Tara O'Brien's Minneapolis Real Estate Update

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For safety, a remodeled basement living area needs an egress window that meets residential building codes. Here’s what you need to know.

When converting a basement into a living area, your safety is a primary consideration. That’s why building codes specify that a finished basement must have an emergency egress—an egress window or door large enough to allow people to easily exit the space, and for rescue crews to gain access in case of fire or other emergency. Besides gaining peace of mind, you’ll also benefit from more natural light and ventilation, adding to the comfort and value of your below-grade oasis.

Adding an egress window usually means cutting a large enough hole in your basement wall. If your basement has solid concrete or concrete block walls, the job will require the services of a skilled mason or basement remodeling specialist. It’s a noisy, messy job, but the process is relatively straightforward for a skilled professional, as is the placement of the window and any finish work involved.

If you have a sloping yard, it may be that your new egress window can be installed completely above grade. If your foundation walls barely peek above the soil line, however, you’ll have to excavate down and provide a window well. The size of a window well also is determined by building codes to allow a person to easily climb out of the window and exit the house. In case of a deep well, a ladder must be fixed to the well so that an occupant can safely climb out.

If your egress window requires a window well, be sure to call first to have all buried utilities marked so that you won’t run into any electrical, gas, cable, water, or sewer lines.

Code compliance
According to the most current residential building codes, if your basement retreat includes one or more “sleeping rooms,” such as a dedicated spare bedroom, each of those rooms must have an egress window. In addition, a single egress window must be furnished for “common-use” areas, such as a TV room, game room, or home office. Occasional-use spaces, such as bathrooms, laundry rooms, and utility areas, don’t need emergency egress.

Code also specifies that the clear opening of a basement egress window should be at least 20 inches wide and at least 24 inches high, and achieve a minimum area of 5.7 sq. ft.—the smallest opening an average adult male can reasonably crawl through. In addition, the window sill—the bottom edge of the window—cannot be higher than 44 inches from the basement floor.

When shopping for an egress window, make sure to calculate size correctly. Do the math and you’ll find that a 20-inch-wide window actually needs to be 41 inches tall to comply with the minimum 5.7 square-foot requirement for an egress window. Similarly, a 24-inch-tall window must be at least 34.2 inches wide.

Most full-height basements (defined as having at least 7-foot ceilings) are built with windows on at least one wall to allow daylight and perhaps some measure of passive ventilation into the basement. But it’s unlikely that those windows meet the current code for egress. Even if they are large enough, they probably aren’t set low enough to meet the maximum 44-inch sill height requirement.

Types of windows
There are several standard window types that comply with the egress code. An insulated casement window is ideal because it is hinged along its side edges and swings outward to allow easy egress. You may install double-hung windows, but be aware that code requirements for minimum size will apply to the lower, operable half of the window—meaning the window will end up being quite tall and any window well will be extra deep—adding expense.

Sliders—windows that move from side-to-side—also may end up being quite large to accommodate codes, but because they operate in a horizontal position, a window well will not have to be excessively deep. Expect to pay $150 to $350 for a vinyl, vinyl-clad wood, or all-wood frame window.

Building a window well
Installing a code-compliant egress window with its sill only 44 inches from the finished floor likely means an excavation outside your foundation walls to create a window well. By code, the total “clear” floor area inside of the well must be at least 9 sq. ft, with at least a 3-foot area between the window and the far edge of the well opening.

If the window well is more than 44 inches deep, it must have a permanently attached ladder or steps to enable safe egress. The ladder or steps can project into the well no more than 6 inches without having to extend the code-required clear area of the well. As such, most ladders are welded to the metal shell that encloses the well.

For the safety of your family when you are gardening or playing outside, building codes also allow a metal grate, typically hinged, to be placed across the window well opening to protect pets and people from falling in. Still, you must be able to remove or open the grate from inside or outside the window well without special tools in the event of an emergency.

To facilitate drainage of the well, the construction may include installation of a perforated pipe covered over with washed gravel to carry excess water away from the well, window, and foundation wall.

Because a window well is a prominent feature when viewed from inside the basement room, it’s a good idea to incorporate some simple landscaping features, such as potted plants. Make sure that any design features won’t interfere with safe egress.

Construction costs
Hiring a licensed contractor to cut your basement wall, build a window well, and install a window will cost $2,500 to $5,000, depending on the complexity of the project and the depth of the well. Adding a grate and providing drainage adds another $500-$800.

