In Limbo

I find myself using the phrase "in limbo" a lot lately. The term originated as a Roman Catholic phrase describing "the abode of unbaptized but innocent or righteous souls, as those of infants or virtuous individuals who lived before the coming of Christ." It has since evolved into a term that means "any intermediate place or state of neglect or confinement."
We seem to be "in limbo" with our current project---not that we are being neglected, but rather because we are seemingly stuck or "confined" at the particular point in the project. As the builder for this job, we are the party "between" the architect and the homeowner. There are several cosmetic design issues that the homeowners are having difficulty visualizing. One specific decision involves exterior stonework. Until the homeowners choose the type of stone they'd like to use, the architect cannot finalize the drawings. Until the drawings are finalized, the builder (we) cannot complete the final quotation and present the contract for signing. As you can see, we are "in limbo."
Fortunately, in this case, the three parties are all working together on this stone decision. On Saturday, Barry went with the homeowners to the stone supplier to help them get a better understanding of the material. Yesterday he drew diagrams to help them visualize the construction part of the stone work. He'll probably do a mockup of a small part of the stone wall to also help them make their decision.
The more time Barry devotes to helping the homeowners, the more I realize where the modern-day usage of the term "limbo" comes from. Maybe you've played the "Limbo" game where you bend over backwards and try to pass under the stick....Well, we'll BEND OVER BACKWARDS to help make decisions easier for our clients. We'll do the Limbo to help get things out of limbo!

Getting your Financial House in Order

It occurred to me that I had blogged about pre-construction activities that the architect and builder do, but I have neglected to write about what the buyer needs to do ahead of time. If you are planning to buy a house, your work begins six months to a year before you're ready to go house-hunting. Your most important task is to get your financial house in order first. Then you can start dreaming about that house.
The first thing you should do is to check your credit report. You can get a free credit report online. This report and the FICO score generated by the report are your keys to getting a mortgage. FICO scores are between 300-850...the higher the better. A score above 650 usually assures you of obtaining a good interest rate.
The biggest component of your credit report that determines your FICO score is the length of your credit history. You need to show the lenders that you are a good risk. You need to have a history of paying on time and using just a few credit cards. It can work against you to apply for every credit card you're offered. Limit your options, pay on time, and carry a low or zero balance.
Once you get your credit report, review it carefully and clear up any questions or discrepancies. This may take time so don't wait until you're ready to apply for your mortgage to fix any errors.
The house you can afford depends on your current income and your current debt. Check out an online mortgage calculator so see what price range fits your budget. It's possible to have a great salary, but lots of debt and the bank will reject you. The lender wants a complete picture of your financial situation.
Another major consideration as you get your financial house in order is to make sure you have easy access to your down payment. You'll probably need 20% of the appraised value of the house you want to buy. The lender won't want that in the form of a gift from a family member. They need to know that YOU have the money. Increase your saving program and make sure your money is where it needs to be.
You're almost ready to start house-hunting, but first you need to meet with a lender. This is a good time to get "pre-approved." The bank will take your information and run the numbers to give you a snapshot so that you know in what price range you can afford to shop. This is the time you'll need your financial paperwork in order. Find all of those statements and pay stubs in this early stage of the house-buying process, and you'll save yourself a lot of stress later on.
Here's a list of things the bank will probably need:
1. Bank statements from the last 3-6 months
2. Pay stubs from the last 2-3 months
3. Monthly loan statements for cars, other real estate, etc.
4. W-2's and tax statements
5. Property tax information
6. Transcripts if you're a recent graduate
7. Proof of current balances from utility companies
8. Other income information such as alimony, social security, child support
9. Driver's license, social security card
10. Car titles if you own the car 100%
11. Retirement, 401-K statements
12. Statements for stocks, mutual funds, IRAs
13. 1099 Forms if you received any
14. Your last 3 credit card statements--with low balances (I hope)
Don't get nervous if the bank wants more information. The current "credit crunch" has resulted in much closer scrutiny of lenders and their procedures. Many new regulations are in place to protect both the lender and the borrower so extra cooperation is required of all parties as you work your way toward finding your dream home and closing on the property.

Pre-Construction Activities

So many things have to happen before actually breaking ground on a new house. Barry has been working with some potential clients for over a year, and we're getting ready to finalize the agreement. During the past year, there have been multiple meetings with the homeowners and architect. Barry has been involved in quite a few of those meetings and has met several times at the property to discuss site issues. Because the home will be built on the site of an existing farmhouse, there are several phases that must be completed prior to application for the actual building permit. In this case, the existing farmhouse will be demolished and the new house will be built on the site. The old house, however, contains small amounts of asbestos so an abatement contractor must remove the asbestos before demolition can take place. The new homeowners also want to salvage the hardwood flooring from the old house to reuse in their new home. Once that is completed, the demolition can begin.

