Homes and buildings built before 1980 still maintain the chance of containing asbestos materials. If you are a potential home buyer, are remodeling or foreclosing older homes, those involved in real estate should make sure to inspect for asbestos. Exposure to the substance can cause significant health concerns.

Frequent exposure to airborne asbestos fibers can increase the chances of developing asbestos-related illness such as malignant mesothelioma, a fatal lung ailment. The only known cause of mesothelioma is associated with asbestos exposure. Many symptoms of the disease may not show up for 20 to 50 years, making it incredibly difficult for doctors to diagnose potential carriers.

Removal of asbestos in all locations must be performed by licensed abatement contractors who are trained in handling toxic materials. The Environmental Protection Agency has set strict regulations and standards in regards to asbestos abatement and disposal. It administers a number of programs which are aimed at preventing asbestos exposure in public facilities, workplaces and homes. The type of contractor performing the inspection will determine the type of removal method needed. Despite knowledge asbestos problems, many communities throughout the country still find themselves constructed atop asbestos deposits.

Green alternative options need to be given serious consideration such as lcynene, cellulose and cotton fiber. Research demonstrates that these new forms of insulation such as cotton fiber can reduce energy costs significantly every year. The United States Environmental Program states that the use of recycled building materials can reduce energy use by 25 to 35 percent. These asbestos alternatives will reduce energy costs and allow a lifestyle that is free of health damaging materials.

The image below shows areas where asbestos may reside in home.  Click to enlarge.

Ever heard of a home warranty policy or considered applying for one? Well pay attention so you don’t get burned by this not-so-ethical industry.

What is a home warranty?

• A home warranty is a service contract that covers the repair and replacement costs of home appliances. For an annual fee of $250 to $600 the warranty generally covers equipment and appliances such as dishwashers, plumbing systems, electrical systems, etc. that fail due to normal wear and tear. Air conditioning, pools, spas, wells, and sometimes roofs can typically be added to the basic policy for an extra fee. Coverage varies significantly across warranty companies.

How it works.

• The warranty company contracts with local repair companies to provide service. If something breaks, the homeowner calls the warranty company, who arranges with the local company to dispatch a repair technician.

Here is the problem (loophole).

•  When applying for a home warranty many companies don’t require any documentation on the current condition of the home or inspections. They simply take your word for it. Yet when it comes time to file a claim on a faulty item covered on your policy, the company sends out a technician to verify the claim. If the technician finds a pre-existing, condition the claim is denied. There is your loophole — companies that don’t require documentation or inspections leave themselves a safety net to reject your claim since there was no documented proof that everything was in working order originally. It’s your word against the warranty company’s technician. The company will usually side with the technician every time.

Here are some useful links featured on Squidoo with home warranty information for consumers.

Home Warranties Not Always What They Seem

My Three Cents

Consumer Affairs.Com

Article at Home Warranty Reviews

Warranty Firm Probed for Fraud

Complaints.com – Home Warranty Complaints

American Home Shield Complaints

Complaints Board

As home prices and mortgage rates continue to fall, acquiring the home of your dreams may be possible. Homes that were unaffordable for many during the real estate bubble are now within reach for those fortunate to be in the position to snatch them up. Of the 705 counties tracked by eppraisal.com nationwide, more than 140 have experienced a drop of 30 percent or more in median sales price since their peak.

In San Diego County, California, which consists of cities such as San Diego, Carlsbad, and Encinitas, the median sales price has dropped by almost half, from $660,000 at its peak to $350,000. Those seeking the good life on the West Coast of Florida should turn to Collier County, home of sought-after Naples and Marco Island. Median prices have dropped almost 45 percent from $454,000 to $250,000.

If coastal living is not ideal, it’s not surprising that the Denver area is our next pick. Median prices are down to $162,000 (but don’t be fooled, ski lift tickets are still $90+).

When deciding which remodeling projects will get you the most bang for your buck and attract potential homebuyers, opt for the outside.  According to the 2008 Remodeling Cost vs. Value Report, exterior remodeling projects return the most money as a percentage of cost.

On a national level, wood deck additions and all types of siding replacements returned more than 80 percent of costs upon resale.  Window replacements also return a high percentage of remodeling costs.

Here is a breakdown of the percentage of project costs returned for major remodeling efforts:

Wood Decks – 81.8%
Siding Replacement – more than 80%
Window Replacements – more than 76%
Kitchens – 76%
Bathrooms – 74.4%
Attic-to-Bedroom Conversion – 73.6%
Basement Remodel – 72.7%
Back-Up Power Generators – 57.1%
Sunroom Additions – 56.6%
Home Office Remodels - 54.4%

Of course, the resale value depends on a variety of factors.  Before you begin any remodeling project, whether it’s just a spruce-up or a major remodel, talk to local real estate agents and contractors to determine what is attracting homebuyers. The most important factor is to make sure the home is up to the standard of others in the neighborhood.

When your neighborhood is faced with foreclosures, the market value of your home, and in turn your home equity, can be affected. Vacant homes can become community eyesores and crime sites — factors that further affect the value of your home. There’s not much you can do to stop the foreclosures, but there are some things you can do to minimize the effects on your neighborhood.

Get your neighbors together and agree on a schedule to maintain the exterior of any foreclosed homes. Some things you can do include:

• mow and water the lawns
• rake leaves
• pick up fallen fruit
• clean pools
• collect mail and newspapers

Keep an eye out for criminal activity, and report anything suspicious to the local authorities. In most cases, a single foreclosure won’t alter the value of surrounding homes. However, a neglected property will. Do what you can to minimize the effects of foreclosure on your neighborhood.