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Archive for the ‘Helpful Tips’ Category

Roots Run Deep

 

Before

The contractor who completed a bathroom remodel for this client built a bathroom dormer and failed to flash it and set the window too low resulting in water damage.

If you’ve ever struggled to pull up what appears to be a small weed and been amazed by the depth and breadth of its root structure, you already understand the difficulties that can stem from seemingly simple home repairs.

Obviously, maintaining things properly is the best approach; if exterior wood is properly installed, caulked and painted, it won’t be as prone to rot; if damaged shingles are replaced, the roof won’t leak. Yet maintenance isn’t always possible, because you might not notice an issue until it’s too late or you may not know your home’s prior maintenance history.

After

We traced the source of the problem, repaired the structural damage, redesigned and replaced the dormer siding and trim, installed new copper step and counter flashing, new gutters, and reroofed the house.

At Palmer Custom Builders, the roots of our company are in home repairs. Over the years, as our expertise grew and as our clients requested, we expanded into renovations and eventually, custom homes. In this economy, we are finding that more people won’t fortify the foundation of their largest investment by investing in repairs, yet they actually may be weakening its structure if they rely on an inexperienced handyman instead of a skilled contractor. Here’s why:

We approach each repair as a puzzle to be solved. Rather than just replacing a water-damaged threshold, we look beneath the surface to discover what caused the problem: How did the water seep in? Is the weak point a split door jamb? Improperly installed siding or maybe lack of flashing? We then design a corrective measure to avoid future problems. Finally, we ask which materials we can use to minimize future maintenance and prevent this from happening again.

Those are many more steps than an inexperienced or average handyman would take - he may just replace a single board or piece of trim. Yet that means you’ll be calling him back to make the same repair again and again – ultimately costing you more and perhaps resulting in structural damage to your home.

On a similar note, the materials and proper installation techniques that a professional contractor uses will determine how long the repair lasts. Using advanced maintenance-free materials may require skills that a handyman doesn’t possess, or he may just be unfamiliar with the latest materials. You may pay less initially, but you’ll keep making the repair until it is done properly with enduring materials such as HardiPlank, PVC brick molding, primed trim for fascia (a composite “no-rot” trim material), soffits and other maintenance-free exterior siding trim. Once these materials are primed and painted, you cannot tell the difference from “real” wood, except when you see your neighbors busily replacing their wood trim, painting their homes’ trim and siding, and staining their wood decks while you are sunning yourself by your pool.

Lead Balloons

 

EPA Lead Safe CertifiedWhile most people are aware of the dangers that exposure to lead-based paint can pose – it effects children's brains and developing nervous systems, causing reduced IQ, learning disabilities and behavioral problems, and it can also lead to hypertension and high blood pressure in adults – what many homeowners may not realize is that a new Environmental Protection Agency rule may cause the issue to balloon.

The EPA’s new Lead Renovation, Repair, and Painting rule takes effect April 22, 2010, and requires that contractors working in a residence or facility built before 1978 where children are present must be an EPA Certified Renovator.

This rule was put into place after a four-year study determined that renovation work, including weatherization, window replacement, HVAC modifications, demolition of interior plaster walls, removal of exterior painted siding and trim, and drilling and sawing into painted wood and plaster, exposes both occupants and workers to the same kind of hazards as lead-paint abatement. That’s because, as the EPA notes, the most common manner in which people are exposed to lead is through lead contained in dust. (Just think of all the dust that demolition, drilling, sanding and drywalling stir up over the course of a renovation project!) As a result, all remodelers, painters, plumbers, HVAC technicians, etc. who work on homes or child-occupied facilities, such as schools and daycare centers, built before 1978 must have certified workers and their firm must be certified with the EPA. This rule applies to all projects (that homeowners do not do themselves) that disturb more than 6 square feet of a potentially lead contaminated surface inside a building or 20 square feet outside.

