Category: Home Improvement

Summer Solstice, Flooding, and Rainfall!

It’s Summer Solstice but people in the Quad Cities are shivering because of the flooding and never-ending rainfall. After an over-the-top polar vortex winter, residents are looking forward to the warm weather. However, the flooding of the rivers in the area and non-stop rains have left many with flooded basements and wet belongings.

Flooding

Quad Cities have witnessed record-breaking flooding along the rivers. Sandbags and HESCO barriers couldn’t stop the overflowing rivers and within no time many properties have flooded. People have left their belongings and evacuated immediately seeking shelters and hotels. Businesses with apparel and other perishable goods were hit most as they have lost all the inventory and are now forced to close the locations. Insurance companies are directing people to federal funds and many people did not have flooding covered by the insurance company. Many of the river drive summer events are either canceled or moved to other areas.

Rainfall

Quad Cities are also having historic rainfalls and people are panicking because of the rains. Properties have flooded regardless of new or old, low-lying or hill-high. The stormwater systems failed and most waters escaped into the basements. Sump pumps have failed either due to malfunction or power surge issues. Backup sump pumps also were useless in some areas. Residents have no clue how to deal with the water and wet basements. Unfinished basements are now preferred over finished ones due to lesser damage. Pipes gave up due to plumbing issues and some properties even had sewage backup inside the house.

Bills

Most of the bills came out of pocket as the cleanup efforts were not covered by most insurance companies. Federal funds needed a lot of approvals and proofs. Insurance adjusters are unable to cope-up with the requests and are offering very minimum refunds. Many businesses were out of a place to put their belongings. Restaurants needed additional clean up, sanitation, and restoration. Many are opting for rebuilding the entire property due to the damage. The unprecedented flooding of the Mississippi River and the Rock River followed by heavy rainfall have put many in debts. People living paycheck to paycheck are continuing to live in the flooded properties as they have no place to go. Some were even caught in the flash flooding on the roads and lost their vehicles. Many had to empty their savings (if any) to accommodate the sudden bills. Construction of the local properties and the I74Bridge also missed the deadlines due to the flooding and rainfall.

Resilience

The resilience of the locals has put them back to work as soon as the water receded. Cities have responded with the cleaning efforts and many volunteers and non-profits have raised funds to assist those affected. Area hotels offered discounted nights for flooded residents. Local businesses are organizing clothing and food drives to raise funds for the flooding victims. Neighbors have come together to help each other with the cleanup.

The flooding of 2019 in the Quad Cities has affected all in some way or the other. Cities and residents are preparing plans to mitigate similar situations in the future and changing plans accordingly. Individuals are thankful that they are still alive and continue to rebuild their future in the Quad Cities.

What’s going on with the fires in the Quad Cities

Recently we heard so many fire incidents in the area and some were even fatal. This is shocking to hear how fast the fire can spread and result in a total loss of the families. The homeowners are often left with nothing due to the lack of proper insurance coverage for fires. Apartments, trailers, restaurants, homes, and commercial properties are falling to fire losses. Area agencies are distributing free fire alarms but how many are aware of it. Homeowners need to take special measures to mitigate the risk of fires.

Causes of fires

Unattended candles, faulty switches, garage fires, outdated stoves, grilling, burning leaves, worn out HVAC, chipped electric wiring, sofa fires, hoarding, and all other minor issues which were kept pending may result in fires! Within minutes the fires engulf the buildings and people are lucky to get out with minor smoke inhalation. Complete loss of the assets overnight leaves families in a very vulnerable position.

Fire Control

Controlling the fires in winter is often challenging due to the freezing weather in the Quad Cities. We often hear multiple fire departments responding to a fire call and controlling the fire. Limiting the fire and not letting it spread to other properties is also crucial. Access to water and high winds are other considerations during fire control.

Insurance

Some of the common Homeowner insurances do not cover the fire damage. They cover basics and property owners often are reluctant to increase the coverage for unnecessary damages. Fire damage, however, must be mandatory for all properties so the damage can be claimed by the insurance. Extra charges for fire damage is a common among the home insurance. The claims processing is often tricky as the fire department needs to identify the cause of the fire. The insurance companies also may need additional verification to process fire claims.

