2020 Air Conditioning Freon Ban
2-10 Home Warranty explains the freon ban now in place…
On January 1, 2020, the Environmental Protection Agency’s (EPA) ban on Freon® went into full effect. This ban forbids the production or import of Freon (also called R-22) throughout the United States. Since many air conditioning units manufactured before 2010 use Freon, your Buyers and Sellers might wonder what the ban means for them. Here are some common questions you can help your Buyers and Sellers answer about the Freon ban.
Does the Freon ban require homeowners to have new air conditioning installations?
No, the ban does not require homeowners to have new air conditioning installations. If a homeowner’s current air conditioner uses Freon, they can still use that air conditioner. In fact, they can still have an air conditioning contractor recharge it with Freon.
However, finding an air conditioning contractor who works with Freon will be much more challenging. While the ban does not force HVAC technicians to stop using Freon altogether, it does make it much harder and more expensive to source. If they can find an existing supply, they can use it to recharge air conditioners. But once it’s gone, it’s gone for good. And some air conditioning contractors refuse to carry Freon anymore, either due to cost or because of negative environmental impacts.
If homeowners have Freon, can they get still get an air conditioning repair?
Yes. Homeowners who have air conditioners that use Freon can still get air conditioning repairs. The problem they might face is related to the refrigerant itself, rather than the entire unit.
For example, if a homeowner’s air conditioner fan burns out from routine wear, the fact that it uses Freon shouldn’t affect the air conditioning repair process. But if that air conditioner develops a refrigerant leak and uses Freon, the air conditioning repair process may get a little more complex. If the air conditioning contractor carries Freon, they may be able to fix it as usual. But they may also recommend either replacing the unit or retrofitting it.
Replacing the air conditioner is fairly straightforward. It can also be extremely expensive. With a home warranty from 2-10 Home Buyers Warranty (2-10 HBW), it’s possible to get an air conditioner replaced for a much smaller Service Fee. This can be invaluable coverage for Sellers, since a broken down air conditioner can hurt their chances of a sale and cost a fortune replace out of pocket. But a home warranty would only cover a replacement if repairs weren’t possible and the problem was caused by routine wear and tear.
The other option a homeowner has is retrofitting their air conditioner to accept alternative refrigerants. This is a much easier and less expensive option than replacing the entire system. For more information about the process of retrofitting an air conditioner, you can read our guide to retrofitting.
Can homeowners recharge with a similar refrigerant instead of getting a retrofit?
No they can’t. Knowingly mixing refrigerants is illegal. When someone mixes refrigerants, it’s impossible to recycle and properly dispose of the mixed refrigerants. The goal of the Freon ban in air conditioners is to better protect the ozone layer (Freon damages the ozone layer). Mixing refrigerants defeats the purpose and can get homeowners in trouble, too.
Additionally, mixing refrigerants can damage the air conditioner. Alternative refrigerants require different parts to move through the air conditioner properly. But a quality air conditioning contractor can install these parts in a matter of days, not weeks or months.
Do alternative refrigerants work as well as Freon?
Yes! There are many alternative refrigerants to choose from, and they work just as well as Freon. These alternative refrigerants do the same thing Freon does but without the detrimental effects of Freon. Though the government ban will make Freon more difficult and expensive to source, alternative refrigerants are a great solution.
For example, a common alternative refrigerant is MO99. MO99 uses the same kind of oil as Freon, which makes retrofitting for MO99 easy for air conditioning contractors. Another alternative refrigerant, R-410A (Puron), is common in many air conditioners manufactured after 2013. You can get a full rundown of common alternative refrigerants using our guide.
Does a home warranty help address the Freon ban?
A 2-10 HBW home warranty can help address the Freon ban in several ways. Our Buyer and Seller coverage both come with unlimited refrigerant. No matter how many refills a Buyer or Seller needs under 2-10 HBW coverage, they can get it for the simple cost of a Service Fee. This can save Buyers and Sellers tons of time and money if their air conditioner leaks refrigerant.
