At this time of year, it seems everyone is making their predictions for 2010. Why should I be any different. But my predicitions come with some advice. So here goes.

First, the housing market will slowly recover, but it won’t feel like a recovery. It will be like suffering from a fever of 102 degrees and now it’s only 100 degrees. You feel a little better, but still feel poorly. Unfortunately, there is a lot of housing inventory still out there to be absorbed. That is going to take a while. (more…)

These days, nothing strikes fear into a homeowner’s heart like the news that mold has been found in their house. visions of unknown illnesses and physical maladies flash before their eyes, fueled by incredible lawsuits and media hype. But what is the real threat? How much concern should you have? What should be done?

I’ve been perplexed by this issue and I’ve found that it is very difficult to find dependable information on this subject. Part of the reason for this lack of good information is that no one really knows answers with any scientific foundation. I’ve been doing a lot of reading and based on that research, I’ve come to the following conclusions. As you read these, please keep in mind that I am also among the legions of mold non-experts who have voiced their opinions on the subject. But this information was taken from what I thought were reliable sources. Hopefully this will put the mold issue into perspective. (more…)

    Now is a great time to build! Builders are hungry, prices of many construction materials are low, and the vendors are making deals to get business. If you have the resources, don’t wait. Build now and capture the savings. Right now, Warren Buffett is buying U.S. stocks because he sees them as a low-priced opportunity. Construction costs represent the very same opportunity. You can cash in big time if you act now. 

    I got a note from a prospective client recently asking for my advice on what construction costs might be for a new house. They were in the early stages of planning and wanted to get an idea of how much their new house might cost. Here is my answer:

    I have recently had a house price out at $170 per foot and another as high as $275 per s.f. There are a lot of variable that can affect the cost, as you can imagine. The formula I use is to include all of the “heated” square feet. I do not count the garage and/or porches. This formula is sort of the industry standard. For budgeting purposes, I would suggest using $200 per s.f. as the low end and $250 as the higher end. Of course, it is possible to go considerably higher. The variability of cost is due to different exterior materials, the shape of the house, the appointments within the house, and the site considerations. But above $250 per s.f., the added cost is attributed to particular items, like very expensive cabinetry or particular site conditions, and things like that. It’s hard to get more definitive than that until the house is designed and those numerous variables are known. (more…)