Atlanta Inspection News! Consumer information: May 2008

For many months now, real estate foreclosures have been on the rise. We hear this on the news regularly. The causes are many - a major cause was the creative financing in the form of adjustable rate mortgages which now are adjusting upward.

More than one million foreclosure filings were reported in the United States this year. That represents 42% more than the foreclosures reported in 2005. The increasing number of foreclosures creates an opportunity for Real Estate Investors but have a different affect on the current market trends.

In Atlanta,Georgia most homes sold are ones that are priced right. This means the price that the buyer is willing to pay for the property today. For many homeowners this is not easy to do. It actually means the under priced homes are the ones selling in a reasonable amount of time.Inspection reporting repairs or other damage like improper repairs made during remodeling or additions.Water Heate replacements,pool circuits added,etc...

The purchases represent those who plan to occupy the home. The market is much slower and the appreciation in homes will continue to be slower for some time. The day of swift appreciation allowing investors to sell the home quickly for a substantial increase are over for the moment.

Purchasing a pre-foreclosure property might be the right action for you to take if you have been considering buying a home and felt you could not afford to buy one. You can get a better value if you do your due diligence. Research the market before you begin.

Many investors,  will offer a pre-foreclosure property at below market prices,and some times request the home to be inspected. This allows the investor to make money but still move property more quickly. If you are able to find one of these properties, you can get a good deal.

As usual, do your due diligence.Always get a good home inspector to perform a thorough inspection so that you will no if any underlying problems that have been going unnoticed and significate damage could be present.This offten is the case with investors.Money needed that they never picked up on while walking through the property. Good luck!  Tv commercial  

Homes being constructed today are more energy efficient than those built even just a few years ago, primarily due to significant improvements in building products and techniques as well as development of high-performance heating and cooling systems and other appliances. However, the benefits of foundation insulation are often overlooked. Heat loss from an uninsulated, conditioned basement may represent up to 50 percent of a home's total heat loss in a tightly sealed, well-insulated home. Foundation insulation is used primarily to reduce heating costs and has little or no benefit in lowering cooling costs. In addition to reducing heating costs, foundation insulation increases comfort, reduces the potential for condensation and corresponding growth of mold, and increases the livability of below-grade rooms.   Foundation types
  Foundations are either full basement, slab-on-grade, or crawlspace. Deep frost lines and low water tables often make a full basement the primary foundation of choice. However, slab-on-grade with walkout basement construction is common and home additions often have crawlspace foundations.
  Full basements  
Basements can be insulated either on the interior or exterior. Interior insulation can use conventional 2´4 framing with batt or wet-spray insulation. Unless the vapor retarder covering on the batt insulation is fire rated, it should be covered with drywall. Rigid foam is also used on basement interiors. Furring strips are used to hold the foam insulation in place. Extruded polystyrene expanded polystyrene, or polyisocyanurate insulation boards can also be used. Fire codes require most foam insulation board to be covered with dry wall.   Exterior foundation insulation uses extruded or expanded polystyrene directly on the outside of exterior basement walls. Insulation exposed above grade must be covered to protect it from physical abuse and damaging effects of the sun. Typical cover materials include roll metal stock to match the siding, cementous board attached to the sill plate, or application of a stucco like finish.
  A third option is to use a foam-form foundation system. Polystyrene foundation forms are set on conventional footings, much like building a Lego's® wall. Concrete is placed into the forms where it cures to form both the structural and thermal components of the basement wall. Exterior foam, either foam boards placed on the exterior of a conventional foundation or in a foam form wall system, may provide a concealed entry path for subterranean termites. Termites can tunnel through and behind many foam products. If exterior foam insulation is used, a continuous metal termite shield must be used between the top of the foundation and the sill plate to force termites out of the foam and into view. Even then, treatment with conventional termiticides to stop the infestation may be difficult. Foundation waterproofing, site and footing drainage, and termite treatments are similar for insulated and uninsulated basements. However, if exterior foam insulation is to be used, use waterproofing products compatible with the foam.
  Crawlspaces
In many respects, crawlspace walls are just short basement walls. Exterior foam and foam-form insulation systems can be used. However, interior crawlspace wall insulation is usually either foam board or draped insulation. If foam insulation is used, it extends from the top of the foundation to the top of the footing. The cavity formed by the rim joist should be filled with fiberglass batts or a foam-in-place product. Most fire codes allow up to two inches of polystyrene exposed on the interior of a crawlspace before covering is required.
  If crawlspaces are insulated with fiberglass or mineral wool batts, the batts are usually tacked to the sill plate and draped down and onto the floor. Four foot- wide batts incased in a plastic cover work well when installed horizontally. Conventional 16- or 24-inch-wide batts leave voids between the batts and do not perform as well.
  Some jurisdictions require a ventilated crawlspace to help control moisture. Vent requirements are significantly reduced if the floor of the crawlspace is covered with plastic sheeting with joints overlapped and taped to reduce crawlspace moisture. If required, install operable vents so they can be closed. Don't forget to fill the rim joist space with fiberglass batt or foamed-in-place foam to complete the insulation treatment.   The floor over the crawlspace can also be insulated. This raises the thermal envelope from the crawlspace walls to the space floor. While this technique offers many advantages, piping must be freeze proofed and heating and cooling ducts must also be insulated.   Slab-on-grade
Heat loss is greatest at or near the exterior grade. To reduce heating costs and reduce the cold-floor syndrome common to slab-on-grade construction, insulation is critical. Exterior foam insulation, similar to exterior basement insulation, works well. Insulation should extend from the top of the slab to the top of the footing. Foam insulation inside the footing is also common. It is necessary to provide a thermal break to prevent thermal wicking from the slab to the outside. Installing a pressure-treated nailer or beveled slab edge provide the thermal break while still allowing floor-covering attachment. Climate, cost of fuel, efficiency of heating equipment, and type of foundation determine the cost effective level of insulation.

