Leavenworth Home Inspection Issues - Part II

Leavenworth homes have a number of common issues that often show up during a home inspection. In part I of this series about common issues found in Leavenworth homes, John Griffith of Cascade Site Services talked about 5 issues that he often sees in his inspections. Here are the next five issues, in no particular order.

6) Unlined Masonry chimney: Another of the potentially deadly situations that is discovered during a home inspection is an unlined and/or a deteriorated masonry chimney. Typically, masonry chimneys for wood burning fireplaces have terra cotta clay liners. Fireplace inserts and pellet stoves usually have a metal chimney liner installed. If there is no clay or metal type of liner inside the masonry chimney, the chimney is unlined. Unlined masonry chimneys pose a significant safety risk. Any cracks or gaps in the chimneys’ bricks or mortar, anywhere in the chimney (below the roof), will allow heat, smoke and carbon monoxide to escape into the structure. Many attic fires are attributable to deteriorated unlined masonry chimneys. Even if the chimney has a clay liner, any cracks or gaps in the clay liner will pose the same hazards as an unlined chimney. It is critical that homeowners, with a wood burning fireplace and masonry chimney, have the chimney inspected and cleaned by a licensed chimney service company. This should be done annually, if the fireplace is used at all, since cracks in the tile liner can occur at any time and soot buildup can occur very rapidly.

For more information on chimney safety and inspections, see http://www.csia.org/.

7) Electrical Service Panel issues: For those that have ever looked behind the cover of an electrical service panel, you understand the multitude of concerns that are possible in the power supply of an “all electric” home. Usually, the more common issues that are discovered in electrical service panels can be attributed to two causes - outdated equipment and “do it yourself” homeowners. While “DIYing” may work fine for some home projects, electrical system installation or modification should be left to professionals or at least to those “DIYers” that truly understand electrical circuits. Just being “fairly familiar” with electrical supply systems can have very hazardous consequences. “Double lugging” and “over fusing” are typical pitfalls that homeowners, turned part time electricians, often fall into. “Double lugging” occurs when a circuit breaker has two wires or circuits connected to the breaker, when the breaker is designed for only one wire. “Over fusing’ refers to a circuit breaker that is too large for the size of the wire or circuit it is protecting. These conditions can result in arcing, overheating and are a potential fire hazard. Outdated equipment poses limitations on the ability to add new circuits or additional loads to existing components. Also, the older the electrical supply equipment is, the harder (more expensive) it may be to find replacements when breakers fail. Outdated may also refer to down right hazardous, as in the case of “Zinsco” brand panels and breakers. “Zinsco” brands were common in the late 60’s and early 70’s, and unfortunately, have a high failure rate. A high failure rate, in an electrical service panel, usually results in fire. “Zinsco” breakers are easily recognizable by their green, red, blue and black breaker handles. When “Zinsco” panels or breakers are discovered during a home inspection, an automatic referral to a certified electrician will follow. More often than not, the electrician will recommend complete replacement of the panel and/or breakers. Other brands that warrant similar referrals are “Sylvania” and “Federal Pacific / Stablok”. To see some results of electrical system failures, go to http://www.inspect-ny.com/.

8) Lack of GFCI protected receptacles: Since GFCI (Ground Fault Circuit Interrupter) devices were not required on specific electrical receptacles until around 1980, many older homes do not have this affordable and effective protection as part of their updated electrical system. GFCI breakers in the panel, or receptacles in the wall, offer increased protection from potential shock hazards, particularly in areas that are considered “wet”. These areas include the exterior of the home, as well as, garages, unfinished basements, and around sinks in bathrooms and kitchens. For owners of older homes, the installation of GFCI protected receptacles is a great place to begin a safety upgrade to their electrical systems.

