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Warning!
The volatile, toxic nature of manufacturing “meth” makes it a very serious health issue. For every pound of methamphetamine (crank) manufactured there is six pounds of toxic waste and residue left behind. In addition to the hazardous waste concerns, the making of “crank” in a drug lab is highly susceptible to explosions and fires. Trust me, you don’t want to be living in a former drug lab home or even near a drug lab. It is not going to be very good for your safety, home appreciation or resale value.
It would definitely be nice to make sure your new home wasn’t a former drug lab for Meth. The Drug Enforcement Agency (DEA) thinks the same way. This is why they have started the National Clandenstine Labortary Register, a great web site that will allow you to look up houses in your state that have been identified as meth labs.
The National Association of Realtors (NAR) is still trying to set guidelines & procedures on how to deal with drug lab homes. It seems NAR can’t figure out how to properly disclose drug homes and/or how to set standards for cleaning up drug homes. As of August 2008 NAR has no policy in place to deal with this issue.
So, take a second to review the registry to see if your new dream home was a former drug home. While your looking, you also might want to check other addresses of family members, friends, co-workers, etc. Lucky for us, it appears the higher concentration of drug homes are located in the southern states.
How Radon Gas Enters A Home!
We’ve had reason in recent days to re-investigate the risks of radon gas to our health. We got a lot of help from Elizabeth James, radon maven. [Thanks, Liz!]
The news is not good!
Radon, you will remember, is a colorless, odorless, tasteless, radioactive gas—the product of decomposing uranium deep in the earth.
Radioactive?
That can’t be good.
You’re right, it’s not.
According to the U. S. EPA online radon is a very serious threat to our health.
Radon is the number one cause of lung cancer among non-smokers, according to EPA estimates. Overall, radon is the second leading cause of lung cancer. Radon is responsible for about 21,000 lung cancer deaths every year. About 2,900 of these deaths occur among people who have never smoked. [emphasis mine, ed.]
It’s everywhere. But, mostly, it’s in your house!
A silent, invisible, odorless, tasteless, radioactive killer gas is sneaking into my home to give me cancer? R-I-G-H-T!
Sounds like another eco-maniacal greenie off the deep end doesn’t it?
It’s not.
(BTW, our sincerest apology to all ecologically concerned individuals whom we may have just offended. We’re just trying to drive home a point here—not make a political statement. Really.)
And there’s more bad news.
You are at a greater risk of dangerous exposure to this killer stuff here in central Ohio than most other places!
Uh Oh!
This is serious business, and you need to find out more about the risk to you and your family and what you can do about it.
Do it because there are reasonable ways to reduce exposure. Do it because you want to be here for your grandchildren. (Okay, here’s the real reason. Simon says “Do it.”)
The EPA has a free booklet available on line that provide excellent general information. There is an additional free publication that addresses the special concerns of those considering buying or selling a home.
Possibly the best source of good information about radon in the central Ohio area is our new friend Elizabeth
How We Are Exposed To Radon Gas!
James at the Ohio Department of Health. (You were wondering when we were going to get back to her, didn’t you? Thanks for staying with us.)
Call Liz at 800-523-4439 and ask her some questions about this stuff. She’s an expert. Find out how serious this really is…and what you can do about it.
Go ahead call her…she’s really nice.
Tell her we said “Hi”.
You smokers with children. [You know who you are.] Stop smoking now and call Liz. Your risk is like 100 times worse! No kidding. Do it right now.
(This health safety blog story was reproduced from the “Buyershome Journal” blog – July 31, 2007)
Taxes
Franklin County has a great automated monthly prepay system for paying your real estate taxes that will pay you interest. The Franklin County Treasurer will pay the “average Joe” home owner the same interest rate that the Treasurer earns on its multi-million dollar portfolio. This is really a groundbreaking achievement for the Franklin County Treasurer’s office. The Treasurer sought and obtained a change in state law that allowed them to pay interest on monthly tax payments by home owners. Banks are still NOT allowed to pay interest on escrow accounts that collect property tax payments.