Some basement remodeling contractors specialize in building egress windows using manufactured kits that include all the necessary components. Ask to see finished samples of their work before signing a contract to ensure you’ll be satisfied with the look of the kit.

If you plan to tackle the installation of an egress window as a DIY project, you’ll save money. Be forewarned—cutting through concrete walls is a major task. Plan to spend about $500-$900 for all materials, including the rental of a concrete saw to cut through your basement walls, a window, and a window well kit.

Before you begin any DIY work, seek the advice of a structural engineer to examine your walls and advise you about any concerns, such as installing a header over your window to accept the weight of floor joists and a load-bearing wall above. Expect to pay $150 for a consultation.

Fortunately, there is nothing in the code preventing you from adding plantings around the well to shield it from view and better integrate it into your overall landscape design, as long as it doesn’t hinder the ability to easily access the well and window.

Rich Binsacca has been writing about housing and home improvement since 1987. He is the author of 12 books on various home-related topics, is currently a contributing editor for Builder and EcoHome magazines, and has written articles for such magazines as Remodeling, Home, and Architectural Record, among several others.

Labels: buying and selling a home, home staging, housing, housing prices, sell my house, staging your home for sale

Converting your basement into living space requires being aware of building codes and understanding special requirements.

Finishing your basement into a family room, game room, or spare bedroom is a financially sound decision. In addition to increasing the usable (and enjoyable) living space of your home, a finished basement pays back a high percentage of your investment at resale. According to Remodeling Magazine’s annual Cost vs. Value Report, a basement remodeling project returns more than 75% of its original cost.

The cost of finishing your basement into usable living space is about $100 per square foot—generally less expensive than building up or out from your existing footprint. That’s because the basic structure—your home’s foundation—is already in place. Placing occasional-use areas, such as a laundry room, a spare bedroom, or a home theater below grade means that square footage above can remain dedicated to daily uses.

Code considerations
The first step is to determine if your existing basement meets building codes for habitable space. As defined by the International Residential Code (IRC), a basement living space must have a clear, floor-to-ceiling height of at least 7 feet (6 feet for bathrooms). There are some exceptions for the presence of exposed structural beams, girders, or mechanical system components along the ceiling, but only if they’re spaced at least 4 feet apart and extend no more than 6 inches from the ceiling. Note that local and regional building codes may vary—always check the specific codes in your area.

If your existing basement ceiling height doesn’t meet those specifications, you have two options: The first is to raise your house and build up the foundation around it to gain the ceiling height you need. The other is to lower the floor, which entails removing the existing concrete slab floor, excavating to the desired level, and pouring new concrete footings and a floor slab. Both options require professional and precise engineering, excavation, and structural work that will cost at least $20,000.

Emergency egress
Assuming, though, that your existing basement meets the IRC definition of “full height,” your next code challenge is to accommodate egress. The IRC dictates that at least one of a habitable basement’s windows or doors to the outside must be large enough to serve as an emergency point of egress (or exit, as well as an emergency rescue access) in addition to the staircase to and from the home’s main level.

If you’re planning a basement retreat to include a bedroom (what code calls a “sleeping” room), that room and all other sleeping rooms also must have their own point of egress, in addition to the one required for a general “living” space, such as a rec room or home office.
Each egress opening must be at least 5.7 sq. ft. with the windowsill no more than 44 inches above the floor, among other requirements that allow safe passage to the outside in the case of an emergency.

If you have a walkout basement, egress shouldn’t be an issue. Otherwise, you’ll have to build an egress. Most basement walls are built using poured concrete or masonry blocks, which can be cut (although not as easily as wood-framed walls) to create openings for egress windows or doors.

A proper staircase
In addition, the IRC regulates the specifications of the staircase from your home’s main level to the basement. Requirements include a handrail and stairs with proper width, tread, and riser dimensions. Also, there must be at least 6 ft. 8 inches of headroom at every point along the staircase.It may be that you simply need to add a handrail—perhaps with a balustrade if the staircase is open to the basement instead of encased in a wall structure. If the stairway isn’t wide enough (at least 36 inches) or the steps aren’t to code, you may have to rebuild them, an extra cost of about $2,000.

Make sure your contractor confirms or considers code compliance for ceiling height, egress, and the staircase in your project budget to avoid potential conflicts, delays, and additional costs.

