Eco Friendly Real Estate Blog

As part of Turning Houston Green's webinar series on how to green an existing home, here is the recorded version of our 4th program.  Michael Strong and I discuss Windows and Radiant Barrier.

It's not just about getting new windows or finding a radiant barrier.  Here we provide you with all of the questions you may have and/or need to ask your installers to get the biggest bang for your buck.  We also talk about the new Tax Credits to help you maximize what is available.

Our next webinar is on March 28th and we will be going over Indoor Air Quality.  We would love to have you join us!

I would also like to take a quick moment to Thank our Sponsors for helping to bring this to you:

Pella Windows

Bluegill Energy Management

Lutron Lighting and Electronics

***

Traditional Neighborhoods, Solar Power and Plug In Vehicles - Oh My!

This post is part of an ongoing series that takes a look at the larger picture.  The trickle down effect.  The Domino Effect.  Whatever you want to call it.  One of my recent posts was 'Who The Heck Cares About Green' and I talked about where I personally believe the Building Industry is headed. 

Recently here in Houston we have seen more of a demand for the Traditional Neighborhood Development.  The ones where in the pictures you see families walking down the streets to go to the Community Park or Couples walking to the local Coffee Shop hand in hand.  The Communities where everything is close together and nearby.

This was partly the result of Gas Prices going up, but it was also sort of that WalMart and Pizza Delivery mentality.  Convenience.  Being able to get anywhere quickly and not take half of your day to go to the Grocery Store and back while sitting in traffic along the way.

Now, one of the biggest things that we will start to hear about over the next year or two are Electric Vehicles and Solar Power.  Why?  Because there are some rather hefty Tax Credits out there for consumers.  $2500-$7500 for Electric (Plug In) Vehicles and 30% with NO CAP for Solar Powered products such as Panels and Water Heating. 

Isn't it funny how those two things kind of go hand in hand?  It's even more interesting that those items are indirectly home related?

How so?  Well, people will obviously be most likely to Plug In a vehicle at their house.  There are also adapters that allow these cars to Plug In via Solar Panels.  Yet another way to take advantage of the Tax Credits available right now.

Where there is a new technology there are Consumers.  Where there are Consumers, there are companies and manufacturers that provide what the Consumers want. 

So where is all of the headed?  To the Builders, the ones that build homes that we buy.  In my previous post I mention how there are so many Green Building Programs available around the Nation.  On most of these, a Builder or Developer will be able to rate a home/community higher by including....Oh...let's say...

The ability for an outdoor charging station for a vehicle at the house or Community Center?  Or Solar Panels or maybe to have a home READY for Solar Panels?

To use a Local example, Land Tejas, a Houston Developer has now said that in a handful of their actively growing Communities that EVERY home built in there will be Solar Ready.  Land Tejas also has the ONLY Community being built in Houston that has Solar on EVERY Rooftop.  Discovery at Spring Trails.

This means that when the home is built it will be wired and ready to go at anytime the Homeowner may decide to install Solar Power.  The builders offer incentives that make Solar incredibly affordable but if a few years from now a Buyer decides to put on Solar...it's ready to go.

Land Tejas also specializes in Master Planned Communities.  The closest thing to a Traditional Neighborhood Development that you can get in Houston with Schools, Shopping and Amenities galore either within the Neighborhood or VERY close by. 

They are the type of Communities where an Electric Vehicle would be a fantastic idea for getting from one place to another.

Not only in Developments such as these, but others across the Nation, this will open doors for Builders to open for some friendly competition with little upgrades such as that nifty Charging Station outside or Batteries for Solar Panels during Hurricane Season in Gulf Coast Regions just in case our power goes out for weeks on end again. 

It's all getting back to the whole Pizza Delivery thing again.  Convenience.  Or maybe even the desire for lower utility bills.  Does all of this sound kind of Far Fetched?  With over 20 Bills Proposed in Texas State Legislation alone for 2009 involving in one way or another Incentives for Home Owners and Businesses to go Solar it probably isn't such a wild and crazy - far fetched plan.

It's not just about being Environmentally Friendly.  Right now I think it is fair to say that it is mostly about creating markets for jobs and a balanced economy in the future.  As it becomes more normal, it very well could be lifestyle.  Kind of like Recycling in many parts of the Nation.  It's just another piece of the puzzle.

