Monthly Archives: October 2014

Home Improvement Project Prep | Waccabuc Real Estate

We’ve all heard horror stories about home improvement projects gone wrong. In fact, many of us have likely lived through renovations and the headaches they can entail, including delays, shoddy work, unacceptable messes and fights with contractors.

For most people, buying a home is the biggest financial investment they’ll ever make, and, understandably, homeowners want to keep their dream home feeling as fresh as the day they got the keys. But before you embark on a project to update your kitchen, spruce up your bathroom or switch out the paint and trim, it’s important to understand the legal issues you may encounter with a home improvement project.

Is a contract really necessary?

The simple answer is yes. Legal advisers strongly suggest homeowners sign a contract with any contractors that, at the very least, outlines the following:

  • The scope of the work and total price
  • The legal name of the parties and the physical address of the contractor
  • The contractor’s license(s) and tax ID number
  • The labor and materials being provided to complete the job
  • The timeframe in which the project will be completed
  • The homeowner’s responsibility, which may include the selection of fixtures, paint colors, etc.
  • The days and times the contractor(s) will have access to the property.

North Andover, MA attorney Ramsey A. Bahrawy says it’s important to list the start and end date in the contract. “If the contractor does not substantially finish the work by the date stated in the contract, he can be penalized a specified amount for each day he is late,” Bahrawy says.

If the contractor will be using subcontractors, the contract should state that all contractors and subcontractors are registered, and their license numbers should be listed in the contract so a homeowner can inquire about them if needed, Bahrawy adds.

Chicago attorney John R. O’Brien, who has 30 years of experience in construction litigation, says the contract should also specify that contractors are independent contractors and not employees of the homeowner.

Confirm that workers are insured

“Each contract should also require the contractor to carry workers’ compensation insurance and show the homeowner proof of insurance,” O’Brien explains. “For larger jobs or more hazardous ones (like roofing), have the contractor get an endorsement on their workers’ comp insurance listing the homeowner as an additional insured.”

Call the insurer to verify that the policy is still in effect

If workers are injured while on the job, who is liable?

Injuries to independent contractors and their employees are generally not the property owner’s responsibility. However, exceptions could occur, such as if the owner told the contractor he would turn off the electric power to the work area and then didn’t, or if he told the contractor’s employee to use the owner’s rickety ladder. If the contractor or employee was injured in such a circumstance, the homeowners insurance policy likely would cover it, O’Brien says.

Bahrawy urges homeowners to call their insurance company to ensure their homeowners insurance covers such events.

Krista Dawkins, partner at Pyka Lenhardt Schnaider Zell in Santa Ana, CA says it’s wise to choose contractors who have their own workers’ compensation insurance. If they don’t offer workers’ compensation, it may mean they’re using laborers who are not legal residents of the state.

“A savvy homeowner would ask, ‘Do I want to run the risk of going with a cheaper, uninsured, fly-by-night operation because I have my own homeowners insurance, or spend more for a contractor that includes workers’ compensation insurance as part of his business plan and margins?’”

Make sure you’re covered for contractor damage or issues

Be sure every contractor has general liability insurance in addition to workers’ compensation insurance. Again, you can call the insurer to determine that the policy is in effect and get details of the type of coverage and deductibles.

Bahrawy says homeowners should also protect themselves from subcontractors or employees who have not been paid by the contractor. “That person can place a mechanic’s lien on the homeowner’s property to protect his or her right to payment. The contract should include a clause that will hold the homeowner harmless from claims by employees and subs.”

O’Brien says this would apply to any job that includes subcontractors.

 

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http://www.zillow.com/blog/cover-legal-bases-home-improvement-162553/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+ZillowBlog+%28Zillow+Blog%29

Houses groan, creak, and pop on a regular basis | Cross River Real Estate

Homes make strange noises. They’re built from many different materials — glass, concrete, wood — that expand and contract at different rates.

“[But] the most noise your house should make is a popping sound, like your knuckles cracking, and only once in a while,” said Bill Richardson, former president of the American Society of Home Inspectors and owner of Responsive Inspections in Bosque Farms, N.M.