Here at Palmer Custom Builders, both Gary Palmer and lead carpenter Hunter Moxley hold this EPA certification. The training they received taught them how to effectively contain a work area to prevent the spread of possible contaminants into other areas of the home; proper construction and demolition methods designed to minimize the creation of dust; and EPA-approved clean-up methods designed to eliminate any lead residue.

As a homeowner, it’s vital that you check with your contractor to make certain that they’ve obtained this certification. Of course, there is the obvious reason – you want to be sure that your family is protected and that the contractor you hire takes his responsibility to care for them seriously. Yet it goes much deeper: the manner in which a contractor treats this certification is, in many ways, a reflection of their integrity that is likely to carry over into other aspects of how they run their business. In addition, not obtaining the certification before working on a project covered by this rule could cause a contractor to incur a stiff EPA civil fine of up to $32,500 per offense as well as an additional criminal fine of $32,500 plus jail time for knowing and willful violations of the requirements (in NC the fine is $750-$1,000 per day until resolved). Such hefty consequences may impact a contractor’s overall financial stability as well as their ability to complete and then stand behind your project. At Palmer Custom Builders, we are taking our responsibility to your family one step farther by testing any children residing in a home built before 1978 which has lead-based paint before we even begin work on the project. It’s just one more way we are striving to keep our customers safe.

Second Chances

 

Measure twice, cut once.Measure twice, cut once. Do it right the first time. Pay me now or pay me later. We’ve all heard these phrases before and know they resonate because of the common sense behind them. Yet when it comes to home renovation projects and particularly, minor repairs, homeowners sometimes throw logic and caution out the proverbial window in an effort to “get a good deal.”

Unfortunately, saving a dime by hiring a discount contractor who doesn’t know how to properly do the work ends up costing consumers millions each year, according to the Better Business Bureau. If you’ve watched HGTV’s latest sensation, Holmes on Homes, you’ve seen the Canadian contractor spend weeks trying to correct the damage done by supposedly “minor” repairs as well as major renovations that were performed incorrectly. Hundreds of square feet of tile that had to be ripped up and replaced due to improper underlayment, entire basement upfits torn down when plumbing pipes were installed by cutting through structural members, roofs removed due to improperly placed vents that caused water damage. The list goes on and on.

Here in Charlotte, we at Palmer Custom Builders often are called in to correct the substandard work of unlicensed handymen and the subsequent damage it causes. We’ve seen incorrectly constructed dormers cause unbelievable damage to exterior and interior walls, “minor” water leaks that result in entire floors having to be replaced, and dangerous wiring that presents a very real fire hazard.

It generally starts with a well-intentioned homeowner who is trying to save a few dollars of their hard-earned money, sometimes on a minor project. For example, one Charlotte homeowner we’ve since worked with initially hired a questionable contractor to install a closet in her bedroom. When that turned out okay, she had him build a downstairs closet as well. Things started to go downhill when she retained him to create a basement bathroom. There were some peculiarities with the plumbing license, but the homeowner really noticed that something was awry when she happened to look at the packaging of the water pump that was delivered to her home. “I was paying for a really good one, but the pump that was actually delivered to my house was not rated to be used below grade,” she relates. “I decided then and there that I wasn’t going to do this to my house, so I hired a licensed electrician and plumber. Unfortunately, I already had paid the first guy $3,000 for the downstairs bathroom.” Instead of refunding her money, “he worked it off by doing other projects, like my basement steps, but he wasn’t happy about what he had to do, and his work showed that.”  The homeowner then hired a second contractor the plumber recommended to complete the jobs that the first contractor didn’t finish, like building a basement staircase, but unfortunately, that didn’t happen. “He did a good job, but he just didn’t finish. He never came to do the final trim; he kept saying he was going to come back, but he never did,” the homeowner relates.

