A very, very common building block in modern Chicago homes: the split face block

Split face blocks are manufactured by combining two or more blocks together as one larger unit. After a curing period, the units are put through a machine that cuts the stone in half to expose it’s interior aggregates. The amount of  aggregate varies from block to block. There are many different sizes and colors available.

Advantages of Split Faced Block

Split face block is easily combined with many exterior finishes. The initial costs can be higher than other exterior finishes, however the longevity makes the block a good value. Insurance companies often offer policy discounts on properties due to the lower risk of fires and termite infestation.

Disadvantages of Split Faced Block

Split faced block is a very porous material, so if not properly installed and maintained, it tends to lead to costly repairs. The durability of split faced block often causes the homeowner to over look the preventative maintenance needed to help prevent the block from absorbing water which can lead to interior wall damage and mold. The installation of the block is also important. Due to the permeability of the block and poor installation methods such as lack of wicks and weep holes to allow the water to exit  from behind the block, damage to the interior can often occur.

Should I Purchase a Property with Split Faced Block?

Like all exterior finishes, proper installation and maintenance are needed. Split faced block is an attractive, long lasting finish that given preventative maintenance and proper installation can last for many years. I recommend that a proper water repellent is applied approximately every 3-7 years.

I would not hesitate to purchase a property with split faced block.

Cleaning a Flooded Basement is Expensive and Definitely Not Fun

A week of record high temperatures in early spring cause rapidly melting snow to overflow a stream located in the backyard of a home in Chicago. The exterior drain of the home backs up and allows water to enter the finished basement, resulting in flood damage. The water causes a crack in the foundation and damage to the wood flooring, built-in cabinetry, wet bar, area rugs, furniture and the electronics of the home theater system. Collectibles as well as a computer for a home-based business are ruined. The home?s older electrical wiring needs to be replaced to comply with Chicago ordinances.

Homeowners’ Insurance Does Not Cover Flood

The answer, for many residents in Chicago, is unfortunately NO. Flood damage is not covered by a standard homeowners policy. It must be purchased separately from a licensed agent.

Most people do not purchase flood insurance for the simple fact that they believe they are not at risk?because they live in Chicago. And, at first blush this appears reasonable.  People obviously think about it. Over the years I’ve heard many reasons for not buying it, ? I had two sump pumps installed,? ?My house is brand new, its water tight,? ? I live in a duplex down condo unit, so my association will cover me.?

Over 30% of All Flood Claims Come from Areas with Minimal Risk.

Flood insurance is defined as, ?a general and temporary condition of partial or complete inundation or two or more acres of normally dry land or two or more properties from one of the following: Overflow of inland or tidal waters; mudflow; collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or unusual and rapid accumulation of runoff or surface waters from any source.?

In Chicago, we experience the unusual and rapid accumulation of water quite often, starting in the fall with the leaves clogging the sewers to the violent temperature swings during the winter.

Until recently, flood insurance was only available from the federal government via the National Flood Insurance Program (NFIP). A few select carriers have now designed their own personal flood insurance policies to address the gaps in the NFIP system:

• Personal flood insurance covers flood loss even if the flood is confined to just the one insured property. NFIP covers only if two or more properties have been affected.
• Personal flood insurance insures a home and its contents up to a total of $15,000,000. NFIP provides a maximum limit of $250,000 of coverage for the dwelling and $100,000 for contents.
• Personal flood insurance includes a minimum of $15,000 of coverage for contents in a basement and minimum $30,000 of coverage for real property in a basement. NFIP does not cover this type of damage.
• Personal flood insurance covers additional living expenses, like meals and lodging, if you can’t live in your home. NFIP does not.

The average flood insurance premium is $350 per year. It is worth the investment. Just ask your friends and neighbors who lived in Albany Park last fall.

No More Talking Between Lenders and Appraisers

How does the new Home Valuation Code of Conduct (HVCC) recently adopted by Freddie Mac and Fannie Mae affect the appraiser and the consumer? Just as there are many layers to an onion, there are many ways to look at the financial mess this country is in. Some blame the banks, some blame the mortgage brokers, some blame the real estate brokers, and others blame the uneducated consumer. Maybe if the consumer knew what they were signing up for we wouldn’t be in this mess? What it all boils down to is . . .we all have ourselves and our need for bigger and better, to blame.

The new HVCC is a bill that mandates that the mortgage broker no longer has contact with the appraiser. A third party will contact an appraiser and order appraisals for the lending institutions.

Pressure

In past years, I have heard complaints from appraisers that mortgage brokers would tell them to come in with their number they needed to make the deal or they would no longer order appraisals from the appraiser. This put many appraisers in a precarious position. Appraisers are upheld by a code of conduct entitled Uniform Standards of Paraprofessional Appraisal Practice, or USPAP for short. These standards are strict and require that the appraiser be a Disinterested Third Party to the valuation process. When told that they need to come in with a predetermined number for the deal to go through, the appraiser is no longer Objective. Not only that, the pressure of losing business had to be hard for some. Therefore, some appraisers are thrilled with the new mandate. Others are worried about customer service.

Some Potential Problems

With Third Party Appraisal Services ordering appraisals, the banks will not know if the appraiser even understands the particular market they are appraising. For instance, a person who lives in the city probably does not understand a suburban market as well as an appraiser who lives in that particular suburb. I do have a specific territory, and I am not comfortable appraising outside of my it. Is it possible to do so? Yes, it is, but it will take much more time to complete the report to do the proper research to get familiar with the neighborhood.

From a client perspective, having a relationship with the appraiser helps to ensure the reports are completed in a timely fashion. The client also understands what neighborhoods the appraiser works in and knows the quality of reports the appraiser completes. With a third Third Party Appraisal Service none of the previously mentioned concerns will apply. Not only that, Third Party Appraisal Services could demand expedited service from the appraiser or they will not order again from that appraiser. Again adding pressure to complete a report that is not necessarily quality. Without quality the values could and more than likely will be skewed.