Where do we go from here- A Remodeler’s Perspective

One thing is for sure, “Only the Strong will Survive”
As the reality sets in for remodeling pros that this economy isn’t going to come back around any time soon, we begin to realize that the old ways of doing business just aren’t going to work anymore. And those who are unwilling or unable to make the necessary adjustments have already begun to fade away.

Yes, it’s true folks, housing foreclosures are still on the rise Continue reading Where do we go from here- A Remodeler’s Perspective

Housing Index Update

With recent news that the nation’s home values may very well continue to drop over the next several months, it’s no wonder most homeowners have concluded that they may as well get comfortable where they’re at least for the time being.
On the positive side, at least for some production home builders, some areas have actually seen prices increase on new homes. Existing homes however may continue to see a decline in value due to the continuing market deluge of foreclosures with no foreseeable end in sight.
“We should expect house prices to continue to fall, with nationwide prices dropping another 15 to 20 percent to complete the process of deflating the bubble,” wrote Dean Baker, co-director of the Center for Economic and Policy Research, in the New York Times.
“It’s pretty clear the housing market has already double dipped,” says David Blitzer of S&P.
Patrick Newport of IHS Global Insight observed that existing home prices in several metro markets had actually triple dipped during the recession.
It has to make you wonder why the policy makers didn’t shift their focus early on to making housing more affordable during the housing bubble rather than allow prices to inflate beyond the average home buyers means and the turn a blind eye to lenders who offer mortgages that were virtually unpayable to many buyers.
The benefits of making housing more affordable to the average buyer would have an enormous impact on our economy. Not burying homebuyers in debt beyond their means frees up much needed cash that could benefit the economy by being spent in various other sectors.
There’s no doubt that when the dust settles and the reality hits that “you might as well make the best of where you’re at for now”, that at least the remodeling industry is due to see an upswing.

Prayer for the Homeless

Last night I dreamed I was homeless and all I had to my name was a sleeping bag and a pillow. As I ran across a very busy street I dropped my pillow but I had to keep running as the cars were coming at me very fast. When I reached the other side I turned and watched in horror as a car ran over my pillow. All that remained was a rectangular pile of dust.
As I stood there staring at this pile I was very sad because I knew how much I would miss that pillow on those cold dark lonely nights.

New California Building Standards for 2011

Well 2011 is almost here. I hope everyone is ready for the new building codes which take effect on January 1st. The new codes include two brand new-to-California publications: the Green Building Standards Code (CALGreen), and the California Residential Code, which will require automatic fire sprinklers in all new single-family homes in California.

“This time around we are looking at adopting the 2010 California Building Code (CBC) which will be based on the 2009 IBC. A new code for us will be the California Residential Code (CRC) and that will be based on the 2009 IRC. The balance of the codes will be the 2010 CFC, CMC, CEC. The 2008 California Energy Standards are already in effect.”
Source- kpaa.com/news

There has been a lot of controversy over the new fire sprinkler requirement with opposition headed mostly by NAHB, The National Association of Home Builders, who argue that the sprinklers are not needed and will add significant cost to new projects. Some sources have calculated that the average cost per square foot will be in the neighborhood of $1.61. Others claim the cost will be much higher.
The bottom line is, if you would rather not have to deal with these requirements, your only alternative is to get your plans submitted for permits prior to Jan 1, 2011.

There are a lot of new energy codes to comply to as well with the Cal Green standards being implemented and some wonder how this will coincide with the current LEED standards.
Click Here to download the comprehensive overview of changes taking effect with CalGreen.

Taking Green Awareness to the Next Level

It was such a great privilege and an honor to see Robert F Kennedy Jr. speaking Friday at Sacramento’s Greenwise Conference.
It soon became obvious why he was named one of Time Magazine’s “Top 100 most influential people of the year” in 2008. As well as Time Magazine’s “Heroes of Our Planet.”

His flight to Sacramento arrived late which forced Mayor Kevin Johnson to keep the audience entertained while stalling for Mr. Kennedy to arrive. But the wait definitely paid off. I don’t think I’ve ever been so inspired by any speaker in my life. His passion for the green movement and promoting green awareness is unparalleled. His ability to bring a clarity to the impact of the green movement was eye opening.
Mr. Kennedy’s standout quote- Continue reading Taking Green Awareness to the Next Level

Is ROI the most important influencing factor for your prospective remodel?

If it is I’m afraid I have some bad news. According to the latest report published in the mainstream consumer media, CnnMoney.com, in it’s analysis of the 2010 Remodeling Cost vs. value survey.

“In general, anyone planning a home remodeling will pay a lot more for the job than they will get back in return when they sell. Only 60% of remodeling costs in 2010 would be recouped by homeowners, the report said.”

