quality grab bar:

1. Does the grab bar support the user’s weight, or is a stronger grab bar needed? Some grab bars are designed to meet minimum requirements set forth by accessibility codes and guidelines (250 pound minimum) and may not be able to support the weight of a heavier person.

2. If a stainless steel grab bar is selected, will the materials eventually rust (especially in a shower situation)? Grab bars that are made of 3 or 4 series metals (stainless) should not rust, grab bars made of 1 or 2 series metals can rust even though they are stainless steel.

3. If selecting a powder-coated (e.g.: white or colored) grab bar, will it rust if the bar gets chipped?

4. Is it important to have a style where the screws are counter sunk (recessed into the bar flange)? Some manufacturers do not recess the screws into the flange. They are less attractive and the screws may catch on the user’s skin, or snag their clothing, etc.

5. Is it important for you to have the screws concealed for a more aesthetic image?

6. Is the flange thickness important to you? Some manufacturers offer a 12 gage flange thickness which is thicker than most that are only 14 gage. (Note: The lower the gage the thicker the metal.)

7. Is the flange “hand pig” welded to the bar? Some welds are thinner and possibly not done by hand which may create a weaker joint.

8. Is it important to have all visible clamp or fabrication marks removed from the surface of the grab bar or are minor imperfections acceptable?

9. Is a product guarantee important to you? Some manufacturers offer a lifetime guarantee.

10. Finally, in regard to position and length, there are many resources available that provide guidelines. But, it is always best to consult with your physician or therapist to determine the best grab bar for bathrooms positioning for your specific safety needs.

Jane A. Hampton, CID, CAPS is the President and Founder of Accessibility Design, a Minneapolis, MN based home access design, consultation, and project management company (est.1992). As a Certified Interior Designer and Certified Aging in Place Specialist, Jane Hampton was one of the early pioneers in developing the specialty niche of home access and defining what it is today. She and her company have captured the essence of Universal Design, Aging in Place, and Home Access and have helped thousands enhance their lives by refining residential access and independent living. She is looked to as an expert in the field, as well as an educator on both a regional and national level.

For more information regarding Jane Hampton and her company, visit Accessibility Design’s website.

This story was submitted by one of our readers and may have originally appeared elsewhere
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Are Replacement Windows a Wise Home Improvement?

admin — Wed, 22 Apr 2009 01:48:35 +0000

Perhaps no home improvement project has more perceived value than installing replacement windows into your home. Is this a well-deserved perception? Like most things the answer is, “It depends.”

The first thing to do is analyze your current situation. How many windows does your house have? How old are they? How many panes of glass do they have?

It may be the case that your current windows, while not at peak performance levels by today’s standards, are still performing well.

According to Consumer Reports:

Replacement windows can save you between 10 and 25 percent per year on heating and cooling if you have single-paned windows.

But because the cost of replacing all the windows in your home can run anywhere from $5,000 to $50,000 depending on the number, style and performance of the windows, it’ll often take many years just to recoup their cost.

If you do decide to buy new replacement windows, take into consideration what kind of windows homes in your neighborhood currently have. Vinyl windows are by far the most popular and generally cost a great deal less than clad wood windows. But if your home is located in a more upscale neighborhood, selecting the more attractive clad wood windows makes more sense.

Pella has a new line of fiberglass windows called Impervia that are designed to be more durable than vinyl windows but still be wholly maintenance free. These received a recommendation from Consumer Reports in their latest report.

You might also be interested in THIS story about a woman who spent $750,000 having her dream house built just to then spend an additional $700,000 having the new windows re done and another woman who is ready to demolish her never lived in house because of window problems. Do not hire a contractor or builder or buy windows until you read this!

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Building a Home: $750,000. Repairing the Windows: $700,000?

admin — Tue, 21 Apr 2009 03:31:14 +0000

New home: $750,000. Window repairs: $700,000

An Oregon woman faced this nightmare scenario after the windows in her newly built home were improperly installed. The Wall Street Journal’s Teardown Diarist uncovers several cautionary tales and discovers a few problems of her own.

My house was all framed and roofed and the windows were installed — but the siding wasn’t yet on — when I happened to meet two women at a cocktail party who had recently had new homes built. I casually asked them if they had learned anything.

There’s no such thing as casual conversation when you’re building a home. It turns out that both women had been involved in lawsuits because of leaking windows that they say were improperly installed.

Window installation has become more of a problem as houses have become more energy efficient. Windows used to be installed leaving a gap for airflow to occur. Now they are completely sealed. While fewer cold drafts occur, the reduction in air means any water that gets in can’t evaporate, making leaks more of a problem.

