Cost VS Value by Alex Guthrie

December 11th, 2011

Yesterday during the show Chris and I discussed the recent cost vs value report that was published in Remodeling Magazine. Some surprising things caught my eye such as the overall loss in value reported in virtually all but a few categories and it seems smaller projects have a higher return than in the past.

It is apparent that the housing industry is still in a very bad state and the recovery has yet to take hold. Unfortunately for the industry, it  probably will remain flat until after next years Presidential election and then it will take quite some time to gain any real traction. The home building industry is directly affected by the employment picture and consumer confidence, consumer confidence is directly affected by the unemployment numbers and so on and so on.

My take on the cost vs value report is that property values are still dropping and until we hit the bottom in more markets and start a real rebound with housing values increasing we will remain stagnant.  This will require existing foreclosure inventories to get sold, unemployment to stabilize and reverse it’s present course, and the politicians to start acting like grown ups again.

It should be a great time to remodel with the competitiveness that is so pervasive in the industry. So don’t be too intimidated by all the news but be smart with the dollars.

Posted in Contractors, Drought Texas, Eco-Friendly, Energy Resources, Foundation, Helpful Links, Home Building, House Talk Today, Kitchen Remodeling, Lead Based Paint, Lighting, To Our Listeners, Trends, Watering Foundations, green building, home remodeling, housing trends, remodel | No Comments »

Watering Foundations by Alex Guthrie

July 31st, 2011

You can see the earth separating around the the foundation, sidewalks, driveway,and curbs, but it doesn’t stop there. The earth is also drying up UNDER these places, leaving voids that can cause havoc and major damage if left untreated. Still the only way to deal with these problems is from the surface; watering your yard and foundation is the most practical way to mitigate damage.

As the drought continues moisture is drawn out from under foundations, sidewalks, and streets; this natural support that is usually dependable and depended on is no longer there. Evidenced by uneven sidewalks, cracking, and shifting driveways and streets and of course shifting foundations. Proper watering is critical and inaction can be costly; while over watering can have equally negative consequences.

Placing a soaker hose 15″ – 18″ from the foundation and allowing it to run 20- 30 minutes 3 or 4 times a week is an accepted method. Take care not to over water as you can cause the opposite effect and cause your foundation to heave.

Keeping your yard well watered (enough to keep your grass and gardens healthy) should help with sidewalks as well as foundations.

Trees and shrubs draw moisture from under the house and often are a big cause of damage so keep them watered away from the foundation. Be mindful of the cause and effect of removing large trees less than 15 feet from the foundation as they will leave large voids in the ground over time as they decay.

Posted in Drought Texas, Eco-Friendly, Energy Resources, Foundation, Gulf Oil Spill, Helpful Links, Kitchen Remodeling, Lead Based Paint, Lighting, Oil spill, To Our Listeners, Trends, Watering Foundations | 2 Comments »

AND THE WINNER IS? Choosing the right course to get the best value by Alex Guthrie

June 26th, 2011

Finding the right balance between your budget and your expectations is tricky when the economy is good and very frustrating when money is tight. Older houses are particularly difficult when the inevitable happens and you have to make a decision whether to invest more money in them. Top that off with an anemic housing market, high energy costs, and escalating construction costs; well it kinda makes you want to move to a cabin in the mountains.

In our current financial climate houses are steadily  losing value with no end in sight, so the idea of investing for a quick profit may not be as dependable as it once was. We used to feel confident that investing in a kitchen or master suite would have a better than 50% return at resale but now those assumptions may not be so reliable. This has created a paradigm shift from dream designs to practical, from money is no object to it being the object, from decisions made on the fly to carefully planned and executed projects.  You may end up in your home longer than you planned so the path you choose may have larger consequences than in the past.

But the real challenge is the balance between this years investment vs next years budget; investing more now vs recovering those costs down the road. Meeting all these requirements can be daunting  but it is doable if you plan and execute timely.

The best method is to create a master plan that reflects all the areas in the house you want improved or changed and implement a strategy to get the project completed over the shortest period of time.  A master plan will enable you to not only do the project in phases but also make purchases at optimum times as well.  This will also give you great flexibility in cost and design.

