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RISMEDIA, July 31, 2010—(MCT)—Local contractors say a controversial new federal safety rule will increase home-remodeling costs in Manatee County, Florida, but by how much is a matter of debate. Beginning October 1, 2010, contractors will be required to take additional precautions when renovating structures where children could be exposed to lead dust from old paint. The new “lead-safe” practices apply to work on homes, day-care centers and schools built before 1978, when lead paint was banned for residential use because of health risks.

Contractors say they will comply with the new regulations but will pass the cost of compliance onto customers.

“Any government regulation such as this inevitably costs the customer or end user more money,” said John Kiernan, owner of Kiernan Remodeling & Design Inc. in Bradenton, Fla. “If you’re a pre-’78, you’re going to pay more.”

But how much is unknown and hotly debated.

Kiernan estimated $500-$2,000 per job, depending on the size and scope. The National Association of Home Builders said its members’ estimates average about $2,400, including an extra $60-$170 for a window replacement. But the Environmental Protection Agency counters that it might be as low as $8-$167 because some required equipment can be used in multiple jobs.

The agency issued the rules in 2008 because more than 1 million American children a year are at risk of being poisoned by lead-based paint. Exposure can lead to learning disorders, behavioral and reproductive problems and, in extreme cases, brain damage or death. The government estimates 38 million U.S. homes built before 1978 contain some lead-based paint.

Under the rules, contractors and their employees must take an eight-hour training course and become EPA-certified as lead-safe. In buildings with lead paint, workers will have to wear special outfits with air filters, goggles and hoods, protect work sites with heavy plastic, clean work areas thoroughly with special vacuums and post warning signs.

Violations carry potential fines of up to $37,500 a day, EPA said. The requirements don’t apply to homeowners doing their own renovation work.

The new requirements took effect April 22, 2010. But the agency since has twice postponed enforcement of them after contractors complained that the government had not provided enough trainers to help them meet the April deadline.

The EPA and health advocates questioned that, noting that 160,000 people had been trained by that date.

“I think it’s a change, and whenever you have a big change like this you are going to have pushback from the industry,” said Rebecca Morley, executive director of the nonprofit National Center for Healthy Housing.

Copyright (c) 2010, The Bradenton Herald, Fla.

Distributed by McClatchy-Tribune Information Services.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

RISMEDIA, July 31, 2010—Homeowners who are looking to remodel their kitchen should keep the following factors—that can significantly affect the price of their remodel—in mind as they begin to make plans to upgrade their kitchen.

According to Kitchen Tune-Up, homeowners should pay attention the following five factors before they begin a renovation.

1. Wood species or cabinet covering material. The material that covers the cabinet will effect the overall pricing of a kitchen renovation, but not as much as you might think. A stainless steel clad cabinet will be the most expensive and a melamine (thin plastic laminate) surface will be the least costly. Cherry is usually about 7-10% more than oak, while hickory, oak and pine usually run very close in price. Unusual cabinet woods like alder, mahogany, fir, rift cut woods, redwood, teak, etc. will usually cost more than common oak or pine.

2. Kitchen layout. The layout of the kitchen and the cabinet configuration will largely affect the price of a remodel as well. For example, a lazy susan will cost more than a sink cabinet, a stack of drawers will be higher priced than a one drawer/two door base cabinet, a U-shaped kitchen costs more than an L-shape with an island and a wall oven/cooktop combination makes the kitchen cost about $1,000 more than a free standing range. Setting a budget to design within can often save homeowners many hours of re-design.

3. Cabinet door style. A door with many details will usually cost more than a simple door. If an arch is added to a square panel, homeowners can expect to pay more. A door with lots of grooves or molding generally cost more than a simple door and a full overlay door (door that covers almost the entire cabinet face) costs more than a traditional overlay door. Doors set inside the cabinet frame (called inset) cost more than doors that are mounted over the cabinet frame.