By the time she found, researched and hired Palmer Custom Builders, this homeowner had a list of about 60 items that needed to be corrected in her home. When we brought our team of professionals in to look at the house, the results of dealing with unlicensed people were apparent. A smoke detector had been completely sheetrocked over. When we looked into the electrical work, we discovered that a lamp cord had been used inside the ceiling, instead of the construction-grade interior wiring that code requires and common sense dictates. The wiring was so poorly thought-out that it actually required flipping two separate switches to get the light over the pool table to turn on. In the bathroom, fans were not vented to the outside, and GFIs were not in place. Structurally, a new wall wasn’t close to being straight. We corrected these and many other issues while completing the kitchen and master bath renovation the homeowner had desired – all in about eight and half weeks, as opposed to the over one year the first gentleman took. The result is that this homeowner now has a beautifully updated, functional home in which she feels comfortable raising her family.

“Now, I’m very happy with everything,” she relates. “In the end, you get what you pay for. If you want to pay a little bit, that’s just what you’ll get - a little bit. I learned that lesson three times. By the time I hired Palmer Custom Builders, I was more than willing to pay a little more for a professional job, but I also expected a little more for my money. The bottom line really is that you get what you pay for, and the difference between Palmer Custom Builders’ work and what had been done previously was the difference between night and day.”

Loans Put Renovations Within Reach

 

Loans put renovations within reachThe ebb and flow of the housing market over the past few years may have led us into uncharted waters, but one result has been a wave of people considering home renovation projects. Some homeowners that we at Palmer Custom Builders work with are in need of a change but have opted against selling, instead choosing to renovate their homes to improve their comfort and safety while protecting their longstanding investment. Others who are in the market for a home are eyeing existing home deals, hoping that updates will boost the value of their bargain while making it a more enjoyable place to live. We’ve helped many such homeowners renovate poorly functioning kitchens and baths, finish un- or under-utilized space to create beautiful living areas, bring safety issues up to code, and make much-needed repairs. Yet we’ve also heard of many people in both situations who are mistakenly crestfallen when they hear rumors about other homeowners who are unable to secure renovation financing.

The truth is that whether your project is large or small, financing is still available for qualified buyers and homeowners, but finding the right financing package is more important than ever.

Jack Snypes, a Renovation Specialist for Wells Fargo Home Mortgage in Charlotte, N.C., said there’s always a need for basic home improvements because of the aging U.S. housing stock. “And, when it comes to purchasing a home, renovation loans give buyers options when considering houses that aren’t perfect,” he said. “At an average age of more than 35 years, the nation’s housing stock is in need of improvements and repair, so there is demand for mortgage products that address the needs of buyers who are looking at homes that need TLC.”

To make it easier for lenders to offer renovation loans, the federal government has several programs they can turn to. (Talk with your lender to see if your home qualifies for these or other programs.) The Federal Housing Administration’s (FHA) Streamlined 203(k) is one of the more popular renovation loan programs. It permits homebuyers to finance as much as an additional $35,000 into their mortgage to improve or upgrade a home before they move in. The loan is generally used to update or improve a house or condominium needing essential repairs, such as new wiring or plumbing, weatherization, lead-based paint stabilization or abatement, roof replacement, kitchen and bath renovation or space reconfiguring, or interior upfits.

Other renovation programs like the Fannie Mae HomeStyle® Renovation Mortgage offer higher loan limits for more extensive projects. The HomeStyle Renovation Mortgage allows borrowers to finance improvements of up to 50% of the as-completed value of the home with a first mortgage, while offering lower rates than second mortgages, home equity lines, or credit card debt. Another plus is that this loan allows homeowners to finance “luxury” items, such as swimming pools, major additions, sun rooms and outdoor living spaces.

“Renovation loans are great tools for homeowners and important for community revitalization,” Snypes said. “Investing in a home contributes to the financial well-being of a community, because the homeowners are preventing older homes from deteriorating and falling out of the housing stock.”

When you are working with a qualified contractor such as Palmer Custom Builders, these loans also can help turn a diamond in the rough into the sparkling heart of your family’s home life.

What’s it Worth?

 

What's your home worth?Whether you are looking to buy a new home, sell your existing residence, or renovate the home you already own, the first and most important question on your mind is likely to be: What’s it worth?