Phasing projects is a smart and reliable way to control your budget while moving forward at a manageable pace. This is not for everyone since it prolongs the length of time your house is under construction and some people simply aren’t suited for the constant and continuous upheaval; on the other hand, some people enjoy the process.  Selecting the start and finish areas can be simply a matter of practicality and lifestyle; if you have kids at home for the summer it might be best not to start the kitchen first, but with a good plan in place you can certainly start somewhere else and work towards the kitchen. This also gives you an opportunity to buy appliances , cabinets, lighting, and plumbing fixtures on sale and store them until you need them. Taking careful notes and keeping a project file complete with pictures of products and features you want helps everyone throughout the life of the project.

At a time when budgets are tight and the market is unstable, a good well executed plan is the best way to be the winner at the end.

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Renewable Energy Sources – Harnessing Nature to Power Your Home

March 5th, 2011

Here in Texas, we have no shortage of renewable energy sources – on any given day, it seems that we have plenty of sun and wind to power homes all across the country. Even so, the practical use of renewable energy sources in residential neighborhoods – the home that you and I live in – is still in a trial and testing phase. Let’s look at what’s available now and what appears to be coming along in the near future.

Wind Energy

Just this month, the U.S. energy and interior secretaries told us that domestic use of wind energy is going to take a lot more work, dollars and research. They announced a plan involving up to $50.5 million in federal spending over the next five years to make offshore wind farms viable. Right now, offshore wind is much more expensive than coal power generation, and onshore wind power isn’t cheap either. Today, the top states creating wind energy are Texas and California, and we’re told that this continued use of wind energy will help reduce the carbon dioxide in the air by nearly a third.

On a small scale, there are a number of home wind turbine systems or wind generators on the market today with costs ranging from $300 to $1500. A home wind turbine is connected to your electric meter. When the wind is still, your local utility company continues to supply your electricity. When it’s windy, the wind will provide clean, quiet energy to your home. While wind turbines and generators have been around for many years, the equipment to completely run a home on wind power is still forthcoming. Look at traditional home improvement stores like Home Depot and Lowes to find supplemental wind generators that can be used to supplement (not replace) conventional electricity.

Solar Power

Solar panels are readily available and in increasingly widespread use across the country. People have been installing different forms of solar panels for years. Solar panel kits at Home Depot and Lowes run about $1500, and you can also buy individual panels, battery backups, cabling and other accessories to build your own system.

Like wind power, solar power is also an alternative energy source that the government and the private sector continue to research for ways to harness its power in both industrial and residential applications. In addition to simple do-it- yourself kits, many home building supply companies are getting involved in the renewable energy market sector, and some exciting new products are on the way.

At January’s International Builders’ Show, we saw many great products being introduced as sustainable energy alternatives. Check out the Dow™ Powerhouse™ Solar Shingle – a unique residential shingle that integrates solar cells right into the design. Dow tells us that this product, introduced in 2009 and first seen in 2010 on Michigan’s first Net Zero Energy House, should be available commercially sometime this year.

We don’t expect it to be cheap, but we do think it’s an interesting product. Check out this video that was show on The Weather Channel’s Earth Watch Program.

Additionally, chemical giant BASF continues to develop new, chemical solutions that increase the efficiency of solar cells used in a number of consumer products, making wafer panels thinner and easier to reproduce.

Did you know that you may be eligible for homeowner tax credits if you use renewable energy sources for your home?  Some tax credits have expired – for example, tax credits that were 30% up to $1,500 expired on December 31, 2010. However, new tax credits are in place that are good for the next five years. There are a couple of opportunities to apply for credits:

Tax Credit: 30% of cost with no upper limit

Expires: December 31, 2016

Details: Existing homes & new construction qualify. Both principal residences and second homes qualify. Rentals do not qualify. Eligible items include geothermal heat pumps, small wind turbines and solar energy kits.

