Intown Atlanta Real Estate News
Trick or Treat? Top 5 Contractor Scams and How to Avoid Them
Monday, October 31, 2011
The vast majority of contractors are honest, hardworking professionals. Protecting yourself against the few bad apples requires checking references, having a solid contract, and being alert to the warning signs of these top five contractor scams.
Scam 1: I’ll need the money up front
This is the most common ruse reported to the Better Business Bureau. Your contractor explains that because he has to order materials and rent earthmoving equipment to get the job started, he needs, say, 30% to 50% of the project price up front. Once you’ve forked over the dough, one of two things happens: He disappears on you, or he starts doing slapdash work knowing that you can’t really fire him because he’s sitting on thousands of your dollars.
How to protect yourself: Never prepay more than $1,000 or 10% of the job total, whichever is less. That’s enough to establish that you’re a serious customer so the contractor can work you into his schedule—the only valid purpose of an advance payment. As to the materials and equipment rentals, if he’s a professional in good standing, his suppliers will provide them on credit.
Scam 2: Take my word for it
When you first meet with the contractor, he’s very agreeable about doing everything exactly to your specifications and even suggests his own extra touches and upgrades. Some of the details don’t make it into the contract, but you figure it doesn’t matter because you had such a clear verbal understanding.
Pretty soon, you notice that the extras you’d discussed aren’t being built. When you confront the contractor, he tells you that he didn’t include those features in his price, so you’ll have to live without them or pony up additional money to redo the work.
How to protect yourself: Unfortunately, you have no legal recourse because you signed a contract that didn’t include all the details. Next time, make sure everything you’ve agreed on is written into the project description. Add any items that are missing, put your initials next to each addition, and have the contractor initial it, too—all before you sign.
Scam 3: I don’t need to pull a permit
You are usually required to get a building permit for any significant construction project. That allows COunty and/or City building officials to visit the site periodically to confirm that the work meets safety codes.
On small interior jobs, an unlicensed contractor may try to skirt the rule by telling you that authorities won’t notice. On large jobs that can’t be hidden, the contractor may try another strategy and ask you to apply for a homeowner’s permit, an option available to do-it-yourselfers. But taking out your own permit for a contractor job means lying to authorities about who is doing the work, and it makes you responsible for monitoring all the inspections—since the contractor doesn’t answer to the inspector, you do.
How to protect yourself: Always demand that the contractor gets a building permit. Yes, it informs the local tax assessor about your upgrade, but it weeds out unlicensed contractors and gives you the added protection of an independent assessment of the work.
Scam 4: We ran into unforeseen problems
The job is already under way, perhaps even complete, when this one hits. Suddenly your contractor informs you that the agreed-upon price has skyrocketed. He blames the discovery of structural problems, like a missing beam or termite damage, or design changes that you made after the job began.
The additional fees might very well be legit, but some unscrupulous contractors bid jobs low to get the work and then find excuses to jack up the price later. If you’re unsure whether your contractor is telling the truth about structural problems, you can get an impartial opinion from a home inspector, the local branch of the National Association of Home Builders, or even your local building department.
How to protect yourself: Before signing the contract, make sure it includes a procedure for change orders—mini-contracts containing a work description and a fixed price—for anything that gets added to the job in progress. The extra work, whether it’s related to unforeseen building issues or homeowner whims, can proceed only after the change order is signed by both homeowner and contractor.
Scam 5: I’ve got extra materials I can sell you cheap
This hoax is usually run by driveway paving companies, whose materials—hot-top asphalt and concrete—can’t be returned to the supplier. So the crew pulls up to your house with a load of leftover product and quotes a great price to resurface your driveway on the spot.
Even if it’s really a bargain (by no means a sure thing), taking them up on the offer is risky if you have no idea who they are and haven’t checked references. And if the driveway starts cracking next year, you can bet you won’t find this bunch again.
How to protect yourself: Never hire a contractor on the spot, whether it’s a driveway paver, an emergency repairman who shows up after a major storm, or a landscaper with surplus plantings. Take your time to check contractors out to make sure they have a good reputation and do quality work.
