I was called by a new home buyer last week seeking information on the costs of remodeling pre 1978 homes. He heard about the EPA Renovate Reapir and Painting Lead Law. He was interested in knowing what this law will do to the costs of remodeling the home he was looking at. He said the home was in a good location, decent condition and good town but needed updating. I was able to give him some information and it appears he will be offering $10,000 dollars less due to increased remodeling costs that contractors will need to figure to replace the windows, siding, and bath. I asked him what would happen if he didn't get the lower price what would he do and he said go look at another house. He said " there are plenty on the market, I am in the driver's seat."

Home buyers have a new reason (RRP costs) to beat home sellers real estate sales price down; The EPA RRP Lead Law. Last year the cost of remodeling pre 1978 homes went up due to the government enacting the EPA RRP Lead Law. This law went into effect on 4/22/2010.

The law requires that any contractor who wants to offer to work or work on pre 1978 homes for compensation that they must be Certified Renovators and Certified Firms. Then if they disturb painted surfaces in the amount of 6 square feet per room on the interior or 20 square feet on the exterior they must use costly RRP practices. Contractors who violate this law face a fine of $37,500 per violation per day. In addition the address becomes the site of and EPA infraction. The enforcement may cause the contractor to go out of business laeving the project unfinished.

Increased remodeling costs on pre 1978 properties

The increased costs of using these practices vary. For example on a bathroom remodeling project it will add over $1000.00 to the project. On replacement windows contractors are telling us their costs are going up between $50.00 and $100.00 per window. Exterior painting firms tell us the costs are an additional 20 to 30%. Remodeling firms are telling us they are seeing additional costs of 10-15%. Handyman firms are telling us that the costs can be as high as 50% on small projects.

Astute homebuyers are doing their homework and are learning that when buying an pre 1978 home, the future costs of renovations will be very costly. If a property is outdated new homebuyers are looking at the projects they would want to do in the near future. Many homeowners will start looking at homes built before 1978 as white elephants. This information is factored in when making an offer on these older properties.

This is nother major blow to the ailing real estate market. Homes that do not have lead will be far more valuable going forward. With a large inventory and millions of homes heading toward foreclosures this does not bode well for people looking to sell their homes at a reasonable price. It will also affect realtors, less commission, more time listing the homes and more showings.

Please spread the word to anyone you know looking to buy a home. This may help someone you care about get a lower price while interest rates are low and inventories are high.

One more thing, if your real estate agent tells you not to worry about the law, we suggest you check it out for yourself. Enforcement is beginning and contractors are going to be forced to comply and remodeling prices will go up.

mark the coach

"one voice for the residential construction industry"