Savings from insulated foundations vary with fuel price, heating equipment performance, and climate. The cost of full-basement foundation insulation will vary but builders have reported prices between $800 and $1,200. If the mortgage of a new home were increased by $1,200, the increase in home payment would be $106 annually for a 30- year, 8% loan. The combined heating and mortgage costs would be similar and the home would be more comfortable and provide a healthier indoor environment.   Frequently Asked Questions  
If a basement is unfinished does it still need foundation insulation? Yes, unless the floor above is insulated. Even if used only for storage and heating and cooling equipment the basement is thermally connected to the rest of the house.
  Is floor insulation above a basement or a crawl space an alternative to foundation insulation?   Yes, but keep in mind that pipes, ducts and HVAC equipment located in the basement would then need to be insulated to meet the MEC and to protect pipes from freezing. Sometimes these can be grouped in a small area with insulated walls while the floor above the rest of the basement is
insulated.
  Doesn't placing insulation on the exterior improve energy performance?
If the basement incorporates passive solar design with a significant amount of south facing windows, exterior insulation will be beneficial, provided the walls are exposed to solar gain. In a
typical basement the energy savings are negligible.
  Should the interior of foundation walls have vapor barriers?
If interior insulation is used, YES. The concrete must be allowed to dry, but moist basement air typical of Midwest summers should not be allowed to reach the cool wall where in can condense. Batt insulation specifically designed for the interior of foundation walls has a perforated poly facing that prevents air from circulating through the batt, but allows water vapor from the wall to escape.
  Will foundation insulation increase the risk of termite entry?
Foundation insulation does not increase the risk of termine entry. If termites are present in the soil and wood is used in the building, the risk of infestation exists. Exterior insulation may reduce
the probability of early discovery and inhibit treatment when discovered.
  Is an inspection band where foundation insulation is omitted to permit inspection for termites a good idea?
In some southern states with a high incidence of termite infestation, including, Florida, South and North Carolina, Georgia, Alabama, Mississippi, Louisiana, eastern Texas, southern and central California, Georgia, Tennessee, and Hawaii, rigid foam insulation is not allowed in contact with the soil. In other areas a six inch gap between the top of foundation insulation and any wood framing member is required to permit visual inspection for termites.
  Will exterior foundation insulation materials be chemically attacked by dampproofing?
In can happen. Avoid ......and always follow the insulation and dampproofing manufacturer's instructions.
  What about water proofing?
Codes often require waterproofing instead of damproofing if the wall is adjacent to habitable space. Manufactures of some foam products offer specific recommendations for waterproofing of their foam systems.   How long will exterior foundation insulation last?
Properly installed foundation insulation, interior or exterior, should last as long as insulation installed any where else in the building.
  Should foam insulation above grade be protected?
Foam above grade must be protected from both sun and physical damage. Ultraviolet light degrades or destroys most foams. In addition, damage from lawnmowers, balls, and other incidental
contact can degrade the appearance and performance of the foam. Common materials used to protect the foam above grade include two- or three-layer stucco finishes, brush-on elastomeric or
cementitious finishes, vertical vinyl siding, cement board, aluminum coil stock, and fiberglass panels.
  Will insulating the foundation increase the risk of radon problems?
Radon entry into a home is through cracks and other opening below grade. The use of foundation insulation should minimize thermal stresses on the foundation and help minimize cracking, thus reducing of radon entry.
  Should crawl space be ventilated?
The CABO One and Two Family Code requires one square foot of crawl space ventilation for each 150 square feet of "floor" area. Operable vents 1/10 as large can be used if a vapor barrier is
installed. Warm damp summer air can condense on the cool earth, even when covered with a poly vapor diffusion retarder, increasing the risk of crawl space moisture problems. Installing a
vapor barrier and closing the operable vents is preferred. If local code interpretation requires crawl space ventilation, insulating the floor and incorporating a vapor barrier is preferred.
  Do foam insulation boards installed on the interior require fire protection?
All foams require thermal protection equal to ½ inch of gypsum wall board when installed on the interior of a building, including a crawl space. The only exception is Celotex Thermax polyisocyanurate which may be installed without a thermal barrier where approved by the local building code official.
  Are insulating concrete form (ICF) systems less expensive than an insulated poured in place concrete wall?
ICFs can be competitive but costs are project specific. Foam used in these systesm should address the same concerns outlined above for foam board.

