HomeMarketWatch Insider Newsletter


This Month's Features

Each month, we publish a series of articles of interest to homeowners -- money-saving tips, household safety checklists, home improvement advice, real estate insider secrets, etc. Whether you currently are in the market for a new home, or not, we hope that this information is of value to you. Please feel free to pass these articles on to your family and friends.

ISSUE #1107
FEATURE REPORT

Selecting a New Water Heater
Many homeowners wait until their water heater fails before shopping for a replacement.
Because they are in a hurry to regain their hot water supply, they are often unable to take the time to shop for the most energy efficient unit for their specific needs. This is unfortunate, because the cost of purchasing and operating a water heater can vary greatly, depending on the type, brand, and model selected, and on the quality of the installation.


Also This Month...
11 Things You Must Know When Finding a Home
Once you've decided to buy a home, there's a number of issues that need to be considered. Because buying a home will be one of the biggest purchases you make in your life, learning the "11 Things You Must Know When Finding a Home" can make the process easier.


 
 

Tips on Selecting a Contractor For Home Improvement
Home repairs can cost thousands of dollars and are the subject of frequent complaints. Here is a list of things to consider when selecting a contractor.

Quick Links
Selecting a New Water Heater
11 Things You Must Know When Finding a Home
Tips on Selecting a Contractor For Home Improvement
 

 

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Selecting a New Water Heater

Many homeowners wait until their water heater fails before shopping for a replacement. Because they are in a hurry to regain their hot water supply, they are often unable to take the time to shop for the most energy-efficient unit for their specific needs. This is unfortunate, because the cost of purchasing and operating a water heater can vary greatly, depending on the type, brand, and model selected and on the quality of the installation.

To avoid this scenario, you might want to do some research now—before you are faced with an emergency purchase. Familiarize yourself today with the options that will allow you to make an informed decision when the need to buy a new water heater arises.

Types of Water Heaters Available

Within the last few years, a variety of water heaters have become available to consumers. The following types of water heaters are now on the market: conventional storage, demand, heat pump, tankless coil, indirect, and solar. It is also possible to purchase water heaters that can be connected to your home’s space heating system.

Storage Water Heaters

A variety of fuel options are available for conventional storage water heaters—electricity, natural gas, oil, and propane. They range in size from 20 to 80 gallons (75.7 to 302.8 litres). A storage heater operates by releasing hot water from the top of the tank when the hot water tap is turned on. To replace that hot water, cold water enters the bottom of the tank, ensuring that the tank is always full. Because the water is constantly heated in the tank, energy can be wasted even when no faucet is on. This is called standby heat loss. Newer, more energy-efficient storage models can significantly reduce the amount of standby heat loss, making them much less expensive to operate.

Demand Water Heaters

It is possible to completely eliminate standby heat losses from the tank and reduce energy consumption 20% to 30% with demand (or instantaneous) water heaters, which do not have storage tanks. Cold water travels through a pipe into the unit, and either a gas burner or an electric element heats the water only when needed. With these systems, you never run out of hot water. But there is one potential drawback with demand water heaters—limited flow rate. Typically, demand heaters provide hot water at a rate of 2 to 4 gallons (7.6 to 15.2 litres) per minute. This flow rate might suffice if your household does not use hot water at more than one location at the same time (e.g., showering and doing laundry simultaneously). To meet hot water demand when multiple faucets are being used, demand heaters can be installed in parallel sequence. Although gas fired demand heaters tend to have higher flow rates than electric ones, they can waste energy even when no water is being heated if their pilot lights stay on. However, the amount of energy consumed by a pilot light is quite small.

Heat Pump Water Heaters

Heat pump water heaters use electricity to move heat from one place to another instead of generating heat directly. To heat water for homes, heat pump water heaters work like refrigerators in reverse. Heat pump water heaters can be purchased as integral units with builtin water storage tanks or as add ons that can be retrofitted to an existing water heater tank. These systems have a high initial cost. They also require installation in locations that remain in the 40° to 90°F (4.4° to 32.2°C) range year round and contain at least 1000 cubic feet (28.3 cubic meters) of air space around the water heaters. To operate most efficiently, they should be placed in areas having excess heat, such as furnace rooms. They will not work well in a cold space.

Tankless Coil and Indirect Water Heaters

A home’s space heating system can also be used to heat water. Two types of water heaters that use this system are tankless coil and indirect. No separate storage tank is needed in the tankless coil water heater because water is heated directly inside the boiler in a hydronic (i.e., hot water) heating system. The water flows through a heat exchanger in the boiler whenever a hot water faucet is turned on. During colder months, the tankless coil works well because the heating system is used regularly. However, the system is less efficient during warmer months and in warmer climates when the boiler is used less frequently. A separate storage tank is required with an indirect water heater. Like the tankless coil, the indirect water heater circulates water through a heat exchanger in the boiler. But this heated water then flows to an insulated storage tank. Because the boiler does not need to operate frequently, this system is more efficient than the tankless coil. In fact, when an indirect water heater is used with a highly efficient boiler, the combination may provide one of the least expensive methods of water heating.