As consumers, we place a high level of trust in the professionals who assign a value to our homes. Early in May 2009, the U.S. Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal National Mortgage Association (Fannie Mae) adopted new guidelines to assist in accurately and independently determining the value of homes. Enacted in the aftermath of the housing crisis, the Home Valuation Code of Conduct (reprinted at the bottom of this article) was designed, in essence, to prevent lenders or other third parties from unduly influencing the results of the appraisal process.

As is true when you are doing anything new, accurately interpreting the intent of the change and then following the correct procedure to implement it can be a bumpy process.  Some lending companies have incorrectly interpreted the code to mean that they must use the services of appraisal management companies. This can be problematic if their employees are not familiar with local market conditions, or worse yet, are not even based in this state. To help combat home valuation problems that some buyers, sellers, and real estate agents have run up against, the North Carolina Real Estate Commission recently sent this letter to the Federal Housing Finance Agency.  The text of the letter (reprinted below this article) was reprinted in the October 2009 "Carolina Real Estate Commission Real Estate Bulletin."

Before an appraiser determines the value of your home, ask about the four main issues broken out in this letter to achieve the most accurate results: Does the appraiser work for an appraisal management company? If so, is it owned by, controlled by or affiliated with your lender? Is the appraiser state licensed, and will he conform to accepted practices? Is the appraiser familiar with the market, and does he have access to current market data? Asking these few simple questions can have a major impact on one of the most critical aspects of buying, selling or renovating your home.

Home Valuation Code of Conduct

Editor's Note: The recently implemented Home Valuation Code of Conduct is intended to enhance the independence and accuracy of the home appraisal process and provide added protections for homebuyers, mortgage investors and the housing market. In response to complaints from real estate consumers and brokers regarding the Code, the Real Estate Commission has announced its support for legislation requiring appraisal management companies operating in North Carolina to be regulated by the North Carolina Appraisal Board, and it directed that the following letter be sent to the Federal Housing Finance Agency.

September 23, 2009

The Federal Housing Finance Agency

1700 G Street, NW 4th Floor

Washington, DC 20552

Dear Sir or Madam:

To assist your agency in monitoring and evaluating the effectiveness of the Home Valuation Code of Conduct implemented May 1 by the U.S. Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal National Mortgage Association (Fannie Mae), the North Carolina Real Estate Commission has directed me to share with you its observations and experiences with regard to the Code and to respectfully offer its suggestions for improvement. The Real Estate Commission is a governmental agency charged with protecting the interests of real estate consumers in our State. The Commission recognizes and appreciates your efforts through the Code to address some of the more egregious abuses visited upon the public by the unscrupulous acts of certain mortgage lenders. However, like your agency, we have found when adopting rules and implementing new legislation, some innocent misunderstandings and intentional attempts to exploit ambiguities in them are perhaps unavoidable.

With regard to the Code, prospective homebuyers have complained to us that lenders assert that under "new rules" the lenders must order appraisals through appraisal management companies. We have also received complaints from buyers, sellers and real estate agents that appraisers assigned by such companies to perform the appraisals are not familiar with or sufficiently informed about the real estate market where the property is located to make accurate appraisals. We are, in fact, aware of cases where appraisers have traveled from other states and of cases where appraisers attempted to perform appraisals without consulting MLS sales data. Further, despite the apparent intent of the Code to distance lenders from the appraisal process, we have learned that some lenders own or have an ownership interest in the appraisal management companies they use.

Although the Real Estate Commission does not at this time support a proposed moratorium on the continued implementation of the Code and we are aware that bulletins and other supplemental information about the Code have been published, it recommends for your agency's consideration that the Home Valuation Code of Conduct itself be amended to:

  1. Clarify that lenders need not engage appraisal management companies;
  2. Prohibit lenders from engaging appraisal management companies which are owned, controlled by, or affiliated with the lender;
  3. Expressly require lenders to engage, whether directly or indirectly, appraisers who are state-licensed and that the appraisals performed by such appraisers conform to the minimum requirements of state laws and rules and the Uniform Standards of Professional Appraisal Practice; and
  4. Expressly require appraisers who are engaged to perform appraisals to be familiar with the market where the property is located and to have access to and use the best available data for that market in performing the appraisal.

