Another Arizona innovation: The multigenerational house

Multigenerational housing is drawing more metro Phoenix homebuyers as parents and kids move back in together.

Edward and Christine Leydon weren’t looking for a new home. The couple and their three children were happy in the Gilbert house they bought in 2009.

But the Leydons had been thinking about where their 16-year-old son with special needs would live after he graduated from high school. They want him to have more space and independence while still being close to them.

Then last summer, they found a new home built with an apartment tucked inside. The multigenerational house, from Lennar, is just five minutes from where they live now. So their son Jordan’s commute to Higley High School will be the same.

“We wanted to plan ahead, knowing Jordan may live with us forever,” Christine Leydon told me. “He is so excited to have his own space, but still just be a door away from us.”

The Leydons' new house is under construction. They plan to move in early next year.

The home is called the NextGen model.  It will have an attached apartment with about 750 square feet of space. The apartment has its own outside entrance, as well as a door to the rest of the home. A kitchenette, bedroom, bathroom, living space and laundry area are included. The apartment even has its own garage and backyard.

The Arizona division of homebuilder Lennar launched its NextGen home a few years ago for multigenerational homebuyers. Now the home-plus-apartment design is so popular, it's for sale in Lennar communities nationwide.

Arizona Lennar President Alan Jones told me about one-third of the builder’s home sales across the state are NextGen designs.

The multigenerational house is also another example of how metro Phoenix has long been a proving ground for new home designs.

Among other Arizona innovations:

• Del E. Webb launched the nation’s first large, affordable retirement community, Sun City, in the West Valley more than six decades ago.
• In 1960, John F. Long opened Maryvale, one of the first affordable communities in the desert offering homes with air-conditioners. 
• Developer Lyle Anderson created some of the first upscale, desert golf-course communities with Desert Highland and Desert Mountain in Scottsdale during the 1980s and '90s.
•  And there’s no denying that the red-tile roof, stucco homes built in Ahwatukee Foothills and other parts of the Valley during the 1990s shaped new home styles across the West. 

“Phoenix regularly sets housing trends for the rest of the country,” said Arizona homebuilding analyst RL Brown, who publishes the Phoenix Housing Market Report.  “It started with Del Webb and continues with Lennar’s NextGen and Meritage’s energy-efficient homes.”

In 2011, Scottsdale-based Meritage was the first big homebuilder to offer affordable net-zero homes. These houses use solar and other green building methods to generate more power than they use in a year.

Building for baby boomers was the big mantra for homebuilders a decade ago. Many have recently been trying to draw Millennials buyers. Both groups are interested in solar.

But multigenerational housing is the new buzz.

Analysis of census data from the Pew Research Center shows a record 57 million people live in multigenerational households. The trend grew during the recession when families, who lost jobs and homes, moved in together.

A growing number of baby boomers are living with their parents and grown children.

Lennar’s stats say 1 in 6 people in the U.S. already live in multigenerational homes.

Families are saving money by sharing a mortgage and cutting expenses on both assisted-living care and babysitting.

Arizona Lennar executives said one of their NextGen buyers is a father who moved into the apartment so his two daughters and their children could live in the main house.

Another house was sold to a couple who has their college-age grandson living with them in the apartment.

Prices for Lennar’s multigenerational homes in the Valley start in $250,000s. Pretty affordable, particularly when the mortgage can be shared.

Jordan Leydon is selling some books and old games to buy new furniture for his apartment.

“Many people might think these homes offer these apartment only for elderly parents,” Christine Leydon said. “But you have to think outside the box.”

She has already talked to three other families who have children with special needs who are buying the homes, too.

“Jordan can be independent, but we can still be close if he need us,” she said. “What more could a parent want?” 

World's largest Harley dealership to have grand opening

The much-anticipated grand opening of the new Harley-Davidson of Scottsdale has been announced for Nov. 7, 2015, to coincide with the 4th Annual Bob’s Biker Blast.

The event is hosted each year by well-known philanthropist and entrepreneur, Bob Parsons, and his local motorcycle dealerships — Harley-Davidson of Scottsdale, GO AZ Motorcycles and Spooky Fast Customs. Bob’s Biker Blast is a chance to have some fun while recognizing the positive impact bikers have on their community, with all proceeds benefiting Phoenix Children’s Hospital.

“Many people know my love of motorcycles, the biker community and helping the community where Renee and I can. This event brings it all together, which makes it very special for me,” Parsons said. “This year, I can’t wait for everyone to see the world-class dealership we’ve built.  It’s the biggest and the best.” 

Headlining this year’s event is The Doobie Brothers with Michael McDonald whose concert will cap off a day filled with live entertainment, food, drinks, giveaways, new merchandise, dealership tours and more. "Sons of Anarchy’s" Kim Coats — aka “Tig” — will also make a special appearance and sign autographs during the event. Grand opening festivities begin at noon and run through 10:30 p.m.