Tax Credit: Credit Details: 30% of the cost, up to $500 per .5 kW of power capacity

Expires: December 31, 2016

Details: Existing homes & new construction qualify. Must be your principal residence. Rentals and second homes do not qualify. Eligible items include fuel cells (residential fuel cells and micro-turbine systems).

For more information on federal tax credits and how to apply for them, visit the Energy Star Web site.

Renewable energy sources involve only the questions of when, and how much. We know that creating renewable and sustainable energy will be a part of how we retrofit our existing homes in the not so distant future, and certainly will play an increasingly important role in new home construction. It’s good for all of us!

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The Year’s Best Kitchens – Top Kitchen Appliance Trends for 2011

February 18th, 2011

The kitchen is the heart of every home, right? The kitchen gives your home its center of gravity – a place to prepare meals, gather with friends, catch up with your kids and grab that first morning coffee. Your kitchen is a reflection of you and your lifestyle, and trends for kitchen appliances in 2011 give you plenty to shout about. From stylish, sophisticated pieces to integrated designs and energy efficient models, you’ll find a wealth of new products, looks and energy saving technologies for every lifestyle. Here are some of the top kitchen appliance trends for 2011:

You can be a top chef. This year, more and more kitchens will go upscale – luxury looks with performance based functionality. Commercial grade cooktops and refrigerators are becoming more and more popular, as are warming drawers, built in steamers and range grills. Electrolux recently rolled out a  suite of kitchen and laundry appliances that offer a professional style kitchen for a great value. On a budget? Take a good look at the Electrolux product line. Luxe may be in the eye of the beholder, but you will find an increasingly expansive market in kitchen appliances that appeal to the gourmet in all of us.

Integrate your appliances with your cabinets and kitchen design. Don’t like the look of steel appliances? Camouflage your equipment with cabinet fronts or panels A top kitchen design trend is the creation of a seamless and fully integrated look. Performance is key, but the aesthetics continue to play a key role in the design of specialty appliances, particularly those that are featured in open-plan kitchens.

Retail discounts rule. Take advantage of winter doldrums to get the year’s best pricing on many appliances -  in fact, many popular high-end appliances are being deeply discounted by retailers and manufacturers. Thermador, Wolf/SubZero, Viking, Monogram, Dacor, and DCS have all introduced customer rebate programs. You may want to check out Thermador’s free dishwasher/hood program (1-2-FREE). This program will be good through all of 2011.

Convenience and technology get better and better. The technology used in the small appliances and gadgets we have come to now and love is making its way into larger items.  Did you know that Samsung is a serious player in the appliance market? Samsung offers a full suite of kitchen and laundry appliances that combine stylish looks with new and cool features that cross over from the consumer electronics side of the business business. Look for Samsung appliances at major retail outlets.

Reduce your carbon footprint. Green living is closely tied to the kitchen – from the lighting, cabinet and counter materials and recycling capabilities to the latest appliances that are Energy Star® rated, green lifestyles have had a significant impact on the kitchen appliance market. More and more energy efficient appliances are entering the marketing, which will help drive down the price and make these products attainable for every family. Not sure where to start? Try visiting the Energy Star Web site for a list of energy efficient appliances.

Finding and integrating the right appliances into your kitchen is a great way to showcase your own unique, personal style. As more and more homeowners stay in their homes longer, outfitting the kitchen with the right blend of performance, quality and efficiency greatly enhances your lifestyle and can increase the resale value of your property if you you decide to sell in the future. Need some help rating what really works and what offers the best value? Check out Consumer Reports 2010 appliance rating report here. Bon appétit!

