Real Estate Investing

I don’t believe 2008 will go down in history as a great year for real estate.  We saw the market continue to struggle, even as interest rates and home values shrank - usually something that would spur more interest in housing.  We’ve seen foreclosures throughout the country sink families - up close and personal.  My friend Mary is still hanging on by a thread, but a look around sees homes that used to be filled with laughter now sitting vacant. 

I started writing here at Banks.com in May of 2008, replacing our friend Hayli Morrison who continued to write on other sites for some time.  Here are some of my favorite posts since I started here.

A laughable sales tactic by one agent - block the door to prevent the buyer from leaving!

Top 10 signs of when a builder goes bad - I’ve seen even more craziness from some builders since this post. One finally put some screens in the windows of a home he sold a year ago when he needed his former buyer to sign off on an easement mistake. She refused to sign until he brought her some screens.  Now the bugs stay out when her windows are open!

Who knows what market lurks in the hearts of real estate?  The DENTIST knows! (The buyer never did buy…) (Oh! And I recently heard that Ed McMahon gets to continue living in his home).

Oops… why Realtors cannot conduct home auctions on eBay (you must have an auctioneer’s license!).

The ups and downs of living in a mobile home.  I’ll sum it up… tornadoes = bad and affordable = good.

Can you find another place to live after foreclosure?

People either love Realtors or they hate them.  Me?  I love them.

Pets are abandoned when homes are foreclosed.  This still makes me really sad.

Look out!  Spy cams and hidden mics can be anywhere!

Outgoing referrals are a good thing - when the client is just not ready to buy/sell! Or if they’re a jerk.

It’s lollipops and gum drops out there, people.

Different types of agents:  Lions and Tigers and Bears, oh my!

A Real Ghost Story … and you do have to disclose ghosts in California.

Unemployed Should Get an Automatic Stay on Mortgage Payments: An Editorial Opinion

I’m still mad about this … mortgage companies won’t sell if they only break even (but I’ll bet they’ll get some bail out money!)

At Thanksgiving, everyone gets thankful.  This post say why I am thankful to be a Realtor.

Safety Tips when Decorating for the Holidays

How One Salesman was a Real Jerk

Building Green

Happy New Year!  Again, may tomorrow’s dawn bring much joy to your life.

Yesterday we started talking about how building a green house begins in the initial planning stages - you shouldn’t just decide all willy-nilly that it’s going to be “green” halfway through the process.  It’s important to actually design a floorplan that will allow a cross flow of air when windows are open, one that will measure out perfectly to prevent cutting floor joists and discarding the unused portion, and preserve trees on the land rather than obliterating them.  Today, let’s talk about some of the additional work that’s done to make a “green” home, according to The Jones Company of Tennessee. 

My favorite effort is placing the occupancy sensors in all secondary walk-in closets, the master bedroom closet, utility room, and walk-in pantry.  The motion detector lights can be set to time in 15 seconds to 45 minutes.  You see these types of lights a lot in the bathrooms of commercial buildings.  What happens when you sit for a few seconds too long and the light goes out, you ask?  You flip open your cell phone and use it as a flashlight!

Water Efficiency

A green home tries to reduce the water used in a home both for the environment and for the pocketbook.  Clearly, the homes use the 1.6 gallon toilets rather than the banned 3 gallon’ers.  There’s a thriving black market for 3 gallon commodes!  In addition, dishwashers must be Energy Star approved.  Showerheads flow at less than 2.5 gallons per minute and sink faucents at less than 2.2 gallons per minute.

Indoor Environmental Quality

A green builder will locate low- or no- VOC paint (volatile organic compound) for indoors.  Porter Paints carries these paints, but a buyer would have to specifically ask to get it.  According to the company’s website, “We further manage potential pollutants generated in the home by sealing fireplaces. Plus, we employ the necessary steps to prevent moisture from entering the home through plumbing or heating and cooling systems in the forms of vapor or rainwater.”

Operation, Education, and Homeowner Education

Once a green home is completed, knowing how to operate the features and the maintenance requirements would be necessary to stay green.  A complete book of directions and training on the green features would educate the buyers in their role as green homeowners. 

However, if a homeowner wants to resell a home as a green home, it would have to be retested to certify it is still green compliant.  The green certification does not transfer.

In addition to building GREEN, all homeowners should consider adding carbon monoxide detectors alongside smoke detectors.  What have you done to make your home green?  If you want to see how well you’re doing, visit the NAHB website that allows you to register and score your home!

I attended a seminar earlier today - it was an information pitch if you will about a local builder / developer who has gone green.  To say you’re going green means that you truly have to start your planning before you ever break ground. 

Sometimes people change their logos or image to say they’re going green, but unless certain criteria are met, they’re simply ”Greenwashed.”  Not unlike “brainwashed,” greenwashed is when someone convinces you that they’re something they’re not.

Beginning in October 2008, The Jones Company of Tennessee has made the commitment that every house they build and put under contract will be certified green at the bronze level AND Energy Star rated.  Basicaloly, they’re putting their money where their mouths are through third-party, non-biased inspections done both through the NAHB National Green Building Program (the National Association of Home Builders) and through the Energy Star program.  The NAHB is providing the first ANSI certified inspections, completed by the American National Standards Institute.  To meet *those* standards, the new homes must reduce the impact on human health and environment through stages:

• Better siting (lot layouts)
• Design
• Construction
• Operation
• Maintenance, and
• Waste Removal

In the design stage, the builder may place windows across from each other in order to pull in outside air flow during warmer weather.  The homes may have big awnings and overhangs so the house will remain cool in the summer.  Or when a residential lot is being readied, as many large trees as possible remain to allow shade.  When it comes to the maintenance stage, a homebuyer is educated about the upkeep necessary to maintain a green home.  Caulking must be checked regularly, or a floor should be vacuumed and the home should be cleaned.

There are specific NAHB requirements for builders wanting to be certified as “green”:

Lot Design, Preparation and Development

Define the goals and role of the company to ensure that green practices are correctly interpreted when building a home.  For example, the pieces of a house frame come in specific sizes. The home should be designed so that the wood in the frame is measured exact to minimize scrap pieces.

Resource Efficiency

Again, this falls into material management and waste management in the advance framing is planned.  In addition, pre-cut or preassembled systems are used so that walls and other materials can simply snap into place (five days) rather than stick built which would take up to two weeks to DRY-IN a home.  It is more expensive to order from a manufacturer, but each piece is inspected before it leaves the factory ensuring against warped boards and other damaged wood.

The Jones Company also recycles up to 70 percent of its waste material including concrete, metal, drywall, brick, and lumber.  The concrete is hauled away and crushed, then re-used as gravel.

Energy Efficiency

Windows are upgraded to Low E which shades fromheat in the summer, but allows heat to come in during the winter - depending on the outside temperature.  In addition, lighting and appliances are brought in that are energy efficient and all homes have programmable digital thermostats so when the home is empty, the heat is turned down but when occupied it’s turned back up.  In addition, the homes are tested with the duct blaster test.  Here’s a YouTube video to show how that’s done.

Also, all outlets in the home are caulked and sealed, and all weather stripping is tight.

Tomorrow, I’ll talk about additional requirements needed to have a certified green home.