4. Type of cabinet finish. The type of cabinet finish you choose will vary the pricing of a kitchen remodel as well. Painted cabinets will run 10-15% more than a standard stain finish and glazes or layered finishes will run 7-15% more than a standard stain due to the extra labor.

5. Cabinet construction methods and materials. Don’t skimp in the area of cabinet construction in order to save money on your kitchen renovation as better construction methods make a kitchen durable. In fact, cabinet construction may be 60% of the entire cabinet cost.

For more information, visit www.kitchentuneup.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

RISMEDIA, July 31, 2010—(MCT)—If you’re a baby boomer, the odds are high that you’ll exhaust your retirement savings after 10 or 20 years of retirement, according to the latest Retirement Readiness Rating report released by the Employee Benefit Research Institute.

Nearly half of older boomers—those now aged 56-62—and some 44% of younger boomers—aged 46-55 now—are at risk of not having sufficient income to pay for basic retirement expenses and uninsured medical expenses, according to the study.

The study, which assumed that boomers would retire at age 65, also found that lower-income retirees are most likely to run out of money after 10 and certainly 20 years of retirement, while higher-income retirees are least likely to run out of money.

To wit: 41% of those in the lowest income quartile are likely to run short of money after 10 years of retirement, and 57% after 20 years. Meanwhile, just 5% of those in the highest income quartile will run out of money after 10 years, and 13% after 20 years.

So, what to make of this study?

In reality, most Americans don’t run out of money; they run out of lifestyle. As they age and spend down their assets, they typically reduce their living standard.

“For the most part, people do not completely run out of money when our software says they will,” said Stephen L. Deschenes, senior vice president and general manager for the annuities division of Sun Life Financial’s U.S. operation.

“They do not run full-speed like Wile E. Coyote off the cliff and only then realize that they are out of terra firma. Rather, they take action either to spend less or work more or some combination to forestall running out,” he said.

Other research finds a high likelihood that Americans will be forced to spend less. After factoring in healthcare and long-term-care costs, the National Retirement Risk Index, produced by Boston College’s Center for Retirement Research, finds that some 65% of American households are at risk of not having enough money to maintain their living standard in retirement, according to the index.

A point to consider about the retirement readiness study: It assumes boomers will retire at age 65. That’s not likely to happen. Most boomers, assuming good health, likely will work past age 65, according to Sun Life Financial’s Unretirement Index.

According to that index, the portion of Americans who plan to work past age 67 is higher than ever: a record 55% plan to work full- or part-time, up from 52% one year ago. And the percentage planning to work full-time past age 67 reached a new high of 28%, up from 19% one year ago.

There was also a sharp rise in workers who said they will need to work longer than planned because of the economic crisis, according to Sun Life. Sixty-five percent said they will have to work more than one year longer, compared to 54% in the last index. And 27% said they will have to work more than five years longer, compared to 24% in the last index.

But the bottom line from all these studies: Saving more and perhaps reducing your standard of living now might be the only way to be reasonably certain you’ll enjoy any standard of living later on.

According to the Employee Benefit Research Institute, to improve the chances of being one of the nine in 10 households that maintains its standard of living in retirement, younger boomers in the lowest income quartiles will have to save, on top of what they already save, an additional 25% of compensation every year, while those in the third income quartile will have to save an additional 15% per year. Those in the highest income quartile catch a break and don’t have to save any more than they already do.

The story is a little better for older boomers though. Those in the lowest income quartile have to save an additional 25% per year, while those in the second income quartile need only save 15% more and those in the third income quartile need save just under 5% more. As with early boomers, late boomers in the highest income quartile catch a break again. They don’t have to up their savings to have a 90% probability of maintaining their standard of living in retirement.

(c) 2010, MarketWatch.com Inc.