If your home is making noises that rival the best of Metallica, then it may be sending you signals that there’s a problem. We asked the experts to catalogue some of the more worrisome pops, hisses, groans, creaks and knocks, and tell us what they mean and how they can be remedied.

Here are the top seven problem noises and how they can be solved.

1. What is that clanking sound when I turn on the heat?

The problem: When most homeowners first turn on their heating system in the fall, they hear a little moaning and groaning as the heating system expands and rubs against the frame of the house, says Mike Kuhn, the New Jersey owner of HouseMaster inspection service and coauthor of “The Pocket Idiot’s Guide to Home Inspections.” With a baseboard hot-water system, you can also expect “normal clinking and knocking,” says Kuhn. The circulator pump or pumps to the system, however, “should be silent when they run,” says Kuhn. If you hear knocking or clanking, typically located at the boiler itself, it might be a sign of impending failure of the circulator pump, he says.

The solution: Get a repairman out to check on it, pronto.

2. There’s a strange scratching sound coming from behind the walls.

The problem: If you hear strange noises like scratching and possibly chittering coming from places where no one lives in the house, you could have mice, squirrels, raccoons or even bats sharing your quarters, says Richardson. “Any kind of wild critter could be up in the attic,” he says. And these freeloaders aren’t just a nuisance; bats can carry deadly rabies. In the Southwest, the droppings of mice can spread hantavirus. Some animals will tear up insulation to nest or chew through siding and even electrical wires, causing fires.

The solution: As soon as you suspect an intruder, get on it: Set traps. (Call in a pro if the animal is stubborn or large.) Finally, prevent the problem from reoccurring by sealing up the entrances to your house with steel wool, metal sheeting, caulk and/or hardware cloth.

To keep raccoons away, put garbage in sealed, secure metal cans that can’t be tipped. Bring pet food inside. After pests have been removed, make sure vents and chimneys are securely covered with mesh or a grille, so those spaces can still breathe.

3. There’s no one in the house and I can still hear running water. How can that be?

The problem: “You definitely don’t want to hear water running if nobody’s using anything,” says Richardson. The sound could indicate many things — a busted pipe in a wall, under the floor or even in the irrigation system.

The solution: If you hear running water when you shouldn’t, shut the main off and see if the noise goes away, says Richardson. If it does, you’ve got a leak somewhere — and a problem in need of fixing. Unless you’re really handy and ready to do surgery on your home, call in a plumber.

4. I hear a bubbling (or cracking) sound coming from the water heater. Is that normal?

The problem: A gas-fired hot-water heater works pretty much like boiling a pot of water: A fire is lit and the water inside is heated until it’s ready for use. “A lot of sediment builds up at the bottom of a hot water tank, and that sediment works like an insulator,” forcing the burner to work harder, Kuhn says. The strange noise you hear is the bubbling sediment — and a sign that the tank is probably experiencing fatigue and may be facing premature failure, he says.

The solution: Ideally, you should flush out your hot water tank every few months, using the drain valve near the bottom of the floor. “However, nobody does it,” says Kuhn, because it can be a pain to do. If your water heater is already making these noises, draining it might help. “It could (work) a little bit longer, [and] it could go a lot longer,” but the damage is probably done, says Kuhn.

5. My furnace is making a whistling (sucking) sound that it’s never made before. Is it going to need to be replaced?

The problem: “What that can connote is that your filter hasn’t been changed,” says Richardson. “And your furnace is trying to pull in air from around it.” That’s not good, he explains, because it means the furnace is working too hard. “What it will do is start sucking exhaust gasses from the furnace into the house.”

The solution: Install clean filters regularly — “anywhere from three months to monthly, depending on atmospheric conditions,” says Richardson.

 

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http://www.zillow.com/blog/7-creepy-house-noises-163176/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+ZillowBlog+%28Zillow+Blog%29

 

 

Nuclear Plant Sirens Will Be Tested Thursday | Chappaqua Real Estate

There will be a test of the Indian Point sirens in Westchester, Putnam, Rockland and Orange Counties on Thursday at approximately 10:30 a.m, according to an announcement on westchestergov.com.

