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.
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.
In a recent Seth Godin blog post he wrote “The only thing worse than losing an auction by a few dollars is winning one by a lot. All of this makes sense until it doesn’t. The “market” is very smart about any given moment in time, but not always particularly smart about the future.”
I think this quote rings true for our local real estate market (and many others around the country). The average buyer makes a number of unsuccessful offers and learns from each one what it takes to win in this market. It hurts to be close and it urges them to do a bit more next time. A more aggressive price, a waived inspection, increased earnest money, non-refundable earnest money, as-is… That’s what it takes in many instances right now. In that way, the market is smart right now. Buyers are learning and adapting. But is this sustainable? No. Are those values locked in? No. The stakes of the market have risen and a lot of buyers have gone all in.
April was a huge month for real estate in Boulder County! The statistic that I think most characterized the month was that 21% of all sales closed for 15% or more than the list price and15 sales went for more than 30% over the list price! 76% of the 426 sales sold for above list price. Needless to say, it’s very competitive and frustrating for buyers right now. See the slideshow for more detailed statistics.
All of this is set in environment where interest rates have increased by almost 2% over the last six months and the stock market has fallen by double digits year-to-date. So far, buyers who are in the process, seem to be committed to buying a home, even as their monthly mortgage obligation is rising significantly.
Another busy month in the real estate market. Inventory increased this month, but it is still 20% below last year and not anywhere near meeting the demand. In March 73% of all sales in Boulder County sold for a price in excess of the list price (up from 61% in February and 48% in January). The average sale price for all properties sold during the month was 7.3% above the listing price. When a property sold for above list price then the average sale was 11% above the list price. Astonishingly, 20% of all sales sold for 15% or more above the listing price. The highest premium paid was 42% above the list price. What all of this leads to is super-charged price appreciation and buyers scratching their heads. I’m seeing more and more buyers removing contingencies on their offers. Waiving the opportunity to object to a low appraisal has become commonplace. We are seeing buyers waive inspections altogether and waiving the opportunity to terminate in the case of their loan being denied. Basically they are taking a risk and putting their earnest money at risk early in the process. Despite all of the demand, sales actually decreased by 21% from March of last year.
2021 Boulder County Real Estate Market Report The Year In Review The residential real estate market in Boulder County was especially strong during 2021. Even though sales increased by 15% throughout the county the inventory of available homes seemed to never quite...
