I am working with an investor client who is interested in low cost condo and townhome properties.  We are, of course, considering location to public transportation, changing neighborhood demographics, etc.  A new component of the due diligence for these properties is checking the Bed Bug Registry.

      In our high income, ultra educated area there are already four confirmed cases of bed bugs.  This may affect the property value for some time and will no doubt affect cash flow short term.

      When showing properties where you consider there may be a possibility of bedbugs, fleas, etc. wear light colored pants.  They will show the bugs the quickest.  Do not take a purse or backpack in to these properties. Keep a trash bag in the car and change of clothes.  If need be, you can change clothes and keep your infested clothing in the trash bag until you reach a washing machine with hot water.  Freezing works, too.

This weekend I attended a two day workshop in Pittsboro on solar power.  We discussed the pros and cons of grid tied systems (about 95% of systems), hybrid grid tied systems (more complicated but useful in areas that have frequent power outages) and off grid systems. 

Other topics and exercises included:

·         Using a multi meter to measure volts and current in various pv modules (panels)

·         Finding the amount of sunlight a site would receive year round by measuring with a solar pathfinder (such a cool tool and great for gardeners, too!)

·         Measuring temperature of the panel itself· .     

      Wiring the charge controller and safety disconnect to attach to the inverter, batteries and pv module that powers the small off grid Abundance Foundation office seen here in the picture

The skill level of the attendees was all over the spectrum; electricians, contractors, homeowners, non-profit staff, and moi. Our instructor, Rebekah Hren, a NABCEP certified solar PV installer and licensed NC electrician  somehow kept us all engaged.  I believe everyone left with loads more knowledge and skill than when they arrived on Saturday morning.

My reason for attending was to better serve my real estate clients buying or selling a home with solar components or systems.    The experience with a recent transaction, mentioned here earlier, made clear having a good working knowledge of the difference in systems, a ballpark figure of cost/lifespan and how they work could translate in thousands of dollars in the cost of the home for buyers or the sale price of the home for the sellers. 

During the transaction I mentioned earlier, I was working with the buyer and the lack of expertise of the appraiser sent by the lender in solar saved my buyer a bundle, but it was clear I needed a group a professionals to call upon the next time I have solar power systems  in a property. Happily, I now can call upon the expertise of a team of professionals that include an appraiser with solar knowledge, lender with green certification, and solar inspector. 

That's me below, genuflecting to the sun god.

Rebekah Hren and her husband Steven wrote a book featuring 36 projects to work toward The Carbon Free Home.  While many of the projects might be extreme for most folks.  Almost everyone can use some of the ideas and projects in the book. 

Rebekah, who is a nationally sought after solar instructor for Solar Energy International.  This month her new book, Let the Sun Shine In, a buyers guide to photovoltaics and solar thermal, will be available.

The holiday season is fast approaching.  If fighting the crowds, the long lines and the parking lot at the Carrboro Post Office hold no appeal to you, drive on down 54 west to Harry's Market.

The have a contract post office with friendly staff and rarely a wait.  In addition, you can shop for gifts, vitamins, grass fed beef, yummy baked goods and there is always a surprise.

During fall (if we ever GET fall) there is music on Friday and Satruday evenings.  Wood fired baked pizza is available.  Bring your folding chairs and relax!

Planning to make improvements to your home?  You can include them in the cost basis of your house and thus reduce your capital gains tax if you ever sell ( be sure to keep the receipts). If you're making repairs, however, there is no tax benefit.

What's the difference?

According to the IRS, an improvement "adds to the value of your home or prolongs its life," whereas a repair keeps it in "ordinary, efficient operating condition."  There is a fine line between the two, but here are some general guidelines:

Improvements:

• Wallpapering
• Installing tile floors
• Replacing lighting fixtures
• Paving your driveway
• Adding insulation
• Installing a water heater
• Installing metal roof

Repairs:

• Painting your home
• Refinishing wood floors
• Replacing broken window panes
• Sealing your driveway
• Replacing gutters
• Installing new pipes
• Repairs to asphalt roof

When things break, they always break at the worst time.  You know, on the weekend, during a party, etc.  When our well pump stopped working it was in mid shower on the weekend.  After a tirade of colorful language, my husband did the smart thing.  He turned off the well pump. We had enough hot water stored in the tank for the necessities until morning. 