Distributed by McClatchy-Tribune Information Services.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

RISMEDIA, July 31, 2010—New homeowners oftentimes stretch themselves financially when having to pay the initial costs that come with purchasing a home. While it is important to focus on these preliminary expenses, homeowners must be aware of the financial requirements that come with maintaining the home. Here, Dan Steward, President, Pillar To Post discusses how homeowners can effectively budget for home maintenance.

Dan Steward
President
Pillar To Post
www.pillartopost.com

Enthusiastic new home buyers often stretch financially to cover a home’s initial deposit, closing costs and any cosmetic touchups.

However, buyers frequently focus only on those first costs, overlooking the financial requirements of maintaining the home over time. Providing some guidance to your clients regarding realistic maintenance costs will help them transition smoothly into ownership of that house.

According to industry standards, homeowners should have 1% of the purchase price of their home in savings for improvements and surprise expenses. While this minimum will help ease through maintenance costs, a 2-3% cushion is far more prudent.

A home inspection will help prospective buyers better understand the condition of the house, gaining insights and recommendations from the inspector during the inspection. At Pillar To Post, we also deliver a detailed, computerized inspection report onsite, so buyers have a printed guide available for future planning.

A home inspector will estimate the age of major structural components and systems, providing the buyer an indication of each item’s anticipated lifespan. A furnace, for example, often lasts between 12 and 15 years and a water heater lasts from ten to 12 years. Understanding the current age of any particular system will allow buyers to calculate approximately when they’ll be due for major repairs or replacement.

LivingWithMyHome.com offers a list of approximate life expectancies of home components as well as cost estimates, useful as a tool for financial planning of homeownership. Our company, Pillar To Post, sponsors this site in response to questions from prospective home buyers across North America regarding how much they should plan to spend on ongoing maintenance costs.

Once the buyer has completed the home inspection, negotiated the price according to information gained in the inspection and possibly had the sellers repair or pay for needed upgrades, it’s time to plan the maintenance budget for the future.

Home buyers should plan for big-ticket costs across a five-year timeline, budgeting for major expenses, such as roof repairs, new air conditioners or plumbing upgrades. The best plan is to sock away those funds, rather than relying on borrowing from banks. As the credit crunch has deepened, banks have nearly stopped offering home equity lines of credit, so counting on a loan for needed repairs is a risky strategy.

This brings us to timing of repairs—when small problems pop up, it’s important to address them before they become large-scale projects. A minor leak on a window frame can seem innocuous, but with repeated rains that leak can turn into window rot and even mold.

Again, this is where preparedness in budgeting can make all the difference—the ability to correct a minor problem immediately will likely mean a lower-cost repair and a less-demanding repair job.

Buying a home is one of the largest investments most people ever make. Helping your clients plan successfully to have a strong, positive home-buying experience will create the most beneficial outcome possible for them and for you.

Now, back to the monthly expenses. Estimating these regular costs often trip up new home buyers as well. Many people, particularly former renters, are accustomed to paying rent and likely utilities, phone, Internet service and cable.

As a homeowner, however, there will be other utility costs such as water, sewer and trash collection. Then there are property taxes, homeowner’s insurance and possible homeowner’s association dues.

Home buyers can also have seasonal, recurrent expenses such as snow removal and lawn service that should also go into that five-year budget. Helping your customers understand not only how to find and purchase their ideal home, but maintain it as well is the value-add service you can provide that will benefit them for the future.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

Jaycass Inc today announced the release of its latest website on FHA and Conventional loan, a web site to help potential borrowers pick the right loan.

The talk show host sold his duplex for more than $4 million below his asking price.

Penthouse apartments have become increasingly accessible for buyers and renters in New Jersey over the last few years.

Highgrove, designed by Robert A. M. Stern, was to be the ultimate in Stamford high-rise living. But in the more than five years since sales began, the building is still unfinished.

A light-filled house on a hillside in Great Barrington, Mass., is designed to show off art, minimize maintenance and increase energy efficiency.

Multiple Factors Contributing to Early Recovery and Positioning State for Growth