Posted in: Intown Atlanta Real Estate News
Building With Recycled Materials
Friday, October 14, 2011
Recycled building materials are getting easier to find
According to the Building Materials Reuse Association, recycling is becoming more common in the construction industry. That means reclaimed building elements like doors, windows, plumbing fixtures, and wood flooring are increasingly easy to find.
Habitat for Humanity’s nationwide chain of ReStores sells recycled items, and many cities have architectural salvage yards. Online, neighbors advertise unwanted items on community bulletin boards, such as Craigslist, and national directories of recycled materials, such as EcoBusinessLinks, can be great sources for hard-to-find elements. And the price is right: reused pieces can be 50% to 75% cheaper than their new counterparts.
Nonetheless, the time-consuming legwork of finding good pieces takes persistance. But to make the process easier, spend time thinking about and researching online what you want before you begin to shop.
Searching for salvaged materials. Sounds terrific, right? But it’s not that simple. Using recycled building elements is like shopping at a thrift store: You can’t be certain you’ll find exactly what you’re looking for. Anyone interested in a good deal to spruce up their home—an ornate wood mantelpiece or a set of Victorian doors, for example—has to be willing to compromise on some of the details and commit some time to the endeavor.
If you live in or near a city and have access to a salvage yard, you’re in luck. If not, you need to go to the ‘world-wide-web’. If you’ve got something particular in mind, plan on spending a few afternoons at the salvage yard trying to track down what you’re looking for. The same is true if you’re exploring online: locating the right piece may take longer than you’d expect.
Before beginning your search, make sure you’ve got measurements in hand. It’s useful if you can allow for some wiggle room: unlike Home Depot or Lowes, the items on sale are usually one-of-a-kind pieces. So while a recent truckload might have dropped off a beautiful old mantelpiece, the size might not be an exact fit, so know in advance if you can manage with a slightly larger or smaller size.
Dealing with lead paint. Some old items need to be treated with serious care. Anything painted prior to 1978, when the Consumer Product Safety Commission (CPSC) banned lead in paints, in all likelihood, has lead-based paint on it. Older paint doesn’t mean the pieces are unusable, but the paint must be thoroughly removed or sealed—never scraped or sanded. The CPSC offers guidelines for treating lead paint in the household.
Finding savings. Some salvaged pieces are better deals than others. The greatest potential for savings is often flooring. Careful shoppers can find used floor boards from quality old wood that’s difficult to come by these days. Maple, white oak, and rare heart pine flooring can oftentimes be found which results in great savings over the cost of new flooring. Other useful finds are doors, particularly those already on a frame, and plumbing elements. Antique light fixtures can be a great bargain, but check whether they’ve been recently rewired before you buy; otherwise, you may have to do it yourself, or pay an electrician for the service. Windows are common, but many older widows are single-pane and not energy efficient. These are better used for interior walls to add light and air flow between rooms.
Finally, don’t forget to add in transportation costs. Not all salvage yards deliver, and those that do aren’t necessarily cheap. The cost of getting materials across town could be $100 or more. So it might make more sense to borrow or rent a truck on your own.
- Scott Askew
Posted in: Intown Atlanta Real Estate News
Is Fear Holding You Back?
Thursday, September 22, 2011
I recently had the pleasure of talking with another REALTOR® outside of our office who is struggling with the idea that maybe real estate is not what they should be doing for a living. Today, this is not an uncommon topic of discussion. But is fear also causing you to second guess whether you should buy or sell real estate?
It is true we are presently living in turbulent times. As of late, many of us have witnessed our savings and retirement funds shrinking, real estate sales remain somewhat stagnant and century old banks have disappeared. But we are also blessed with having record low interest rates and properties being offered for sale at prices not seen in the last 5 -6 years!
The media has bombarded us with the negative happenings in our world economy, instilling uncertainty in all of our lives. Can you guess which emotion uncertainty breeds?... FEAR
Fear can be a paralyzing emotion. Sometimes referred to as the “mental monster,” fear can suck the life out of us. It is an emotion that often causes us to stop dead in our tracks, even when we know it is best to move forward.