In the meantime, the architect's plans are being distributed for final quotations from subcontractors. Barry installed a temporary electric pole that has been inspected. The electric company has installed a meter. An engineering firm will complete formal site plans and survey for permits. The homeowners are working with the lender to firm up the financing.

The excitement is building, but we're still weeks away from moving dirt. Nevertheless, it's fun to have a new project on the horizon.

Standards of Trust

Several years ago we had a new home client that I would call "thorough." As we progressed from initial design to finalized contract, the questions multiplied. Mr. B. needed a detailed explanation of every specification and procedure before he felt comfortable. As much as we thought we were building a good relationship with Mr. B., I never really felt like he believed what we told him. After several months of negotiations and plan revisions, both parties were finally ready to sign the contract. Even though Mr. B. had studied the contract ahead of time, he continued to ask for explanations and clarifications as we reviewed each line. We were more than happy to oblige. The last thing we want is to enter into an agreement with someone who is not ready. Near the end of the closing, I remember Mr. B. specifically asking, "How do I know you will do these things that you're promising?" I answered, "That's where trust comes in."

You hope that throughout the negotiation process, you get closer and closer to meeting the other party in the middle. In spite of efforts from both sides, you may never actually meet. There may be a slight gap that can only be filled by trust.

For the last 21 years, we have been committed to the principals of the Better Business Bureau. Recently the BBB developed a unique, summarized set of eight business "Standards of Trust." The Better Business Bureau Standards are:

1. Build Trust

2. Advertise Honestly

3. Tell the Truth

4. Be Transparent

5. Honor Promises

6. Be Responsive

7. Safeguard Privacy

8. Embody Integrity

We do our best to uphold these standards so that folks like Mr. B. feel comfortable entering into an agreement to remodel or build a home with our company. By the way, Mr. B. ended up totally happy with his new home and remains one of our best references (and friends) to this day.

Property Tax Levy for Schools

We have an Emergency Levy on the ballot on November 3 for Winton Woods School District. We live and work in the district, and our two children have both received excellent educations at Winton Woods. Everyone agrees school funding in Ohio is a mess. A school district like Winton Woods, with little industry, a transient population, and numerous racial, socio-economic, and special needs subgroups, is caught in the gap created by state mandates and local needs.
We are at a crossroads in the Winton Woods district. Three previous failed levies, numerous budget cuts, school consolidation, restricted bussing, and increased pay-to-play fees have yielded no solutions. The Board has tried it all, and I believe they have managed the money they have wisely. The last resort is the Emergency Levy---or ALL extracurricular activities will be cut. The doors to all school buildings will be locked at the end of the day. There will be no football team, no spring musical, no Student Council, no school dances...none of the things that make kids look forward to going to school.
Sure, the kids will survive. Maybe we "give" them too much anyhow. However, for many kids at Winton Woods, the clubs and teams are a "safe haven"...a place where someone cares about them. I shudder to think how these kids will spend their afternoons and evenings without the added structure offered by coaches, mentors, and club advisors. Maybe if the parents rent an apartment, the lucky ones will pack up and move to other school districts where they can find outlets for their talents and abilities. Most of those who own homes, however, will be unable to move. Who will buy a house in a school district that offers only the basics? Why not choose a neighborhood down the street where the school offers all kinds of "extra" activities?
I hope the residents of Winton Woods School District realize the effect on their property values of another failed levy. Budgets are tight for everyone. School levies are expensive. But raising kids in a community that focuses not only education, but also on raising the "whole child" is priceless.

Let's Build a Deck

Adding a deck can add value to your home. Not only will you see a good return on your investment, but you will also have the enjoyment of additional space for relaxation, family gatherings, grilling, and gardening. Many homeowners think building a deck is a "do-it-yourself" project, and it can be--IF you have as much experience working with building departments as you do working with tools.

Yes, in most jurisdictions, you need to obtain a building permit to build a deck. In order to get a permit, you'll have to have plans and specifications showing the deck has been designed to meet local building codes. Once you get the plans and permit, you'll need to be prepared for several inspections during the building process. If this sounds like more than you'd like to handle, you would be better off calling a professional to work with you on your project.

In your initial meeting with your custom deck builder, you'll discuss your intended purpose for the deck, the space you have to work with, how you want to access the deck, the material you'd like to use, and your budget. Some decks are simple: If the deck is at ground level or no more than 30" from the ground, no guardrails are required. A standard deck like this, about 12'x14', costs about $12-14/sq. ft. in the Cincinnati area and can be built in 2 or 3 days once the permit is issued.

