The value of home maintenance

Via Flickr: KaCey97007

Regular home maintenance is key to preserving the value of your house and property.

If you think home maintenance is an unavoidable series of weekend-eating chores, remember the age-old advice of Benjamin Franklin: "An ounce of prevention is worth a pound of cure." The fact is, proactive maintenance is essential to preserving the value of your home-without it, your home could lose 10% of its value. Regular, routine maintenance enhances curb appeal, ensures safety, and prevents neglected upkeep from turning into costly major repairs.

"It's the little things that tend to trip up people," says Frank Lesh, former president of the American Society of Home Inspectors and owner of Home Sweet Home Inspection Co. in Chicago. "Some cracked caulk around the windows, or maybe a furnace filter that hasn't been changed in awhile. It may not seem like much, but behind that caulk, water could get into your sheathing, causing mold and rot. Before you know it, you're looking at a $5,000 repair that could have been prevented by a $4 tube of caulk and a half hour of your time."

Maintenance affects property value

Outright damage to your house is just one of the consequences of neglected maintenance. Without regular upkeep, overall property values are affected.

"If a house is in worn condition and shows a lack of preventative maintenance, the property could easily lose 10% of its appraised value," says Mack Strickland, a professional appraiser and real estate agent in Chester, Va. "That could translate into a $15,000 or $20,000 adjustment."

In addition, a house with chipped, fading paint, sagging gutters, and worn carpeting faces an uphill battle when it comes time to sell. Not only is it at a disadvantage in comparison with other similar homes that might be for sale in the neighborhood, but a shaggy appearance is bound to turn off prospective buyers and depress the selling price.

"It's simple marketing principles," says Strickland. "First impressions mean a lot to price support."

Prolonging economic age

To a professional appraiser, diligent maintenance doesn't translate into higher property valuations the way that improvements, upgrades, and appreciation all increase a home's worth. But good maintenance does affect an appraiser's estimate of a property's economic age-the number of years that a house is expected to survive.

Economic age is a key factor in helping appraisers determine depreciation-the rate at which a house is losing value. A well-maintained house with a long, healthy economic age depreciates at a much slower rate than a poorly maintained house, helping to preserve value.

Estimating the value of maintenance

Although professional appraisers don't assign a positive value to home maintenance, there are indications that maintenance is not just about preventing little problems from becoming larger. A study by researchers at the University of Connecticut and Syracuse University suggests that maintenance actually increases the value of a house by about 1% each year, meaning that getting off the couch and heading outside with a caulking gun is more than simply a chore-it actually makes money.

"It's like going to the gym," says Dr. John P. Harding, Professor of Finance & Real Estate at UConn's School of Business and an author of the study. "You have to put in the effort to see the results. In that respect, people and houses are somewhat similar-the older (they are), the more work is needed."

Harding notes that the 1% gain in valuation usually is offset by the ongoing cost of maintenance. "Simply put," he says, "maintenance costs money, so it's probably best to say that the net effect of regular maintenance is to slow the rate of depreciation."

What's old is new again

A rising trend among home buyers, and subsequently builders, is a house that looks and feels reminiscent of the homes of yesteryear.

Via Builder Magazine and USA Today

New homes are starting to acquire the vintage home sensibility. A recent article in USA Today titled "Downsizing the American Dream: The shrinking house" reported on the emerging trend on new construction.

As it turns out, home buyers are in the market for something smaller than the large homes we see today.

The median home size in America was near 2,300 square feet at the peak of the market in 2007, with many McMansions topping 10,000.

Today, the median home size has dropped to about 2,100 square feet and more than one-third of Americans say their ideal home size is actually under 2,000 square feet, according to a survey by real-estate site Trulia.

"The whole glow of bigness kind of wore off all of a sudden," said Sarah Susanka, an architect and the author of The Not So Big House book series.

Not only size, but the proliferation of rooms, such as formal living and dining rooms, as well as dedicated rooms like media/game rooms and libraries/offices are falling out of favor with buyers.

In its place trend watchers are seeing home that our grandparents would have built: Modest in size, functional, efficient and comfortable.

It's not just the inside of the house that's changing, it's the outside, too. The yards are smaller, with many developments favoring shared green spaces over big private yards.

And, the front porch is back. Builders are increasingly moving the garage to the back of the house and adding a big porch on the front.

Seeing a big porch through the dining room, and a shared green space beyond that adds to the illusion that you are getting more — and it makes you want to get out there and reconnect with your neighbors.

As long-time aficionados of vintage homes, we have always known that there is more to an older home than just a look. There is a purpose and function behind the look, and now it seems we are appreciating those old sensibilities anew. 

Find and prevent electrical fire dangers

Some electrical fire dangers are hidden inside the walls, but if you know the warning signs, you can keep an electrical fire from happening in your home.

Most homeowners know that overloading circuits and using frayed extension cords can lead to electrical fires. But there are other electrical fire dangers in your home that, while they may not be as obvious, are no less dangerous.

According to the most recent data from the National Fire Protection Association, electrical failure or malfunction caused an estimated 52,500 fires in U.S. homes in 2006, resulting in 340 deaths, 1,400 injuries, and nearly $1.5 billion in property damage. Here are warning signs of four potential hazards that you may not know about. If any of them sound familiar, consider hiring a licensed electrician to conduct a wiring inspection ($200 to $300).

Hidden danger #1: Old wiring

The lifespan of an electrical system is 30 to 40 years. But more than 30% of the nation's houses-some 30 million homes-are more than 50 years old. "Older homes with fuses were set up for about 30 amps of power; many homes now have 100, 150, even 200 amps of power," says John Drengenberg, consumer safety director for Underwriters Laboratories, which conducted a study of aging residential wiring.

Warning signs of inadequate power include circuit breakers that trip or fuses that blow repeatedly, and an over-reliance on extension cords. "They're meant to be temporary," Drengenberg says. "If you have extension cords routed all over, it's time to get an electrician out there. Your home would not comply with the National Electrical Code."

Hidden danger #2: Aluminum wiring

Many houses built in the 1960s and early 1970s have aluminum wiring, which oxidizes and corrodes more easily than copper and has been linked by the Consumer Product Safety Commission to electrical fires.

"It's okay for a while, but it doesn't have the life that copper does, particularly where wires terminate. The terminals and splices are known for overheating," says Roger L. Boyell, a forensic engineer in Moorestown, N.J.