(Please note that Sellers who want A/C and heat pump coverage as a part of their Seller coverage need to pay a one-time $50 fee. Also note that Seller coverage is $60 in Florida.)
In some cases, a home warranty can reduce the cost of an air conditioning retrofit itself. Though a home warranty doesn’t cover retrofits for units that haven’t broken down from routine wear and tear, it can lower repair costs.
Say a Seller has Seller coverage (including A/C coverage) and their air conditioner develops a refrigerant leak due to normal wear and tear during listing. They pay a small Service Fee for an air conditioning contractor to diagnose the issue. The contractor determines that to repair it, the only option is a retrofit. In that case, 2-10 HBW would pay the repair cost, which is a retrofit. This can save Sellers time and money while making the home more attractive to Buyers, since retrofitted units are easier to fix and maintain.
Whether a Buyer or Seller uses Freon or not, encourage them to keep maintaining their air conditioner! Proper maintenance is important to extending this expensive system’s life span. And before that inevitable day when the A/C breaks down, consider recommending a home warranty from 2-10 HBW. A home warranty protects expensive systems from unexpected breakdowns caused by routine wear and tear, making protecting a home simple and affordable.
2-10 HBW offers comprehensive systems and appliances home warranties to help protect your clients from unexpected repair and replacement costs. #homewarranty #selling #buying
Read MoreCOVID-19 & The Return to Real Estate
Governor Whitmer Eliminates Remaining Real Estate Limitations and Reopens Much of the State.
Today, Governor Gretchen Whitmer signed Executive Order 2020-110, rescinding her “Safer at Home” Order, and moving the entire state to phase four of the MI Safe Start Plan. This action removes most of the restrictions that real estate brokerages and clients have been operating under. As we reported last week, Michigan Realtors® was working with the Governor’s Office to remove the previously imposed real estate restrictions. Effective immediately, the following real estate activity is now permitted:
- Private showings are no longer limited to 4 individuals on the property;
- Open Houses are now permitted. However, as an enclosed public space rather than a private showing, masks should be required for those individuals participating. Participants should also adhere to existing 6-feet social distancing requirements;
- Tenant-occupied property may now be shown subject to any requirements under the current lease;
- Short-term rental properties may now be marketed without any state-imposed limitation. However, local restrictions may still be in force.
While many restrictions have been removed, the continued implementation of best practices geared toward Realtor® and client/customer safety remain important. These include:
- Asking sellers to turn on all of the lights and leave interior doors, drapes and blinds open. This will ensure that anyone entering the home will not need to touch the light switches and doorknobs throughout the home;
- Asking sellers to clean and disinfect all frequently touched surfaces prior to and after the showing or open house;
- Meeting clients at the home rather than driving together to the showing;
- Encouraging the use of masks and gloves for private showings;
- Asking buyers to refrain from touching any surfaces in a home (including light switches and interior doorknobs). Do not share phones, pens or tablets.
Today’s order also makes clear that real estate offices that are open for business must continue to follow the Governor’s workplace rules contained in an earlier order. (Executive Order 2020-97, available here.) The rules for offices cover written policies that must be put in place, day-to-day safety measures, as well as procedures to be followed in the event of possible Covid-19 exposure. We had previously provided Realtors® with a summary of these rules. (Available here.)
As always, please visit https://mirealtors.com/Industry-Resources for regular updates.
Read MoreHarvard Housing Study
JOINT CENTER FOR HOUSING STUDIES OF HARVARD UNIVERSITY – 2019
Harvard released its comprehensive study on housing trends and the current state of housing. The report begins with the Executive Summary:
With new construction still slow to recover from historic lows, almost 80 percent of the nation’s 137 million homes are now at least 20 years old and 40 percent are at least 50 years old. The aging of the US housing stock has been a boon to the home improvement industry, helping to lift the remodeling market to nearly $425 billion in 2017, according to the latest estimates from the Joint Center for Housing Studies.