Window makers’ warranties typically don’t cover installation — only the window itself is covered, and only if the window is installed using an approved and recommended method. That means if windows leak around the edges because of improper installation, the window manufacturer won’t pay for repairs. And if the contractor doesn’t follow the manufacturer’s instructions, the window maker won’t pay for any kind of damage to the window, either.

Oh, and unless you ask, it is unlikely your contractor will tell you what installation method he’s using.

The women at the party shared their horror stories: Theresa Rockove, who manages her husband’s medical practice, had a 5,000 square foot, $1 million two-level home built in Troutdale, Ore., finished in August 2005. The following winter, she noticed a smoke alarm was shorting out; it turned out to be wet. Soon, more windows started leaking. She hired Western Architectural, a national waterproofing consulting company that inspects the weather and structural integrity of residential and commercial buildings. Western Architectural found the flashings — the material, usually metal or plastic, installed to prevent water from penetrating — hadn’t been properly installed. It took nine months, a second mortgage and living in only part of the house, but finally Rockove had the damage repaired and settled a lawsuit with her builder for $250,000. The builder could not be reached for comment.

The contractor Rockove hired to fix the leaking windows — Sean Gores of Clackamas, Ore.-based Sean Gores Construction — has been in the construction-defect repair business for 11 years. He says that about 40% of his business involves leaking windows because of improper installation.

Rockove’s sister-in-law Kristi Calcagno, a real-estate broker in Portland, Ore., spent $750,000 building a three-story, cedar-shingled beach house with lots of windows and decks facing the sea in Long Beach, Wash. She also noticed some leaking around the windows after the house was finished in 2005.

After hiring Western Architectural, which said the installation wasn’t done properly, she hired another contractor who estimated that it would cost $700,000 to fix the problem.

She then sued the original builder, who in turn named seven subcontractors. The issue is still pending, and Elizabeth Lampson, the attorney for the defendant, insurance company AIG, had no comment.

Calcagno has never occupied the house and is prepared to tear it down altogether because there has been so much water damage. "I’m at a point where if the house falls down I would just say ‘eh,’" she says.

I e-mailed my contractor and architect to ask them if they thought I should hire Western Architectural before we closed up the exterior. Both agreed that was a very good idea.

Western Architectural found that most of windows in my new home were installed in the openings using foam as a sealer and no flashing or weather-resistant barrier wrapped into window and door rough openings — a direct violation of the installation instructions issued by window manufacturer Pella. If the sealant fails, the wood structure would be vulnerable to moisture, according to the company’s report, which also found that the foam used isn’t an industry standard.

Western Architectural recommended removing all the windows and reinstalling them according to Pella’s instructions. According to the company’s inspector, Michael Drexler, even the foam wasn’t applied according to instructions — it should have had paper as well as foam. "My guess is that it was for cost reasons. The wrap takes more time and materials than the foam," Drexler says.

Instead of using paper that rolls into the opening between the window and the hole cut into the siding for the window to create a barrier, the subcontractor my builders used to install the windows used foam to seal them. "They thought that was a better solution," my contractor told me. He says the issue wasn’t cost. "It was never about money," he says.

My contractor cleared the installation variation with Pella, which guaranteed that despite the modified installation method the full terms of the product warranty would remain in effect. All very well — but as I stated earlier, that didn’t mean that Pella would be responsible if the foam method caused leaking.

Kathy Harkema, a spokeswoman for Pella, said the No. 1 problem builders have is with improper window or door installation. "Installation is every bit as critical as the window," Harkema said. The company has more than 200 engineers at its Iowa headquarters who study installation techniques in order to make the best recommendations to builders. If requested, the company will dispatch a service technician — for a fee — to go to a building site and inspect the installation. "We strongly suggest following our instructions," Harkema says. "It takes the guesswork out of it for everyone."

My contractor says every window manufacturer has different instructions for installation. "It’s like getting three doctors to agree on the same treatment," he says. He hired two different consultants to check the installation using foam and tested it with water to look for leakage. "Ultimately, we’re liable for this," he told me. One of the consultants, worried that the foam could shrink over time, recommended adding a sticky paper over the foam for further sealing — a step my contractor took.

We are moving ahead with the siding this week, which will be followed by drywall. Then comes the expensive part of building a house: the interior — including cabinets, finishes and lighting.

Have YOU had any experiences building a home, hiring builders or with installing windows? we would love to hear your COMMENTS!

Are you looking for quality contractors in Des Moines, IA? CLICK HERE

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This story was submitted by one of our readers and originally appeared HERE

New Construction: 5 Reasons To Use an Architect

admin — Sun, 19 Apr 2009 20:21:49 +0000

If you’re planning a large remodel, a licensed expert may pay off.

5 reasons architects are worth the money when redoing your home

If you’re considering a large-scale, once-in-a-lifetime remodel, the expert help of a licensed architect may help you achieve the home of your dreams.