A wet basement can be a nuisance or a real nightmare. Each year, thousands of homeowners are faced with the unpleasant side effects of seasonal rainfall. Problems they can face range from mere dampness to flooding. Chronic basement leakage is a serious problem that can destroy personal property, furnishings, appliances, and can sometimes cause permanent structural damage to a home's foundation. Excessive moisture is a huge attraction to wood-eating insects, wood rot and decay.  Despite the pervasiveness of the problem, few homeowners are aware of the causes of wet basements. 

 Common Causes

A common cause of wet basements is improper surface drainage, such as a yard sloped toward the home. In many cases, the problem can be greatly alleviated by re-grading the yard to slope away from the homes foundation or diverting surface water around the house.  Other common culprits include poorly positioned rain gutter downspouts, missing, leaking or clogged rain gutters. A downspout that is improperly positioned to drain against the side of the house, allows water to build up along the foundation wall, until the backed-up "reservoir" finds a weak spot in the foundation wall.

The most serious cause of basement leakage is a high water table. A high water table problem occurs when the home is built too deeply in the ground, into the level where water remains constant throughout the year. A high water table problem can also be caused by under ground springs or sustained periods of rainfall that cause the water table to rise during the wet seasons.

Is it Leakage or Condensation?

You should try to determine if your wet basement is the result of water "leaking" in or condensation forming on the cool surfaces. Condensation occurs when warm, humid air comes into contact with cooler basement walls, floors, water pipes etc.  To illustrate, take a cold bottle of soda out of your refrigerator and sit it on the counter. After several minutes, you'll notice steam forming on the outside of the bottle. After many minutes pass, you will see a small puddle of water forming at the base of the bottle, from the beads of moisture running down the bottle. The result is classic condensation, not "leakage". If your basement is actually leaking, you should be able to locate the source of the leak in the form of a puddle or stream or water.

Helpful Tips

Your rain gutters should be cleaned of leaves and debris at least once per year.  Downspouts should direct water runoff from the roof to a discharge point at least several feet away from the homes foundation. Use a splash block at the end of your downspout to avoid soil erosion. Never bury your downspout lines unless you can empty them out to daylight.

Consider buying a good dehumidifier to lower the natural humidity level in your basement. Make sure your dehumidifier is the proper size for your basement. Ask for a drain hose attachment so you don't have to empty the water collected every day and get a unit with a built-in de-icer. Dehumidifiers are actually refrigeration coils and can freeze up and stop working.  Keep the doors and windows to your basement closed, year round. Opened doors and windows allow extra humidity to enter your basement, causing condensation. Your dehumidifier will also run less.

