Choosing Right Contractor

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WITH PETER G. MILLER

Condo Bottom Line: Read the Rules and Regulations Before Buying Q: We’ve owned our condo unit for eight years and now wish to rent. However, our association limits the number of units that can be rented. This seems hugely unfair. Why do they do this? A: Imagine that the property has 100 units. Once 25 percent or more are rented many lenders will no longer provide residential financing for all units because the entire property is regarded as investment real estate. Buying investment property requires financing with tougher qualifying standards and higher rates.That means when non-investment units are sold lenders still impose tougher standards so fewer buyers will qualify to purchase. Fewer buyers mean less pressure to push prices upward. To avoid being tagged as investment real estate and to avoid the tougher financing standards, condos often ban or restrict rentals for the benefit of all unit owners. For this reason, it is important to ask about rental policies when considering a condo purchase. Check the condo rules.Was the rental ban made after you bought your unit? If yes, does it apply to you? You may be grandfathered. Q: What is a “reserve”? A: Condos and co-ops collect money each month from owners to pay for current expenses.Well-run properties also collect money each month to create a reserve fund, money set aside for emergencies and big expenses. The alternative to tapping the reserve fund to cover an emergency expense is a “special assessment” levied against owners. For example, if the roof blows off and it costs $10,000 per unit for repairs, that money can be obtained in the form of a special assessment.The special assessment is a lien against the property and if not paid could lead to foreclosure. Condo and co-op buyers should always ask if special assessments are pending or being considered at the time of sale. Q: We live in a condo development. Of the 46 units, ours is the most distinguished, since we worked with the builder to make major architectural changes inside. Our unit is the only new home ever to be on the town’s 100-year-old house tour. We have priced our unit $60,000 over See ASK OUR BROKER, Page 2

Outdoor Shower Bows Again, This Time as Luxury Amenity PhotCourtesy of National Association of the Remodeling Industry

Ask our broker

BY PATRICIA V. RIVERA Content That Works

F

olks have been showering outside since God created rain but it’s a practice that almost died out when indoor plumbing became the rage. Beach and lakeside communities were one of the few places where outdoor showers retained a foothold, but even there, for years builders excluded the old-fashioned amenity when they erected fancy new homes. Today, outdoor showers that were once ignored or deemed unnecessary are making a comeback. Even in places like the desert of Arizona, architects are incorporating showers into new homes.The Sunset magazine 2004 Southwest Idea House designed by Dale Gardon Design of Scottsdale includes an earthcolored outdoor shower with tile walls. Outside showers have grown in popularity with the increased emphasis on outdoor “rooms” for cooking, entertaining and dining in all climates.“We have more people who are exploring outdoor showers as an interesting option for their homes,” says Veronica Welch, representative for Dale Gardon. Building an open outdoor shower could be cool weekend project that can make a house more sellable or liven up a new one. Some outdoor showers are elaborate – fragrant cedar stalls that come complete with dressing areas – while others are basic – a showerhead mounted on the side of the house surrounded by a PVC privacy screen. Even simpler units that connect to a garden hose could be erected in minutes.

Showering in the great outdoors: indoor plumbing eclipsed outdoor showers decades ago, but the fresh-air shower is back as a luxury amenity, buoyed by the outdoor living trend. “People always ask about showers.They equate them with vacation and relaxation,” says Vickie York, a real estate professional who grew up in Ohio and only took her first outdoor shower nine years ago after moving to

coastal Delaware. She now owns a home with a fully enclosed outdoor shower outfitted with windows, skylights and a separate dressing room. Jill Hudson spent many summer afternoons scrubbing sand

off her body under an open outdoor shower while growing up in Rehoboth Beach, Del. In fact, showering under the sun’s golden rays is so pleasura-

See SHOWER, Page 2

Contractor Search Key to Project Success BY CHARLES SCUTT Content That Works

If you needed an operation, you wouldn’t put your trust in just any average doctor.The same goes for home construction and repair.You want to carefully choose a qualified, skilled and reputable professional to do the work.Whether you’re looking to

renovate that kitchen, build an addition to your home or construct a new abode from scratch, the key to success is hiring the right contractor for the job. Building new or renovating an existing home is a major investment that requires thoughtful planning and research.An uneducated consumer can easily hire an unqualified homebuilder or

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misinterpret the fine print in a job site contract.To avoid losing time and money, be prepared to do your homework and shop thoroughly for a reputable expert.

WHERE TO LOOK Locating a contractor isn’t difficult but it can be hard to find one that meets your needs.Ask

relatives, friends and neighbors for a referral, browse classified advertisements, search the Yellow Pages, check the Internet, inquire through local trade associations and licensing bodies, or call your local Chamber of Commerce and Better Business Bureau for a recommendation.

See CONTRACTOR, P. 2

CONTRACTORS CONTINUED FROM PAGE 1

“Check out an area of town where new homes or remodels are being completed,” says Dean Bennett, president of Dean Bennett Design & Construction, based in Castle Rock, Colo. “Usually, a contractor will place a sign in front to identify his or her business.You’ll be able to get an idea of who’s doing what work and can see if the contractor’s job site is organized or sloppy.”

