With the economy in recovery, homeowner confidence is returning and we are seeing a marked increase in remodeling activity. But many homeowners are surprised to find that, even with excellent credit scores and solid incomes, financing options for a major remodeling project are much more limited now. Before the recession, lenders routinely approved loans based upon the projected value of what a home would be worth after remodeling. No more; that lending practice is dead and not likely to return soon. The new reality is that lenders will not loan against the future value of your home. For most of us, that leaves the Home Equity Line of Credit (HELOC) as the only viable financing vehicle for home improvement projects. So here are a few tips on how to navigate the HELOC process. 1. Shop carefully for the best lender: The amount of equity you can tap is restricted by the lending institution’s Loan to Value ratio (LTV). Most lenders today work with an 80% LTV; meaning the maximum amount of total debt you may secure with your home is limited to 80% of your home’s appraised value. But Federal Credit Unions often have more attractive terms. Recently some of our clients have secured loans with a 90% LTV by joining a Federal Credit Union. Don’t assume that you can’t join; you may be surprised to learn how easy it is to qualify for membership. 2. Put your home’s best face forward: Appraisers are human and subject to the same emotions as the rest of us; they will reward a well kept home with a higher appraised value. Prepare your home as though you were having an open house to sell it. Remember the three “P” rule: pick-up, put away, and primp. A neat home seems larger and gives the impression of being well maintained. And don’t’ forget the yard – a good cleanup and mulching will go a long way! 3. Brief the appraiser: Meet the appraiser personally and tell him how much you think your house is worth and why. You know the quirks of your home and your neighborhood better than they do. Don’t be shy, but don’t be aggressive; just let them know what your research suggests. 4. Help the appraiser: If you have plans of the house, make a copy for the appraiser. At the least, have a copy of your survey plat available. If you know when your home was built, tell them. Make a list of improvements you’ve made since you purchased the house (descriptions only – not dollars). 5. Challenge the appraisal: If you don’t agree with the appraisal, speak up. Don’t bother if it is a small amount, but if it is significant you should contact your lender and ask how to challenge the appraisal. 6. Phase your renovation: Many of our clients use a strategy I call the Equity Bump. Essentially, this means focusing first on projects that will have a disproportionate impact on the value of the home relative to the value invested. Then the home will re-appraise for more and you can borrow against that increased equity for the next project. 7. Repeat as necessary. I am not an expert in financing, but I deal with it everyday on behalf of my clients. Let me know if you would like to have a more in-depth discussion of financing options. I’m glad to help if I can.

#3 IN AN OCCASIONAL SERIES:

It looks like that 1960's contemporary in Chevy Chase is going to get a new roof and a new lease on life!  I am very happy for the homeowners, because the roofing contractor has agreed to tear-off  his new roof as well as the old roof beneath, and replace everything from scratch, to my specifications.  That's the right thing to do and I applaud him for stepping-up -- particularly because it is going to be very expensive for him.

Even so, the homeowner has spent money for structural restoration work that could have been avoided, if only the roof had been properly installed.  Not to mention the cost of my time in diagnosing the problems and negotiating the solution.  If there is any silver lining, it is that we caught the problem before it spread into the living space.  And we will take advantage of this opportunity to increase the insulation of the roof and greatly reduce heating and cooling costs in the long-run.  Still, it was an expensive lesson for my clients I'm afraid; but given the enormity of the problem it is a pretty good resolution and I'm glad I could help.

 

 

#2 IN AN OCCASIONAL SERIES

Well, I was up on the roof of that 1960's contemporary in Chevy Chase, MD again yesterday, and the problem is MUCH worse than I imagined.  In addition to water vapor questions, we now know that the roof is actively leaking at every skylight (there are ten) and at the chimney.

In every case, the problem is faulty "flashing" - the material (aluminum, copper or bituminous membrane) used to protect joints between the main roofing material and the various items that pass through the roof.  Now, I've seen a lot of roof problems over the years, but this beats them all, hands down. 

We cut test holes into the flashings and water just poured out.  Not a little trickle, but like when someone cuts an artery; the water spurted-out in streams.  In twenty five years as a residential architect, I've never seen such a total failure of roof flashing. 

This bears a quick note about flashing; in all roofing systems, flashing is inherently the the most vulnerable link because it manages the joint where the main roofing material is interrupted by something else -- like skylights, pipes, chimneys, etc.  Roofs rarely leak in the main body of the roof, but more often leak at these joints, where flashing is the primary defence.  Faulty flashing = leaky roof. 

And a word in defense of skylights:  to paraphrase the NRA, "Skylights don't leak on people -- People (installing bad flashing) leak on people".  Most modern skylights are so water-tight you could use one for a boat.  And properly designed and installed flashing WILL NOT LEAK.   So don't shy away from skylights; but DO invest in quality and make sure a true professional is in charge of specifying and supervising the installation.