Home settle caused be poor lot drainage.Water is the worst enemy to a foundation to a home.Settlement often happens when parts of a house drop below the elevation or height where they were placed during the original construction. There are numerous reasons why this may happen. The soil beneath the foundation or beneath column supports may shrink due to moisture loss. The soil may not have been compacted properly before the foundation was installed. Large pieces of organic material may have been included in the soil under the house. When it decays, the soil above it collapses to fill the void. The list of possibilities is nearly endless. Not all houses settle, but many suffer cracking of one type or another.

Cracks happen for all sorts of reasons. Different construction materials have different expansion and contraction coefficients, some materials change shape and size as they absorb water and water vapor while materials immediately adjacent to them do not budge.Understanding House Settling Cracks.If you have an understanding as to why cracks happen, then you can often work to make permanent repairs. There are some cracks that can't be easily repaired. What's more, it is hard to totally disguise some cracks. Large houses have joints within them. These are places where the house relieves movement, just like the joints in our fingers, arms and legs. I often see cracks in modern homes where columns support beams. You can see cracks right where the contact point between these two structural members meet.

 Hardwood floor often develop cracks. There are all sorts of reasons for that to happen, and almost always they can be traced to a humidity or moisture problem.If you are getting ready to build a home, you need to realize that certain subdivisions are cut and fill operations. In other words, the developer takes dirt from one place and uses it for fill in other parts of the subdivision. If this soil is not placed with great care, it can settle! If you think that you are building on fill dirt, by all means spend the extra money to get it tested by a soil engineering firm. If you don't and you end up with problems.
Shallow Foundations

Many houses are built on slabs or have crawlspaces. The footers for these structures need to be placed just below the frost limit in the local area. The closer the frost line is to the surface (warmer climates) the greater chance you might have for droughts that cause your foundation to move. If you live in an area of clay soils and have seen a dried mud puddle with large cracks in it, then you have expansive clay soils in your area. Not only do these soils shrink sideways as they dry (this creates the cracks you see), but they also shrink down in volume. The shrinkage can be dramatic and can cause all sorts of cracking, door and window fit problems, etc. You can plan ahead and minimize foundation movement if you install water injection pipes next to the footer when you build the structure. I always did this on my jobs and it has given my clients the ability of tricking the soil under their houses and room additions into thinking it is raining up there on the surface!

The way you trick the soil is to install a four inch perforated pipe along the side or on top of the footer of the shallow foundation. You install one or two tee fittings in the piping so that you can extend a vertical riser pipe up to the surface. Install a loose fitting cap over this riser. When the drought hits, you simply let a garden hose run very slowly in the riser pipe for 24 hours or so. The pipe will evenly distribute the water around the footer if you have installed the footer fairly level. This system is simple and inexpensive to install and will save you hundreds of dollars in repairs and lots of headaches as well! If you try to fix a house that has cracks, talk with a structural engineer. If you pier one or more corners, you may create new stress points at other places!

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A construction defect can be so severe that it causes cracks all over your house. The source of the construction defect will dictate what areas of the house will be most affected. Ceilings and fireplaces may show signs of a construction defect rooted from soil issues or water issues, but are not limited to just these two construction defects.

Expansive soil is a major cause of construction defect. Although we have the technology to determine if the land being built on contains expansive soil, builders and/or developers cut corners by disregarding this fact at times. It is necessary to choose a construction plan that will take the soil type into consideration. If a builder does not use these techniques and the soil gets wet, you will see some serious symptoms of a construction defect.Soil issues can be a real problem for a home buyer. This problem that has a tendency to mostly affect the foundation, i.e., floors, slabs and hardwood floors, but can very easily affect the rest of the house.
Your first step is to try to locate all areas of your house that are showing symptoms of a construction defect. This would include floors, slabs and the hardwood in your home,construction negligence, improper soil analysis, poor building materials or inferior workmanship. When the builder or developer chooses land to develop, it is important to conduct a proper survey of the land as well as a proper soil analysis.
Enormous pressure that wet expansive soil can produce during this soil movement as well.

