Part II: Hot Water Heater Regs

The 75 gallon tank has been installed to replace the 65 gallon original one. A new expansion tank AND a drip pan were added too.  

Let's start with the drip pan:  a code requirement for a finished basement. And since we anticipate finishing the basement at some point, it was easier to add it now on an empty new tank, than an older filled one!  Less than $100.  So very grateful I mentioned the plan to finish the basement to the lead plumber. It was his suggestion to add it now rather than later. Great thinking Brad!

Now, the expansion tank:  another code requirement in Loudoun County. Apparently, they have a tendency to retire before a HWH, and yes, it had outlived its capacity to serve its purpose, so we got a new one. Approx $150

The Hot Water Heater itself:  we had room for the additional girth (same height tho).  It seemed a textbook replacement and within 3 hours, the plumbers were out of here and hot water was heating in the new tank! 

The next article will be back on the TRID guidelines for buyers and sellers.

Information not for re-publication without owner's permission.

DID YOU KNOW? New EPA Regs for Water Heaters!

I just tried to order a new 65 gallon natural gas hot water heater to replace an original model (2004) in my own home that has been acting up a bit.  The plumber stunned me when he said, "As of April, 2015, 65 gallon natural gas tanks are no longer made. The EPA said they were not energy-efficient enough and are discontinued".  WOW... was all I could think.  Being a Realtor, I thought of all the clients who might have 65 gallon tanks and are most likely unaware too!

Natural gas options:  a 50 or a 75 gallon tank.  It didn't take much discussion with my husband to say we should go with the 75. It is just the 2 of us and a 50 gallon would work just fine. However, the likelihood we sell before this new tank retires is possible and our home will most likely attract a family of more than 2. It will likely be a deterrent to the sale if we have a 50 gallon tank when other homes our size have a 65 gallon older tank, or have upgraded to the 75. Something to think about in your planning. We also haven't finished our basement yet, and when we do, that will add another bath - requiring additional hot water.

Electric options: The plumber proceeded to tell me about the less than ideal options for electric water heater replacement!  The EPA also mandated the 66 and 80 gallon electric tanks be discontinued for their energy-inefficient qualities.  I asked him what options those homeowners have and his response was this: "they either downgrade to a 50 gallon tank and lose 3 showers a day, or upgrade to 2 - 50 gallon tanks and immediately add $60/month to their electric bill OR they have to go a hybrid system".  Now, I don't know about you, but how is that a savings over a 66 or 80 gallon tank that might not be quite as "efficient"?  And the cost of retro-fitting 2 - 50 gallon tanks where 1 - 80 gallon sat?  All of a sudden the replacement cost is more than doubled!

Maybe I am the only one who missed the press release, but I wanted to pass the info along.  What I thought would be a 1400-1500 replacement cost is now a 1800-1900 bill for an 11.5 year old heater - so long as I don't need a new expansion tank or a new tray. i'll keep you posted on the results once it is installed!

TRID - Seller Side Implications

TRID - the impact to Seller side of the transaction

The new Federal guidelines are in effect now and we are beginning to see the impact to all parties. This article will focus on implications, changes and the reframing of mindsets that must occur to enjoy a thoughtful plan you can live with.

#1:  Longer time between ratification (all parties have agreed to in writing) and settlement.  We should plan on 60 days. Don't accept an offer with financing from anyone who says "our lender says we can do this in XX days". Simply can't happen.  We hope that as the dust settles we can move up to 45, however, for the remainder of 2015, let's stay with 60 days from ratification to settlement.

#2:  Longer time period for financing and appraisal contingencies. We should plan on 30 days as both sides work thru their new, or re-ordered steps in the process.

#3:  Buyer's pre-approval. By the new guidelines, will only offer 6 items of info on buyer - and is NOT what our normal standard of practice has been here in Virginia.  No verification of income will have taken place. This is to allow the buyer time to shop for best terms and rates AFTER ratification!! This is backwards from how most of us worked with buyers. We wanted to ensure sellers that we have viable pre-approved buyers in their homes and this is a setback. Nothing we can do about it - this process is deemed to protect the buyer from unscrupulous agents and lenders who might lock buyers into terms that were not competitive. The buyer unfortunately, can now shop for their loan AFTER ratification. The contract still says that formal loan application MUST take place within 7 days, so at least only a week can be spent shopping for a loan.

#4:  Highly recommend 3 day post-occupancy (some call this a "rent-back" and it is NOT RENT!) should your home be occupied.  And #5 explains why:

#5:  ALL final documents are now created by the bank - not the settlement company! This again is to protect the buyer from last minute fees. Should a last minute adjustment need to take place, the lender can determine settlement should be delayed by a 3 business day period (including Saturday - not Sunday or holidays). As the seller, you don't want your furnishings on a moving truck and have settlement delayed  while you are empty-handed of bedding, clothing, food, etc.

#6:  Once home inspection contingency has been agreed upon, ANY work must be performed immediately so that invoices can be reviewed, and final walk-thru take place PRIOR to the 3 day period immediately preceding settlement.

Think of it this way, you are to have your house ready to go to settlement at a minimum of 3 days in advance of settlement.  We know most of you will still be in the house and packing, but right now , this is the scenario. It will take some getting used to and a lot of communication between the 2 of us, but we can get through like many other changes over the years.  Knowledge is Key!