Have you ever watched a sporting event where the “under dog” is winning the game, and then becomes conservative in their approach to the game? While being bold got them ahead, they shift their game plan to be conservative in the hopes of ‘hanging on’ for a win. But then, more often than not, they lose because they became too conservative and lost their ‘edge’.
Unfortunately, many people become like the abovementioned ‘under dog’, and in times of uncertainty will also:
◊ Look at the obstacles instead of the opportunities.
◊ Look at potential loss instead of potential growth.
◊ Start to work from a position of scarcity rather than a position of abundance.
◊ Will focus on the risks and play defense, instead of going on the offensive and win!
There is no question that these are unprecedented times, however this is not the time to sit back and go on the defensive. Now is time to build your real estate portfolio and position yourself to reap the benefits when our economy gets on a roll again!
Lance Armstrong, winner of a record 7 Tour de France titles, didn’t make up time against his competitors going downhill, he made up time, and more importantly, pulled ahead, when the challenge got tough; going uphill when other riders were struggling just to maintain.
There is no question that we need to face reality as it is… not as we wish it were, and we need to accept “what is” without resistance. However we need to focus on the opportunities rather than the challenges and play to win rather than not play at all.
Step up to the challenge and make the balance of this year, and, coming soon… 2012, count!!
- Scott Askew
Posted in: Intown Atlanta Real Estate News
City of Atlanta money saving program for broken or leaking water and sewer lines
Tuesday, September 06, 2011
On September 1, 2011, the city of Atlanta announced the launch of the National Leagues of Cities Service Line Warranty Program, which could save residents thousands of dollars in unexpected repair costs for broken or leaking sewer and water lines.
Administered by Utility Service Partners (USP), Inc., the NLC Service Line Warranty Program allows homeowners the opportunity to obtain a low cost warranty that will provide repairs for a low monthly fee, with no deductibles or service fees. The work is performed by licensed, local plumbers who will call the customer within one hour of filing a claim. The repair is performed professionally and quickly, typically within 24 hours. USP provides a personally staffed 24/7 repair hotline for residents, 365 days a year.
“I am pleased to partner with the National League of Cities and Service Line Warranties of America to offer our residents greater peace of mind regarding the costs of broken or leaking water or sewer lines,” said Mayor Kasim Reed. “No one wants to be hit with an unexpected and expensive repair bill. This program will help mitigate some of the risks homeowners across the city often face.”
“Homeowners know all too well that things go wrong unexpectedly. Many residents become frustrated when they are told that the city is not responsible for a service line repair,” said Atlanta City Councilmember Felicia Moore, a co-sponsor of the legislation bringing the program to Atlanta.
The homeowner must contract with a plumber and pay the repair costs if the damage occurs between the city’s main pipe and the water meter or the connection to the home. These repairs are not always covered by homeowners insurance. “This warranty program offers peace of mind in the event of the unthinkable,” Moore said.
The NLC Service Line Warranty Program, which is administered by Utility Service Partners, Inc. has been embraced by cities across the country including Milwaukee.
“Many citizens are unaware that they are responsible for the water lines that go from the utility connection to their houses. If these lines break or leak, repairs can be very expensive,” said JoAnn J. Macrina, Watershed Management Commissioner. The Service Line Warranty program offers citizens an affordable way to avoid the unexpected and often large expense involved with a water line break. When a line breaks, the cost to repair it can often cause hardship on a family’s budget. This new program will offer warranty protection to help cover the costs of a break.
City of Atlanta residents will see offers in their mail boxes soon. The cost for citizens who choose to purchase the warranty protection is $4.75 per month, and will cover water line repairs up to $4,000 plus an additional $500 for public sidewalk cutting, if needed. The program is offered at no cost to the City of Atlanta, and no public funds are used to promote the program.
To learn more about the program please visit http://www.utilitylineprotection.com
- Michael Gaddy with thanks to :
Council Communications
Atlanta City Hall
55 Trinity Ave. SW
Atlanta, GA 30303
Contact:
Dexter M. Chambers
Council Communications Director
(404) 330-6309/392-0159
Brad Carmichael
Service Line Warranties of America
724-749-1003
.(JavaScript must be enabled to view this email address)
Posted in: Intown Atlanta Real Estate News
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