Ceilings are also damaged during a soil movement like when expansive soils swell when wet. When dry, expansive soil shrinks. This means that, depending on the weather, expansive soil can have a twisting effect. Ceilings can also be affected from the top down. For example, water damage from a leaky roof can be a big problem for ceilings. Mold and mildew can grow in ceilings if there is enough moisture present. Mold issues can be devastating. Ceilings that have moisture seeping in can be infected with dryrot which can eventually destroy the ceiling. This can be a very dangerous situation.

Water issues are significant building deficiencies that cannot go too long without being repaired. Unfortunately, depending on the origin of your water issue, you may not be aware of any issue until it has reached a dangerous level. Water could have seeped in through your roof and produced an environment behind your shower perfect for mold or mildew to grow. It may not be until you start to experience some allergic reaction such as breathing problems or skin rashes that you realize that you may have a mold issue in your showers. It is usually then that you break your shower wall to discover that you have mold. Mold can sometimes be cleaned up simply by using a household cleaner, and other times it can require a professional to come in to remove it in its entirety. On the surface this will take care of the mold, but not the root cause of how it got there in the first place. Are there leaks in the roof? Are your showers made from bad building material? Do you have substandard insulation in your walls

Designing and building an energy-efficient home that conforms to the many considerations faced by home builders can be a challenge. However, any house style can be made to require relatively minimal amounts of energy to heat and cool, and be comfortable and healthy. It's easier now to get your architect and builder to use improved designs and construction methods. Even though there are many different design options available, they all have several things in common: a high R-value, tightly sealed thermal envelope; controlled ventilation; and lower than usual heating and cooling bills.
  Some designs are more expensive to build than others, but none of them need to be extremely expensive to construct. Recent technological improvements in building elements and construction techniques, and heating, ventilation, and cooling systems, allow most modern energy saving ideas to be seamlessly integrated into any type of house design without sacrificing comfort, health, or aesthetics. The following is a discussion of the major elements of energy-efficient home design and construction

The Thermal Envelope
A "thermal envelope" is everything about the house that serves to shield the living space from the outdoors. It includes the wall and roof assemblies, insulation, windows, doors, finishes, weather-stripping, and air/vapor retarders. Specific items to consider in these areas are described below.
  Wall and Roof Assemblies
There are several alternatives to the conventional "stick" (wood stud) framed wall and roof construction now available and growing in popularity. They include:

• Optimum Value Engineering (OVE)
  

This is a method of using wood only where it does the most work, thus reducing costly wood use and saving space for insulation. However, workmanship must be of the highest order since there is very little room for construction errors.

• Structural Insulated Panels (SIP)
  

These are generally plywood or oriented strand board (OSB) sheets laminated to a core of foam board. The foam may be 4 to 8 inches thick. Since the SIP acts as both the framing and the insulation, construction is much faster than OVE or it's older counterpart "stick-framing." The quality of construction is often superior too since there are fewer places for workers to make mistakes.

• Insulating Concrete Forms (ICF)
  