The interest rate that you can earn from the Treasurer’s office will be a better rate than most short-term bank accounts (checking, savings or money market accounts). For example, in 2007, the Treasurer’s interest rate fluctuated between 3.5% – 5.5%. Last year, I had a so called “high yield money market account” with an investment company that only earned between 1.75% – 2.25%. I think the Treasurer’s new monthly prepay system for real estate taxes that also pays interest is a first-rate service. Many homeowners in Franklin County are not even aware of this service.
A Franklin County home owner could possibly earn a couple hundred dollars a year. For example, a $265,000 home in Franklin County with yearly real estate taxes of $5,000 a year would have approximately earned $200 – $220 in an interest credit for 2007. The interest that you earn will be credited back against your real estate taxes, to LOWER your taxes! To get more info, you can visit the Franklin County Treasurer web site. The process is very simple and easy to set up. You just have to fill out one simple form.
If you are currently escrowing your real estate taxes with your lender then you will need to check with your lender to see if you are eligible to stop the escrow of real estate taxes. Most lenders will allow you to stop escrowing for real estate taxes if you have 20% – 30% equity. But, every bank has different policies and procedures, so before you do anything make sure you first check with your mortgage lender. You want to make sure you are eligible and there are no fees or costs involved to stop escrowing for your real estate taxes.
As of right now, Franklin County is the only local county in central Ohio that offers this great service. If you have questions, you can contact The Treasurer’s office for more information (614) 462-7515.
I think this is a wonderful service by our Treasurer’s office. A great benefit for being a home owner in Franklin County. You have the “worry free” convenience of automatic monthly payments of your real estate taxes that also pays you a great short term interest rate that you probably can’t get at any bank. And best of all, the Treasurer’s program is FREE. There is no fee or set up charge to join the program.
Shake Down!
Don’t let the “Tax Man” shake you down! Click here for other possible ways to reduce your property taxes and/or save some “greenbacks”!
Save Moolah!
Even a small amount ($25, $50, $100) added to your mortgage payment each month when applied to the principal can have a significant impact on the total amount of interest you pay as well as how long you pay it.
For example, if you divide your monthly mortgage payment by 12 and add that amount to your monthly payment each month by the end of the year you will have paid the equivalent of an extra mortgage payment for the year—a 13th payment—all invested in principal reduction!
That 13th payment can make a big difference. For example, let’s say you borrowed $200,000 at 6.5 percent interest with a 30 year term. Your monthly payment would be a shade over $1,264 a month for principal and interest. By adding an extra $100 per month ($1,200 per year) you would pay off your mortgage in just over 23 years, knocking almost seven years off the loan and saving over $73,000 in interest.
Contact your lender to find out how they apply extra payment money from you. Some lenders may apply your extra money that you pay above your monthly payment amount automatically to your principal.
However some may appy it to your escrow account to pay taxes or insurance which is NOT what you want them to do! Make sure you read the fine print, and call (or write) your lender to confirm what they will do, or how you can assure that the extra money goes to reducing your principal balance.
Tip: Sending a separate check and clearly marking the “memo” field with your loan account and the phrase, “Apply to Principal”will help assure proper credit and provide strong documentation of your extra payments. Again, check with your lender.
Tip: Don’t bother with offers from your lender or 3rd party companies that offer to charge you money (often as much as $200-$300) to set up a bi-weekly payment program—you can accomplish the same thing yourself without their help—for free.
IMPORTANT NOTE: Although this is a great strategy to accomplish the twin goals of saving money and increasing equity in the capital asset that is your home, this may not be the best use of your financial resources.
Interest rates for home mortgages tend to be lower than most other consumer loans and your financial profile may suggest a better use for this money—like paying off higher interest consumer loans first.