 

The largest Harley-Davison dealership in the world, this 150,000 square-foot facility was designed to be a true entertainment space. Bob’s Biker Blast guests will get a look at the dealership’s unique elements such as: 

• Tattoo and piercing studio by Club Tattoo
• Wedding Chapel
• Movie theater
• Arcade
• Leather and lace boutique
• Hundreds of motorcycles on display

 

Admission to Bob’s Biker Blast is free for anyone with a motorcycle endorsement and their passenger. Non-riders and families are welcome and tickets are $20 with 100 percent of proceeds going to Phoenix Children's Hospital.

The “I Ride 4 PCH” self-guided ride from Phoenix Children’s Hospital to Harley-Davison of Scottsdale will officially kick off Bob’s Biker Blast, with the hospital’s CFO, Craig McKnight, joining the pack to raise funds and support for the amazing kids at PCH. Ride registration includes complementary entrance to Bob’s Biker Blast 

Don't Wait to Buy Your Dream Home!!

As a seller, you will be most concerned about ‘short term price’ – where home values are headed over the next six months. As either a first-time or repeat buyer, you must not be concerned only about price but also about the ‘long term cost’ of the home.

Let us explain.

There are many factors that influence the ‘cost’ of a home. Two of the major ones are the home’s appreciation over time, and the interest rate at which a buyer can borrow the funds necessary to purchase their home. The rate at which these two factors can change is often referred to as “The Cost of Waiting”.

What will happen over the next 12 months?

According to CoreLogic’s latest Home Price Index, prices are expected to rise by 4.7% by this time next year.

Additionally, Freddie Mac’s most recent Economic Commentary & Projections Table predicts that the 30-year fixed mortgage rate will appreciate to 4.7% in that same time.

What Does This Mean to a Buyer?

Here is a simple demonstration of what impact these projected changes would have on the mortgage payment of a home selling for approximately $250,000 today:

Have you considered the savings offered by solar water heating?? (Check out the Federal and State incentives)

SOLAR WATER HEATING

 

Solar water heating is indisputably the most cost-effective method of reducing your normal household energy use. It will reduce 80% of your yearly gas bill or about 25% of your yearly electric bill depending of course on how you heat your hot water. In the case of electric it will typically save between $300 to $400 per year. It will also typically pay for itself well within its warranty period. As energy costs increase so will your savings.

As we mentioned earlier, there is not just one solar water heating system that is right for every situation or for that matter each person's preference or comfort level. This is another area where our experience and integrity works for you. We can guide you to the most appropriate system for your family.

SolaRay

This is an "active" closed loop system which circulates nontoxic antifreeze through the solar panel and back down through 3/4" copper tubing which is wrapped around the solar water tank. There is a heat exchange between the heated antifreeze in the copper tubing and the water inside the tank. (The heat exchange occurs beneath the outer skin of the tank and an R-16 polyurethane insulation blanket.) This system combines the simplicity of a single pump and the antifreeze protection against overheating or freezing with the safety of a double wall heat exchanger. It comes in different size systems, all approved for various rebates and tax credits.

CopperHeart

This is a "passive" system called an Integral Collector Storage, or ICS system. It both stores water and heats it at the same time. This heated water is pushed into a standard electric or gas heater by your normal household water pressure when you draw hot water. Since it is putting hot water into your gas or electric water heater, the gas burner or electric heating element does not have to fire up, thus saving you energy use. It requires no pump or control. While it has the advantage of no moving parts, it does produce a lesser volume of hot water than an active system.

Both of the above systems have solar panels with copper water ways in an extruded anodized box with a low iron tempered glass covering for maximum heating performance. Compare them to open plastic panels which have significantly lower performance and life expectancy.

We also have access to other types of systems such as thermosiphon, drainback, and external heat exchange systems, but we feel that at this time the above systems in various configurations will cover most, if not all, needs. However, being from the school of thought that the customer's wishes come first, we can install these other types of systems, and you can be assured of the best installation possible.

INCENTIVES AND SAVINGS

 

Both the Salt River Project and Arizona Public Service give incentives for installing solar water heaters even if you have a gas or an older style existing solar water heater. These incentives are based on the independently tested kilowatt savings per year in the Solar Rating Certification Corporation’s OG-300 standards. And since we use only the highest rated systems available you receive the highest amount of incentive money.

In addition to the electric companies’ incentives there is also a State Tax Credit that pays for 25% of the system cost (up to $1000.00). There is also a Federal Tax Credit that pays for 30% of the system cost with no dollar limits.

This combination of incentives can leave you paying as little as 15% for our system. It amounts to the same, or just a little more than, the cost of a replacement gas or electric water heater. Of course, after the installation you start saving money immediately. So at the end of the first year of use (standard water heater vs. solar water heater) you will typically have a positive cash flow or a complete return on investment plus savings. It really is the best guaranteed financial investment that you will ever make.

An issue that people rightly bring up is what happens to their savings if there are expensive repair costs. We feel so strongly about the products we use and the quality of our workmanship that we give a full five year warranty on the complete system and an option for a full 10 year warranty. By full warranty we mean that all material and labor costs are covered. You are absolutely assured that you will have zero expenses during that time period, only savings, as well as for many years afterwards.