Routine Inspection

Homeowners are suggested to inspect their properties for any fire risks. Updating any outdated equipment is recommended. Modern paints and building materials are available in fire retarding models that reduce the risk of spreading the fire. Any chipped electric wires can be discarded. Overloading an electric point or extension cord is also dangerous. Local utility companies are willing to exchange outdated refrigerators, washers, and dryers. Some are even offering rebates for discarding the old ones.

Checking the fire alarms and replacing the batteries yearly is also a common practice. Common remedies can prevent the greater damages of fire. Having an escape route in case of fire, setting aside emergency kit, identifying an area where the family can meet when they escape, and other fire escape plans are needed. The small fire extinguishers can come in handy in some cases.

Quad Cities is very fortunate to have giving communities in times of difficulty. Area shelters, Red Cross, churches, and local groups are contributing to the families in need. Old and new properties alike are at risk of fires and annual inspection is required.

 

Property Taxes: The Bitter Truth

Property owners are charged yearly by local cities for overall maintenance of the city’s infrastructure. Schools and colleges are funded by the property taxes. Major chunk goes to the development of city’s facilities , salaries, and pensions. However, home owners are unable to digest the hefty bills every year.

Property taxes are the bitter truth of home ownership and if you are in one of the highly taxed states such as Illinois and New Jersey, you better get another job just to pay the property taxes! Some property owners end up paying up to ten percent of the total valuation of the property. The cycle for the property taxes is determined by a pre-defined process set by the city and state. Every year school districts decide the points to charge the city for operating the schools. State taxes may be less but the additional taxes charged by the cities for giving tax deferments to businesses makes the final rate higher. Cities with alternative income sources such as sales tax or income tax may charge lesser property tax.

You can expect a bill compared to a similar homes in your neighborhood. If you did a home improvement in a year, you must notify the city so they can reassess your property for adjusting the taxes. Commercial or business property tax may be different from residential property taxes. Check the local counties website for assessment search in your area.

Notifying the mortgage company and monitoring the city’s records whether the property tax is actually paid by the mortgage company is needed. For new construction properties, the initial mortgage may include only the property tax on the lot. Once the assessment is completed your escrow and mortgage can be adjusted to include the new property tax. Keeping a track is also necessary even if paying by other methods such as cash or check or credit card.

Property tax can be deducted from income taxes but also depends on the government tax rules. It is mandatory to pay the property tax bills similar to any other bill. Owners do maintain all the bills issued and paid. While enjoying the perks of home ownership, owners are also prepared for the yearly property tax bills. 🙂

New Construction Quad Cities

Quad cities is the bursting market with opportunities. With booming development in between Chicago and Des Moines, QC is the top favorite for many. The lack of custom homes is a challenge in the area and the demand for new construction homes is rising rapidly. Realtors and builders are working along with property seekers to accomplish the new construction homes in Quad Cities. If you are a first time home builder, you are prone to many challenges. Here are some insights.

Quad Cities

Quad Cities may first look like typical MidWest area where nothing ever happens. 🙂 However, QC is developing rapidly and everyone is having hard time to cope up. John Deere, Alcoa,  and local school districts, are some of the major employers in the area. Greater Quad  Cities is also seeing  many new manufacturing, construction, highways, bridges, and small business developments.  Prospective home owners in the QC are seeing shortage of new homes. Some are surprised to find the cost of living in the Quad Cities same as cities such as Dallas, TX or Columbus, Ohio. Some big city home owners are amazed to see the quality of the homes we get in our area when compared to the price they put in the big cities.