These often consist of two layers of extruded foam board (one inside the house and one outside the house) that act as the form for a steel reinforced concrete center. This is the fastest and least likely technique to have construction mistakes. Such buildings are also very strong and easily exceed code requirements for tornado or hurricane prone areas.
  Insulation
An energy-efficient house has much higher insulation R-values than required by most local building codes. For example, a typical house in New York State might have haphazardly installed R-11 fiberglass insulation in the exterior walls and R-19 in the ceiling, and the floors and foundation walls may not be insulated. A similar, but well-designed and constructed house's insulation levels would be in the range of R-20 to R-30 in the walls (including the foundation) and R-50 and R-70 in the ceilings. Carefully applied fiberglass batt or roll, wet-spray cellulose, or foam insulations will fill wall cavities completely.
  Air / Vapor Retarders
These are two things that sometimes can do the same job. How to design and install them depends a great deal on the climate and what method of construction is chosen. No matter where you are building, water vapor condensation is a major threat to the structure of a house. In cold climates, pressure differences can drive warm, moist indoor air into exterior walls and attics. It condenses as it cools. The same can be said for very Southern climates, just in reverse. As the humid outdoor air enters the walls to find cooler wall cavities it condenses into liquid water. This is the main reason why some of the old buildings in the South that have been retrofitted with air conditioners now have mold and rotten wood problems.
  Regardless of your climate, it is important to minimize water vapor migration by using a carefully designed thermal envelope and sound construction practices. Any water vapor that does manage to get into the walls or attics must be allowed to get out again. Some construction methods and climates lend themselves to allowing the vapor to flow towards the outdoors. Others are better suited to letting it flow towards the interior so that the house ventilation system can deal with it.
  The Airtight Drywall Approach and the Simple CS system are other methods to control air and water vapor movement in a residential building. These systems rely on the nearly airtight installation of sheet materials such as drywall or gypsum board on the interior as the main barrier, and carefully sealed foam board and/or plywood on the exterior.
  Foundations and Slabs
Foundation walls and slabs should be at least as well insulated as the living space walls. Uninsulated foundations have a negative impact on home energy use and comfort, especially if the family uses the lower parts of the house as a living space. Also, appliances that supply heat as a by-product, such as domestic hot water heaters, washers, dryers, and freezers, are often located in basements. By carefully insulating the foundation walls and floor of the basement, these appliances can assist in the heating of the house.
  Windows
The typical home loses over 25% of its heat through windows. Since even modern windows insulate less than a wall, in general an energy-efficient home in heating dominated climates should have few windows on the north, east, and west exposures. A rule-of-thumb is that window area should not exceed 8-9% of the floor area, unless your designer is experienced in passive solar techniques. If this is the case, then increasing window area on the southern side of the house to about 12% of the floor area is recommended. In cooling dominated climates, its important to select east, west, and south facing windows with low solar heat gain coefficients (these block solar heat gain). A properly designed roof overhang for south-facing windows is important to avoid overheating in the summer in most areas of the continental United States. At the very least, Energy Star rated windows or their equivalents, should be specified according to the Energy Star regional climatic guidelines.
  In general, the best sealing windows are awning and casement styles since these often close tighter than sliding types. Metal window frames should be avoided, especially in cold climates. Always seal the wall air/vapor diffusion retarder tightly around the edges of the window frame to prevent air and water vapor from entering the wall cavities.
  Air-Sealing
A well-constructed thermal envelope requires that insulating and sealing be precise and thorough. Sealing air leaks everywhere in the thermal envelope reduces energy loss significantly. Good air-sealing alone may reduce utility costs by as much as 50% when compared to other houses of the same type and age. Homes built in this way are so energy-efficient that specifying the correct sizing heating/ cooling system can be tricky. Rules-of-thumb system sizing is often inaccurate, resulting in oversizing and wasteful operation.
  Controlled Ventilation
Since an energy-efficient home is tightly sealed, it's also important and fairly simple to deliberately ventilate the building in a controlled way. Controlled, mechanical ventilation of the building reduces air moisture infiltration and thus the health risks from indoor air pollutants, promotes a more comfortable atmosphere, and reduces the likelihood of structural damage from excessive moisture accumulation.
  A carefully engineered ventilation system is important for other reasons too. Since devices such as furnaces, water heaters, clothes dryers, and bathroom and kitchen exhaust fans exhaust air from the house, it's easier to depressurize a tight house if all else is ignored. Natural draft appliances, such as water heaters, wood stoves, and furnaces may be "back drafted" by exhaust fans and lead to a lethal build-up of toxic gases in the house. For this reason it's a good idea to only use "sealed combustion" heating appliances wherever possible and provide make-up air for all other appliances that can pull air out of the building.
  Heat recovery ventilators (HRV) or energy recovery ventilators (ERV) are growing in use for controlled ventilation in tight homes. These devices salvage about 80% of the energy from the stale exhaust air and then deliver that energy to the fresh entering air by way of a heat exchanger inside the device. They are generally attached to the central forced air system, but they may have their own duct system.
  Other ventilation devices such as through-the-wall and/or "trickle" vents may be used in conjunction with an exhaust fan. They are, however, more expensive to operate and possibly more uncomfortable to use since they have no energy recovery features to pre-condition the incoming air. Uncomfortable incoming air can be a serious problem if the house is in a northern climate, and they can create moisture problems in humid climates. This sort of ventilation strategy is recommended only for very mild to low humidity climates.
  Heating and Cooling Requirements
Houses incorporating the above elements should require relatively small heating systems (typically less than 50,000 Btu/hour even for very cold climates). Some have nothing more than sunshine as the primary source of heat energy. Common choices for auxiliary heating include radiant in-floor heating from a standard gas-fired water heater, a small boiler, furnace, or electric heat pump. Also, any common appliance that gives off "waste" heat can contribute significantly to the heating requirements for such houses. Masonry, pellet, or wood stoves are also options, but they must be operated carefully to avoid "back drafting."
  If an air conditioner is required, a small (6,000 Btu/ hour) unit can be sufficient. Some designs use only a large fan and the cooler evening air to cool down the house. In the morning the house is closed up and it stays comfortable until the next evening.
  Beginning a Project
Houses incorporating the above features have many advantages. They feel more comfortable since the additional insulation keeps the interior wall temperatures more stable. The indoor humidity is better controlled, and drafts are reduced. A tightly sealed air/vapor retarder reduces the likelihood of moisture and air seeping through the walls. They are also very quiet because of the extra insulation and tight construction.
  There are some potential drawbacks. They may cost more and take longer to build than a conventional home, especially if your builder and the contractors are not familiar with them. Even though their structure may differ only slightly from conventional homes, your builder and the contractors may be unwilling to deviate from what they've always done before. They may need education or training if they have no experience with these systems. Because some systems have thicker walls than a "typical" home, they may require a larger foundation to provide the same floor space.
Before beginning a home-building project, carefully evaluate the site and its climate to determine the optimum design and orientation. You may want to take the time to learn how to use some of the energy related software programs that are available to assist you. Prepare a design that accommodates appropriate insulation levels, moisture dynamics, and aesthetics. Decisions regarding appropriate windows, doors, and heating, cooling and ventilating appliances are central to an efficient design. Also evaluate the cost, ease of construction, the builder's limitations, and building code compliance. Some schemes are simple to construct, while others can be extremely complex and thus expensive.
  An increasing number of builders are participating in the federal government's Building America and Energy Star Homes programs, which promote energy-efficient houses. Many builders participate so that they can differentiate themselves from their competitors. Construction costs can vary significantly depending on the materials, construction techniques, contractor profit margin, experience, and the type of heating, cooling and ventilation system chosen. However, the biggest benefits from designing and building an energy-efficient home are its superior comfort level and lower operating costs. This relates directly to an increase in its real-estate market value.          

