I am working with an investor client who is interested in low cost condo and townhome properties.  We are, of course, considering location to public transportation, changing neighborhood demographics, etc.  A new component of the due diligence for these properties is checking the Bed Bug Registry.

      In our high income, ultra educated area there are already four confirmed cases of bed bugs.  This may affect the property value for some time and will no doubt affect cash flow short term.

      When showing properties where you consider there may be a possibility of bedbugs, fleas, etc. wear light colored pants.  They will show the bugs the quickest.  Do not take a purse or backpack in to these properties. Keep a trash bag in the car and change of clothes.  If need be, you can change clothes and keep your infested clothing in the trash bag until you reach a washing machine with hot water.  Freezing works, too.

This weekend I attended a two day workshop in Pittsboro on solar power.  We discussed the pros and cons of grid tied systems (about 95% of systems), hybrid grid tied systems (more complicated but useful in areas that have frequent power outages) and off grid systems. 

Other topics and exercises included:

·         Using a multi meter to measure volts and current in various pv modules (panels)

·         Finding the amount of sunlight a site would receive year round by measuring with a solar pathfinder (such a cool tool and great for gardeners, too!)

·         Measuring temperature of the panel itself· .     

      Wiring the charge controller and safety disconnect to attach to the inverter, batteries and pv module that powers the small off grid Abundance Foundation office seen here in the picture

The skill level of the attendees was all over the spectrum; electricians, contractors, homeowners, non-profit staff, and moi. Our instructor, Rebekah Hren, a NABCEP certified solar PV installer and licensed NC electrician  somehow kept us all engaged.  I believe everyone left with loads more knowledge and skill than when they arrived on Saturday morning.

My reason for attending was to better serve my real estate clients buying or selling a home with solar components or systems.    The experience with a recent transaction, mentioned here earlier, made clear having a good working knowledge of the difference in systems, a ballpark figure of cost/lifespan and how they work could translate in thousands of dollars in the cost of the home for buyers or the sale price of the home for the sellers. 

During the transaction I mentioned earlier, I was working with the buyer and the lack of expertise of the appraiser sent by the lender in solar saved my buyer a bundle, but it was clear I needed a group a professionals to call upon the next time I have solar power systems  in a property. Happily, I now can call upon the expertise of a team of professionals that include an appraiser with solar knowledge, lender with green certification, and solar inspector. 

That's me below, genuflecting to the sun god.

Rebekah Hren and her husband Steven wrote a book featuring 36 projects to work toward The Carbon Free Home.  While many of the projects might be extreme for most folks.  Almost everyone can use some of the ideas and projects in the book. 

Rebekah, who is a nationally sought after solar instructor for Solar Energy International.  This month her new book, Let the Sun Shine In, a buyers guide to photovoltaics and solar thermal, will be available.

The holiday season is fast approaching.  If fighting the crowds, the long lines and the parking lot at the Carrboro Post Office hold no appeal to you, drive on down 54 west to Harry's Market.

The have a contract post office with friendly staff and rarely a wait.  In addition, you can shop for gifts, vitamins, grass fed beef, yummy baked goods and there is always a surprise.

During fall (if we ever GET fall) there is music on Friday and Satruday evenings.  Wood fired baked pizza is available.  Bring your folding chairs and relax!

Planning to make improvements to your home?  You can include them in the cost basis of your house and thus reduce your capital gains tax if you ever sell ( be sure to keep the receipts). If you're making repairs, however, there is no tax benefit.

What's the difference?

According to the IRS, an improvement "adds to the value of your home or prolongs its life," whereas a repair keeps it in "ordinary, efficient operating condition."  There is a fine line between the two, but here are some general guidelines:

Improvements:

• Wallpapering
• Installing tile floors
• Replacing lighting fixtures
• Paving your driveway
• Adding insulation
• Installing a water heater
• Installing metal roof

Repairs:

• Painting your home
• Refinishing wood floors
• Replacing broken window panes
• Sealing your driveway
• Replacing gutters
• Installing new pipes
• Repairs to asphalt roof

When things break, they always break at the worst time.  You know, on the weekend, during a party, etc.  When our well pump stopped working it was in mid shower on the weekend.  After a tirade of colorful language, my husband did the smart thing.  He turned off the well pump. We had enough hot water stored in the tank for the necessities until morning. 

Happily, we had the phone number to the repair person on a magnetic business card on our hot water tank and he came right away.  Even though I have numberous resource numbers in my database, it was comforting to not have to rifle through names and numbers while under the stress of no water. 

The take away?  Have your repair service contacts at the point of the problem; electrician at the breaker box, HVAC person at the air handler, etc.

By the way, turns out a fuse caused our problem.  My husband saved our pump by turning it off.

Many lenders no longer require a survey.  While most Realtors and closing attorneys recommend them, cash strapped buyers often opt not to purchase a survey. 

Here is another reason to get a survey: The title insurance you buy will cover only the lender and excempt the buyer.  In other words....if there is a title dispute you are on your own.