New Construction

Home is one of the largest investments and many of us have a very careful approach for a new construction property. Buying an existing property with established facilities and landscaping is a popular choice. Due to the shortage in the Quad Cities, many opt for a new construction which turns out to quite daunting to some. 🙂

  1. Budgeting: Home owners must have a clear budget on the new construction based on the family income. Down payment, mortgage, property tax, HOA fees if any, and home improvement costs must be considered before starting out for a new home. Expect to cross the budget during the complete construction process. 🙂
  2. Area and Builder: Choosing the lot according to your preferences such as proximity to work and school districts is crucial. Next step is choosing a builder who can complete your dream home. Select a new construction builder or a general contractor who specialize in custom homes. It is better to choose the builder with appropriate permits and insurance. Some builders offer to take the construction loan for you or others may direct you to the banks that offer construction loans. Anyway, you end up paying the construction loan interest. 🙂
  3. Contract: A contract need to be signed after reviewing the estimations. You can choose to have a realtor based on the builder. Some avoid realtors to escape the cost of seven percent. Most builders in the QC charge a builder commission fee from ten to fifteen percent. Your negotiation skills may come in handy at this time. Other components are charged same by most builders depending upon who they subcontract. It may be essential to add change clauses and late delivery clauses.
  4. Design: Expect one or two months to finalize the design. Some initial idea is needed as how much square footage the home is going to be after leaving the required offsets. Type of vault, Room sizes, bathroom placements, media room, and any customized options need to be brainstormed at this time. Owners may not be surprised that the design keeps on changing as the construction progresses. 🙂
  5. Selections: Home owners are required to select many aspects of the house. The basics such as foundation or drywall material will be common in the area. Some external selections such as roofing or siding may be mandatory depending on the HOA or city rules. Crucial selections that have huge impact on the final cost include flooring, cabinets, electrical fixtures, landscaping, plumbing fixtures, appliances, paint colors, and so on. You can upgrade to advanced options or select the basic ones provided by the builder. It may seem confusing and daunting, but it is required to look up the options and check out the samples and reviews before finalizing. It will be like a selection marathon where as soon as you are done with selecting one item, you will be presented with more options to finalize another! 🙂 You will always skeptical about how the total cost is going to change if you choose a particular selection.
  6. Waiting: This is the most killing aspect of new construction homes. Expect delays as the new construction is extremely dependent on weather and labor. Rains are the show stoppers for all exterior work. Any high end work is dependent on the availability of the labor. If one of the subcontractors who committed has any emergency, that task will be delayed. This is true with big and small builders alike. Phased out tours are planned for big builders and small builders let you visit every day.
  7. Locking the mortgage rate: You are required to lock the mortgage rate before 30, 60, or 90 days of your closing. Banks and financial institutions do allow some time to lock and if any delays occur, you need to notify the bank so they can extend the rate lock for another 30 days for a charge. Banks also do require you to finalize a home insurance provider before processing the loan pre-approval. Skip this step if you are paying cash. 🙂
  8. Appraisal: Banks send for a neutral appraisal before processing the mortgage. The appraisal is a mandatory process which will decide how much that property can be valued for. The entire appraisal depends on many factors such as similar homes sold in the area during past six months or the facilities such as wood flooring or deck.
  9. Inspection: The property needs to pass several inspections from city and HOA. Those approvals are necessary and also assure that the property is being built in a safe and acceptable manner. Any recommendations must be completed before closing. An Occupancy Certificate will be issued if all the requirements are met. A Temporary Occupancy Certificate may be issued which must be corrected later.
  10. Closing: A final walk thru before closing is suggested with all the involved parties. Check every light, tap, door, and so on to note any discrepancies that need to be fixed. Your banker and realtor will prepare all the necessary documents required at the time of closing. All documents can be shared electronically and signed on the closing day. You are required to pay the down payment and closing charges at this time. If you have opted for a for-sale-by-owner, you both can hire individual lawyers who can take care of the paper work. It is your responsibility to check for the accuracy of the paperwork as the lawyers do tend to have mistakes in their forms.
  11. Post-moving checks: Once you move in your new home, keep checking the house interior and exterior for any issues. Within the one year warranty that is common in the Quad Cities, you can ask for any faults or bad installations. Note down the warranty period on the appliances and HVAC so you can seek out the fixes. Minor cracks in flooring, walls, paints, and so on can be fixed.

New construction homes are definitely a thrill to enjoy but do expect some out of pocket expenses every month. You will be tempted to make changes with the change in seasons. Peer pressure in terms of improvement and buyer remorse  when property bills arrive are common side effects. An extra fan, an upgrade in the doors, added landscaping, and so on will be needed in the first year or every year. 🙂 Let me know any other tips for new construction homes in the Quad Cities.