Happily, we had the phone number to the repair person on a magnetic business card on our hot water tank and he came right away.  Even though I have numberous resource numbers in my database, it was comforting to not have to rifle through names and numbers while under the stress of no water. 

The take away?  Have your repair service contacts at the point of the problem; electrician at the breaker box, HVAC person at the air handler, etc.

By the way, turns out a fuse caused our problem.  My husband saved our pump by turning it off.

Many lenders no longer require a survey.  While most Realtors and closing attorneys recommend them, cash strapped buyers often opt not to purchase a survey. 

Here is another reason to get a survey: The title insurance you buy will cover only the lender and excempt the buyer.  In other words....if there is a title dispute you are on your own.

Please get a survey when purchasing property!

At a recent Green Builders meeting the following stats were relayed:

Most newer homes lose up to 10% of the heat in the duct work. 

Homes 15 years and older lose about 40% in the duct work.

 THAT got my attention. And energy prices are expected to increase by 50% in the next 7 years. 

Now. while it is cooling down but before it gets too cold, is the perfect time to make sure the seals to the heat registers are secure, the ducts are sealed and the returns are sealed. 

One inspector told me he has noticed a higher incidence of mice chewing holes in flexible ductwork than in the past.  Here in the south where crawlspaces are common, it pays to check your duct work for holes every couple of years.

Fall is the perfect time for planting shrubs and trees.

Planting shrubs and trees is the perfect time to accidentally cut the underground power lines. 

To prevent meeting your neighbors in this manner, call The One Call Center at 1.800.632.4949 a few days before you plan on planting.  They will send the phone, gas and electric folks to mark the lines for you.  This will also help protect you from any liability if the  lines are cut.

Business Insurance and Homeowners Insurance are two distinct types of insurance products requiring different types of coverage.

A Farmowners Policy is a package policy that resembles a homeowner policy and is flexible enough to meet the unique needs of the farm business.

Farmowners Can Cover:

Dwelling

Other structures-a detached garage (not a barn)

Personal property –contents of the home

Additional Living Expenses- Motel to live in if the residence burns down.

Barns, Buildings, additional dwellings on the premises

Scheduled or unscheduled equipment-tractors, farm equipment, livestock, hay in the open, portable buildings or structures, silos, anything farm related.

Personal Liability-example: guest slips and falls in the residence.

Farm Liability- horse escapes it’s fence and hit by a car in the road.

Products Liability- the eggs you sell have bacteria in them that make people sick.

Equipment Breakdown

Loss of Income and Extra Expense

Animal Mortality

Major Exclusions in a farm policy:

 Loss caused by enforcement of building codes

 Loss caused by earth movement

 Loss caused by power failure,

 Loss to outdoor radio and TV equipment

The above exclusions may be “bought back” by endorsement and payment of additional premium. FLOOD is excluded, no buyback option. Must go to NCJUA to secure a flood policy.

Coverage Forms

There are three types of coverage forms-

 Basic, Broad, and Special

Basic is named perils. Loss must be caused by one of these perils:

  Fire and/or Lightning, Windstorm or hail, smoke, Aircraft/vehicles, Riot or civil commotion, vandalism, sprinkler leakage, sinkhole collapse, and volcanic Action

Broad Form Perils-the above mentioned plus breakage of glass, falling objects, weight of snow and ice, water damage-but only accidental, due to breaking or cracking of vessel containing water. Finally, additional Coverage-Collapse-many restrictions.

Special- also known as open perils. Coverage is provided unless excluded.

This is the best coverage form.

Some property is insured on an ACV basis. Actual Cash Value.

ACV is replacement cost-depreciation.

Replacement Cost- If the loss is a covered loss, and replacement cost is shown, the building, or scheduled equipment can then be replaced with a new item. Replacement cost is more expensive, but well worth the extra premium, if you can get it.

Insurance to Value-

Most property insurance contracts are co-insurance contracts. This means that a specific amount of insurance must be purchased in order to cover a partial loss.

If the replacement cost on your barn is $100,000, but you only purchase $50,000 of insurance, then suffer a $20,000 loss; the policy will not pay the full $20,000 loss.