 In cold climates  the vapor barrier goes on the heated side of
the insulation - No Exceptions. Water vapor is not steam - it is a
molecular gas which flows from areas of high pressure (indoors in winter)
through the wall to an area of low pressure (outdoors in winter). The
purpose of the vapor barrier is to prevent water vapor from entering the
wall - when it travels mostly through the insulation the vapor condenses
(turns into water) and freezes. In very cold climates this ice can
actually build up all winter and run out on your floor in the spring .
Worse yet, it blisters paint, rots sheathing, destroys the insulating value
of batts. And you want that humidity inside during winter - it seems
warmer ("latent heat"), you'll breathe easier, etc.

The last thing on our mind is energy-efficiency. We just want hot water, and we want it NOW! Instead of becoming well-informed consumers we turn into emergency impulse buyers. We rely upon our plumber, contractor, local merchants, friends, and relatives for either the best price or brand. (As a rule of thumb, the least expensive water heater is the most expensive to operate.) With this in mind, lets examine the various considerations we all should take before purchasing our next water heater.

What size or capacity will I need?

Small - Medium Home 1-2 people 40 gal. electric 30 gal. other
(1 bath, Clothes Washer).

Medium Home 3 people 50 gal. electric 40 gal. gas/propane 30 gal. oil.
(1.5 baths, Clothes Washer, Dishwasher)

Medium - Large Home 3-4 people 65 gal. electric 40 gal. other
(2 baths, Dishwasher,Heavy-duty Clothes Washer)

Large Home 5 people 80 gal. electric 50 gal. other
(2+ baths, Heavy-duty Clothes Washer & Dish Washer)

Types of Water Heaters:

Storage type:

The most popular for residential water heating. They operate by releasing hot water from the top of the tank when a hot water tap is on. Cold water is introduced to the bottom of the tank as hot water is drawn. These tanks operate on electric, gas, propane, and oil. Because the water is constantly heated with this system, energy can be wasted even when not being used. This is referred to as "standby heat loss". Consider tanks with at least 1.5 inches (3.8 centimeters) of foam insulation and energy efficiency rating shown on the EnergyGuide labels. Insulation is instrumental in the prevention of standby heat loss.