Anytime you pre-pay extra money on any installment loan it has the same effect as investing your money at that interest rate. So if you had an extra $100 should you pre-pay it on a home loan at 6.5% or a consumer loan at 10%, for example? And don’t forget that mortgage interest is usually fully tax deductable, whereas other consumer interest is not.
Therefore, we recommend consulting a qualified financial advisor for a proper evaluation of your total financial picture before proceeding with this strategy.
(This money saving blog story was reproduced from the “Buyershome Journal” blog – April 12, 2007)
After years of failed attempts, it finally looks like we will have some licensing regulations in place for Home Inspectors in the State of Ohio by 2009. House bill (HB) 257 recently passed the Ohio House of Representatives by a wide margin (83-11). The bill will be reviewed by the Ohio Senate later this year when the legislature reconvenes after the November 4th election.
With all the problems in the last few years in real estate, it would be “political suicide” for any political official (wink, wink Gov. Ted Strickland) not to pass some positive legislation. Legislation designed to regulate & license Ohio’s home inspection industry is long over due.
For too long, any “Joe Schmoe” could print up a business card on their home computer and start a home inspection business. Because of this reason, there are inexperienced, unqualified inspectors in our area. This is a problem for a potential home buyer. The problems we have had in the home inspection industry are really “small potatoes” compared to all the other major problems in real estate (lenders, fraud, greed, non-disclosure, foreclosures, etc.). But, this is a good thing. This means legislation will probably get passed in the State of Ohio.
The new Home Inspection Licensing will probably include the following provisions:
1. Criminal penalties for performing home inspections without a license.
2. Creation of a process for investigating complaints filed against inspectors.
3. Creation of the Ohio Home Inspection Board to regulate the industry.
4. Creating minimum standards and guidelines for performing inspections.
Hopefully our state legislature will have the home inspection bill passed soon. I am confident that home buyers in 2009 will have the protection of home inspection regulation and licensing.
Home Inspector
Check out my previous past about “Home Inspection Nightmares”. This blog post also has good links to find qualified home inspectors in your area via The American Society of Home Inspectors (ASHI) and National Association of Home Inspectors (NAHI)
Good luck out there!
Last week, The Homebuyer’s Advocate Blog was used as a reference for a good article in the Columbus Dispatch by Jim Woods – Moldy Home Cost Builder $3 Million.
Jim put out a thorough follow up article about the moldy Maronda house and resulting lawsuit that has been in the news for the past few months.
Our very popular blog post (over 500 views) in late February reported on the same Maronda issue – Maronda Home Verdict Cost Nearly $3.2 Million.
I especially liked the way Jim “touched” on the Reynoldsburg Building Department signing off the home.
The house passes all building code requirements, but yet the south side of the house was not attached to the foundation and was inadequately attached on the other three sides. This was hilarious and sad all at the same time.
I’m sure I wasn’t the only person reading this article and saying “hmmm, how does that happen?”
How new homes pass building inspections & get occupancy permits is a mystery to most consumers & home owners.
I think the Columbus Dispatch has the start of whole other investigative exposé
I’ve heard many stories from experienced home inspectors that talk about the same problems and issues with homes passing building inspections.
For example, a home can pass plumbing & electrical inspections but yet have water leaks and no 
working lights. There are two main reasons why these problems sometimes happen with building inspections. First, many building inspectors just check to make sure homes are built to the correct specs, materials, items, hardware, clearances, etc. As long as a home is built to the correct specs and material it could possibly pass a building inspection. The second main reason why bad homes pass building inspections is human error. This happens even in spite of pressurized plumbing checks and other tests on mechanical systems.
I think it is about time to stop beating a dead horse. It is time to move past the issues of some new home builders in Central Ohio, like Maronda and Dominion homes. (Another Builder Casualty) The last few years, their issues have been thoroughly documented in every type of media & press publication. If you are an informed home buyer in Central Ohio then this is all old news.