Indeed, in the years since the Great Recession, spending on improvements and routine maintenance to both owner-occupied and rental properties has not only increased the value of the existing stock but also contributed a dominant share of residential investment. In addition, the tens of millions of projects undertaken annually—from roof and window replacements to major kitchen and bath remodels—generated 2.2 percent of national economic activity in 2017.
Some of the recent strength of the remodeling market reflects a significant increase in spending by rental property owners. The surge in rental demand following the housing crisis prompted owners to invest in substantial upgrades to their units. Homeowners also had some catching up to do on maintenance and replacements deferred during the downturn, particularly on properties converted to rentals or left vacant for extended periods.
Get the full report here: Harvard JCHS Housing Study
Read MoreRemods, Updates & Upgrades…
Top 15 Home Features That Will Sell Your Home Fast—and for More Cash
Lance Lambert | Mar 19, 2019 | Realtor.com
It’s one of the (many) high-stakes gambles of homeownership: that awesome new feature or design improvement you’ve been wishin’ and hopin’ (and of course savin’) for might ultimately hurt, not help, your place’s resale value. After all, times and tastes change, and eventually most homeowners will become home sellers. So how do you know that today’s sleek, new quartz countertop won’t become tomorrow’s eye-scorching popcorn ceiling on the open market?
Relax, we’re here to help you suss it out. Realtor.com®’s data team searched to find the home features that can help folks sell their home the fastest—and for the best price. We narrowed our list to the items found in homes with the highest list prices that went under contract the fastest. It’s a high-value sweet spot.
There’s plenty on the line here. Homeowners spent more on upgrading their homes in 2017 than in any year since 2006, according to the most recent Joint Center for Housing Studies of Harvard University study—an average $12,361 in discretionary spending. Much of that went into upgrading kitchens and bathrooms, the top room remodels, according to home design website Houzz.
“Anytime a buyer can walk into a house and see it already has the features they want, that’s a huge bonus for the seller,” says Anna Maria Mannarino, who runs her eponymous interior design firm in Holmdel, NJ. “If buyers feel they need to add key features or designs, they’re going to calculate how much it will cost and then lower their bid.”
To figure out the top home features, we dug through more than a million single-family home listings on realtor.com in February. We calculated a median price and days on market for each abode with one or more of the 70 popular features we evaluated for this ranking. Features in homes that took longer than 84 days to sell, the national median, were cut from our list. We also eliminated amenities, such as high ceilings, that are difficult—and expensive—remodels.
So what are the most profitable home features for sellers hoping to close quickly?
Here are the big 15:
- Chef’s kitchen/gourmet kitchen
- Theater room
- Home gym
- Three-car garage
- Solar panels
- Quartz counters
- Exterior lighting
- Tennis court
- Home office
- In-ground pool
- Mudroom
- Security system
- Fireplace
- Smart home features
- Walk-in closet
OK, let’s take a closer look at trends that could help you make bank when it comes time to cash in and sell your home.
Kitchen makeovers bring in the dough
Once upon a time (say, when you were growing up), most kitchens were drab, unsexy spaces that folks didn’t spend much time in beyond preparing and consuming dinner. But as the open kitchen trend has exploded, they’ve become centerpieces of the home—way more visible, personalized, luxurious, and important to buyers. Homeowners have upgraded to chef’s and gourmet kitchens (No. 1 on our list), making them glamorous showpieces where they can entertain their friends.
These days, trendsetters are choosing dark and moody color palettes, like black and navy, over the more bland white, gray, and neutral shades. They’re opening the rooms to the outdoors by installing walls of windows or double doors that open to the yard. And open shelving (versus the classic kitchen cabinets) is gaining more traction.
“Even if you don’t consider yourself a big foodie or a master chef, higher-end kitchens have a huge appeal,” says Jamie Novak, a Los Angeles–based professional organizer and author of “Keep This Toss That.” She works with homeowners who are planning to stay put as well as those getting ready to list their properties. “When the appliances are pretty and functional, it’s a win-win.”