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Builders Revolt Against IECC by Alex Guthrie

February 17th, 2011

On April 1, 2011 the 2009 International Energy Conservation Code (IECC) will take full effect. Although much of the new requirements involve verification of processes we already do, builders across the country are becoming more and more resistant to some of the other changes. So far this year the residential building industry has seen the implementation and enforcement of the Lead Based Paint law compliments of the EPA, a push by OSHA fining small construction companies for on site infractions, additional audits from ICE  ferreting out illegal immigrants – many of whom supply fake id’s to potential employers , an avalanche  of regulations from local cities; all in the middle of the worst building climate since the the 1970′s. It’s not surprising that these small businesses are showing signs of frustration and irreverence . Did some bureaucrat actually think it was a good idea to mandate that all transactions of $600.00 should  be reported on a 1099 form; I guess if all you do for a living is push paper then you wouldn’t see how absurd this really is. Many transactions such as these take place in our industry and paperwork alone would shut many small businesses down, not to mention the fines and penalties imposed for faulty reporting no matter how innocent.

Now don’t get me wrong, I’m all for good regulation and enforcing safety laws, but is it really necessary to fine these small businesses 10k to 35k  (they actually act like they’re doing us a favor by only fining us so little) and how do we replace our workforce, we can’t just wish it to happen.  I’m also not suggesting we allow illegal aliens get good and necessary jobs; how about a guest worker program that makes sense and money to train the home grown work force we already have – our kids.

The Horizon

Some cities are advocating setting new standards that far exceed the IECC asserting that it is based on minimum thus sub-standards. This ridiculous assertation ignores the reality that many of us are currently building to standards that meet or exceed Energy Star which was the Gold standard in housing only a couple of years ago.  As green and energy efficient becomes more mainstream and affordable we can work these theories into our building programs.

What seems to get lost in these discussions is the fact these builders are trying to make a living and that requires making a profit and that requires having the ability to produce a product that people can afford to purchase.

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The Beauty and Science of LED Lighting – Technology and Design Light Up the Room

February 4th, 2011

The lighting in our homes creates ambience, provides the right illumination to work and accomplish tasks, and with today’s products, helps us save energy resources and money. Lighting has come a long way; at the recent International Builders’ Show, we saw some of the latest products and lighting design trends in affordable, LED lighting from great companies like Cooper Lighting.

LED lighting has actually been around since the ‘60’s in the electronics industry, but over the past 20 years, we have seen improvements in lighting manufacturers’ ability to create residential friendly, white LED light that is low voltage and more rugged than compact fluorescent and incandescent bulbs. We see LED lighting in task and reading lamps, recessed and ceiling can lights, art lighting, and landscape lighting – and many more practical applications are emerging. LED lighting offers terrific energy efficiency and a very long operational life, making it a highly sustainable choice for lighting your home inside and out.

Here are just a few of the many benefits of LED light bulbs:

  • Bulb Life – LED bulbs last nearly ten times longer than fluorescents and much longer than incandescents
  • Durability – LED bulbs don’t use filament and are solid – so they don’t break easily
  • Temperature – LED bulbs don’t get hot like incandescent light bulbs
  • Efficiency – LED bubs only use two to twenty watts of electricity – that’s just a fraction of what standard light bulbs use
  • Cost – While the actual bulbs are more expensive to purchase, you’ll recoup the savings in your energy usage and replacement costs
     In addition to elegant lighting systems from specialists like Cooper, you can also purchase LED bulbs for your home at your local home improvement stores like Home Depot and Lowe’s. Phillips offers a 12-watt (comparable to a 60-watt bulb) for the home for about $40.00. EcoSmart offers an 8.6-watt (like a 40-watt) bulb for a little less than $20. You can also find similar products by Sylvania at comparable prices. Yes, the initial investment is a lot more, but these bulbs use 85% less energy and can last as many as 20 years longer!

LED lights are perfect for recessed lighting and floodlights – Phillips also has a 15-watt floodlight in its product line for about $40.

Whether you are building a new home or updating your existing home, be sure to consider LED lighting options. You’ll find that you can incorporate beautiful lighting designs into your living spaces and save money and energy at the same time. For ideas on task lighting, recessed lighting, architectural track lighting and other LED fixtures, check out Cooper Lighting at http://www.cooperlighting.com/ and click on Halo® or Lumiere. You can also learn more about Energy Star ratings and guidelines at http://www.energystar.gov/. To see what options are at your local stores, check out LED lighting at Home Depot and Lowe’s.