Amount of coverage     X      Loss = amount payable in this case, $10,000 

  Replacement cost

Insurance Agents and the insured need to work together to determine the proper replacement cost. Replacement cost is determined at the time of loss.

Some of the things Insurance Companies consider when underwriting a policy:

Is the farm a profitable operation?

What is the experience of the farmer, or new owner?

Is the insured active in the business?

Is the machinery well maintained? Are the buildings in good repair? Fences in order?

Has the electrical, plumbing, roofs, air conditioning and heat systems been updated?

What are the prior losses?

How many mortgagees or liens are on the property?

Does the underwriter trust the agent?

From an interview with:

Christine Barnett, CIC, AU

High and Rubish Insurance Agency

Chapel Hill NC 27517

Office:919-913-1144

Fax:919-913-1155

   Make a disaster plan to protect your property, your facilities, and your animals. Create a list of emergency telephone numbers, including those of your employees, neighbors, veterinarian, poison control, county extension service and  trailering resources. Include a contact person outside the disaster area. Make sure all this information is written down and that everyone has a copy.

 Most important: Make sure every animal has durable and visible identification.

Evacuation Planning

       Evacuate animals as soon as possible. Be ready to leave once the evacuation is ordered. In a slowly

 evolving disaster, such as a hurricane, leave no later than 72 hours before anticipated landfall, especially if you will be hauling a high profile trailer such as a horse trailer. Remember: Even a fire truck fully loaded with water is considered "out of service" in winds exceeding 40 mph. If there are already high winds, it may not be possible to evacuate safely.

 Arrange for a place to shelter your animals. Plan ahead and work within your community to establish safe shelters for horses and farm animals. Survey your community and potential host communities along your planned evacuation route.

Contact your local emergency management authority and become familiar with at least two possible evacuation routes well in advance. 

Set up safe transportation.  Trucks, trailers and other vehicles suitable for transporting livestock should be available, along with experienced handlers and drivers.

 Take all your disaster supplies with you or make sure they will be available at your evacuation site. You should have or be able to readily obtain feed, water, veterinary supplies, handling equipment, tools, and generators if necessary. (Take water if possible.  Many horse will not drink 'strange' water.)

 If your animals are sheltered off your property, make sure they remain in the groupings they are used to. Also, be sure they are securely contained and sheltered from the elements if necessary, whether in cages, fenced-in areas, or buildings.

Planning ahead could save your animal’s life.

Turn the water knobs under sinks off and back on at least once a year, preferably every six months.  When the shut-off valves beneath sinks and toilets go untouched for years, mineral deposits can cause them to seize up and the valves can’t be opened or closed.  Often the only recourse is to hire a plumber to cut the valves out and replace them, at a cost of hundreds of dollars. 

Add this to the list of things to do when the time changes....check fire extinguishers, smoke alarms, etc.   Five minutes or less could save you money AND headaches!

 After spending so much time indoors recently because of the heat,  I realize my living room chairs are TIRED, real tired. 

    Before looking for replacements, I decided to investigate what fabrics are least appealing to cats.  My sweet tabby is part of the family, but her manicures can be brutal on the furniture.

   My intereior design pal tells me the following are their favorites (alas mine, too):

Favorites: silk; leather, chenille, textured fabrics.  They also love thick looped carpeting and rugs.

What are they more likely to leave alone?  Chintz, smooth cotton, Ultrasuede, and velvet.

The requests from home buyers to be able to raise chickens or goats in neighborhoods has greatly increased in the last few years.  Some developers have recorded covenants to allow chickens (rarely allow a rooster) to broaden their buying pool and many neighborhoods have amended their covenants to allow chickens.

If your neighborhood allows chickens, is considering chickens or has already changed the covenants to do so, I would like to get your feedback on the pros or cons in your experience.

While touring a property with a client, we noticed a fairly recently built building near by with a condemned sign on it.  The property we toured was appealing to my client, so of course, she wanted to know what the issue was with the condemned building.

My inquiries turned up the fact the duplex had been built in the Duke Power easement.

How could that have happened?  NO SURVEY!  No one ever lived in the property.  It will now have to be moved or torn down. 

How it got a building permit and passed inspections up to completion is another story.

Get a survey!  It is money well spent.