The key phrase above is “if you are an informed home buyer“. I’ve been an Exclusive (true) Buyer Broker since 1996. I only represent residential and investor buyers. I’m sorry to say that the definition of a truly informed home buyer varies greatly. In most situations, a home buyer will spend only a few minutes researching the home buying process on the Internet sandwiched in between their favorite TV shows, American Idol and Dancing with the Stars. In one short evening a potential home buyer thinks they have thoroughly researched everything they need to know about the home buying process.
The reason this occurs so frequently is because researching on how to find the best representation possible for a home buyer is not fun and feels too much like work. Home Buyers just want to look at beautiful pictures of fabulous homes.
The first and most important decision a home buyer needs to make is who will represent them, NOT which home they buy or what builder to use. An Exclusive Buyer Broker (EBA) is the highest and best representation possible for any home buyer. Would an EBA been able to protect the buyer that purchased the moldy Maronda home. Maybe, yes or no. There are no 100% guarantees in life. A true Buyer Broker (EBA) isn’t always going to be a “Knight in Shining Armor”. But, we are the best base or foundation of having a successful home buying transaction.
This is a great article from This Old House Magazine. “Dealing with Household Disasters” is a funny, useful & informative article. You will enjoy scrolling through the 
ten household disasters.
My favorites are #6 and #8. I’m sorry to say, that item #6 has happened to me a couple times. “Does anyone want to use my cell phone?”
Lastly, item #8 is a common problem/question that is often asked by my clients. No one wants a John “Bluto” Blutarsky as a neighbor. You always want to remember that 
“fences make the best neighbors”
Wow, it has been 30 years since the movie “Animal House” was released. Hard to believe it was that long ago, I am going to put everyone on double secret probation.
Last week, Andy Show, owner of Buyer’s Resource was a guest on the top rated AM radio station in Central Ohio. WTVN Radio (610) interviewed Andy on two good topics:
1. How does Federal Fund rate adjustments affect local mortgage rates.
2. Builder incentives on new build home artificially inflate prices of homes.
This is my first attempt at posting sound to my blog. AKA, podcast.
You can listen to the short interview here:
On Tuesday, February 19, 2008, a couple in Franklin County Court won a jury verdict against Maronda Homes for nearly 3.2 million dollars. The couple, Roman and Jennifer Cosner alleged that Maronda Homes knowingly sold them a defective home. The jury verdict in favor of the homeowners stated that Maronda Homes did sell a defective home and that Maronda was aware of that fact. Maronda acted in an “unfair, deceptive or unconscionable” manner.
Maronda has always had a reputation for building the biggest square footage home possible at the lowest price. No other local production home builder can even come close to the price and square footage of Maronda Homes. There is usually a reason why this happens. It is not really complicated. Home owners should stop being so naive. You buy the lowest priced “anything” and you are going to have problems. I don’t care if you buying a new home, a 
toilet seat or a widget. You get what you pay for!!!! Like many home builders, Maronda has had it’s fair share of unresolved consumer complaints.
In my opinion, this could be landmark case for new home builders. The jury ruling in this case has now set a precedent for all future, similar cases. I would be really curious to see how this affects the policies and procedures of other builders in our area. I bet many builders are now “scrambling” to figure out how to adjust their business practices to deal with this jury verdict.
I’m glad the home owner had won their court case. But, I guarantee you, that they probably didn’t use an Exclusive Buyer Agent to help them purchase their new built home. If they had the proper Buyer Broker representation looking out for their best interest then this problem probably would not have happened. As consumers we have to be accountable for our bad decisions or lack of…..
Stay tuned for future posts on this topic.
HomeBuyer Advocate Mike
Representing People, NOT Property!
Central Ohio’s largest home builder announced on Friday losses in the 4th quarter and for all of 2007. M/I homes is one 
of the nation’s largest home builders. M/I builds a quality a home and is a well managed company. But, even the best, well- run, new home builders were not immune to the recent real estate market crisis. M/I Homes has been in business for 30+ years and I’m sure they will be in business for another 30+ years.
My Buyer Broker Advocate! 
Cool Comments!