Solar Water Heaters

Through specially designed systems, energy from the sun can be used to heat water for your home. Depending on climate and water use, a properly designed, installed, and maintained solar water heater can meet from half to nearly all of a home’s hot water demand. Two features, a collector and a storage tank, characterize most solar water heaters. Beyond these common features, solar water heating systems can vary significantly in design. The various system designs can be classified as passive or active and as direct (also called open loop) or indirect (also called closed loop). Passive systems operate without pumps and controls and can be more reliable, more durable, easier to maintain, longer lasting, and less expensive to operate than active systems. Active solar water heaters incorporate pumps and controls to move heat transfer fluids from the collectors to the storage tanks. Both active and passive solar water heating systems often require “conventional” water heaters as backups, or the solar systems function as pre-heaters for the conventional units. A direct solar water heating system circulates household water through collectors and is not appropriate in climates in which freezing temperatures occur. An indirect system should not experience problems with freezing because the fluid in the collectors is usually a form of antifreeze. If you are considering purchasing a solar water-heating system, you may want to compare products from different manufacturers. Just choosing a solar water heater with good ratings is not enough, though. Proper design, sizing, installation, and maintenance are also critical to ensure efficient system performance. Although the purchase and installation prices of solar water heaters are usually higher than those of conventional types, operating costs are much lower.

Criteria for Selection

As with any purchase, balance the pros and cons of the different water heaters in light of your particular needs. There are numerous factors to consider when choosing a new water heater. Some other considerations are capacity, efficiency, and cost.

Determining Capacity

Although some consumers base their purchase on the size of the storage tank, the peak hour demand capacity, referred to as the first-hour rating (FHR), is actually the more important figure. The FHR is a measure of how much hot water the heater will deliver during a busy hour. Therefore, before you shop, estimate your household’s peak hour demand and look for a unit with an FHR in that range. Gas water heaters have higher FHRs than electric water heaters of the same storage capacity. Therefore, it may be possible to meet your water-heating needs with a gas unit that has a smaller storage tank than an electric unit with the same FHR. More efficient gas water heaters use various non-conventional arrangements for combustion air intake and exhaust. These features, however, can increase installation costs.

Rating Efficiency

Once you have decided what type of water heater best suits your needs, determine which water heater in that category is the most fuel efficient. The best indicator of a heater’s efficiency is its Energy Factor (EF), which is based on recovery efficiency (i.e., how efficiently the heat from the energy source is transferred to the water), standby losses (i.e., the percentage of heat lost per hour from the stored water compared to the heat content of the water), and cycling losses. The higher the EF, the more efficient the water heater. Electric resistance water heaters have an EF between 0.7 and 0.95; gas heaters have an EF between 0.5 and 0.6, with some high-efficiency models around 0.8; oil heaters range from 0.7 to 0.85; and heat pump water heaters range from 1.5 to 2.0. Product literature from manufacturers usually gives the appliance’s EF rating. If it does not, you can obtain it by contacting an appliance manufacturer association. Some other energy efficiency features to look for are tanks with at least 1.5 inches (3.8 centimeters) of foam insulation and energy efficiency ratings.

Comparing Costs

Another factor uppermost in many consumers’ minds is cost, which encompasses purchase price and lifetime maintenance and operation expenses. When choosing among different models, it is wise to analyze the lifecycle cost—the total of all costs and benefits associated with a purchase during its estimated lifetime. Units with longer warranties usually have higher price tags, though. Often, the least expensive water heater to purchase is the most expensive to operate.

 

 

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11 Things You Must Know When Finding a Home


Once you've decided to buy a home, there's a number of issues that need to be considered.  Because buying a home will be one of the biggest purchases you make in your life, learning the "11 Things You Must Know When Finding a Home" can make the process easier.

In this report, we outline 11 Questions and Answers to help you make informed choices when purchasing a home.

1. What Should I Look For When Deciding On A Community?

Select a community that will allow you to best live your daily life. Many people choose communities based on schools. Do you want access to shopping and public transportation? Is access to local facilities like libraries and museums important to you? Or do you prefer the peace and quiet of a rural community? When you find places that you like, talk to people that live there. They know the most about the area and will be your future neighbors. More than anything, you want a neighborhood where you feel comfortable in.

2. How Can I Find Out About Local Schools?

You can get information about school systems by contacting the city or local school board or the local schools. Your real estate agent may also be knowledgeable about schools in the area.

3. How Can I Find Out About Community Resources?

Contact the local chamber of commerce for promotional literature or talk to your real estate agent about welcome kits, maps, and other information. You may also want to visit the local library. It can be an excellent source for information on local events and resources, and the librarians will probably be able to answer many of the questions you have.

4. How Can I Find Out How Much Homes Are Selling For In Certain Communities and Neighborhoods?

Your real estate agent can give you a ballpark figure by showing you comparable listings. If you are working with a REALTOR®, they may have access to comparable sales maintained on a database.

5. How Can I Find Information On The Property Tax Liability?

The total amount of the previous year's property taxes is usually included in the listing information. If it's not, ask the seller for a tax receipt or contact the local assessor's office. Tax rates can change from year to year, so these figures maybe approximate.

