Melissa Savenko's Richmond Real Estate Review

Lazy Savings Tips - How to Save with "Set It and Forget It" Tricks - Just Up My Alley!

Usually I don't read most of the real estate-related and other "new" and informational e-mails that I receive most days.  I get too much stuff, and it's been too daggone busy.

But today I felt like taking a 15 minute mental break and happened across this online article, with tips on how to "tap into the world of lazy savings."  I thought the ideas were pretty easy and worthwhile, so other folks might be interested too.  I've already signed up with iDine.com, and I'm going to try some of the other recommended websites.  Have fun exploring lazy savings options for yourself.

Selling Your Home - Staging Works! - Some Simple Tips

Here's a great article titled "Stage to Sell Your Home Fast" with 9 simple - and cheap! - staging tips.  More on the wonders of staging later, I've gotta pick up the Small Person.  Very short version of my opinion = when staging a home, think "Pottery Barn," even if you'd rather claw your eyes out than actually live that way.  

Real Estate Sales Pick UP in Area 10 - Is This a Sign of a Real Recovery?

I admit it.  I was one of the pessimists, and I was predicting that sales would come to a dead halt on May 1, 2010, after the expiration of the federal tax credits.

Well, it looks like I was wrong.  And believe me, this is one prediction I would LOVE to be wrong on.  Looking at just the Fan and Museum District, I've been surprised that sales velocity has seemed to remain at least stable, if not up, since April 30 came and went.  It also seemed - without testing the data, because we're all BUSY in my office - YEA! - like houses in the price points that had been totally stagnant, $400,000 to $800,000, were selling all of a sudden.  In the last two weeks, several $400,000+ houses in the Fan have gone under contract within a matter of days, and several $600,000+ houses that have been on the market 30+ days went under contract also.

So, I decided today I would at least take a quick look at the hard data.  I'll try to get to a more detailed analysis later, but the short version is the numbers are a WOW.  I looked at only pending sales in Area 10, which is the Central City of Richmond - Church Hill, Oregon Hill, Downtown, Jackson Ward, Carver, Byrd Park, Fan, Museum District. These are houses that are under contract, but the sale has not yet been finalized.  Here's what the numbers look like:

Pending Sales, Area 10, February 1-March 31, 2010:  23

Pending Sales, Area 10, April 1-Current:  99

Now, even if you consider the artificial demand created by the tax credit, that's still a more than 400% sales increase, even though the second period is about 12 days shorter than the first.

What does this mean?  Analysis of that questions is going to have to wait until I have some more time.  Right now, duty calls.  But the signs look good, people.  This pessimist is becoming cautiously optimistic.

The EPA's New Rule on Renovation, Repair and Painting - Yet Another Example of Government Sucking

The EPA's new rule on Renovation, Repair and Painting ("RR&P") became effective on April 22, 2010.  The public policy intent is to prevent neurological or other physical damage from the ingestion of lead based paint.  Attached here is an overview of the RR&P rule.  Note that it takes 43 pages to summarize the rule.

This is yet another example of how much government sucks sometimes.  This rule effectively kills a fly with a sledgehammer.  As someone who works almost exclusively with pre-1978 homes, which are all already subject to disclosure requirements about the possible presence of and potential hazard of lead based paint, I'm pretty much flabbergasted about the government's approach.  Are they serious?

The rule requires ANYONE who is going to be working on a 1978 or older home and doing ANYTHING that would "disturb" lead based paint - from sanding, to installing replacement windows, to removing and replacing any carpentry elements, cabinets, or fixtures - to be "certified" as a "certified renovator" - or working under one - and to use what the EPA characterizes as "lead-safe practices."

The problem with this?  Here are just a few:

• The EPA did an absolutely TERRIBLE job of notifying the public of these requirements.  All of a sudden these rules are effective, and many people whose livelihood is renovation weren't even on notice;
• The certification process is, of course, expensive.  Thank you federal government, hope it helps fill those coffers;
• The "lead-safe practices" required are going to impose SIGNIFICANT additional costs on any renovation of a 1978 or older home; 
• Individual homeowners are not allowed to receive disclosure and then choose to opt-out of the program after they are (i) aware of the potential risks; and (ii) making the informed decision to accept those risks;
• This RR&P rule creates a DISINCENTIVE to purchase an older home, which is actually one of the greenest, most environmentally friendly options available; AND
• You have to ingest a HUGE amount of lead in order to be impacted.  Unless you plan on sanding walls all day, every day, without wearing any protective gear, or unless you plan to allow your children to continuously gnaw on the 1950s radiators for weeks and weeks on end, you will not ingest lead at levels sufficient to lead to neurological impacts.  So why in the heck are we imposing such a costly rule, with such minimal benefits?

I have no idea.  The EPA is insane.  I'd love to know who the individuals were who crafted this rule and thought it was a good idea. 

Here's hoping this regulation gets challenged and thrown out and fast.  Otherwise I propose we re-name it the "Let's Balance the EPA's budget!" and "Full Employment for Trial Lawyers" rule.  Harder to say, but clearly more accurate.