by neil kearney | Feb 22, 2007 | For Buyers, For Sellers
Inspection Issue – Lead Based Paint
The discussion of lead based paint comes up in every transaction that involves a house built before 1978. All sellers and landlords are required to disclose in writing the knowledge of any lead based paint hazards and provide results of any previous tests that they may have to any potential buyers or tenants. 
Lead based paint has been linked to health difficulties primarily in children but can also be hazardous to adults. Most older houses have lead paint somewhere under the layers of paint in the house. So what is the hazard. If the lead paint is contained it is not an immediate hazard. Only when the paint is released by chipping, sanding etc. It can be in the air, contained in dust or it can be in exterior soil.
In a real estate transaction a Lead Based Paint Disclosure must be filled out and signed by the Seller, Buyer and both real estate agents. This disclosure must be signed before and concurrently with the purchase agreement. If it is done after the fact heavy fines can be placed on the Realtors. Along with the disclosure booklet explaining the hazards of the condition must be received by the buyer.
The buyer has the right to have the house inspected for lead based paint hazards but in my experience I have never seen a buyer have the tests performed. The testing is expensive and can be invasive (samples). I think the object of the program set forth by HUD is education and I think that goal is being fulfilled.
The EPA has a very informative
websitewhich has more information if you are interested in learning more.
The cabin shown above is still standing, although I’m sure it is a lead based paint hazard. It is my grandfathers old cabin in MN near Itasca State Park. He passed away just over 8 years ago and my cousin and I have since built the new cabin below on a different location on the land overlooking Gill Lake.
by neil kearney | Jan 29, 2007 | For Buyers, For Sellers
Boulder County is located in a zone of high potential for elevated radon levels in the air. In real estate transactions radon almost is always an issue. It is almost always tested for and when the reading comes in at a level above 4.0 pCi/L (picocuries per liter) then the Buyer and Seller negotiate what will be done and who will pay. But first some background that can be found EPA’s Radon Website
What is Radon?
Radon is a gaseous radioactive element having the symbol Rn, the atomic number 86, an atomic weight of 222, a melting point of -71ºC, a boiling point of -62ºC, and (depending on the source, there are between 20 and 25 isotopes of radon – 20 cited in the chemical summary, 25 listed in the table of isotopes); it is an extremely toxic, colorless gas; it can be condensed to a transparent liquid and to an opaque, glowing solid; it is derived from the radioactive decay of radium and is used in cancer treatment, as a tracer in leak detection, and in radiography. (From the word radium, the substance from which it is derived.) Sources: Condensed Chemical Dictionary, and Handbook of Chemistry and Physics, 69th ed., CRC Press, Boca Raton, FL, 1988.
What are the Health Effects From Exposure to Radon?
No immediate symptoms. Based on an updated Assessment of Risk for Radon in Homes, radon in indoor air is estimated to cause about 21,000 lung cancer deaths each year in the United States. Smokers are at higher risk of developing Radon-induced lung cancer. Lung cancer is the only health effect which has been definitively linked with radon exposure. Lung cancer would usually occur years (5-25) after exposure. There is no evidence that other respiratory diseases, such as asthma, are caused by radon exposure and there is no evidence that children are at any greater risk of radon induced lung cancer than adults.
What is the Average Level of Radon Found in a Home?
Based on a national residential radon survey completed in 1991, the average indoor radon level is about 1.3 picocuries per liter (pCi/L) in the United States. The average outdoor level is about 0.4 pCi/L.
So, you can see why it comes up often in a real estate transaction. Of course some people are more worried than others and this becomes part of the art of negotiation. During the inspection period (which is usually between 10 days and 2 weeks long) a buyer has the option to have a radon test performed usually by a general home inspector. The cost is somewhere around $100 for the test and it takes 48 hours to perform. If the results of the test come in above 4.0 pCi/L then it is very common for the Buyer to ask for the Seller to mitigate so that the radon level inside the habitable part of the home (not crawlspaces etc.) is below 4.0 pCi/L. The cost for mitigation can vary but in our area the typical cost is between $800 and $900.