Homes with chef’s kitchens sell for a median $599,000—more than double the national median of $295,000. Chef’s kitchens generally feature an open layout big enough to accommodate plenty of cooks in the kitchen, a large island, a gas cook range built for larger, hotter flames, a Sub-Zero refrigerator and freezer, and multiple sinks and ovens. Popular brands include Viking ovens and ranges, Bosch appliances, and Kohler and Moen faucets and sinks.
The average kitchen overhaul cost $12,300, while major kitchen overhauls usually cost upward of $40,000, according to the Harvard University study.
“People look at a kitchen, and if they don’t like it—they’ll often pass on the house,” says Lori Wellman, owner of Lincoln Cabinet, a Lincoln, NE–based remodeler.
Quartz counters (No. 6) are also in high demand. The engineered variety (a fancy word for enhanced) doesn’t chip as easily as the natural kind, doesn’t require much upkeep, and is difficult to stain or damage. Plus there are hundreds of colors, patterns, and textures to choose from.
It was the material of choice for home renovators, rising from a 41% market share in 2017 to 48% in 2019, according to Houzz data.
“[Engineered] quartz is a very, very versatile material,” says Nino Sitchinava, the site’s principal economist. “You can control palettes and colors and textures really, really well.”
Specialty rooms: Why go out when you can stay in?
Properties with dedicated specialty rooms, like theater rooms (No. 2) and home gyms (No. 3), showed up in only a small percentage of listings (1.5% and 1.1% respectively). And while they’re not as popular as they once were, say design experts, homes that come equipped with such rooms sell for about twice as much as the national median of $295,000. They’re fun to enjoy, too!
“At the high end there’s real cachet in having those specialized spaces,” says Jenni Lantz, manager of DesignLens, a design resource for developers, builders, architects, and interior designers. “Of course you need to have the space for them.”
Folks without big bank accounts can also create these spaces on a shoestring, DIY budget. Dark basements can become theater rooms, for example, with the addition of an oversize screen, wireless speakers, and a comfy couch. Popcorn makers are a bonus!
Unlike theater rooms and gyms, mudrooms (No. 11) have been gaining in popularity in recent years, say design experts. These small rooms are where coats and dirty shoes are kept are typically located toward the front of homes, and more homeowners are retrofitting them into their abodes. They’re becoming more stylish with rustic, wood benches to store those muddy boots under and fancy coat racks.
“Mudrooms are a fantastic transition from an outdoor space to your indoor living [space],” says organizer Novak.
They cost an average $12,000 to install, according to Fixr, a company that connects owners to home-related services.
Home offices (No. 9) have also become increasingly sought-after as more people work remotely or go freelance. The key is natural lighting, perhaps a window view for the desk, and doors that can shut out the clamor of the kids playing in other parts of the home.
Outdoor features are in
The trend today may be all about indoor-outdoor living. But it wasn’t beautifully inlaid patios, outdoor kitchens complete with pizza ovens, or trickling fountains that came out on top for outdoor features. That honor went to three-car garages (No. 4).
“Americans love their garages,” says Rick Foster, a managing broker and license partner at Engel & Völkers Annapolis, in Maryland.
Buyers aren’t just looking for a place to park their cars. “Having extra storage space is a big benefit,” adds Foster.
Certainly prestige comes into play—for many, bigger is indeed better. But unlike some outdoor features, this one is difficult and costly to add after the fact. Buyers want one already in place.
Other popular outdoor features on our list include solar panels (No. 5), tennis courts (No. 8), and in-ground pools (No. 10).
Solar panels are hot (yes, really) thanks to demand from both climate-conscious buyers and those simply hoping to cut down on their electricity bills. Homes with these features sell the fastest of all of the amenities on our list, at a median 51 days. About 2% of homeowners undergoing remodels have been installing them each year from 2015 to 2017, according to Houzz data.