However, if the deck is above ground, things get a little more complicated as you add posts, beams, railings, and stairs. The size and shape of the deck may be determined by any furniture you have or by where you might want to locate a grill. You'll also want to decide whether you'd like to add benches, flower boxes, various levels, or if you have future plans to add a spa or firepit.

The biggest decision you'll make about the deck is to decide what type of material you'd like to use. Decks have traditionally been built of pressure-treated lumber or redwood. Wood products require periodic cleaning and sealing in order to maintain the quality of the wood over the years. A Brazilian hardwood called IPÊ is gaining in popularity because of its durability and resistance to rot, insects, and mold. It's more expensive than pressure-treated or redwood, but with IPÊ, you don't have the maintenance time or money invested over the long haul. Another popular alternative is a composite material such as Trex that resists rotting, warping or splintering completely. The composites cost almost twice as much as pressure-treated, but you have no maintenance. However, if you imagine yourself barefoot on the deck, the composites do tend to be hot in the sun. A composite deck, built above ground with some of the custom options mentioned above, can take as long as 3 weeks to build and can cost as much as $30/sq. ft. in the Cincinnati area. That may sound like a lot of time and money for a deck, but when you think about it as adding an outdoor room to your home, the cost seems reasonable and the value is priceless.

Looking Back at Cincinnati Windstorm 9-14-08

It's the one year anniversary of the Cincinnati windstorm. September 14, 2008 was a day exactly like today---crisp blue sky, bright sunshine, temperature perfect. We heard a "high winds possible" warning on the radio on our way to the Bengals game. As we walked down Elm Street toward the stadium, it felt like a wind tunnel, but everyone was caught up in game-day excitement and no one was concerned. As the game went on, the winds increased, but the sun continued to shine and it just seemed like a windy day. Hot dog wrappers blew around the field and a few paper cups even flew out of spectators hands, but it still didn't seem like anything out of the ordinary.

A few minutes before the game ended, our daughter called to say roads were closed due to fallen trees and she'd have to take a detour home from work. A few minutes after that, she called back to tell us she was afraid to drive and stopping at a friend's house until the wind died down.

As we started home from the game, we began to see the seriousness of the windstorm. Trees and branches were down everywhere, and stoplights were out along our route. As we approached home, our neighbors called to tell us the driveway was blocked with a big tree. As we pulled in, we realized the severity of the situation. A huge ash tree (probably 100 ft. tall) was on our roof. We could see the drywall of our bathroom and bedroom ceilings through the opening. Hundreds of other branches and sticks were scattered around our yard. We had a huge mess that you can see in this video http://tinyurl.com/pgtyks.

I remember entering the house behind Barry. We walked carefully into the bedroom and stood gaping at the branches and leaves that were in our bathroom and closet. Somehow the tree had come to rest on the walls of the house so that nothing was actually crushed. The windows weren't broken; the shower was still intact; the vanity and sink were still there. Yet, the bathroom and closet seemed more like a forest than a house.

It wasn't long until the cleanup was set in motion. Several neighbors appeared out of nowhere to start pitching in. First, a few branches were cut away so that a tarp could be applied over the entire roof. The sun was still shining, but if any rain would have begun, we would have doubled our troubles. Luckily, Mother Nature cooperated for the next 2 weeks as not a drop of rain fell during that initial cleanup time.

For the first 3 days, we didn't have electricity. The only sounds you could hear around the neighborhood were the whirls of chainsaws and circular saws. We quickly discovered that the biggest problem for us was that the tree was balancing on the walls of our house...with no way to get a crane to the area and no way to remove it other than foot by foot. Precise calculations were made each time a cut was made. Take too much off one end, and the whole tree would end up in the house. So after 6 days of cutting and calculating, the tree was finally rolled inch by inch off the house using a spud bar for leverage and chains for safety. http://tinyurl.com/oexgr6

It took 6 more weeks to get everything back to what I would call "normal." Rebuilding was a project no different than any other remodeling project. Once materials arrived, roofers and carpenters followed, plumbing and wiring were completed, drywall followed, and ceramic tile and paint completed the finishing touches.

When I look back a year later, it's amazing what was accomplished in a short amount of time to put our house back together again. I never really worried that we had "lost everything" or that things couldn't be repaired. After 21 years in the building business, we knew plenty of contractors and suppliers who could help us when called. The best thing, however, was how we got so much help from friends, relatives, and neighbors.

It truly was a time to appreciate that a home is much more than a house.