6. What Other Tax Issues Should I Take Into Consideration?

Keep in mind that your mortgage interest and real estate taxes will be deductible (USA residents). A qualified real estate professional can give you more details on other tax benefits and liabilities.

7. Is An Older Home A Better Value Than A New One?

There isn't a definitive answer to this question. You should look at each home for its individual characteristics. Generally, older homes may be in more established neighborhoods, offer more ambiance, and have lower property tax rates. People who buy older homes, however, shouldn't mind maintaining their home and making some repairs. Newer homes tend to use more modern architecture and systems, are usually easier to maintain, and may be more energy-efficient. People who buy new homes often don't want to worry initially about upkeep and repairs.

8. What Should I Look For When Walking Through A Home?

In addition to comparing the home to your minimum requirement and wish lists, consider the following:

  • Is there enough room for both the present and the future?
  • Are there enough bedrooms and bathrooms?
  • Is the house structurally sound?
  • Do the mechanical systems and appliances work?
  • Is the yard big enough?
  • Do you like the floor plan?
  • Will your furniture fit in the space? Is there enough storage space? (Bring a tape measure to better answer these questions)
  • Does anything need to be repaired or replaced? Will the seller repair or replace the items?
  • Imagine the house in good weather and bad, and in each season. Will you be happy with it year 'round?

Take your time and think carefully about each house you see. Ask your real estate agent to point out the pros and cons of each home from a professional standpoint.

9. What Questions Should I Ask When Looking At Homes?

Many of your questions should focus on potential problems and maintenance issues. Does anything need to be replaced? What things require ongoing maintenance (e.g., paint, roof, HVAC, appliances, carpet)? Also ask about the house and neighborhood, focusing on quality of life issues. Be sure the seller's or real estate agent's answers are clear and complete. Ask questions until you understand all of the information they've given. Making a list of questions ahead of time will help you organize your thoughts and arrange all of the information you receive.

10. How Can I Keep Track Of All The Homes I See?

If possible, take photographs of each house: the outside, the major rooms, the yard, and extra features that you like or ones you see as potential problems. And don't hesitate to return for a second look. You may also wish to find out if the home is available online. Photos of the property may already be up on a website for you to review.

11. How Many Homes Should I Consider Before Choosing One?

There isn't a set number of houses you should see before you decide. Visit as many as it takes to find the one you want. On average, homebuyers see 15 houses before choosing one. Just be sure to communicate often with your real estate agent about everything you're looking for. It will help avoid wasting your time.

 

 

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Tips on Selecting a Contractor For Home Improvement

Home repairs can cost thousands of dollars and are the subject of frequent complaints.  Here is a list of things to consider when selecting a contractor:

  1. Get recommendations and references. Talk to friends, family and other people for whom the contractor has done similar work.

  2. Get at least three written estimates from contractors who have come to your home to evaluate what needs to be done. Be sure the estimates are based on the same work so that you can make meaningful comparisons.

  3. Make sure the contractor meets licensing and registration requirements with your local consumer agency. Some areas require licensees to pass tests for competency and scrutinize licensees for financial solvency. They may also have a fund to cover some financial losses that result from problems with licensed contractors.

  4. Check to see if local laws limit the amount by which the final bill can exceed the estimate, unless you have approved the increase.

  5. Check contractor complaint records with the Better Business Bureau or similar agency.

  6. Get the names of suppliers and ask if the contractor makes timely payments.

  7. Contact your local building inspection department to check for permit and inspection requirements. Be wary if the contractor asks you to get the permit. It could mean the firm is not licensed.

  8. Be sure your contractor has the required personal liability, property damage and worker’s compensation insurance for his/her workers and subcontractors. Also check with your insurance company to find out if you are covered for any injury or damage that might occur.

  9. Insist on a complete written contract. Know exactly what work will be done, the quality of materials that will be used, warranties, timetables, the names of any subcontractors, the total price of the job, and the schedule of payments.

  10. Try to limit your down payment. Local law may specify that only a certain percentage of the total cost may be made as a down payment.

  11. Understand your payment options. Compare the cost of getting your own loan versus contractor financing.

  12. Don’t make final payment or sign an affidavit of final release until you are satisfied with the work and know that subcontractors and suppliers have been paid. Local lien laws may allow unpaid subcontractors and/or unpaid suppliers to attach your home.

  13. Pay by credit card when you can. This may allow you the right to withhold payment to the credit card company until problems are corrected.

  14. Be especially cautious if the contractor:

  • comes door-to-door or seeks you out;
  • just happens to have material left over from a recent job;
  • tells you your job will be a "demonstration";
  • offers you discounts for finding other customers;
  • quotes a price that’s out of line with other estimates;
  • pressures you for an immediate decision;
  • offers exceptionally long guarantees;
  • can only be reached by leaving messages with an answering service;
  • drives an unmarked van or has out-of-area plates on his/her vehicles; or
  • asks you to pay for the entire job up front.

 

 

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TODD WIESE
920-406-0001
THE TODD WIESE HOME SELLING TEAM
Green Bay, Wisconsin Privacy Policy