Barker and Hedges Real Estate Blog

With the weather warming up (and hopefully drying out… SOON), many Minnesota residents are gearing up to make improvements and repairs to their homes. Some will hire a professional, and some will do it themselves. When it comes to home repair, sometimes doing it yourself pays off. Other times, it doesn’t.

The idea of doing it yourself sounds great, at first glance. It can save you money on both labor and materials, you can learn new skills, sharpen existing knowledge, and improve your home at the same time. But it isn’t without its risks.

The key to avoiding an expensive mistake is knowing when to pick up the hammer and when to pick up the phone. When it comes to home improvements, you must know you’re limits. If you start a project you are unable to finish, you’ll simply spend more money getting it fixed.

Here are a few home improvement tasks you might want to consider leaving to the professionals:

Anything involving Wires. In Minnesota, all electrical wiring work must be completed by an electrician licensed by the state. However, you can do electrical wiring in a home which you own and live in. All electrical wiring must be inspected by the State Electrical Inspector. Beyond the legalities, consider that 95 percent of electrical fires are due to homeowners who installed wires improperly.

Anything involving Plumbing. As with wiring, all plumbing work must be completed by a plumber licensed by the state, but a resident who owns a home and lives in it can apply for the proper permits to carry out the work. A plumbing permit is required to replace or install fixtures, replace or install water piping, replace or install a water heater, and to connect gas appliances to gas piping (stoves, dryers, or fireplaces). A mechanical permit and a licensed contractor are required when it comes connecting a furnace. A permit is not required to reset an existing fixture. One thing to think about when it comes to plumbing is if anything isn’t sealed correctly, the resulting water damage could be quite costly.

Demolishing walls. If you make a mistake and remove the wrong wall or beam, you could find yourself with an unstable home or roof problem. This should very strictly be left to the professionals. Only an engineer can properly determine what can be removed and if additional support is needed.

Installing windows and doors. Changing doors and upgrading windows requires precise measurements. In many cases, it can be hard to understand the nuances involved with sizing and placement. What good is installing those brand new energy efficient windows if you have a 1/4 inch gap around the frame? If a larger window or door is installed (see previous statements about “wall demolishing), there’s also a risk that a stud that supports the house’s structure could be removed by mistake.

Some Roof repairs. Obviously, repairing a roof high off of the ground is inherently dangerous for obvious reasons. People are injured and even killed every year performing their own roof repairs. However, a poorly installed roof can also lead to water damage inside your home as well. When it comes to fixing the roof, be sure you know what you’re doing.

Building decks. Properly built decks have to be constructed to certain specifications. In Minnesota, building permits are required for all decks that are attached to the home or are 30 inches or more above grade. Decks and platforms not more than 30 inches above adjacent grade and not attached to a structure with frost footings, do not require a building permit and may require a zoning or land-use permit. Decks and platforms are required to meet the land-use requirements of the community’s zoning code.

Chemical or heat stripping of woodwork. This job can be dangerous if what you’re stripping contains lead. A certified lead carpenter or licensed lead abatement specialist should definitely be hired for this task.

If you’re not particularly handy, but you want to expand your skills, you should start out relatively small. Try painting a room, hanging a medicine cabinet or shelves, perhaps even installing new moldings. These are some fairly simple tasks for a beginner do-it-yourselfer. By starting small, you can discover what you’re capable of and hopefully it will help you understand when you should call the professionals.

It is not the color of the home of which we’re speaking, however.  Earth-friendly homes and construction practices are being sought by environmentally conscious consumers across the U.S.  No, we’re not talking about people living in cob, straw, or sod houses either, though there are people who choose to live in these types of abodes.  We are talking about homes when have been built with renewable building materials and with peak energy efficiency in mind.  This is called “green building.”

Green building is the practice of increasing the efficiency of an edifice throughout the entire construction cycle.  That means when creating a structure in this manner, human health and the environment will be taken into account through the dwelling’s design, the site its foundation will be laid upon, and construction.  The completed building’s future operation and maintenance will also be taken into account.  Probably most importantly, a green building is conservative when it comes to water and energy consumption.

Buildings have a profound effect on the environment, which is why green building practices are so important to reduce those impacts. The environmental impact of creating a building and the maintenance of an inefficient structure is often underestimated.  At the same time, the perceived costs of building green are overestimated. A recent survey by the World Business Council for Sustainable Development finds that green costs are overestimated by 300%,

Effective green building can lead to a variety of benefits for the homeowner.  Because of the increase in productivity and use of less energy and water, the cost of running and maintaining a green home can be quite significantly less than their inefficient counterparts.  Because of a green home’s carefully planned materials and design, these homes have greatly improved indoor air quality, which can have health benefits for its occupants.  This may be particularly important for adults or children alike who may have respiratory afflictions, such asthma or allergies.  Finally, a green home after construction continues to temper its impact on the earth.  Some examples might be by lessening storm water runoff and reducing the heat island effect.