But be warned: They’re not cheap. Installing a 5-kilowatt system, the standard system of about 20 panels, costs around $25,000 to $35,000, according to www.solarpowerauthority.com.
“Solar is a very regional preference,” says Sitchinava of Houzz. They’re particularly appealing in places that get a lot of sunshine but have high AC bills, such as California, Arizona, and Texas. “The long-term payoff is pretty phenomenal.”
Tennis courts are also appealing, but they can set homeowners back more than $50,000, according to Quality Court Industries, a tennis court construction firm that operates throughout the Southeast.
Even having a shared court open to residents of a community can boost property values. The same goes for in-ground pools, which can be private or shared as well.
Built-in pools are polarizing features in some parts of the country—attracting some buyers while repelling others due to maintenance or liability issues. The cardinal rule for this feature: Install it for your own enjoyment first, resale value second.
“They’re consistently popular,” particularly in warm-weather areas, says design expert Lantz. “People still like to lay out by the pool.”
Smart home features and other electronics can pay off
Smart home technology (No. 14) is a catchy umbrella term people use to describe everything from a few interconnected appliances or internet-controlled thermostats to fully wired homes. The expensive, built-in approach has waned a bit, but the more ad hoc approach is booming, thanks to smart devices that can be used as simple control centers, like Amazon Echo and Google Home.
“The convenience is unparalleled, and the technology is getting so easy to use,” says organizer Novak.
Security systems (no. 12), often smart ones integrated with mobile and other devices, are gaining traction as must-have features. Just 10% of homeowners undergoing remodels had a security system installed in 2015, according to Houzz data. By 2017, about 15% did.
Folks used to have to hire a security company to come in, assess the property, and then install a system that could run anywhere from $600 to more than $1,000. And that doesn’t include the monthly monitoring fees. Now, homeowners can pick up a simple, smart home security system from companies like Ring for around $150.
“People really like having an app on your phone and knowing if someone’s at your home and being able to speak to them,” says Craig Grant, CEO of the Real Estate Technology Institute, an online portal where folks can learn about real estate technology.
Classic indoor amenities have lasting appeal—and a new look
Some things never go out of style. Fireplaces remain a highly sought-after amenity, although today’s sleek, electronic models don’t have much in common with the ashy traditional hearths. These newer fireplaces are often installed right into wall.
“No matter where your home might be, fireplaces are always welcome,” says Nancy Fire, the design and trend forecasting expert behind the HGTV HOME brand.
Other timeless features that boost home values are spacious, walk-in closets. Sometimes folks will even tear down an adjacent bedroom to build that massive closet with floor-to-ceiling shoe and accessory walls, a ladder to store and fetch rarely used items, and seating to make it easier for friends and family to share their outfit opinions, says remodeler Wellman.
Walk-in closets, while still popular, aren’t as in-demand as they used to be—and the decluttering movement (and its guru Marie Kondo) can partly be blamed.
“If you’re trying to pare down your clothing, then you don’t want a big walk-in closet to fill,” says Novak, whose clients prefer smaller, sliding-door closets. “It just becomes a big mess.”
Clare Trapasso and Rachel Stults contributed to this report. Lance Lambert is a data journalist for realtor.com.
Read MoreTime to Build?
Livingston County has an abundance of excellent local and regional builders. With the continued increase in growth of business and population, the demand for housing and new homes has never been greater. The local experts at the Gerardi Group are familiar with the process of new construction and have an abundance of relationships with the builders.
Buying a new home can and should be a dream come true. Part of that process is understanding value in the current market conditions as well as with intelligent choice in options and upgrades. Nothing can be more disappointing than going it alone only to find that your new home closed upside down due to over-paying for the property or spending more than the market will bare on over-personalization. An experienced agent can help you understand home value and comps, as well as the features that should enhance and maintain value with out over doing it. Thinking new construction? Make your first call to the local professionals at the Gerardi Group at 810-626-8839 or email SOLD@GerardiGroup.com.