What is done to mitigate the radon level in a home?
Most often a 4″ PVC pipe is inserted into a drilled hole in the basement slab. This pipe is routed to the outside of the home and above the roof line. Somewhere along the pipe a fan is installed that will run continuously and will suck the sub-slab air to the outside creating a vacuum. The diverted airstream does not allow radon to seep up through the concrete into the house.
Radon is a fixable problem and it is a good idea to have the test done. I tell my clients that even if they are not concerned about the risk most likely the people who buy the house from them will be.
by neil kearney | Jan 23, 2007 | For Sellers
How to Sell a House That Has Been on The Market for Over Six Months
During the past week two of my listings have accepted offers from Buyers. One listing had been on the market over a year and a half (mountain vacant land) and the other had been on the market 2 days (Lafayette Townhome). In our market I feel lucky to have found a ready, willing and able buyer in just two days. 
This is not the norm, as the average days to an offer is over 75 days in Boulder County.
Here is the typical scenaria; During the first few weeks it is common to have many showings because there is a pool of buyers waiting for new listings. Once the initial few weeks have passed that the showings slow considerably and only new buyers to the market set up showings. So what if your house was not priced correctly or did not otherwise compare well with the competition and remains on the market without offers or interest. I have recently shown homes that have been listed for close to a year. What if you own one of these homes and need to get the house sold. Here are some ideas:
- Lower the price – The market has spoken and if your home has not sold in a reasonable time as other homes in the neighborhood get listed and sold, your price is too high.
- Make the house look better – Sometimes you have to spend money to make money. Take an objective look at your house, maybe it needs a paint job, some new countertops or a replacement for the green shag carpet. I have nothing against green shag, I grew up with green shag. I love it, you love it but buyers DO NOT love it.
- Do some staging – Maybe you have all the pieces, but they are all in the wrong places. A little staging goes a long way in making that all important first impression.
- Make sure your curb appeal is the best on the block – Do some landscaping, buy some flowers, or this time of year make sure the snow is shoveled.
by neil kearney | Jan 11, 2007 | For Buyers, For Sellers
It seems each New Year brings with it more issues that come into an already complicated real estate transaction. Litigation and legislation seem to be the main 
influences that keep our contracts expanding. New for us in Colorado this year on the approved contracts are sections that pertain to HOA documentation, dealing with foreclosed property and issues regarding the disclosure of methamphetimine. All of these issues came from 2006 legislation at the state level and are designed to protect the public.
- Common Interest Community (CIC) – The new section about HOA’s sets forth that a Buyer will be required to become a part of the association and will need to abide by all of the rules. In order to agree a buyer needs to understand the rules, right? So the contract now says what information will be required (Bylaws, Rules and Regulations, most recent annual balance statelment, annual income and expenditures statement, annual budget, moste recent annual owner’s meeting minutes and any directors meeting minutes from the past 6 months) and who is responsible for providing it. This comes down to the Seller getting and paying for the documentation. If the Buyer objects to any of this information they can cancel within a date set forth in the offer.
- Foreclosure – This new section requires that an addenda be attached to the contract if a foreclosed property is being purchased by an investor. This is supposed to protect homeonwers who sign their house away to investor/predators who claim to have a way to save their home. This does not apply if an owner occupant buys a foreclosure.
- Methamphetamine – This is a growing issue locally and nationally. Most manufacturers of this nasty drug “cook” the stuff in residential houses. The residue is toxic and will contaminate a house. In order to clean up a house it must be cleaned to the standards of the State Health Department. The new language in the contract requires Sellers disclosure of presence of a meth lab. Even if the Seller says that the house has not been used for that purpose Buyer may investigate by hiring a certified hygenist to test. If the Buyer finds meth residue as a result of the test they can cancel at any time up to closing. This is fairly new so I will be interested in finding a certified hygenist and seeing how much they cost.