The creation of a green home brings together a vast array of carefully and systematically applied environmentally friendly practices and techniques, with attention paid to the home’s consumption and pollution emissions throughout its full life cycle.  Construction materials usually considered to be green include renewable plant resources like lumber from forests certified to be sustainably managed, dimension stone, recycled stone, recycled metal, bamboo, and other non-toxic, reusable, renewable, or recyclable products.    Some green home builders go so far as to use only such sustainable or recycled materials which were also made locally.  Salvaged windows, doors, mantels, hardware, stone flooring, and other materials reclaimed from older buildings which are going to be demolished are popular as well.

Green homes are oriented on their properties to take advantage of sunlight, with many windows and skylights to reduce the need for lights during the day.  Of course, they use energy efficient windows.  These are made with low-e glass which reflect infrared light, use multiple panes with spacers to keep them in place, and contain non-toxic gases within for better insulation.

Green homes are also built in a manner which tends to take advantage of outdoor wind currents and sunlight in order to minimize the energy loads within.  Convection currents and prevailing breezes can passively cool the house in the summertime.  Thermal materials collect and store heat during the day and release the warmth at night.

This brings us to the subject of insulation within a green home.  Well-insulated windows, doors, ceilings, and walls help to reduce energy loss.  This in turn reduces energy usage and the costs associated with it.

These design features don’t cost much money, while at the same time they significantly reduce the energy needed to make and keep the home comfortable. As you can see, green building is rooted in the philosophy of using that which is available already and naturally.  Green building also focuses on designing a home which is in accord with its surroundings.

Green building does go at least one step past reducing its impact through design and maintenance.  That comes with the more advanced green practice of generating renewable energy.  This could be through solar power, wind power, hydro power, or biomass.  The ability to generate power is the most expensive feature to add to a green home.

The production of a green home is not one-sided towards the environmental, however.  Producers of green homes often seek to achieve an aesthetic harmony between the structure and its surrounding environment.  A sustainable building cannot simply be identified from the curb.  A green home can be nestled in any neighborhood, completely indistinguishable from their less efficient equivalent.

New houses are being built with a higher standard of energy efficiency as building codes increasingly require it. With fuel prices rising, consumers are fast tiring of high energy bills, driving the movement and green home popularity.  Does having a home in harmony with nature interest you?  Perhaps reduced electricity, water, and heating bills sound attractive?  An energy-efficient, environmentally-friendly green home may be just what the doctor ordered.

When you purchase a home, it’s a good idea to have a professional home inspector take a look at the place over before the transaction continues. Though it may cost a few hundred dollars, the peace of mind it can offer and the troubles it can prevent are worth it.

There are plenty of inspectors out there, so it is important to do some investigating first. Get referrals from your realtor, ask friends or family who have recently bought a home, and talk to inspectors you find yourself. Ask some questions before choosing one, including:

1. How long have they been in the home inspection business?

2. Do they specialize in residential or commercial property?

3. Do they belong to a professional organization, such as the National Association of Home Inspectors?

4. Can you be present when the inspection takes place?

5. How long does the inspection take?

Let’s pretend that you’ve chosen your home inspector. What exactly does he inspect? The report will include the following and maybe even more:

1. Quality and quantity of home insulation.

2. Condition of the home’s attic, roof, roof construction, shingles, flashing and gutters, etc.

3. Condition of its structural elements, such as beams, joists, rafters, girders, door and window frames, etc.

4. Overall construction of walls, ceilings, floors, roof and foundation.

5. Condition of the Toilets, showers, sinks, faucets, traps, pipes and plumbing systems. Identification of piping materials used for potable water, drains, waste, and vent pipes, including their overall condition.

6. Water heaters, furnaces, air conditioning, duct work, chimney, and fireplace.

7. Condition of the wiring systems, including the main electrical panel, circuit breakers, types of wiring, grounding, exhaust fans, receptacles, ceiling fans, and lighting fixtures.

8. Household appliances, such as dishwasher, range and oven, built-in microwaves, garbage disposal, smoke and carbon-monoxide detectors.

9. Evidence of any pest, moisture or mold problems.

10. The home’s exterior, such as siding, landscaping, sprinkler systems, grading, drainage, driveways, fences, sidewalks, trim, doors, windows, lights and exterior receptacles.