Checking for moisture problems
Arguably the biggest problem with basements is moisture and water infiltration. If you have seen water or moisture on your basement walls or floor, or signs of efflorescence or mold as a result of long-term dampness, you’ll need to solve that problem before you go any further. In addition to damaging finishes and eroding your home’s structure, unchecked moisture and water may cause mold and mildew growth that can adversely affect your health.

Depending on the severity of the water infiltration, and your available budget for a basement retreat, you have several options for addressing moisture problems. The best solution is to determine and solve the root cause, which is usually hydrostatic pressure from water in the surrounding soil pushing moisture through the basement walls or floor.

In that case, it’s best to excavate around the perimeter of your home’s foundation and install a drainage system and waterproofing membrane to relieve hydrostatic pressure against the structure and effectively block water from getting through the walls—a professional job that can cost $5,000 or more.

If that’s too far out of your budget, and the moisture issue is relatively minor, you can cover all cracks and joints with a 100% acrylic elastomeric sealant and apply brush-on coatings to the inside poured concrete or masonry walls and floor surfaces, a DIY project that might cost about $1,700 for a full-size basement.

If there’s a potential for flooding in your basement, think twice about turning the space into a living area. Even a minor flood can ruin flooring and finishes, leading to expensive repairs.

Your best defense against minor flooding is a sump pump. A sump pump automatically engages in the event of a flood and is about a $1,400 investment with professional installation. Because sump pumps run on a dedicate electrical circuit from the service panel, you might also consider a battery-operated backup pump (around $300) to engage in the event of a power outage, such as during a severe storm.

Heating and cooling your remodeled basement
Your next task is to extend or supplement your home’s heating, cooling, and ventilation systems to serve the below-grade spaces. Those systems also requires code compliance for occupant health and safety (such as adequate venting of furnace combustion gasses), though typically nothing out of the ordinary or restricted by most jurisdictions.

With your contractor, make sure that your existing HVAC system can adequately keep your additional living space comfortable and properly ventilated. Sizing a furnace and air conditioner is a calculation generally based on square footage per ton of capacity. However, contractors should consider the home’s insulation values and other high-performance building practices to “right-size” the equipment and balance its performance and cost.

If your existing HVAC setup is not up to the task, you may have to add a secondary system dedicated to your finished basement or replace your existing system with larger-capacity equipment. Installing a vented room air conditioner and heater may add a few thousand dollars to your budget, while a complete HVAC system upgrade can run $10,000 or more.

A usable basement will also need electricity for lighting and other fixtures or finishes, such as an entertainment system or small appliances. Most homes will have adequate capacity in their existing electrical service box for basic needs; if not, a subpanel may be required to bring power to your retreat at a cost of a few hundred dollars.

Adding a bathroom
The last big (and also potentially expensive) consideration is whether to add a bathroom to your basement retreat. The main issue here is draining wastewater to the existing city sewer or on-site septic system, and venting sewer gasses directly to the outside—just as your other bathrooms do—in compliance with building codes. That’s why a bathroom alone might be a $10,000 line item in your basement retreat budget.

Wastewater drainage typically relies on gravity, so you have to make sure that the waste pipes from your basement bathroom sink, shower or tub, and toilet are designed with enough of a slope (or “fall”) to drain properly and effectively. Achieving proper fall will require the removal and rebuilding of a small section of the basement slab and excavation of the ground underneath. The process involves digging a trench for the drainage pipe to connect the new bathroom to your home’s existing drainage system.

For the toilet, you might also consider a pressure-assisted toilet. A toilet equipped with a pressure valve forces waste through the pipes, rather than relying only on gravity to do the job. Such a unit may allow you to avoid digging into the foundation—consult with a licensed plumber about the feasibility. Expect to pay $150-$800 for a pressurized toilet.

If possible, locate the toilet (and any water-using appliance, such as a clothes washer) against an outside wall. This location will reduce the costs required to drain away waste and vent sewer gasses. Vents typically are required to extend up the wall (either through the structure or along the outside) to a height of at least 8 feet and at least 4 feet from any operable windows.

Converting your basement into finished living area calls for a contractor familiar with the special requirements of basement remodeling. When looking for a contractor, be sure to find one who has experience as a basement remodeler.

