In This Issue...

New Law Took Effect April 22nd

Real Estate Values Still Declining

Key Mini-Remodels

 

  Featured Article

Why doing one mini-remodel per year can be the key to your stress-free home sale in the future!

New Law Took Effect April 22, 2010

If you own a home built before 1978, this law affects you!

Two years ago, on April 22, 2008, the U.S. Environmental Protection Agency issued a rule requiring that "contractors performing renovation, repair and painting projects that disturb paint in homes, child care facilities, and schools built before 1978" become certified in the new EPA Renovation, Repair and Painting Rule, and follow work practices to reduce human exposure to lead. That law took effect April 22nd of this year.

Penalties up to $32,500 may now be assessed on those violating the new RRP law. This includes work such as painting, window replacement, trim work, siding and other contractors who disturb painted surfaces. In short, owners of pre-1978 homes are now required to hire only RRP certified construction firms to remodel and manage any lead contamination exposures both inside and outside of their residences, even if they are unsure of whether the home actually has lead paint.

Attention landlords! Property owners who perform these projects themselves in pre-1978 rental housing or space rented by child-care facilities must be certified and follow the lead-safe work practices required by EPA's Renovation, Repair and Remodeling rule as well.

The new regulations require pre-renovation education requirements, training, certification/licensure and work practice requirements. The rules are designed to protect those who work with paint as well as those who occupy the buildings from lead poisoning.

Prior to its ban in 1978, lead-based paint had been used in more than 38 million homes, according to the EPA. Lead exposure has been shown to cause learning and developmental disabilities, particularly in children six years old and younger. Common renovation activities like sanding, cutting, and demolition can create hazardous dust and chips by disturbing lead-based paint, which can be harmful to adults and children.

Custom has already complied with the EPA training and certification requirements. We believe many contractors WILL NOT do so. These "out of compliance" contractors risk not only their own liability, but put their clients at financial risk as well. In addition to doing work that could cause potential health problems, they create an opportunity for legal claims in this litigious society.

Of those contracting firms who do have the RRP certification, the vast majority do not have the necessary insurance to cover for hazard contamination. All contracting firms in Washington State are required to have a General Liability (GL) policy, but all such policies will exclude lead, mold, dry-rot and other hazardous exposures. Only those companies (like Custom) that also have a Commercial Polutions Liability (CPL) policy will have the necessary insurance to protect homeowners for lead exposure work. When hiring a contractor, make sure to ask for a copy of their CPL policy.

Please give us a call if you have any questions about lead-based paint and/or these new regulations.

 

Real Estate Values Still Declining

The February Zillow Real Estate Market Reports are out, and show continued depreciation in home values across much of the country. The national Zillow Home Value Index fell 5.4% year-over-year, and fell 0.5% month-over-month.

The good news is that the rate of monthly decline has improved over the past year. Home values fell 0.8% from January 2009 to February 2009, compared with a 0.5% decline from January 2010 to February 2010.

But the bad news is that, in early 2009, the rate of decline was shrinking (from -1% in January to -0.8% in February), signaling the market was heading toward a bottom. In the past few months, month-over-month changes are holding flat or getting worse - a trend which could slightly extend the time it takes to reach bottom.

 

Key Mini Remodels

Just a few years ago, it was common for people to be selling their homes and moving every four or five years. This will no doubt change dramatically by the time the economy fully recovers. Due to the uncertainty of employment and the lack of sufficient equity in our homes, many of us will now stay in our current home for seven, eight, nine years or more.

To avoid "bad news" when the time comes to sell your home, consider a couple of suggestions:

1. Make sure to maintain your home properly.
2. Service your furnace annually (in addition to cleaning the filters seasonally).
3. Make sure your exterior paint is protecting the siding. If necessary - repaint.
4. Keep moss off the roof, clean gutters, trim plants at least 6" away from the siding.
5. Check your crawlspace for standing water during the spring rainy season.

 

Deck and fence staining, patio power washing, lawn and landscape maintenance.

1. Update your home annually with one semi-major remodel project.
2. Examples include: New carpet or laminate, fresh paint, new granite counters, new lighting fixtures, deck replacement, new molding/trim, etc.

 

While we never enjoy the expense of these projects, they are critical to protecting the investment that our home represents. Rather than having to spend $10,000 to update your home to convince a buyer to buy your home one day, YOU might as well enjoy the upgrades each year!

As you know, Custom not only does every aspect of remodeling, we are a water restoration company that comes in after a flood, pipe break, washing machine or toilet overflow and gets things dried out. We work FOR the homeowner, and WITH insurance companies. Custom is licensed/bonded and double-insured.