Afterwards, you will receive a home inspection report. These reports do not describe the condition of every component if it is in excellent shape. It will, however, note every item that is defective or needs service. The serious problems may include health and safety issues, roofs with a short life expectancy, furnace and central air troubles, foundation deficiencies, and moisture or drainage issues.

No home is perfect and nearly every home will have issues upon a home inspection, including new homes. After the inspection, you can make a more fully informed choice. Depending on what the report says, you can choose not to purchase the home, discuss repairs, or negotiate a price reduction from the seller. If you have a choice, it is best to hire your own contractors and supervise repairs yourself.

Some buyers feel a home inspection is unnecessary, especially if they are buying new construction. There are only so many aspects of a home that you can inspect yourself, however. It is the problems that aren’t readily apparent, such as code violations, faulty wiring, a carbon monoxide emitting furnace, or a failing chimney which could be found in a newly constructed home. Spending some money up front can save you much more in the long-run.

HomeVestors of America Inc., otherwise known as the “We Buy Ugly Houses” people, has named the top ten real estate investing markets for the first quarter of 2008. HomeVestors buys, refurbishes, and sells modest homes. The company based its findings on the number of houses bought in each market by its franchise network during the first quarter of this year. The full list is as follows:

Top Ten Cities For Real Estate Investing, 1st Quarter 2008

1. Dallas, Texas
2. Houston, Texas
3. Atlanta, Georgia
4. Fort Worth, Texas
5. St. Louis, Missouri
6. Philadelphia, Pennsylvania
7. San Antonio, Texas
8. Denver, Colorado
9. Minneapolis, Minnesota
10. Phoenix, Arizona

It is important to recognize that this is only one organization’s measurement of the market, but there may be something to it. Conditions in Minneapolis have created a unique buyers’ market. As this previous post discusses, the price of homes across the Twin Cities area tumbled in February. At the same time, the market has been flooded with homes for sale. To make their homes more appealing in this competitive market (and to get rid of unwanted properties), sellers have aggressively lowered their sale prices. All this adds up to plenty of available real estate at rock bottom prices. Okay, so maybe HomeVestors is on to something, even if their methods don’t appear to be all that scientific.

Real estate investment isn’t for everyone. Not every person wants to be or should be a landlord. But if real estate investment is something that has interested you, now may be the time to act.

One of the first decisions you make when you begin to look for a home is whether to buy new or purchase an existing house. While there are some advantages to purchasing a resale home, here we will discuss many benefits of buying a new home.

1. New Home Pricing. Though the price of a new home may be higher than the price of an existing one, a new home is likely to need fewer repairs or replacements. Also, if you buy a new home in a desirable neighborhood or location, the value may increase even more and you will likely sell your home for a higher price than when you bought it if you decide to move.

2. A Well Planned Neighborhood. Builders incorporate desirable amenities such as recreation areas, neighborhood clubhouses, swimming pools, playgrounds, sidewalks, and paved trails into new communities. Do you seek to live among older residents, families with young children, or in an area that encourages an active lifestyle? New home buyers get to choose what type of community they want to live in as well as their home site or unit. Choose a home at the end of a cul-de-sac if you desire to live around minimal traffic. Perhaps a home situated near a park is what you seek? The location is your choice.

3. Modern Design. New and better ways of constructing homes are being developed every day. Likewise, consumer trends change and builders respond by drafting floorplans to accommodate modern client needs, like oversized family rooms, larger closets, built-in media niches, and large, up-to-date kitchens.

4. Warranties. A new home comes with a builder’s limited warranty, which is something an older home cannot provide. A warranty typically covers new appliances, carpets, mechanical equipment, and overall construction, such as roofing and siding. As with all warranties, they don’t last forever but they can cover various items for one to ten years!

5. Energy Efficiency. With modern insulation, better windows, and more efficient heating and cooling systems, new homes are much more energy efficient than an existing home. Also, new homebuilders are required to meet stricter energy codes than in the past. This is an enormous cost-saving benefit when one considers the price of oil and fuels these days.

6. Modern Wiring. With the popularity of home computers, media centers, surround sound systems, and other modern technologies, new homes are typically wired to accommodate electrical components that weren’t around when scores of existing homes were built.

7. Health Conscious Construction. New homes may offer health advantages, as they are built with modern building materials. Contaminants that may exist in a resale home, such as asbestos or lead paint, are nonexistent within a new home.

8. Modern Appliances. Homebuilders are able to offer the latest state-of-the-art equipment at the time of a new home’s completion. Dishwashers, stoves, microwaves, refrigerators, all fully installed with modern water and energy standards.