Rich Binsacca has been writing about housing and home improvement since 1987. He’s the author of 12 books on various home-related topics, is currently a contributing editor for Builder and EcoHome magazines, and has written articles for such magazines as Remodeling, Home, and Architectural Record. He still has the plans and cost estimate for the addition of a finished basement to a previous house, which required digging out the crawl space to create a full-height room.

Labels: buying a home, buying and selling a home, home for sale, homes for sale., housing, housing prices, sell my house

A well-landscaped yard creates curb appeal and helps your property retain maximum value.

A beautiful yard is a head-turner, no doubt about it. The good news is that even if you can’t tell a tulip from a turnip at the garden center, you can still create eye-catching curb appeal by paying attention to the basics of good landscaping. Ignoring your yard—or doing something that’s out of character with the neighborhood—can jeopardize the assessed value of your home.

“We have several categories for design and appeal,“ says Frank Lucco, a real estate agent and professional appraiser in Houston. “That’s where we make those adjustments. Poorly maintained landscaping can be as much as a 5 or 10% deduction.”

Appraisers are quick to praise the allure of a well-tended lawn and good-looking landscaping when it comes time to sell your home, but most do not assign any specific increase in monetary value for upkeep.

“Landscaping is going to add to the appeal of the property and it may sell quicker, but it’s hard to determine value,” says John Bredemeyer, president of Omaha-based Realcorp. “You have to have a number to compensate someone if you drove into their tree and killed it, but is it really market value? Probably not.”

Nevertheless, most professionals agree that curb appeal and a well-maintained appearance prevent your property from losing value. Here are the top suggestions from real estate agents, appraisers, and landscape designers for boosting the curb appeal of your yard:

Green up the grass
If your house has a front yard, make sure it‘s neat and green. You don’t want bare spots, sprawling weeds, or an untrimmed appearance.

“It’s so simple to go to Home Depot, buy fertilizer, apply it every six weeks, and water it,” says Mitch Kalamian, a landscape designer in Huntinginton Beach, Calif. “It will green up.”

If the yard looks really scruffy, you may decide to invest in some sod. According to the National Gardening Association, the average cost of sod is 15 to 35 cents per sq. ft. If you hire a landscaper to sod your yard for you, labor will add 30% to 50% to the total cost of the project.

Another alternative is to plant low-maintenance turf grasses. Turf grasses are durable and drought-resistant. Expect to pay $18 to $30 for enough turf grass seed to plant 1,000 sq. ft. of lawn area.

Add colorful planting beds
Flower beds add color and help enliven otherwise plain areas, such as along driveways and the edges of walkways. In general, annual flowers are a bit cheaper but must be replaced every year. Perennials cost a bit more but come back annually and usually get larger or spread with each growing season.

If you’re not sure what to plant, inquire at your local garden center. Often, they’ll have a display of bedding plants chosen for their adaptability to your area. Also, they‘ll be inexpensive because they’re in season, says Peter Mezitt, president of Weston Nurseries in Hopkinton, Mass. Try pansies in the summer, and asters and mums in the fall to add vibrant color. “That’s what we do around the entrance to our garden center,” Mezitt says.

Valerie Torelli, a California REALTOR® who dresses up her clients’ yards to sell their houses faster and for more money, says that in her market, she can put in a bed of colorful annuals and bark, as well as cutting down overgrown shrubs, for less than $500. “We can buy gorgeous plants for $3.99 to $15.99,” she says.

Add landscape lighting
For homeowners who have made a sizeable investment in landscaping, it makes sense to think about adding another 10% to 15% to the bill for professional lighting. “You can’t see landscaping after dark,“ says Brandon Stephens, vice president of marketing for a landscape lighting firm in Lubbock, Texas, “and buyers are not always looking at houses on a Saturday afternoon.”

The cost of a system runs from $200 for a DIY installation to more than $4,000 for a professional job. If you‘re doing it on your own, the key is to light what you want people to see, such as mature trees and flowering shrubs.

Plant a tree
The value of mature trees is particularly difficult to determine. Lucco says that in his market, mature trees contribute as much as 10% of a $100,000 property’s overall value. In addition, a properly placed shade tree can shave as much as $32 a year on your energy bills. Expect to pay $50 to $100 for a young, 6- to 7-foot deciduous tree.

You can make your own initial assessment of the value of your property’s trees by visiting the National Tree Benefit Calculator. For example, a mature Southern red oak tree with a diameter of 36 inches in the front yard of a house in Augusta, Ga., would add $70 to the property value this year, according to the calculator.