It seems that the payback on most remodeling projects will not yield the returns of years past.
So maybe it’s a good time to re-think the value of ROI in a broader perspective. The big picture might go beyond hoping the expense of the project can be recouped in the sale.

Consider, for example, the value of having the kitchen that is custom tailored and built to suit your specific needs. Or the master suite you’ve always dreamed of with the jacuzzi tub and dual shower heads. The advantages of a healthier indoor air and living quality for you and your family when investing in green products. The value of the relationships you’ve built over the years with your neighbors and the amenities you’ve grown accustomed to.
When considering the option of moving to a home “more suitable” to your needs, we need to factor in the expense of moving with real estate fees, actual moving expense, the unknowns of new neighborhoods, etc.
Another thing that should be taken into consideration is the fact that most people end up doing a substantial remodel on their new homes within 12 months of moving in.

So, do we go ahead and spend the money knowing the return might not be there? Spend the money on something that will produce a better return? Or do we opt instead for “greener pastures”?

Click Here for more on the survey.

Political Hypocrisy

Why is it that every time I hear a campaigning politician open his or her mouth they talk about “The most important thing we can do for this crippled economy is to create more jobs.” While often prioritizing the construction industry.
Yet every time I turn around they’re coming up with new regulations, certifications, and penalties which make it more difficult for us in the construction industry to survive.
In my City of Sacramento Ca., multiple government entities have teamed up and began visiting jobsites randomly pulled from permit applications and proceeding to hand out fines beyond the means of any small remodelers in my area. These entities include Cal Osha, Ca. State Contractors license board, EDD, and the labor board. All showing up in unison at sites with badges glaring.
They proceed to question workers and cross examine their employers. Following up, if deemed necessary, by an office visit to check records against the jobsite depositions.
A good friend of mine, who does primarily insurance repairs, was recently visited at his site and was fined $18,000 for violations like no wash station next to bathroom, ($850), a ladder not strapped to the building, not having a first aid kit on site, lacking the proper safety postings and safety meeting documentation, heat prevention documentation, and more. Note that having the time to provide and maintain all of this is practically a full time job for 1 person, (slight exaggeration). And the way we’re bidding these days to get work there is no room for this extra burden and if there were it would just be passed on to the consumer.
Although many would argue that these are all very valid and important issues, my problem is that these fines are not only excessive but more or less “one size fits all”. The same fines would be imposed on larger companies, who are more able to handle the load, as the smaller 1 and 2 man crews who will surely risk closing up shop as my friend very well may.

Even a small company like my own being closed down would mean less work for my hourly guys, my subs, and their employees.
Come on people. This type of activity always seems to increase when we have budget shortfalls and a desperate need for our politicians to find ways to create revenue so they can boast about how they saved the budget while throwing a blind eye to the cost.

More Green Things to Know

Indoor Air Quality
Can be affected by many of the products used in the construction of your home as well as products used for cleaning and maintenance. Careful product selection during construction can significantly reduce dangerous off gassing by materials with a high voc content.
Proper ventilation can be a huge factor in a homes performance. Poor ventilation can lead to moisture build up or condensation which can cause mold and other unwanted growths. This can have adverse effects that can cause respiratory ailments and other illnesses. Continue reading More Green Things to Know

Green Things To Know

As technology advances in the world of Green Building, many products that used to be cost prohibitive have suddenly become affordable alternatives. Low and zero VOC, (volatile organic compound), paints are now a standard feature in my projects as the quality and affordability are par with conventional paints and finishes.

A little about Volatile Organic Compounds. Continue reading Green Things To Know

A Collaborative Effort for Green Building Awareness

I recently posted on twitter about how I wished that there was more collaboration between Contractors, Suppliers, Manufacturers, and Sub Contractors in promoting green building awareness. It really needs to be a concerted and collaborative effort.

When green building first started there was a lot of confusion about the concept. There were also many misconceptions about what was truly green and the effects and implications of building more energy efficient, sustainable buildings.

When new trends arise they are often greeted with skepticism and apprehension. As they evolve there are sure to be mixed interpretations and opinions. When these trends start to break into the mainstream and become more accepted then all of the sudden everyone’s slapping green labels on their products and the concept becomes diluted with false claims. As the dust begins to settle and the practice matures, which is where we are now,  we should hope to bring more clarity to the industry and the consumer. Narrow down the regulators so we can all have consistency in our teachings. Those people who have yet to embrace the ideal owe it to themselves to get on board and start learning and promoting.

Green is definitely here to stay and there’s no denying it. And the sooner we all embrace it, practice it, and educate others, the better. Live responsibly and make this world a better place for those who follow.

Phil Vanderloo