Search for New Homes Now:
Read More14 Questions to Ask Your Contractor
For anyone who has been in the business more than five minutes — and that should be all of you — it becomes clear that there are levels of involvement in the real estate industry. There are, of course, your buyers and sellers, and then there are your real estate professionals who help broker those one-to-one deals. There are levels of commercial real estate agents and finally those who buy and sell their own properties as investors or speculators, often overseeing the construction or renovation of properties themselves.
It’s this last group that we’re talking about here today. Working with contractors can be one of the most stressful — and rewarding — parts of our business. A bad one can make your life a walking nightmare, while the right contractor can make your life infinitely easier and more profitable.
But how to know the difference? Start with the following checklist of questions and resources, and we guarantee your list will be narrowed quickly. After that, trust your recommendations and your gut. It’s gotten you this far.
- How long have you been in this business? It may seem like a no brainer, but opening the conversation about your contractor’s experience can give you all sorts of insight into his or her track record. Experience matters in this business.
- Would you mind starting on a smaller project? If you’re on the fence but leaning toward the contractor, we suggest giving him or her a smaller project to complete before you ask them to build that new master wing.
- Can I see your certificates? This should include everything — licensure, insurance, you name it. If he or she can’t produce those documents at short notice, it’s time to move on.
- Have you worked in this county/city/neighborhood before? Not only can code requirements vary from county to county and city to city, but even different neighborhoods have different rules for what can and can’t be done construction-wise. Live in a historic neighborhood? There may be some squawking about that new carport. Make sure your contractor knows how to navigate that.
- What are the terms of payment? It’s not the best practice to pay for a job upfront, so make sure the terms are hammered out before you start, and you aren’t surprised by a request for giant check the day construction starts.
- What hours do you typically work? This matters especially in neighborhoods, where those living nearby — or even you, if it’s your house — may be inconvenienced by odd-hours hammering and sawing. Make sure the contractor’s hours are appropriate, and that the crew is actually working during them.
- What’s your storage plan? Theft at construction sites is not uncommon. Expensive equipment can disappear if left out overnight. Make sure the contractor knows that you expect tools to be locked up or taken home overnight, and help accommodate those requests with a locked room or even a temporary storage shed, if necessary.
- What are your warranty terms? Most contractors offer a warranty, in addition to any warranties on materials used. Make sure you get that in writing, and copies of material warranties, before construction begins.
- Do you use subcontractors? Most general contractors won’t have a pro plumber on his or her staff, so others will be brought in to take care of specialty pieces of the project. Make sure you know who those are and the budgetary expectations that go along with that so you’re not facing an additional bill from another contractor.
- Can I see your references? It’s possible you’ve already gotten good word-of-mouth before you even interview the contractor, but it never hurts to see a list from the contractor. Make some calls and drive by the projects unannounced while they’re working — how the crew is going about its business — are they hard at work or lollygagging? — can give you great insight.
- Have you had any disciplinary action filed in the past? This is a tough question, and not one to ask flippantly or unkindly. You’re just trying to find facts. Another route would be to consult your state’s courts archive for lawsuits filed against the company or individual contractor.
- How do you communicate with your customers? Setting a reasonable expectation of how often you should be hearing from the contractor will keep you from freaking out if you go a couple of days without an e-mail.
- How many projects do you have going right now? No one wants to play second-fiddle, much less fifth or sixth fiddle. If you feel like you’re not going to be a priority, it might pay to find someone who will make you feel like one.
- How do we settle disputes? Making sure you know how to properly address problems or concerns is one of the most important steps. You want to make sure you’re following procedures, especially if you think the contractor is not. If nothing else it will make for peace of mind during the stressful process, knowing you have an agreed-to avenue if there is a dispute.
- Do you have any questions for ME? Turnabout, as they say, is fair play.