Georgia-based freelance writer Pat Curry writes extensively about housing and real estate for consumer and trade publications. While a fair hand at remodeling, she is hopeless as a gardener. As a result, her landscaping is made up of plants that thrive on neglect

Labels: home staging, homes for sale., housing, staging your home for sale

When you’re evaluating how much home you can afford, make sure you factor in the tax advantages of homeownership.

Owning your home not only allows you to build wealth through appreciation, but it can also reduce the amount of income tax you pay every year.Here are seven tax benefits for homeowners.

1. Homebuyer tax credits

If you purchase your first home before April 30, 2010, you’re entitled to a tax credit of up to $8,000. If you currently own a home, but sell it to purchase another home before April 30, 2010, you’re eligible for a federal tax credit of up to $6,500.

2. Deductions for loan fees

Typically, you can deduct the “prepaid interest” you paid when you got your mortgage loan. That includes points, loan origination fees, and loan discount fees listed on your settlement statement, even if the seller paid those fees for you. Each time you refinance your home, you can deduct prepaid interest fees.However, you must meet certain requirements to take the prepaid interest deductions when you purchase or refinance your home. Check with your accountant to be sure you’re following the rules.

3. Property tax deductions

In the year you purchase your home, you’re entitled to deduct the real estate taxes you paid at the closing table. You can continue to deduct the property taxes you pay each year.

4. The mortgage interest deduction

Every year, you can deduct the amount of interest and late charges you pay on your mortgage and home equity loans, though there are limitations. If you’re required to purchase private mortgage insurance (PMI) because you made a downpayment of less than 20% on your home, you can also deduct those premiums as mortgage interest expenses.

5. Home office expenses

If you have a home office you use only for business, you may be eligible to deduct the prorated costs of your mortgage, insurance, and other expenses related to that space. The government scrutinizes home-office deductions closely. Be sure you’re entitled to the deductions before claiming them.

6. The costs of selling your home

In the year you sell your home, you can deduct the costs of selling it, including real estate commissions, title insurance, legal fees, advertising, administrative costs, and inspection fees. You can also deduct decorating or repair costs you incur in the 90 days before you sell your home.

7. The gain on your home

If you lived in your home for at least two of the previous five years before you sell it, the government lets you to take up to $250,000 of profit on the sale of your home tax free. That amount is doubled for married couples. This deduction isn’t available on rental or second homes.The government also allows you to subtract from your home sale profit any amounts you spend on improvements, such as window replacement, siding, or a kitchen remodel. Those deductions are in addition to the tax credits you can receive in 2010 for making energy-saving upgrades. Money invested for routine maintenance and repairs doesn’t count.This article includes general information about tax laws and consequences, but is not intended to be relied upon as tax or legal advice applicable to particular transactions or circumstances. Consult a tax professional for such advice; tax laws vary by jurisdiction.

G.M. Filisko is an attorney and award-winning writer who’s enjoyed the tax advantages of homeownership for more than 20 years. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

Labels: foreclosure, housing, mortgage information, short sale, what do I qualify for

We released the monthly housing stats for August 2008 last week. Here's the gist of what we had to say.

Sales activity in the Twin Cities housing market continues to post healthy numbers. For the second consecutive month and only the third time in the last 39 months, pending sales posted a year-over-year increase. August saw 4,411 purchase agreements signed—an increase of 15.0 percent from August of last year. There has not been a year-over-year increase this large since November of 2004.

There were 18.8 percent fewer new homes on the market in August 2008 than in August 2007. The total inventory of homes for sale at the end of August was 9.2 percent lower than the same time last year, which is actually a good thing. We've been needing fewer homes on the market, and we're starting to get what we needed. There's still plenty to choose from out there.

Home prices are still on a downward trend. The overall August median sales price of $200,000 fell from last year by 13.0 percent. Lender-mediated homes posted a median sales price of $150,000, a decrease of 9.6 percent from last year. Traditional properties had an August median sales price of $229,900, a more modest decrease of 4.3 percent.

Due to the decline in home prices and a downtick in mortgage rates, affordability is up. Buyers are taking notice and jumping back into the market to take advantage. We're eager to see how this plays out in the snowy months.


As published by: Minneapolis Association of Realtors

www.minneapoliscondostaraobrien.com

Labels: homes for sale in shakopee, housing, housing prices