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Bamboo Has the Floor – Eco-Friendly Flooring Choices by Chris Miles

January 28th, 2011

One of 2011’s hottest trends in both new construction and remodeling is eco-friendly flooring, using materials that are harvested naturally with low impact to the environment or that are recycled. Bamboo floors, in particular, have really risen in popularity with both vendors and consumers.

Bamboo? Yes, indeed, bamboo. Don’t limit your vision to thoughts of lanai style patio furniture – bamboo has grown up and is a top choice of environmentally conscious homeowners around the world. Bamboo is one of the most sustainable products you can purchase for your home.

The bamboo plant is highly renewable, growing very fast. A harvested bamboo plant grows back to maturity in about five years and does not require replanting. Even though bamboo is technically a grass, a mature plant offers a hardness that is superior to many wood products. The versatility and truly green nature of bamboo makes it one of the most environmentally friendly natural products on the market.

You won’t sacrifice quality or convenience with bamboo flooring – most manufacturers process bamboo into planks that use a tongue-and-groove design, very similar to popular hardwood flooring options. The finished product can be stained or treated to create a beautiful range of natural-looking colors.

A number of companies are dedicated to offering bamboo flooring products, including Cali Bamboo, Morning Star Bamboo and EcoTimber. EcoTimber has been present in the eco-friendly space since 1992, and is dedicated to environmental protection responsible harvesting. You can also find both branded and unbranded bamboo flooring options offered by Lowe’s and Home Deport.

Bamboo flooring is affordable, very durable and very similar in appearance to traditional hardwood flooring. In order to keep your home truly safe and non-toxic, make sure that the manufacturer of your bamboo product does not use formaldehyde to laminate the bamboo planks. Do your homework and select products that are no-formaldehyde and zero VOC.

Did you know that bamboo is the hardest ‘wood’ floor product on the market” It’s tougher than maple, white oak or walnut, perfect for a family home with lots of traffic and activity. We’re seeing it used in nearly every room of the house, especially in entryways, living rooms and family rooms. Costs are competitive with conventional flooring products, with prices ranging from $4 – $8 per square foot, averaging around $5.

A lot of manufacturers are getting into the bamboo product arena, so be sure to take a look at several different suppliers for comparisons and additional purchasing and installation tips. Look at companies who have been around for a while and have experience with bamboo products and finishes. As a starting point, check out Cali Bamboo’s site for a good overview of product characteristics, options and pricing. You can also learn more about green building in general from the U.S. Green Building Council.

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Chinese Invasion by Alex Guthrie

November 1st, 2010

Got a call on the show not long ago from a listener about the Chinese sheet rock controversy. (For those of you that don’t know the story; A Chinese manufacturer sold a bunch of sheet rock laced with sulphur to suppliers in the southern gulf coast regions including Texas, Florida, Louisiana etc.; the product has destroyed the interiors of the houses and they have to be gutted and redone or demolished.)    He thinks the builders that were using it were negligent and getting off too light. He believes  that the builders should have done their research and known that it was a defective product. I of course defended the builders and for the most part will defend many people getting fooled by these types of things. We are not scientists, we don’t know what’s put in a product anymore than most people that resale products. Maybe we depend too much on our suppliers to do the right thing but I doubt they knew anything was wrong and yes it’s all about costs and profit. I know for some people that’s a horrible thought but for most of us it’s about survival.

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The Good of the Good and the Good of The Bad……..by Alex Guthrie

September 8th, 2010

It was reported that the government claimed that 75% of the oil in the Gulf  “Magically” disappeared -

Give Me A Break – Please.

Talk about denial –  is it going to help anybody deal with reality by conveniently burying our collective heads in the(tar)  sand ?  I have an idea; lets wait until we have a major crisis caused by the 75% of den- oil and then deal with it.

What have we learned lately and what will we take away from it? I hope we learned how fragile and irreplaceable our world is, I hope we learned that we absolutely have to make better decisions about our environment. It’s good that we have natural resources and we utilize them for our benefit and not so good that that we take it all for granted.

The real discussion Should be how to ween ourselves off of fossil fuels.

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