   This cottage lives BIG!  Master on the main and two additional bedrooms and full bath upstairs.  The marble surround fireplace is the focal point in open concept living space downstairs.  There is also a powder room downstairs.

    The charming wood fenced backyard provides entertaining and family space on the deck, in the gardens and on the playset.  A large site built wooden shed is nestled among the trees.

    The location is fabulous!  A bike ride to downtown Hillsborough with its' restaurants, shops, food store, parks, and historic landmarks.  UNC and DUKE are a 20 minute commute.   The home itself is on a dead end street at the cul-de-sac.

   Come see this sweet cottage for more reasons you will want to call it home. $174,900  MLS 1731121 Virtual Tour:
www.TourFactory.com/636018

Have you been visiting open houses and home parades before looking for land to build your dream home?

Well, walking land will require new tools and preperation.  The camera is not as important, but the bug spray is!

Don't arrive ready to walk property with the real estate agent in sandals.  Boots are best.  Long sleeves and long pants will help deter scrapes and bug bites. 

Ticks, chiggers, snakes and poison ivy are common in NC during the spring, summer and fall.  Late fall to very early spring is the most comfortable time to walk land and the best time to see the lay of the land.

A contour map along with the plat mapwill really assist in determining where a homesite might be best, how to lay out a driveway or if a pond might be possible.

If you decide to look at land alone, be sure someone knows where you will be.  Have a copy of the plat to help yourself determine where the property lines are in case they are not well marked.

Take a whistle.  Your cell phone may not work in all areas. 

Once you have found property that speaks to you, the next step is determining whether it has septic and water or if you will need a septic system and well. 

One of my recent clients choose a resale green built home.  The appraiser for the lender called to get additional information from me (yeah!  The good ones do!) When I asked what sort of value he was giving for the solar components of the house, he said none.

Because of the low appraised value, in part because several of the green components were given no value, we were able to re-negotiate the selling price.  Great for my buyers, not so great for the sellers.

What I learned was, insist on an appraiser with training appraising green built homes. Even those green certifications may find value resale green homes challenging since it is still new territory.

In the Triangle NC  area, one such appraisal company is Seligson Appraisals. 919.636.0235

Retreat to secluded acreage close to town! Gracious outdoor spaces include a screened porch, large deck, southern rocking chair front porch and custom stone firepit with hand crafted stone bench and retaining wall. MLS 1731471

Cozy indoor spaces with wooded views from every window.  Hard to believe you are just minutes from downtown Chapel Hill!

Home also boasts a rare finished walkout basement for additional storage, living space and flexibility.  All this on almost 5 acres of land.   3 bedrooms and 2.5 baths.   $389,000

  Virtual Tour www.TourFactory.com/636121

  Scorching hot days of summer inspire many of us (especially in the south) to plant additional trees on the south and west sides of our homes.  Trees can keep homes up to 10 degrees cooler!

  Studiies have shown some trees attract lightening more than others.  Species struck most often by lightening include, elm, oak, pin, poplar, maple and ash. 

  Those most resistant holly, beech, birch and horse chestmut.

   Decayed and rotten trees are more vulnerable to lightening than healthy specimens. 

   In addition, it has been found that shallow, wide spreading rooted trees seem to be more resistant than deep rooted trees.

   Trees planted in the fall have the best chance for flourishing, so resist planting until this fall. 

 Recently a water sample from a one of my listings came back positive for coliform. The buyer's agent had hired someone with no training.  I had a second company test .  The results came back negative for coliform.  What made the difference?

  Possibly two or three variables.  The second test was conducted by a company that does nothing but water and septic inspections.  They have the training and experience to do the tests right and recognize possible issues.

  The inspector I hired took a sample from both the well head and from the house.  If the well head came back clean and the house sample did not, we would have narrowed down the problem.

  If both samples come back with coliform, then we know the water source itself is tainted.

  If both samples come back clean (as they did), the first sample was probably comprimised in some way.

  The homeowners have a retractable kitchen faucet.  Our inspector told us that could be the problem.  Often they will harbor bacteria.

  The whole house water filter the homeowners have is a carbon filter.  Perfect for filtering chlorine from municipal water systems, but 'a lovely place to grow bacteria' from well water where chlorine is not present.  A sediment filter would fit the bill for this rural property.

  In the end...alls well that ends well.  (I couldn't resist!)