This sounding is only a test and no action by the public is necessary, the announcement said.

The sirens would sound continuously at full volume for four minutes, followed by the broadcast of an Emergency Alert System (EAS) message on radio and television stations during an actual emergency. Sirens are not a signal to evacuate, but rather for people to tune to an EAS radio or TV station for information and instructions.

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http://mtkisco.dailyvoice.com/news/indian-point-sirens-will-be-tested-thursday

$3.5M Buys a Wright Student’s Spiky, ‘Zen-Like’ 1985 Design | Armonk Real Estate

25 images

Location: Armonk, N.Y.
Price: $3,500,000
The Skinny: A 1985 home in Armonk, N.Y., by Frank Lloyd Wright student Roy Johnson has been on the market since June with a $3.5M asking price. “Paradise is found” there, suggests the listing, in its 6,093 square feet and the surrounding “zen-like” six-acre plot, which features a “fully stocked koi pond, relaxing waterfall, stone paths,” a “fully enclosed raised vegetable garden perfect for farm to table dining,” and a trellised pavilion whose emphatic, spikey silhouette mimics that of the house. Inside the dwelling, there’s an expansive double-height living room, a “renovated Bilotta kitchen” lit by large windows, and five bedrooms, filling out a circular plan around a central stone column.

 

 

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http://curbed.com/archives/2014/10/29/roy-johnson-armonk-for-sale.php

 

Should you rent or buy? | South Salem Real Estate

Analysts may huff and they puff, but is the market blowing another housing bubble?

Earlier this month Trulia, the online real estate marketplace, released a report detailing its research into the wisdom of buying versus renting. Which option should you choose? As it turns out, buying makes more sense than renting in all 100 of the markets studied, but the devil is in the details.

Using a 30-year, fixed-rate mortgage with a 20 percent down payment as the baseline, Trulia found that on average buying is 38 percent cheaper than renting. However, the advantage dissipates rather dramatically as the size of the down payment and the number of years buyers plan to remain in the dwelling grow smaller. An interactive map compares different scenarios.

Does this mean you should start putting open houses on your calendar? Not necessarily. As this Reuters graphic shows, August prices for the Standard & Poor’s/Case-Shiller 20-city index grew at a 5.6 percent year-over-year average. All 20 markets showed price increases, although the rate of  increase slowed for the eighth straight month, which Jed Kolko, Trulia’s chief economist, sees as evidence that we aren’t on the verge of a bubble. As price increases decelerate, speculation shrinks as well.

Taken together, the evidence suggests that buying is advantageous, but not so urgent that one needs to pounce now in order to avoid being left out in the cold.

U.S. home prices, August 2014

At Home With a Stunning View | Katonah Real Estate

 

High on a sandstone ridge looking east over the Pacific Ocean, this Australian beach home sits proudly, taking in the scene. Wowed by the views of the ocean, the owners snapped up a plot of land on one of Sydney’s Northern Beaches, determined to design a home that responded to its dramatic topography and views.

Neil Mackenzie of Mackenzie Pronk Architects was only too happy to help. “The site is stunning,” he says. “Our clients had spent a decade in the U.K. when we began working with them. They were in the process of returning to the blue skies and surf of home, so I think the idea of a true Australian beach house was like a dream.”

S&P Case-Shiller: Home-price growth continues to slow | Bedford Hills Real Estate

Home-price growth continues to slow, according to the latest S&P/Case-Shiller Home Price Indices for August 2014.

The 10-City Composite gained 5.5% year-over- year and the 20-City 5.6%, both down from the 6.7% reported for July. The National Index gained 5.1% annually in August compared to 5.6% in July.

On a monthly basis, the National Index and Composite Indices showed a slight increase of 0.2% for the month of August.