9) Nonfunctional smoke detectors: It is absolutely amazing to me that I still come across so many homes that have no smoke detectors or worse yet, smoke detectors that are not working! These simple and inexpensive devices save thousands of lives every year, yet the $2.00 replacement battery seems to be the big roadblock in maintaining effective fire safety in many homes. Older homes, if they have smoke detectors, usually need to install additional devices, so that there is a smoke detector in the hallway of each level of the home, as well as every bedroom. Also, if there is a natural gas or propane appliance in the home, a carbon monoxide detector near the appliance is essential for a safe home. For more information, go to http://www.nfpa.org/.

10) Inadequate attic insulation: More along the lines of comfort, rather than safety, is the condition of minimal insulation in the attic. Newer homes require insulation values of 30 or better, while older homes, will typically be around 19 or sometimes none at all. Adding insulation in the attic spaces will help conserve heat in drafty, older homes.

Course of Construction Insurance

Course of Construction Insurance:

What You Need To Know Before You Build Your Home.

Submitted by Eric Kossian of Leavenworth Insurance

We’ll assume you’ve purchased your dream lot and have hired a contractor. Prior to this point, you should have liability coverage either extending from another home policy or have a vacant lot liability policy. Once you start building you still need liability insurance (your vacant land liability policy is now void once construction starts) and you will need dwelling coverage while the dwelling is being built. Your contractors should have a Contractor’s Liability policies covering their work on the dwelling. For additional tips regarding your contractor see the bottom of the page.

Contractor liability policies do NOT cover your liability as a land owner and they do NOT cover the building while being built. Both of these needs can be easily and inexpensively covered by you with a Course of Construction homeowner’s policy. These cover the building(s) during the time of construction and typical personal property coverage too, as well as your liability. As with any homeowner’s policy there are usually limitations of $1500 - 5000 for theft of your personal tools so make sure, if you are helping out, your tools are well marked with permanent markers and well secured when not in use as tools are a high theft item. (While many companies have a construction surcharge on course of construction policies, I have found a preferred company that has no surcharge throughout Washington State and they have great rates. And, when the home is done, in most cases they don’t require the hassle of doing a new policy… it rolls right into your homeowner’s policy.

It can be cost effective to buy construction materials now in situations where there are strong indications that prices may increase in the near future. Sometimes you can buy now but have delivery later; whereas some materials may need to be delivered now. I offer, on the same course of construction policy, an endorsement that covers theft of building materials up to $10,000. The cost of this endorsement is just $150.

Statistically, 20% of homeowners are underinsured after a total loss paying the extra out of pocket; often many tens of thousands of dollars because the homeowner, insurance company and the insurance agent all estimated the home replacement cost incorrectly. So once your home is completed, be sure to contact your insurance agent to update your replacement cost. (Homes usually cost 12-15% more than budgeted!) I am one of the few Washington agencies offering a company providing unlimited dwelling replacement cost for your qualifying homes, so in the event your home replacement costs more than estimated, you are still covered!

Other Benefits: Identity Theft restoration service is included free with the all homeowners policies! Best policy also provides $25,000 reimbursement. Literally up to 50% discounts on both home and auto insurance for good to excellent credit rating. (I have saved people up to $1000 a year on just one home.) Affluent clients can get expanded theft coverage for jewelry & tools, worldwide liability, all policies in 1 package policy with just 1 bill.

Additional Tips Regarding Your Contractor:

I recommend you verify in writing that your General Contractor has a Contractor’s Liability policy of at least 1 million dollars – to cover at least the home replacement cost. I also recommend that you get your contractor to agree, in writing, that all subcontractor’s will provide evidence of contractor’s liability to the General, with a copy to you, prior to them starting any work on the property. Contractor’s buy these policies to protect their liability for property damage and injury resulting from their work. You can easily check to make sure your contractor and subs are licensed in Washington State at this site: http://www.dol.wa.gov/business/checkstatus.html

It can also be helpful to stipulate in writing with the General Contractor, for the home to be completed by a certain date or the contractor has to start paying you a daily amount, but allow enough time for reasonable construction delays – which are common. This will help ensure that if your contractor is overcommitted to too many people that your home stays at the top of his priority list. Do not agree to pay much beyond actual work performed. If money for materials is needed, you can make the check out to both the materials company (specifying your project) and the contractor if needed. This ensures that money provided to your contractor for “materials” actually gets spent on materials for your home.