Please get a survey when purchasing property!

Bike to Weaver St. Market in Hillsborough!  This home has two and half baths, the master on the main and two additional bedrooms upstairs.  The marble surround fireplace is the focal point in open concept living space downstairs.  

    The charming wood fenced backyard provides entertaining and family space on the deck, in the gardens and on the playset.  A large site built wooden shed is nestled among the trees.

    The location is fabulous!  UNC and DUKE are a 20 minute commute.   The home itself is on a dead end street at the cul-de-sac.

   Come see this like new home for more reasons you will want to call it home. unbelievalbe at only $169,900  MLS 1731121 Virtual Tour:
www.TourFactory.com/636018

At a recent Green Builders meeting the following stats were relayed:

Most newer homes lose up to 10% of the heat in the duct work. 

Homes 15 years and older lose about 40% in the duct work.

 THAT got my attention. And energy prices are expected to increase by 50% in the next 7 years. 

Now. while it is cooling down but before it gets too cold, is the perfect time to make sure the seals to the heat registers are secure, the ducts are sealed and the returns are sealed. 

One inspector told me he has noticed a higher incidence of mice chewing holes in flexible ductwork than in the past.  Here in the south where crawlspaces are common, it pays to check your duct work for holes every couple of years.

Fall is the perfect time for planting shrubs and trees.

Planting shrubs and trees is the perfect time to accidentally cut the underground power lines. 

To prevent meeting your neighbors in this manner, call The One Call Center at 1.800.632.4949 a few days before you plan on planting.  They will send the phone, gas and electric folks to mark the lines for you.  This will also help protect you from any liability if the  lines are cut.

Business Insurance and Homeowners Insurance are two distinct types of insurance products requiring different types of coverage.

A Farmowners Policy is a package policy that resembles a homeowner policy and is flexible enough to meet the unique needs of the farm business.

Farmowners Can Cover:

Dwelling

Other structures-a detached garage (not a barn)

Personal property –contents of the home

Additional Living Expenses- Motel to live in if the residence burns down.

Barns, Buildings, additional dwellings on the premises

Scheduled or unscheduled equipment-tractors, farm equipment, livestock, hay in the open, portable buildings or structures, silos, anything farm related.

Personal Liability-example: guest slips and falls in the residence.

Farm Liability- horse escapes it’s fence and hit by a car in the road.

Products Liability- the eggs you sell have bacteria in them that make people sick.

Equipment Breakdown

Loss of Income and Extra Expense

Animal Mortality

Major Exclusions in a farm policy:

 Loss caused by enforcement of building codes

 Loss caused by earth movement

 Loss caused by power failure,

 Loss to outdoor radio and TV equipment

The above exclusions may be “bought back” by endorsement and payment of additional premium. FLOOD is excluded, no buyback option. Must go to NCJUA to secure a flood policy.

Coverage Forms

There are three types of coverage forms-

 Basic, Broad, and Special

Basic is named perils. Loss must be caused by one of these perils:

  Fire and/or Lightning, Windstorm or hail, smoke, Aircraft/vehicles, Riot or civil commotion, vandalism, sprinkler leakage, sinkhole collapse, and volcanic Action

Broad Form Perils-the above mentioned plus breakage of glass, falling objects, weight of snow and ice, water damage-but only accidental, due to breaking or cracking of vessel containing water. Finally, additional Coverage-Collapse-many restrictions.

Special- also known as open perils. Coverage is provided unless excluded.

This is the best coverage form.

Some property is insured on an ACV basis. Actual Cash Value.

ACV is replacement cost-depreciation.

Replacement Cost- If the loss is a covered loss, and replacement cost is shown, the building, or scheduled equipment can then be replaced with a new item. Replacement cost is more expensive, but well worth the extra premium, if you can get it.

Insurance to Value-

Most property insurance contracts are co-insurance contracts. This means that a specific amount of insurance must be purchased in order to cover a partial loss.

If the replacement cost on your barn is $100,000, but you only purchase $50,000 of insurance, then suffer a $20,000 loss; the policy will not pay the full $20,000 loss.

Amount of coverage     X      Loss = amount payable in this case, $10,000 

  Replacement cost

Insurance Agents and the insured need to work together to determine the proper replacement cost. Replacement cost is determined at the time of loss.

Some of the things Insurance Companies consider when underwriting a policy:

Is the farm a profitable operation?

What is the experience of the farmer, or new owner?

Is the insured active in the business?

Is the machinery well maintained? Are the buildings in good repair? Fences in order?

Has the electrical, plumbing, roofs, air conditioning and heat systems been updated?

What are the prior losses?

How many mortgagees or liens are on the property?

Does the underwriter trust the agent?

From an interview with:

Christine Barnett, CIC, AU

High and Rubish Insurance Agency

Chapel Hill NC 27517

Office:919-913-1144

Fax:919-913-1155