We hope our suggestions are received in the helpful spirit in which they are intended and that you will you not hesitate to contact our office if we can be of any assistance to your agency with this or any related matter.

Sincerely yours,

North Carolina Real Estate Commission

Reprinted from: Real Estate Bulletin October 2009

The Perfect Fit

 

The Perfect FitDo you have a good friend whom you don’t see very often, yet every time you get to talk, it’s as if you’ve never been apart? That intangible connection and natural flow of communication between two individuals is key to a long-lasting friendship, but you might not have realized just how important chemistry can be when it comes to selecting a contractor for your renovation project.

After all, you’ll be seeing your contractor on an almost daily basis, and he will be your voice in communicating your vision to all of the individuals who will work on your project. So ensuring that you and he are able to communicate well and comfortably from your very first meeting is essential.

Yet selecting a contractor goes far beyond picking someone with a compatible personality. Of course, there are the basics. The National Association of the Remodeling Industry recommends a number of areas you should consider: First, employ a contractor with an established area business specializing in your type of project. Check their references to ensure that past clients are satisfied with their service. Call the Better Business Bureau to make sure there isn’t an adverse file on record for the company. Ask to see a copy of the contractor’s certification of insurance or for the name of his insurance agency to verify critical coverage, such as worker’s compensation, property damage and personal liability insurance. Next, check your state licensing board to ensure that the contractor has the proper license. In North Carolina, a licensed residential General Contractor sits for a very extensive and intensive exam. The state also offers three types of licenses: A Limited License allows a contractor to work on projects of up to $500,000; an Intermediate License allows them to tackle projects of up to $1 million; and an Unlimited License – which Palmer Custom Builders possesses – is not restricted to any dollar value. The distinction is also important because they each have different minimum working capital requirements – $17,000 for Limited, $75,000 for Intermediate and $150,000 for Unlimited. A higher license ensures a greater depth of financial resources and may also be an indicator of diversity of skills and experience.

Experience is critical. Being a professional contractor entails far more than hanging a sign on a truck, it requires a great deal of education (and continuing education) combined with varied hands-on experience. There’s simply no substitute for having worked in the field for a number of years and having dealt with the challenges that are certain to “pop up.” Your contractor’s experience will allow him to implement creative solutions and will give you a comfort level that he has successfully “been there and done that” in the past.

Beyond that, it’s essential that the contractor you select runs a solid, stable business. The financial side is obvious – if it’s not a stable company, it might not be around to complete your project and it definitely won’t be there in a few years to stand behind its work. What you may not realize is that much of the critical planning, ordering and scheduling work in a project goes on back at the office and is dependent on the contractor’s ability to organize and run things smoothly from a business perspective. A professional approach is essential to handling the strategic coordination involved in ordering quality materials and scheduling the right trade professionals to ensure a timely result.

A good dose of common sense is equally important. For example, once on a time-critical project, we decided to postpone work for a day because of a predicted torrential downpour. While we could have done interior work that day, we knew that all the trades people walking in and out would have created a monumental mess that would have stressed the homeowner and which we would have lost even more hours cleaning up. Therefore, a short delay actually saved time and stress. Because the homeowner trusted our judgment, she didn’t agonize over the short delay, and we ultimately finished on time.

In the end, once you establish the credibility of the contractor, it’s simply a matter of finding that perfect fit. “I was referred to Palmer Custom Builders initially by our Realtor,” relates Kimber Morgan, who along with her husband Trey hired the firm to complete an extensive kitchen and master bath renovation and create an addition. “We did some further investigation, looking at their website and other sources of information. Ultimately, we thought they were very thorough and brought a lot of ideas to the table. They were a very professional firm and brought a lot of competence. We immediately felt like these people knew what they were doing,” she says. The results of that ideal fit will then speak for themselves.