By Popular Mechanics

If you’re like most homeowners, you probably dream of one day completing a major home-remodeling project. And I’m not talking about retiling a tub here. This is the once-in-a-lifetime renovation — the kind that dramatically changes how you live, energizes the entire household and makes all the neighbors really jealous.

Perhaps your dream is to build a two-story addition with a family room below and a master bedroom and bath above. Or maybe you’ve always wanted to expand the kitchen and install French doors leading to a wraparound deck. Regardless of what your dream entails, all major remodeling projects can benefit from the expert design help of an experienced, licensed architect.

I know what you’re thinking: Architects are way too expensive and only necessary when building multimillion-dollar homes — and the current economic roller coaster isn’t helping any. The truth is, architects are well worth the extra cost on large remodeling jobs because with thoughtful evaluation and design, they can meet — and often exceed — your expectations. In fact, depending on the size or complexity of the remodeling, calling in an architect might be the only way to get the project off the ground, and to ensure your dream comes true. Here’s why you should consider taking the plunge if you’re gung-ho about a large-scale remodel of your house.

1. To see the big picture
An architect has the training and skill to produce a detailed design based on your particular needs and desires — a design that’s sensitive to the architecture of your existing home and scaled to the proper proportions. However, what truly makes an architect valuable is the ability to develop and refine a vision of the completed project that you can see and understand. And architects are experts at seeing not only the big picture, but also the hundreds of tiny steps between concept and completion.

After the initial consultation, and once you and the architect have defined the scope, features, purpose and functionality of the project, the architect will develop a set of preliminary drawings, sometimes called schematics. These drawings are just the first of many that you should expect to see.

"It’s important for the architect to spell out in advance what each set of drawings will include," says Richard Hayes, architect and managing director of the American Institute of Architects. Don’t be concerned if the preliminary drawings seem lacking, because each subsequent set will contain more and more detail, including written specifications. In fact, Hayes recommends asking the architect to show you a final set of drawings from a recently completed job, just to give you an idea of what to expect at the end of the design phase.

But before you settle on a candidate, carefully consider the firm’s past designs and gauge whether its vision for your house meshes with your own. If you want to incorporate salvaged stained-glass windows and antique brass doorknobs, for instance, don’t choose an architect whose past work features floating drywall over recessed fluorescent lights.

2. To handle the paperwork
When most of us think of an architect-designed project, we envision the aesthetics of the building: its size, shape and finished surfaces. But behind the pretty face are the bones of the building. It’s the architect’s job to design the project to satisfy building codes and meet specific structural demands. And striking that balance between aesthetic beauty and structural safety is no easy feat — it requires a vast knowledge of various building materials and construction techniques. Hiring a pro makes sure your renovation plays by the rules.

"A good architect knows the building code and alternative ways to solving structural problems," explains Marc Olivieri, a Connecticut construction manager. "Architects also prepare most of the documentation necessary to acquire all the various building permits." And those services can ultimately save you time and money.

3. To hire the muscle
No one understands the design of your project better than the architect, which is why he or she is the perfect person to coordinate the various construction professionals before the work starts in earnest. For example, an architect will meet with structural engineers or HVAC mechanics prior to construction to discuss the design, answer questions and ensure everyone knows their job.

The architects’ plans make all the difference in translating your dreams to the details a contractor needs. If a problem should arise, which often happens, the plans will act as a record of what should have been done, and the architect will find a solution without compromising the design, your needs or your wallet.

4. To oversee the job
Once the design phase is completed, you can decide how involved the architect is in the actual day-to-day construction of the project — if at all. You can hire an architect just to design the project and create all the necessary drawings, and that’s it. He or she then has no further involvement. However, for an additional fee, some architects will manage the project by hiring subcontractors, establishing the work schedule and confirming that all work is done properly and according to the final plan.

Another common practice is called contract administration, or "CA" for short. "When you sign a CA," Hayes explains, "the architect will check in on the construction from time to time to answer questions and ascertain if work is adhering to the intent of the design."

A third level of supervision is available through design-build firms. These one-stop shops will design and build your project, providing supervision throughout every phase of construction, including hiring subcontractors. This option also saves you the trouble of negotiating and signing two contracts — one with an architect and another with the contractor. But be aware that some design-build firms employ home designers, not certified architects.

It’s also important that you be involved during the construction process, even if it’s just to consult with the architect from time to time. That way, you’ll be able to express your concerns as the project takes shape. "Working with an architect is a bit of a balancing act," Olivieri says. "You want to make sure your needs and desires are satisfied, but without surrendering all control to the architect when changes or refinements to the design are necessary."

5. To go green
More and more architects are starting to design buildings that are environmentally sensitive to both the planet and the homeowner. Considering sustainability in concept and construction will ensure your investment lasts a long time, limits its consumption and saves you money through efficient design.