QUESTIONS TO ASK There are many criteria by which to evaluate a reputable contractor, not the least of which is overall experience, says Gwen Moran, co-author of Build Your Own Home on a Shoestring (Alpha Books, 2005). “Ultimately, you want to hire a contractor whose experience and pricing match the project you’re going to be launching,” says Moran.“How long has the contractor been doing this kind of work? What kind of guarantees do you have that the project will be completed in a timely manner? And will the contractor be overseeing the work himself or will he be hiring subcontractors to do so?” “You should also feel comfortable with the person’s skills and his personality, because you will be spending a lot of time together,” says Jim Lapides, communica-

tions manager for the Remodelors Council of the National Association of Home Builders in Washington, D.C. Most states and municipalities require that contractors be licensed and/or registered.To find out your state’s requirements, visit www.contractorslicense.org.Ask to see the contractor’s license and call the appropriate licensing agency or building department to confirm its validity. Likewise, the contractor should be properly bonded in your state.Ask for the bonding company’s phone number and call to verify that the contractor is bonded. Moreover, the professional you choose should have adequate worker’s compensation and general liability insurance coverage for himself and any workers he hires.This safeguards you from being liable for any injuries that may occur on your property. The contractor also should be able to provide proper identification that indicates a permanent place of business and business telephone number.The contractor’s license number should be listed on the business card/sheet. Many experts recommend selecting a contractor that is active in the industry, as measured by membership in professional groups. “Unscrupulous contractors don’t join professional organizations,” says Lapides,“in part because it costs money.

Secondly, organizations like ours have a code of ethics and our members will not stand for anyone who will bring the reputation of the industry down.”

NARROWING THE CANDIDATES Before deciding on a professional, Helen Sideres, president of J & S Builders, Flushing, N.Y., recommends getting estimates for your project from at least three different contractors. “It’s not always wise to go with the lowest estimate. Make a few calls to vendors and see what some of the going rates are for materials to get a better sense. Be suspicious of contractors offering you a rate lower than the going rate.” says Sideres. It’s best to avoid contractors that ask for an exorbitantly large up-front deposit or that request to be paid in cash only, says Bennett. Before your contractor begins the job,“make sure the contractor writes down all the steps in the job, with figures, and provides you with a full written schedule and timeline.” says Bennett.“A good contractor should be able to outline pitfalls that may occur.Ask him to walk you through the worst-case scenario for your project.” © Content That Works

Ask our broker CONTINUED FROM PAGE 1

the last sale in our development. How can we be sure that an appraiser will accept our price when the unit is sold?

A: As a condition of the sale require the buyer to obtain and pay for an appraisal of the property that includes a physical examination of all rooms and not just a price created with an automated valuation model (AVM) or a drive-by appraisal. Explain that this condition will be enforced only in the event of a low appraisal. Be sure to provide the appraiser with documentation showing the improvements and distinctive features that impact the value of your home. Q: I have put in an offer for a condo. The building has an $89,000 reserve fund. There is a “special assessment” of $9 a month per unit to cover outside cleaning work worth $60,000. Now the owners want another special assessment to pay for fire and safety work worth $126,000. The owners prefer special assessments because they do not want their money tied up in reserve accounts where it would not earn interest for them as individuals. Should I steer clear of this property? A: There are different approaches to condo funding and the current owners simply use a kind of pay-as-you go strategy.This is fine if it’s okay with you, there are enough units to hold down monthly condo costs when additional funds are needed and all unit owners are making payments into special assessments so that capital needs are met. Before going further, ask the association treasurer if you can see the books and budgets for the past five years and see if there’s anything that would be financially uncomfortable for you. Q: I’ve been in real estate for seven years and have done well with lower-end properties. I want to take a step-up and make some profits with condos, perhaps pre-construction ones. How should I begin? A: You need to look at the local marketplace. Condo supply and demand may differ from traditional properties.Also, the cost structure for condos is different. Condos have monthly fees, the rental of units may be restricted or banned and lending standards differ, in part because the condo fee is a cost of ownership, thus reducing your ability to borrow. Talk to local brokers, lenders and condo investors. Look for the least expensive units within projects, especially units with cosmetic problems that you can readily fix. © Content That Works Do you have a question or a quandary about buying, selling or renting? Peter G. Miller, author of The Common-Sense Mortgage, specializes in providing real solutions to real estate dilemmas. E-mail your questions to [email protected].

SHOWERS CONTINUED FROM PAGE 1 ble that she admits to longing for the first wave of warm weather just so she can start bathing outdoors. She and her husband built their outdoor shower only a few feet from their back door. Selecting a location near hot water line will help defray costs. Experts recommend copper and stainless steel pipes, both of which resist rust more easily. Installing a stop-waste valve will help the pipes drain better. Outdoor showers, for Hudson, solve a daily problem: getting the family clean without getting the bathroom dirty. To encourage the entire family to bathe outside, she placed a sink with a mirror so that the men could shave. She wished she could have made it longer to include a bench instead of a chair. Outside, several potted palms make the shower more exotic. She likes cedar because it’s easy to maintain. But some homeowners opt for an even more natural look and feel. Why not take advantage of natural elements – such as a bamboo grove – growing in the back of a home to create

makeshift walls for an outdoor shower? Bamboo, for instance, blows in the breeze making it a more natural experience. So many showers blend in so well with houses that people walking by with their dogs may never know that someone is bathing within their eye’s view. Homeowners with waterfront settings find ways to raise as few walls a possible sometimes. Devotees who prefer walls are starting to feel more practical about showers, too. Lately instead of building protective walls out of wood, they use PVC, which doesn’t rot and is easy to clean. No matter how luxurious or primitive the shower is, however, the feeling you get is the same. “It’s invigorating, particularly at night when the moon is out and the stars are shining,”York says. © Content That Works

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