Eric Kossian

Leavenworth Insurance

11756 Hwy. 2, Ste. 1, Leavenworth WA 98826

Ph. (877) 548 – 5488

Click Here to Read a Previous Interview with Eric and his company Leavenworth Insurance

Leavenworth Home Inspections - Common Conditions

Leavenworth Home Inspections - Common Conditions Part I

By John Griffith, Cascade Site Services, Cashmere WA

The conditions described below are not in any particular order as far as significance or commonality. Leavenworth does have a large number of older homes, built in the early 1900's, and many of these conditions are typical of older construction. Also, with the climate of Leavenworth being cooler, with higher precipitation than areas farther East, issues that involve drainage, ventilation and soil contact with wood take on heightened significance.

1) Poor exterior drainage: Since water or moisture related issues consistently result in more structural damage to homes than any other cause, water and/or moisture management is always the number one thing to be aware of. Water itself causes direct damage to homes in the form of settled foundations, cracked concrete patios and deteriorated wood siding. In addition, most secondary issues such as mold, wood rot and insect infestations are created by poor water management.

Common causes of poor exterior drainage include inadequate gutters, missing downspout extensions, ground that slopes toward the home and vents or windows below exterior grade.

2) Deteriorated exterior siding: Water management plays a big role here as well. Exterior siding must be maintained to prevent water from entering directly into or behind the siding. There are many different exterior siding materials in use, but regardless of which material is present, it must be protected from water intrusion. Composite wood siding is extremely vulnerable to moisture intrusion. Even the older cedar plank and newer, cement based “Hardi board” must be installed correctly and sealed properly to prevent water damage to the siding material.

Preventative maintenance such as painting, filling cracks and gaps, and sealing open nail holes goes a long ways in avoiding siding damage.

For more information on types of exterior siding, go to http://www.sidinghelper.com/

3) Inadequate ventilation in the crawl space: Adequate ventilation in the crawl space is essential in preventing water/moisture damage. Molds, wood rot and even termite infestations can be prevented by maintaining adequate airflow throughout the crawl space. These organisms require moisture to thrive and keeping the crawl space cool and dry with proper ventilation is vital. As insulation has been added to older homes to improve energy efficiency, ventilation requirements have increased to prevent moisture buildup. Adding additional crawl space venting is a typical recommendation in older homes.

4) Inadequate ventilation in the attic: Just as the crawl space below a home needs adequate airflow, so does the attic spaces. In addition to preventing the same types of moisture issues found in crawl spaces, there are other reasons for maintaining ventilation in attics. One is prolonging the life of the roofing material. The useful life span of composition shingles and cedar shake or shingle roofing materials can be significantly shortened when subjected to prolonged high attic temperatures. Also, the formation of ice dams on the eaves of older homes is directly related to poor attic ventilation. Just as in the crawl space, increasing attic ventilation is a common recommendation in older homes.

5) Inadequate deck installation: This is one, of a few, very serious issues that can arise during a home inspection, due to the fact that a catastrophic deck failure can have fatal consequences. It is essential that all decks, and especially elevated decks, be installed correctly. Elevated decks should be installed by qualified, licensed contractors, and even then may have shortcomings, since there are different ways to install decks. Critical areas are the physical attachment to the exterior, provisions for water/moisture management at the exterior attachment, adequacy of fasteners/hardware and proper support from below the deck.

For more information on building a safe deck, go to http://www.thisoldhouse.com/ and search “Building a deck”.