Demand type:

Also commonly known as "Instantaneous" water heating. This system significantly reduces standby heat loss and reduces energy consumption by 20-30%. With these systems you never run out of hot water. Water travels through a piping system within the unit, and either a gas burner or electric element heats the water on demand. The biggest drawback to this system is limited flow rate. Demand heaters provide hot water at a rate of 2 to 4 gallons per minute. More than adequate if operating hot water at one location at a time. However inadequate if two or more are operating at the same time (i.e. shower and clothes washer). For additional costs, demand heaters can be installed in parallel sequence allowing or meeting hot water demands for multiple faucets operating at the same time. Gas fired demand heaters tend to have higher flow rates than electric. You should note that some gas demand heaters operate with a constant pilot light, however, the amount of energy consumed by a pilot light is quite small.

Heat Pump type:

Electric systems that move heat from one place to another instead of generating heat directly in one spot. They operate in the same manner as refrigerators only in reverse. They can act alone with built-in storage tanks or as add-ons to existing water heaters. They have a high initial cost and require installation in locations the maintain a 40 degree or higher temperature yearlong. To operate most efficiently, they should be placed in areas having excess heat, such as a furnace room. They will not functions properly in a cold space.

Tankless Coil & Indirect types: (Operate off your home heating system.)

Tankless Coil - No separate storage tank is needed in the tankless coil water heater system. Water is heated directly inside the boiler in a hydronic (i.e. hot water) heating system unit. Water flows through a heat exchanger in the boiler whenever a hot water tap is turned on. During the heating season, the tankless coil works well because the heating system is used regularly. The system is less efficient during warmer clients when the boiler is used less frequently.

Indirect - Requires a separate storage tank. Uses the same method of heating water through a heat exchanger as the tankless coil system. However, this heated water then flows to an insulated storage tank (most carry a lifetime warranty.). This system is more efficient than the tankless coil because the boiler does not need to operate frequently. When an indirect water heater is used with a highly efficient boiler they combine for one of the least expensive methods of water heating.

Solar type:

Strongly dependent on the sun, solar water heaters if properly designed, installed and maintained can satisfy half to nearly all of a home's hot water demand. System designs are either classified as passive, active or direct. The initial costs are high but overall operating costs are significantly lower.

Passive systems operate without pumps and controls and can be more reliable, durable, less maintenance, longer lasting, and less expensive to operate than active systems. Active solar water heaters require pumps and controls to move heat-transfer fluids from collectors to storage tanks. Both systems often require conventional water heaters as back-ups.

A direct solar water heating system circulates water through collectors and is not appropriate or recommended in climates in which freezing temperatures occur.

Capacity & Rating Efficiency

Most consumers base their purchase on the size of the water heater. However, the peak hour demand capacity, referred to as the first-hour rating (FHR) and Energy Factor (EF) should be the major basis.

FHR is a measure of how much hot water the heater will deliver during a busy hour, and it is required by law to be listed on the water heaters EnergyGuide label. Gas water heaters have higher FHR's than electric units of the same size. It may be to your benefit to switch to a smaller gas unit. Please bear in mind that if you do decide to switch, other installations costs may be incurred. See the venting section below.

EF is the best indicator of a water heater's efficiency which is based on recovery efficiency (how fast heat is transferred to the water). In short or layman's terms, the higher the EF, the more efficient the water heater.

Venting

Things that you should be aware of especially if you are:

- converting to a gas or oil-fired water heater in an electrically heated home.

In this instance, since no chimney will be available, you have the option of installing a direct vent or power vented gas or oil water heater. Flue gases are extracted through the sidewall of the home.

- converting from an oil-fired water heater to a propane or gas model.

May require that your existing chimney or vent to be resized and the liner changed to maintain adequate draft to avoid condensation in the vent system. Alternatively, a direct vent or power vented unit could be installed.

- replacing an existing gas, propane or oil-fired water heater with a more efficient model.

Sidewall venting may be the only practical option because of the potential increase in condensation formed in the venting system.

- replacing an existing gas, propane, or oil-fired water heater with an electric water heater.

Electric water heaters require no venting. They are simple to install and can be located in many areas of the home.

Additional Important Note

Most municipalities require permits, etc. prior to installation/replacement of water heater systems. Consult your local code officials for details. As always if you feel uncomfortable performing any of these tasks, please consult a professional.