9. Low Maintenance. The latest in building materials also translates into the ultimate in convenience for new home buyers. New homes are practically maintenance-free for up to ten years and in some cases, beyond.

10. A New Home Is All Yours. When you purchase a newly constructed home, you have a hand in creating the home you desire, instead of having to change the home to your preference. From the flooring to the appliances, all aspects of the home can be fit to your tastes from the day you move in.

Buying a home is an emotional decision for most people. Whether to buy new or used has been a topic of discussion for years. While there are some advantages to purchasing a new home, here we will discuss many benefits of buying a resale home.

1. Existing features. Finished basements, water irrigation systems, fences. When you buy an existing home, you buy the extra improvements that have been made to the land and structures.

2. Land. New homes tend to be built on smaller lots. In some cases, home or garages can be too close for comfort to someone who likes their privacy. When you seek to purchase an older property, you can often find a home with a larger yard or even acreage.

3. Established neighborhoods. From their tall, mature, tree-line communities to the residents that have been living there for years, resale homes in established area have the benefit of long-term stability going for them. You can meet your neighbors before you move in. New subdivisions are generally on the outskirts and all of the residents are new or may not have moved in yet.

4. Mature Landscaping. When you purchase a resale home, upkeep on the land is less strenuous. Installing landscaping elements yourself can be costly. Established lawns and existing landscaping require less money and maintenance than new plantings.

5. Cost savings. Existing homes are usually less expensive per square foot, in part because of escalating land costs in new subdivisions. The modern building materials that new homes are constructed with also cost more. In addition, the price of labor associated with building a home has gone up considerably in recent years.

6. History. When you purchase an existing home, there is a record how much the property has appreciated over the years.

7. Character. Though new homes are customizable in many ways, they still tend to be built in a somewhat generic manner. Homes with the same floorplan may be just across the street. A resale home could be a pre-Civil War farm house, a beautiful Victorian, or a Greek revival as easily as it could be a rambler, a split-level, or a ranch-style house.

8. More room for negotiation. Builders have a number of costs to recover when developing a new community. Often they have a minimum amount of money they must receive and will not budge on their price. When purchasing a resale home, you may have more flexibility with an eager seller.

9. Availability. Waiting for a new home to be finished can take forever. And if there is still construction going on the area, you will have to navigate around construction workers and vehicles, daytime hammering, and stray nails for months. A resale home is already there waiting for you to occupy it.

10. Taxes. Newer homes tend to spring up in less-developed areas, which may impose higher taxes for services such as fire and police coverage, sidewalks, sewers and possibly even a new school. An existing home in an established area has a more predictable property taxes.

Over the years we have helped hundreds of buyers into homes and Bryan Stuckey with Inspecta Homes has been our inspector of choice.  He recently did an inspection for a buyer of ours and in the process found one of the foundation walls to be slightly bowed.   As any good inspector would do for their client, he recommended bringing in a foundation expert to take a second look and give an opinion.  This situation is more common than you would think…the problem for our real estate team has been finding a company that can give an opinion at a reasonable cost.  Complete Basement Systems  has done numerous inspections of foundation walls for us and provides FREE estimates.  We typically use Jon Ahern if at all possible.  He is a true professional and gives great advice to our clients.  They also deal with basements with water issues as well so look them up if you are having basement issues!

Two years of turbulence in the real estate market and recent actions by the Federal Housing Authority has created a nearly ideal climate for house hunters in search of a bargain or their first home.

Twin Cities home prices posted a decline of 12.5 percent in February — the steepest drop since the area’s prices first started falling in late 2006. The metro’s median sale price is now $195,060, the lowest it has been since May 2003.

Also, according to Minneapolis Area Association of REALTORS®, the number of homes for sale in the Twin Cities area continues to post record levels. At the end of February, there were about 8.72 homes to each expected buyer for the month of March.

With banks, Realtors, and home sellers facing this challenging environment, concessions are being made and prices are being lowered.

There is more! With the troubles that the subprime mortgage industry has been experiencing, available credit has been tightening, even as interest rates are falling. The Federal Housing Administration’s temporary changes to the limits on the loans it guarantees has re-opened doors for home buyers which had been closing. The availability of secure financing is expected to have a positive effect on the real estate market.

This is almost as good as it gets for a buyer’s market. In fact, this is the best buyer’s market that the Twin Cities area has seen in about ten years. And prospective home buyers are beginning to take notice. Those who know where to look are making some serious deals.