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Thanks so much to John Griffith of Cascade Site Services, a Certified Home Inspector and Licensed Pest Inspector in the Leavenworth and Lake Wenatchee area.

This is Part I of a series. When we have posted Part II you will be able to click here to learn more about Leavenworth Home Inspection Issues.

Leavenworth Condo Report

Prices for Leavenworth Condos have continued their upward trend in prices despite a glut of new construction condos on the market.

This report is for the first quarter of 2008 and includes Kahler Glen condos as well as Leavenworth projects like Aspen Suites at Icicle Junction, RiverPark Homes in Leavenworth, Alpine Village, SkiView Condos on Titus Road, and The Boulders on Alpensee Strasse.

First quarter sales volume has been fairly consistent the past few years. This year 5 condos sold in the first 3 months, with 3 selling in 2007, 4 in 2006 and 2 in 2005.

The big news which has been mentioned here before is the number of new condos on the market in Leavenworth. 59 units were active on the MLS during the 1st quarter, despite Aspen Suites removing their condos from the MLS.

Prices continue to march upward. In 2005, the average condo was $121,000 and now it has risen to $284,000. Median prices have risen as well to $300,000 for 2008.

As of April 6, there are currently 51 condominiums available on the MLS at an average asking price of $420,000.

I expect that condos zoned for commercial use (and vacation rentals) will continue to sell well, especially those closest in price to the median sales price. Condominiums priced between $250,000 and $350,000 will remain popular, while others may continue to sit.

Other Leavenworth Real Estate Articles and Information

Click Here to read my report on Leavenworth Home Prices

Click Here to Search for Leavenworth Condominiums

Click Here to find the Value of your Leavenworth Condo

Building a Leavenworth Condo Development ?

Own a Kahler Glen Condo ?

Looking to buy a Luxury Condo in Leavenworth ?

Leavenworth Real Estate Stats for Q1 2008

Leavenworth real estate prices for both houses and condos have continued their upward trend in the first quarter of 2008. This includes the area from Peshastin to Stevens Pass including Lake Wenatchee, Fish Lake and Plain.

In the past, I have focused on comparing year to year trends, but this quarter I decided to compare 2008 to the past few years.

As you can see, home prices (both average and median) were a bit down in Q1 of 2007, but have rebounded in 2008. We have seen average home prices (for single family stick built homes) go from an average of $251,000 in 2005 to $420,000 - a 67% increase!

Inventory of single family homes went up 8% from last year to 131 active listings, but new listings were down considerably (31%). I think the national news is convincing some folks to hold off on selling their home if they don't really need to right now.

The number of houses that sold during the first quarter is up from 20 to 24 (a 20% increase), but down from 25 in 2006 and 32 in 2005.

As of April 6, there are 80 homes for sale in the Leavenworth area at an average price of $589,000.

Click Here to Search all Leavenworth Real Estate

Click Here for the latest Leavenworth Condominium Statistics

Click Here to find your Leavenworth Home's Value

Leavenworth Real Estate Agent Nominated for Tech Savvy Business of the Year

On Tuesday April 8, the Greater Wenatchee Area Technology Alliance is holding their annual Innovators Awards Luncheon in Wenatchee. They will be giving awards for the Entrepreneur of the Year and for the Tech Savvy Business of the Year.

I am honored to be one of five local businesses nominated this year for the Tech Savvy Business of the Year. No real estate agent has yet to win this award and I am excited to be recognized for the hard work I have put into becoming a leader in the field.

The keynote speaker for the luncheon will be Dr. Lee Cheatham, the Executive Director of the Washington Technology Center.

Past Award Winners for the Tech Savvy Business of the Year include Roger Erlandsen of Erlandsen Inc, Jerry Isenhart of http://www.golakechelan.com/, Lorne Browne of Lovitt Cider, and Bernie Schell of PakIt Rite.