Detroit, of all places, led the cities with the gain of 0.8%, followed by Dallas, Denver and Las Vegas at 0.5%. Gains in those cities were offset by a decline of 0.4% in San Francisco followed by declines of 0.1% in Charlotte and San Diego.

“After several months in a row of slowing home value growth, it’s fair to say now the market has officially turned a corner and entered a new phase of the recovery. We’re transitioning away from a period of hot and bothered market activity, characterized by low inventory and rapid price growth, onto a more slow and steady trajectory, which is great news,” said Zillow Chief Economist Dr. Stan Humphries. “In housing, boring is better. As appreciation cools and more inventory comes on line, buyers will start to gain a more competitive advantage, after years of sellers being in the driver’s seat. More sedate home value growth, coupled with interest rates that remain incredibly low, will also help housing stay affordable, which is critical to drawing in the next generation of younger, first-time buyers that had been sitting on the sidelines.”

 

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http://www.housingwire.com/articles/31859-sp-case-shiller-home-price-growth-continues-to-slow

 

This is why California is in the middle of another housing crisis | Bedford Real Estate

Decades from now, when history writes the story of the Millennials, they may well be remembered as the first generation for whom using smartphones and social media was as natural as taking a breath. Yet unless things change, there’s a good possibility they’ll also be known as the generation that couldn’t afford to buy or rent a home.

It’s ironic that when the first Millennials were born, their Baby Boomer parents couldn’t afford a home either. Looking back to October 1981, interest rates on a 30-year, fixed-rate mortgage exceeded 18%. It wasn’t until rates fell below 10% in 1986, and to the 7% range in the early 2000s, that affordability ceased to be a major impediment to homeownership.

Today, California’s housing affordability problem is back – only this time it is fueled by rising home prices and lack of access to capital rather than double-digit interest rates.

On Nov. 14, the California Association of Realtors will convene economists, policymakers, and practitioners for “The Real Estate Summit: Partnering for Change in California.” The summit will explore the issue of housing affordability, as well as California’s infrastructure, foreign investment, consumer trends, housing finance, and policy implications.

So how serious is the problem?

CAR’s Housing Affordability Index – which tracks the percentage of households that can afford a median-priced, single-family detached home assuming current interest rates and 20% down – fell from 33% in the first quarter of 2014 to 30% in the second quarter, a 26% decline from a peak of 56% in early 2012. While home buyers needed to earn an annual income of $56,320 to purchase the median-priced house two years ago, today they need an additional $37,270, or $93,590 total annually, to qualify.

The reasons behind the decline in affordability are many:  slower-than-expected economic growth, incomes that haven’t kept pace with rising home prices or rents, pent-up demand, lack of supply, tighter lending criteria in response to new mortgage regulations from Congress, and indecision about the future of Fannie Mae and Freddie Mac, to name a few.

What the numbers don’t reveal is the impact the problem is having on individuals and families. Nationally, more than half of adults surveyed say they’ve taken a second job, postponed retirement contributions, run up credit cards, or moved to a cheaper neighborhood in order to cover their rent or mortgage over the past three years, according to the MacArthur Foundation. Another study reports that 45% of college-educated Millennials have moved back in with their parents because they can’t find a job or the one they have doesn’t cover student loans and a place to live.

A lack of new home construction is likely to cause further affordability issues unless housing starts increase in line with local job gains, according to the National Association of Realtors. Its analysis found that too few homes are being constructed in relation to local job market conditions, and that lack of construction has “hamstrung” supply and slowed home sales.

Here in California, it has been estimated that the post-recovery real estate market could easily absorb 250,000 new units of owner-occupied or rental housing – a need that isn’t even close to being fulfilled.

What’s the key reason?

Many small builders continue to experience limited access to credit and rising construction costs. Despite strong demand, the number of single-family housing permits issued in August 2014 declined by nearly 21% from the same month in 2013, while the number of multifamily permits was down almost 24% year over year.