The options available vary widely depending on the experience of the architectural firm and the circumstances of your project. Even if you’re not plunging into a photovoltaic array or a backyard wind farm, smart choices can make significant, smaller gains. Consider using recycled and nontoxic materials, solar or passive water heaters, efficient insulation and a trustworthy thermostat. Because many of these measures involve whole-house systems, it’s critical to plan for them.

For more information about green architecture, visit the American Institute of Architects’ Sustainability Resource Center and the U.S. Green Building Council.

By Joseph Truini, Popular Mechanics

This story was submitted by one of our readers and originally appeared at: Popular Mechanics

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VIDEO: 4115 140th St. Urbandale, IA

admin — Mon, 13 Apr 2009 05:37:16 +0000

Another great real estate deal from www.mydesmoinesrealty.com and www.lotinvestor.com

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New Iowa Tax Better For Home Owners than Renters

admin — Mon, 06 Apr 2009 22:18:48 +0000

Tax plan more likely to sting Iowa renters, simple filers

By JASON CLAYWORTH • jclayworth@dmreg.com • April 3, 2009

Low- and middle-income Iowans like Nikki Roe are far less likely than homeowners to benefit from proposed changes in the state’s tax laws.
Roe is a divorced mother with three children who works full time as a housing counselor at a Waterloo nonprofit group. She lives in and owns a mobile home but doesn’t itemize deductions on her tax returns.
Because of that, she has a greater possibility of joining more than 450,000 Iowans in the current tax year who would pay more if lawmakers end federal deductibility.

Almost 282,000 of those Iowans make less than $50,000, according to estimates from the Iowa Department of Revenue and Finance.
Those who would pay extra are more likely to be people who file simple tax returns and do not take deductions. Many times such people are renters or people like Roe who believe the lower value of their property isn’t worth the hassle of claiming deductions. They’re also more likely to be lower-income or recent high school and college graduates, said Mike Lipsman of the revenue department.
House File 807 will likely be debated next week in the Iowa House. It would end Iowans’ ability to subtract what they pay in federal taxes from their income when figuring their state taxes.

The bill also would reduce state income tax rates, offering low- and middle-income families the greatest breaks, Democrats say. The state would not take in extra money as a result, supporters say.
“Of course, with three kids, having more money in my pocket would be a huge benefit,” Roe said. “The more I have, the more I could provide for them.”
In addition, the proposal would increase the earned income tax credit.
Roe doesn’t know for sure how ending federal deductibility might affect her or the hundreds of people she helps in her job every year to avoid home foreclosures or bankruptcies.

Generally, individuals or families who make less than $125,000 per year would pay less in state income taxes. However, thousands of people in nearly every income category would pay more.
“It boils down to if you don’t itemize, you’re more likely to see your taxes go up,” Lipsman said.
Information from the Internal Revenue Service shows that of the 1,378,083 Iowans who filed taxes in 2006, 349,532 claimed a deduction for mortgage interest while 400,714 claimed a deduction for real estate taxes.

Rep. Tyler Olson, D-Cedar Rapids, and Rep. Thomas Sands, R-Columbus Junction, met with Des Moines Register reporters and editors on Thursday. Both acknowledged that the elimination of federal deductibility may not be as beneficial to families who don’t claim deductions.
Sands, like most of the members of his party, is opposed to the bill.
“Less than half of Iowans will see a benefit from this, whereas everyone else will either see no change or pay more to make up the difference,” Sands said, noting state revenue estimates.

Olson, who supports the bill, noted that two-thirds of Iowans would see either a tax decrease or no change at all.
“I’m hearing this hasn’t been thought through and we don’t know how this will affect taxpayers. I just totally disagree with that statement,” Olson said.
House Democrats decided to delay debate of the controversial proposal until next week, saying they were tweaking the bill. They declined, however, to go into details about what changes they are considering.

“If you make one single tweak to an area, it could have a $14 million or $15 million effect on your balance sheet one way or another,” said House Majority Leader Kevin McCarthy, D-Des Moines. “It’s very complicated.”
House Speaker Pat Murphy, D-Dubuque, hinted that the change would be in favor of giving more working families a bigger break.
“Our goal is to get as many people a tax cut with this, especially middle-class families,” Murphy said. “I’ll just tell you, we were ready to go on the bill but we’re working with the governor’s office to make sure he’s OK with every detail that’s in the bill.”

Some advocates for low-income Iowans urged residents Thursday to look at the bigger picture. Overall, more low- and middle-income families would win under the proposal, they said.
“It concerns me but, generally, in terms of good public policy, it’s good for Iowa,” said Victor Elias of the Iowa Fiscal Partnership, an Iowa City group that advocates for working families. “If you can help middle- and low-income families, then you’re helping the whole state.”