**The Canyon Gate Communities offering homes with Solar are Park Lakes, Canyon Lakes West and Discovery at Spring Trails.**

"How do people have the money to buy homes that need foundation repair and tons of work?" 

Answer:  They don't need to have the cash to do it.  Here's the story.

We have all seen those homes.  You walk in and it is in dis-repair needing paint, flooring - Maybe it's outdated and needs some new appliances.  Sometimes it is difficult to look past all of that and picture a beautiful home.  One that your family can live in and enjoy.

Others see a home with 'potential'.  The home is a good consideration, especially at that price!  Let's look a little further.  And then, Uh Oh.

What are all of these cracks?  There may be some around the windows, where the sheetrock comes together in the corners.  The floor, it feels like we are walking downhill!  We then go outside to see significant cracks in the exterior of the home.

Immediately people think foundation problems.  With everything else, why would I want to tackle that?  It can be very costly, maybe we should just keep looking.

Well, maybe it is foundation problems - Maybe it isn't.  Maybe it is just an older home that has settled naturally.  It is not uncommon here in the Southern Region of the United States.  Especially if the home has sat vacant for a long period of time.  Often times people will walk away.  They feel that they do not want to do inspections and find out if there really is a problem they just keep moving and find another house. 

But you know what?  SOMEONE will buy that house.  6 months later you may see it back on the market by an investor that does a complete makeover on the home and you know what else?  You would never believe it unless you had seen it with your own eyes 6 months earlier.  You hear whispers of 'Can you believe it? Do you remember how much that home SOLD for?  I can't believe it!'

It must have been an investor with a lot of money.  Or, let's just leave that one to an investor with a lot of money.  That's what was heard before, when it needed work.

Home Buyers are looking for 'deals', but here in Houston, the homes that are 'perfect' still sell quickly.  They also sell for a higher price. However, the one I mentioned above that sits on the market for a while?  It may go for a REALLY great value to the Home Buyer.

Using an FHA 203K loan a regular Home Buyer, one that intends on LIVING in the home and ENJOYING the home can still purchase at just 3.5% down.  You know what else?  They can have ALL of the questionable repairs done.  EVEN THE FOUNDATION REPAIR!

FHA 203K is the ONLY loan that I am aware of that allows for Foundation Repair to be rolled in to the loan.  Along with paint, moving walls, landscaping, new countertops...just about anything!

ATTENTION Buyers looking for a good deal:  Consider these Mortgage Products!  Renovation and FHA 203K Loans. 

• As little as 3.5% down
• Roll in the cost of repairs
• Work must be done by qualified and licensed professionals
• Usually within 60 days of closing
• Competitive Interest Rates

Someone will buy that really neat home that needs a lot of repair and probably at a great price.  It may as well be you! 

If you need the name and number to a Qualified Mortgage Professional that can do these loans and has experience with them, just send me an email.  I would be happy to send you their name and number.  If it is the home for YOU, just make it happen!

Because I write about Green Real Estate, well, always...I hear this.  "I don't care." "I'm tired of hearing about it." "It will never go mainstream"  "It will go away like in the 70's and 80's"

I understand what you are saying.  I really do.  Before we consider a few things to help make a point, I'm going to go way out on a limb, in writing.  The term 'Green' in 'Green Building'. Yes.  It will go away.  Homes built to what is considered to be 'green' today will not be called this forever.  As a matter of fact, I predict that within 7-10 years the term will completely go away, if not sooner.

Notice I say 'the term'.  The science behind 'green building' is going no where.  'Green Building' will be NORMAL.  In no more than 10 years I predict that 'Green Building' will be CODE in most large Municipalities around the Nation.  There, I said it. I also predict that within the next 2-3 years the building industry will be taken by storm with reports on how unhealthy some of the building materials are that we use and it will be backed by major and well respected Non Profit organizations.  For example, maybe the American Cancer Society.

Now.  Let's consider the 'term' Code.  We know this as the law in which homes MUST be built.  However, I'm going to translate the term Code using a definition from someone I know.

"Code. If a builder tells you that their home meets Code, what they have just told you is that essentially they have just built you the WORST possible product allowed by Law."