Financing land in Leavenworth

I am hearing from a lot of clients that their banks are no longer financing land. I am finding that other local lenders are cutting back on their land loans by charging higher interest rates and/or requiring higher down payments. Some of these moves seem a little drastic to me. It’s unfortunate that these nationwide banks can’t look at the markets that are performing well (like Leavenworth) and exclude them from their ‘hide in the bunker’ mentality. It seems to me that cutting off good business in a good market is a poor way for a bank to recover. The real surprise to me is watching some of the other community banks that see the same market conditions we see and yet are still pulling back from land loans. It's as though they have been reading USA Today or something, instead of taking a drive around town. Buildable land in Leavenworth may be hard to come by, but that is kind of the point; the limited supply keeps the prices up, hence it is a good investment, and good for us to lend on.

So if Geordie has helped you find that perfect piece of land, but you have been disappointed by the response from your bank, keep calling around; we’re still out there with loans up to 90%, and 30 year fixed rates as well as ARMs and Interest-only.

Leavenworth FSBO (For Sale By Owner)

Leavenworth real estate searches can be tricky in this day and age.

As a consumer you have a multitude of choices - The Big Boys - Remax.com, Windermere.com, Johnlscott.com, or Realtor.com

You can use any number of newer online tools like Roost, Zillow, Estately, Craiglist or Trulia

or you can search local newspapers like the Wenatchee World and the Leavenworth Echo.

You can also use the big search engines which have real estate sections like Google or Yahoo or MSN.

Of course, I'd prefer that you used the Leavenworth real estate search on IcicleCreekRealEstate.com, but I'll admit that a handful of listings don't end up here either.

Here's the dirty real estate secret no one will say out loud. None of these websites has all the Leavenworth real estate for sale!

It's true. There are a number strategies homeowners use to sell a property in Leavenworth (and many of them don't work). If a homeowner is selling FSBO or For Sale By Owner - they might have an ad in the paper or on Craigslist, but they might just have a sign in the yard. Perhaps they have brought a few flyers by to each of the real estate offices in Leavenworth to let local real estate agents know about their home. Sometimes, FSBOs won't advertise at all! They just tell their friends that they would sell if the right buyer comes along.

But it's not just FSBOs that are "sorta trying" to sell their property.

There also home sellers that list with limited service brokerages or flat flee listing companies. Some of these won't show up on your normal MLS searches because the seller chose not to pay extra to have it listed on the MLS. Or they have paid to have it on the wrong MLS. (Here in Leavenworth we use the NCWMLS which is local to the Wenatchee Valley, very few homes in Leavenworth are sold using the NWMLS which serves the Puget Sound and Seattle.)

There are also home sellers who are taking a break from selling. It's common for properties, especially land, to be pulled off the MLS in Leavenworth or Lake Wenatchee for the winter. If everything is under 5 feet of snow it may be difficult to see. If the landscaping at your Leavenworth house is the prime feature, you may get a better price come Spring. Your real estate agent can help you find these homes by searching the Expired or Withdrawn listings on the MLS. This isn't a feature any of the search engines or real estate sites offers, but is something your agent can help you with.

If you aren't finding exactly what you want on a real estate search site, don't despair. There often are more properties to see than meets the eye. Ask your real estate agent to help you find them. Talk to your agent about Buyer's Agency Agreements or Buyer's Representation. Some FSBO sellers will pay your agent's professional fee or you may need to pay the agent yourself.

I recently helped a family buy a condo at Kahler Glen like this. When they first contacted me I told them that it had been 9 months or so since the last condo at Kahler Glen had been on the MLS and I educated them about what I thought the price should be. With a little luck, I found a willing seller and we put together a contract that worked out well for both parties. There was no advertising of the condo, no sign, no Craigslist, no MLS, no Zillow.

In Leavenworth there are plenty of opportunities that don't show up on Realtor.com or Craigslist. Not all of them are good opportunities, and some of them are just plain atrocious, but a great real estate agent can help you open many doors that you didn't know existed.