Final thoughts... Do not hire a roofing contractor just because a friend had a good experience with them.  That's just putting your fate in the law of averages - and sometimes you'll wind up on the wrong side of that average.

I am often asked if it makes sense to remodel a home in phases; and the answer is an unequivocal... it depends. 

On one hand, there are some great deals to be had today while the remodeling market is depressed; you'll get more for your money now than you will later when the market recovers. And it always costs more to build a project in parts than it does to build it all at once.  Think "economy of scale".

One the other hand, there's plenty of situations where phasing the work is a good way, if not the only way, to go.  As an architect devoted to residential remodeling, I'm seeing a strong up-tick in people taking this course lately. 

So here are a few issues that commonly factor-in when considering a phased renovation:

• Timing - A smaller project can finish sooner.  If you have a baby on the way, that's a strong motivator!
• Financing - If you are funding your renovations with a home equity loan, you might first want to tackle projects that deliver the maximum boost in home value.  Then the house will re-appraise at a higher value, your equity will increase, and you can tap that new equity for the next phase.
• Uncertainty - For any number of reasons, people are sometimes unsure if they want to commit to the entire project now; but they still want to get something done and feel like they're "moving ahead".

Many of my clients in the older neighborhoods of Washington DC and surrounding suburbs (Bethesda, Chevy Chase, Potomac, etc) choose this path with great results.  But the critical step is to first develop a "Master Plan" -- a vision of what you want the home to eventually be, and how you are going to get there. 

This bears repeating: YOU NEED A MASTER PLAN!  Do not try this yourself at home -- someone's gonna get hurt.   Seriously, you can waste a ton of money if the phases are not thoughtfully planned with an eye on the big picture.  A small up-front investment in architectural design will reap huge dividends.

#1 IN AN OCCASIONAL SERIES

I was up on a client's roof in Chevy Chase the other day (this is what an architect does for relaxation) when I ran into my old nemesis - the phrase "That's how we always do it", and I was reminded yet again of the infinite  ways that homes can be tragically damaged by ignorance - even by those who are well meaning.

Houses are complex; they are living, breathing organisms that stretch, shrink, vibrate, and sweat - just like people.  But too many architects, contractors, and homeowners don't understand the science behind houses and what keeps them healthy.  All too often, they use a stock answer to solve a unique problem.

In this case a roofer installed a new built-up roof over an existing one, not realizing that his new roof would act like shrink wrap and trap moisture beneath it.  He didn't think through the particular needs of this 1960's contemporary, with heavy timber beams and exposed roof decking, which served as the ceiling for the house. 

Humid air from inside the house was rising through the roof deck, through the old roofing via thousands of nail holes made when installing the new over-roof.  Here the moisture condensed into water and seeped back through the many holes into the structure below.  Gradually the water collected at the eaves, where it rotted the roof decking and the heavy timber beams. 

I was looking at a total failure of a 4-year old roof as well as heavy damage to the underlying roof structure.  The repair will be complex and expensive, but the real tragedy is that it was completely avoidable.   When I asked one of the roofers why they installed the roof this way, he uttered the dreaded phrase "That's how we always do it".  But most installations of this type of roof occur over a ventilated attic - not over a cathedral ceiling of exposed timber frame - and that difference is everything.

Washington, DC and the older suburbs of Bethesda and Chevy Chase are home to an astonishing variety of house types, each with particular problems and needs.  So the next time you hear "That's how we always do it", call an expert.  It's never that simple.

Our client - a single female professional - purchased an old rambler on a hillside lot overlooking the Potomac River; but the house practically ignored the landscape. It made no attempt to take advantage of the extraordinary site - in fact this house could have been in a subdivision just about anywhere.

In expanding and re-considering the design of this home, we took the opportunity to create a cottage that reaches out into the landscape and enfolds the homeowner in nature. Ample windows and/or doors on at least two sides of each room provide panoramic views at every turn, while the mass of the house is broken-down into smaller components, ensuring that the house is "of" the hill rather than on it. It is a magical thing to float above the azaleas, among the trees.

Before & After:

THEY DON'T BUILD THEM LIKE THAT ANYMORE!

I love that phrase.  It usually escapes from a new client, when we are touring another client's just-finished renovation.   Sometimes we're admiring an exquisitely crafted stair railing or mantelpiece.  Or it might be a lovely paneled portal or a fabulous cast iron grille.  My personal favorite was a pocket-screen-door, that disappeared into the wall, next to a front door.  In each case, my new client pauses and looks wistfully at some such detail and observes "They don't build them like that anymore."  It's the sort of detail that they don't expect to find in today's construction... except we've just built it!

 

That's one of the most satisfying moments for me.  I'm always so proud of our carpenters and architects, for refusing to give in to the myth that true craftsmanship is not achievable today; there's simply no reason why that should be so.  Instead, I'd argue that given the enormous technological advances of our time, homeowners should expect new renovations and additions to be both designed and constructed better than an older home.