When people hear the word "solar" they often think of solar electric or photovoltaic (PV) systems where the sun’s light is converted to electricity which seems like free energy. As a result many people get excited about it and somewhat dismiss the benefits of Solar Water Heating. But the facts demonstrate that Solar Water Heating is dramatically more cost effective than solar electric and virtually everybody can afford it. Let’s give this example:

A 2.5 kilowatt solar electric/PV system will actually save you a little less in electricity than our Solar Water Heating system, but cost you five times as much! Environmentally speaking both will have equal benefits. When you consider that our Solar Water Heating system is only slightly more expensive than a standard water heater after the incentives, you know you can afford it. But if it were five times the cost for the same benefits (monetary and environmental) as is the case with solar electric systems, you would probably not want to pay for or be able to afford that investment. Why would you pay five times as much for the same result?

If you have any questions about solar water heating, give my friend Jim Combs a call at : Conservative Energy Systems, Inc. Phone:   480-835-9549 Toll-free:   866-531-2500 Fax:   480-827-9460 E-Mail:   jcsolar@aol.com Licenses Residential: AZROC #064601 C37R Commercial: AZROC #109008 CL78 Bonded & Insured

How to Spot a Bad HOA

September 2015 | By Jill Schweitzer

What’s the difference between a good, mediocre, and downright bad homeowner association? It’s not entirely a matter of opinion. There are specific items to look at and questions to ask that can tell your buyers whether they’re buying into an HOA that will only give them headaches. This information is particularly important in condominiums, where the HOA usually is responsible for maintaining the exterior of the buildings. If they aren’t careful, your buyers could face paying a big special assessment for years of neglected capital improvements after they close. The bill they’re typically stuck with could be anywhere from $1,000 to $30,000. (In some cases, they've gone over $100,000!) Help your buyers perform due diligence before closing by assisting them in identifying issues to minimize the element of surprise. While this isn’t intended to be legal advice and there may be other items to look at other than those mentioned in this article, this should give you ideas for how to advocate for your buyers when dealing with HOAs.

Look at the Community as a Whole

Is it run-down? Don’t solely focus on the one property your buyer is purchasing. When the HOA is responsible for maintaining the buildings, check out neighboring units and common spaces along with the home your buyer is purchasing. Here are some telltale signs of an HOA that isn’t on top of its responsibilities:

• Are the fences rusting?
• Are the building signs in disrepair?
• Does the asphalt look like gravel?
• Are the pool and other amenities clean and in good working order?
• What is the age and condition of the roofs?
• Do the buildings need to be painted?
• Are there staircases and balconies in poor shape that the HOA is responsible for maintaining?
• When were the buildings last treated for termites? Have they been neglected, with a higher risk of unknown termite damage throughout the community?
• Are there problems with siding?
• Are there grading issues causing flooding?
• What is the condition of the gutters, fascia, and other fixtures?

Look at the Reserve Study

First of all, make sure you and your buyers know what this is. A reserve study details an HOA’s long-term funding plan, showing, most important, how much it currently has to offset maintenance costs. It’s the most important tool to determine the financial health of the HOA.

• What is the percent funded? Zero percent to 30 percent means it’s at high risk of a special assessment; 31 percent to 70 percent is a medium risk; 71 percent to 100 percent is low risk.
• How much does the reserve study recommend the HOA saves each year, and how much is the HOA actually saving?
• Has the HOA been following the reserve study and making capital improvements?
• How much money can you foresee being needed compared to what the HOA has saved?

Proactively Ask Questions

Encourage your buyer to call and ask the HOA or HOA management company questions. You may need to make it a condition of the purchase contract that the seller will provide the answers if the HOA management company won’t answer you or your buyer. Keep these questions in mind:

• Have there been any special assessments before? Get the details and ask if there is discussion about having another one.
• Have there been any lawsuits or are any expected? Check court records.
• How many insurance claims has the HOA had?
• If roofs are an HOA responsibility, are there plans to transfer the burden to the owner? How many roof repairs have there been in the last couple years?
• Are there plans to change the HOA’s covenants, conditions, and restrictions?
• Have there been any repairs from extensive water or termite damage in the last couple years?

Your buyer must review the HOA’s covenants, rules, meeting minutes, violation policy, collection policy, and other aspects. Make your buyers a checklist to help them do their due diligence. Help them become an educated buyer on HOA living.

Ignorance isn’t bliss for your clients — or you — when it comes to HOAs. Agents and sellers could potentially avoid lawsuits by making buyers aware of all issues before they close on a property in an HOA. Remember, approximately 70 percent of HOAs are underfunded and in poor condition due to lack of maintenance. These are not HOAs “protecting our property values.”

This problem is not going away by keeping our eyes closed. The first step in improving HOAs is having real estate professionals who will educate buyers on how an HOA should operate. Buyers need to be involved and concerned with the HOA business that they are becoming a part of before closing — and they need to stay involved after closing.