But what if you already have a home and the idea of being a landlord isn’t exactly your cup of tea? Well, if you have ever wanted a bigger house, now is a good time to look. You’ll likely get a modest price for your current home, but a larger home could be within your price range now than when you were house hunting. Also, if a vacation property on one of Minnesota’s 10,000 lakes has ever appealed to you, now could be the time to get that lakeside cabin. A third option would be to help your children make the leap from being renters to home owners.

It is expected that prices will drift a bit before they begin to rebound. Purchasing a home this year can ensure you catch the wave early. Kick your search for a home into high gear today! You may just find what you’re looking for at a more-than reasonable price!

Related Entries:

Minneapolis Home Values Are Dropping

Good New For The Twin Cities

It is easy to become overwhelmed these days when it comes to purchasing your first home. There are ways to prepare yourself ahead of time, though. The information below can help smooth your journey towards home ownership.

1. Review your credit. Mortgage lenders will be closely evaluating your credit and finances. Make sure that you know what is on your credit report first. Start by requesting a copy of your credit report from the big three credit agencies - Equifax, Experian and TransUnion. When you receive your report, review it carefully for mistakes. If you find an error, take corrective action by following the instructions the credit agency provides. The sooner the process starts, the better, as the investigation will take time.

2. Take steps to raise your credit score. First and foremost, this means paying every bill on time every month. After that, it means paying down as much of the debt you already have. Not only will this raise your credit score, but it could free up some cash later when you’re finally making monthly mortgage payments.

3. Learn about mortgages. Each type of mortgage has its pros and cons. Finding the one that is right for you will depend on your personal situation. Factors that will affect this are how much you have for a down payment, how long you plan to own the home, what is your tolerance to monthly fluctuations, etc. Be thorough in your research, as having the wrong mortgage can be as bad as choosing the wrong home.

4. Make a wish list. Write down all the things you want from a home. Include the size, features, location, etc. Categorize each item on the list as a “need” or a “want.” Having a list ahead of time will help you save time, narrow your search, and help you stay focused.

5. Find a real estate agent. Even though there is a lot of information on purchasing a home available, having a professional Realtor to represent you is a good idea. The peace of mind professional guidance offers can remove a lot of worry throughout the home buying experience.

6. Get pre-approved for a home loan. Pre-approval from a mortgage lender will help you in several ways. First, it will reveal realistically how much you can afford. Second, it will help you identify any credit problems you may have early on. Finally, it will show home sellers that you’re serious, which can be helpful if there are ever multiple buyers.

7. Get a home inspection. So you’ve found a house you think you really want. Whether it’s a new home or an older one, a home inspection is a good idea. They cost around $500, which is pretty inexpensive compared to what major home repairs would cost. A home inspector will examine the home’s roof, foundation, heating and cooling systems, and other important areas. Though it’s impossible to find everything that is wrong in a home, an inspection can go a long way towards offering peace of mind.

For a more in-depth discussion about steps towards buying your first home, register to attend a Barker & Hedges home buying seminar. At these monthly events, all aspects of the home buying process are covered including how to pick a Realtor, how much money you will need for down payment, home buying tips, the home buying process, the purchase agreement from start to finish, and more.�

 If you have ever wondered exactly what a Truth in Housing or Time of Sale inspection is and what it means to you as a home seller or a home buyer you have stopped at the right place.  What you may not know is that Truth in Housing inspections are not required in all cities in the State of Minnesota.  I’ll just take a moment of your time to clear it up for you starting on the home selling side.

If you have made the exciting decision to sell your home you may be required to have a  Truth in Housing inspection completed on your property.  What this means is that before your house gets listed on the market an inspector (either private or city mandated) will come to your home to look for potential problems that the city feels the buyer should know about.  Some items that they look for are issues with the plumbing, electrical, heating or cooling systems, wetness or dampness in the basement area, or an unstable foundation.  If you are worrying about whether or not you have to fix everything that the inspector finds, be rest assured that only some cities require you to fix items.  The cities that do require you to fix items are looking for those items that pose an immediate hazard to the occupents of the house.   Other items are fine left alone but will be disclosed to potential buyers in a report drafted by the inspector. 

As a home buyer you should always keep in mind that an inspection protects everyone.  If the home you are interested in requires a Truth in Housing inspection then you are one step ahead in the home buying process, as potential hazards have been documented and are available to you.  It is also recommended that you request a home inspection when submitting a purchase agreement so you make an informed decision on the potential hazards you face with that home.

 If your unsure whether your city, or the city your interested in living in requires a Truth in Housing or Time of Sale inspection or if you would like to see what the requirements are for each city, please click on the attachment to get more information.