3/7/13

Designs/ Plans/ Permits

For many a "do it yourselfer" the decision to design a project is second nature, but drawing plans suitable for submittal to the local building department may be a challenge, at least for the first few attempts. Home designers are much less expensive than hiring an architect but they lack the qualifications to provide structural calculations or design alternatives that might otherwise make your project more functional as well as aesthetically appealing. We all want to save money and the design process can help avoid unnecessary expenses in terms of time, material and costly mistakes resulting from miscalculations, overspanning or undersizing. It's your decision but as the adage says being, "penny wise, pound foolish", can result in considerable disappointment.


So you have made the decision to hire a home designer, great! The first thing you want to do is get a few references. Talk to those he has worked for and get their input on issues such as how quickly were the plans prepared, did they meet regulatory standards, does he/she charge for plan submission or resubmittals if errors are made? Home designers tend to be less likely to over specify when it comes to beam, footing or load carrying requirements and this is due primarily to their lack of training in the areas of engineering, hence you must consider the additional cost you may incur in the event beams or footings or spans require engineering calculations to determine if the "design" is suitable for the purpose it is intended. When all is said and done it may be to your advantage to pay for an architect but remember that they will usually side on the conservative end of the pendulum and specify deeper footings, larger beams and shorter spans which result in greater job costs.


Once your plans are prepared and depending on the terms of your agreement with your designer, the plans are ready for submission to the local building authority. The permit process can be "over the counter" or a rather lengthy process depending on the nature of the plan. Typical repair projects such as a door or window replacement perhaps a roof recover, or even a bathroom or shower remodel that does not result in changing the footprint can be issued the same day of submission. Where the intent is to expand the existing floorplan or alter existing walls and relocate fixtures the permit process will usually require a "plan check" by the building and/or planning department of the community in which the work is performed and depending on the extent of said home improvements the permit process will by longer. Is it worth the "trouble"? I would have to say that it is a worthwhile expense. With nearly 30 years of construction experience behind me, I can honestly say that it is money well spent. But, "My property taxes will increase!" you say. Depending on the size of your project the cost increase for most do it yourself projects is miniscule, if anything at all. If you stay within the perimeter of your existing footprint there is virtually no increase. In fact, were you to combine two bedrooms to make a master suite you might even petition the assessor to reduce your property's valuation because you have reduced the home by one bedroom and many municipalities base valuation on a combination of factors not just square footage.


In terms of the long run, getting a permit for your home improvement project will allay concerns that a buyer or a buyer's agent may have if and when your home is placed on the market for resale. The "total disclosure" laws (in California) require that the seller disclose any and all improvements performed over the history of the homes ownership. Failure to do so can, at the very least, provide grounds for the buyer's backing out and return of all earnest deposits made. In the worst case scenario, you, as a seller, may be forced to pay for any repairs that may be needed that have resulted from your "DIY" home improvement project.

Green is In!

For the last few years the term "green" has been applied to everything except the color.  As we probably understand by now the green reference has to do with conservation.  Conservation of energy, water and natural resources. In recent years a tremendous emphasis has been placed on "green" technologies in the building industry. Perhaps the biggest "green" technology today has to do with solar photovoltaics. 

Living in a state that has some of the highest energy rates for electricity, it is no wonder that solar sales have soared in the last few years in California.  Our state has established entities which promote the use of solar technology, such as the CSI, California Solar Initiative.  Serious efforts are being made to promote both commercial and most assuredly residential photovoltaic systems.  Attractive rebates and tax credit incentives are making a once exclusive project for only the wealthiest consumers now becoming within reach of the middle class.  I recall when I bought my first Apple 2c computer it cost nearly $2000!  Today I could by one of the finest laptops with probably 1000 times the capabilities for that  amount of money.  So it is with solar PV and/or thermal systems.  How much lower prices will go is uncertain but it is clear that because of the tremendous interest in this technology and the tremendous volume being sold today as compared to years past it is likely to continue to be a topic of great interest for years to come.  What has been noticeable is the gradual reduction in rebates and tax credits.  The government has begun to reduce such incentives probably because of its own economic overruns as much as because of the many competing business trying to profit from the popularity of said systems.  The many business competing for the consumer dollars has spawned many imaginative sales tactics.  Today many solar companies will install a system on your home for very little or no money down!  They perform an energy analysis or audit of your home and offer to install a system that will reduce your utility to a point that is cost effective for both them and the consumer.  In essence they become private utility companies that guarantee the consumer cheaper utility bills than what their current provider charges.  But buyers beware!

Many of these systems come at an undisclosed cost.  Because these are not inexpensive systems most companies secure their investment by placing a lien on your property for the value of the system.  This could affect your ability to sell your home should you need to do so or at the very least require you to pay for the system in full out of your equity proceeds.  Should you be told that your roof is likely to fail before the system does you may be forced to pay for a new roof prior to the PV system installation or be willing to pay for it's removal and reinstallation if and when a new roof is required.  These costs will certainly minimize any savings you may achieve by accepting a "free" solar installation.    You could also be responsible for the cost of maintaining the system and its components should they fail and most assuredly you would not be the recipient of any rebates or tax credits.  Those rights are required to be signed over to the business providing your system.  So you see nothing is really free. 

So have I persuaded you not to go "green", at least with respect to PV systems?  I hope not.  The intent hear is that you become informed, that you read the fine print, that you weigh your options regarding the relative merits between buying  or leasing a system.  Some critical points to consider include:
  •    How long do you intend to live in your home?
  •    Do you need to "zero" your electric bill or just reduce your monthly output? (Buying a smaller system at a lower price can reduce your energy bill significantly but at the same time qualify you for those rebates and tax credits that could significantly reduce the overall cost that may be required to be paid upfront when purchasing the system.) 
  •    What is the payback period should you decide to purchase?
  •    What is the useful life of the system?
  •    What would be the cost of an inverter replacement (Note: it is most likely that you will need to replace your inverter at least once during the life of the PV system panels.)
  • What is the net affect upon the resale value of your home or its appraised value? (Many believe the value of the home is increased equal to the cost of the system you purchase.)
The best advise I could offer would be to do your homework.  Get at least three quotes from whichever offer you are considering from a lease provider or purchase.  Have an attorney look over the fine print in whatever offer you accept .  Be sure to get references and contact those references to see if the promises made regarding the systems production are being kept. 

One thing for sure, energy costs will continue to rise.  If it is within your means to go solar not having a utility bill every month or at least a reduced one is a nice thought.