 

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http://www.housingwire.com/blogs/1-rewired/post/31866-this-is-why-california-is-in-the-middle-of-another-housing-crisis

Pending Home Sales in U.S. Increase Less Than Forecast | Bedford Corners NY Real Estate

Contracts to purchase previously owned homes rose less than forecast in September, showing housing will take time to gain momentum.

The pending home sales index increased 0.3 percent after dropping 1 percent in August, the National Association of Realtors said today in Washington. The median projection in a Bloomberg survey of economists called for a 1 percent gain.

Still-tight credit and low inventories remain hurdles for a sluggish housing recovery that’s still healing more than five years after the downturn. More Americans are being helped by faster progress in the employment picture, allowing those who are able to get a mortgage the opportunity to take advantage of historically low rates.

“We see few signs now of further momentum,” Ian Shepherdson, chief economist at Pantheon Macroeconomics Inc. in White Plains, New York, said in a research note. “We are hopeful, however, that the dip in mortgage rates in recent weeks, coupled with the continuing improvement in the labor market, will trigger at least a modest renewed upturn by the end of the year.”

Stocks fell, paring gains from last week’s rally that was the biggest since January 2013, as energy producers slumped with lower oil prices. The Standard & Poor’s 500 Index declined 0.2 percent to 1,960.5 at 11:01 a.m. in New York.

Survey Results

Estimates in the Bloomberg survey of 41 economists forecasting pending home sales ranged from a decline of 1.5 percent to an advance of 2.5 percent.

Purchase contracts climbed 3 percent in the 12 months ending in September after a 4.1 percent annual decline in August, the NAR report showed. Last month marked the first year-over-yearincrease since September 2013.

The pending sales index was 105 on a seasonally adjusted basis. A reading of 100 corresponds to the average level of contract activity in 2001, or “historically healthy” home-buying traffic, according to the NAR.

Pending sales rose in two of four regions from the prior month, with the South up 1.4 percent and the Northeast advancing 1.2 percent. Purchase contracts declined 1.2 percent in the Midwest and 0.8 percent in the West.

Economists consider pending sales a leading indicator because they track new purchase contracts.Existing-home sales are tabulated when a deal closes, usually a month or two later.

September Sales

Those re-sales rose last month to a 5.17 million annual rate, the highest level in a year, NAR data showed last week. Construction also picked up in September as housing starts climbed 6.3 percent to a 1.02 million annualized rate, supported by a bigger increase in multifamily projects than for single-family properties.

Declining borrowing costs will help make big-ticket purchases such as homes more affordable. The average rate on a 30-year, fixed mortgage fell to 3.92 percent in the week ended Oct. 23, the lowest since June 2013, according to Freddie Mac data.

The rate has dropped by 0.27 percentage point over the past three weeks as concern over slowing global growth pushed investors out of stocks and into the safety of Treasury securities, causing yields to drop on the benchmarks used to calculate home-lending costs.

“The current spectacularly low mortgage rates should help more buyers reach the market,” NAR chief economist Lawrence Yun said in a statement.

 

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http://www.bloomberg.com/news/2014-10-27/pending-sales-of-u-s-existing-homes-rise-less-than-projected.html

Pending Sales Trend Up | Chappaqua Real Estate

Pending home sales increased 0.3% in September, suggesting continued steady improvement in existing sales. The Pending Home Sales Index (PHSI), a forward-looking indicator based on signed contracts reported by the National Association of Realtors (NAR), increased to 105.0 in September from 104.7 in August. The September reading was up 1.0% from the same month a year ago, and pending sales were up year-over-year for the first time in 11 months.

Pending Home Sales September 2014

The September PHSI increased modestly in the South and Northeast, but decreased slightly in the West and Midwest. Year-over-year, the West, Northeast and South increased 3.6%, 2.9% and 1.7% respectively, while the Midwest declined 4.0%.

Last week NAR reported a 2.4% increase in September existing home sales, and firming job and economic growth suggests that the existing home market will demonstrate steady growth throughout the fall. The housing recovery has moved towards higher ground reflected by a six-year high in September new homes sales.

 

 

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http://eyeonhousing.org/2014/10/pending-sales-trend-up/