Consider that.  Why in the world would I say all of this?  It's not because this is what I do.  It's not because I think every builder and City across America is going to all of the sudden want to save the Environment.  It's not about being a Treehugger.

Here are a few things that have happened just in the last 12 months:

• There are now Cities that require a HERS Rating to be performed on both new construction AND resale homes
• The City of Houston as well as others require Commercial Buildings over 10,000 sq ft to be built LEED Certified.  (that means Green)
• The City of Houston adopted the IEC 2006 as Energy CODE for Residential Properties built within the City limits.  To translate, that is said to be close to 10%-15% above Energy Star

Quick side note.  Energy Star is supposed to be 15% ABOVE Texas Building Code.  Not only have we seen an increase in required ratings for Energy Star products, but will possibly see Nationally, an increase in what is required for an Energy Star home because that worst possible home built in some Cities EXCEEDS ENERGY STAR STANDARDS.

• The State of Texas is considering making it mandatory to have a HERS Rating as a mandatory field on all MLS, but not necessarily required to have one performed. We can tell where that is headed.
  
• The City of Houston is making a website where you can go to see how your Energy Usage compares to your neighbor's

I could go on and on.  If you go to a home show it is not uncommon to have a Consumer stop by a booth and know more about the systems involved in Green Building than the builder themselves.  What do they do?  Well, they move on of course.  They find one that knows what a sealed attic is and how to do it or whatever else they are looking for in their home.

We are at a tipping point now where it is almost a liability to NOT know what this stuff means. 

Like it or not, the writing is on the wall.  Energy Codes are changing at Warp Speed and 'Green' is a major component of that.  We as an industry need to stay up to date and educated about all of it.  Regardless of what industry you are in or if you are a consumer- If you are rejecting the idea of learning about it now is the time to start.  If you are a Real Estate Professional, don't let it get to the point where your clients know more about it than you do. 

It's no longer going to be questions about post tension slabs and double pane windows.  It is overall Home Performance.  No one is trying to shove a concept down your throat or change your beliefs, it's just a little food for thought.

***Shameless Plug***  If you want to learn more about all of this, feel free to sign up for my webinars or listen to the recorded ones.

We have heard ALL THE RAVE about how the Stimulus Bill had a ton of Energy Efficient Tax Credit stuff in it.  No cap on Solar and Geothermal - 30% up to a MAX of $1500 on Energy Efficient Improvements ...

One of the best parts of that is being able to get up to $1500 back for New Windows.  You know, those crummy single pane windows that you would love to rip out.  But, Hold On!  Have you read to see what qualifies?  I went in to Home Depot the other day and not a SINGLE WINDOW QUALIFIED that they had in there.

That does not mean that the product was bad.  That's not the case at all.  As a matter of fact, the majority of windows that are Energy Star Rated will not qualify.  The Guidelines to receive the Credit are very strict.  The U-Factor AND Solar Heat Gain CoEfficient BOTH have to be = or Below .30

To get the Scoop I went to visit Bob Birner with Renewal By Andersen Windows.  You may also know Bob as the Host of the Home Improvement Hotline on Sunday morning from 9a-12p.  If you are wanting to change out your windows and reap the benefit of the $1500 - Make sure that you listen in so you are not an angry Tax Payer next year.  By the way, all of you folks in the Houston area - Bob has Windows that qualify under both ratings.

The Stimulus Bill, it's rather confusing.  I have previously posted some of the Positive Sides to the Bill and this is part 3 of my Energy Efficiency Tax Credits in the '09 Stimulus Bill.

If you have been following my Webinar Series through 'Turning Houston Green' on Greening the Existing Home, you know that this Saturday, Michael Strong and I will be going over Water and Lighting Fixtures.  Part of this will be in regards to Energy Efficient Water Heating Solutions which includes Tankless and Solar Water Heating.

In doing our research, we noted that the Stimulus Bill changed the Tax Credits for this also.  Because the changes go through 2010, we think it is important for people to understand what it is you can actually get with your Tax Credits.  Be an educated consumer so that you can make the most of you upgrades.

So, here's the 411:

Tankless Water Heaters - Whether you get one that is Gas or Electric, it still needs Electricity.  Why?  There is an actual start for these babies to kick in and start heating your water.  So, with a Gas Tankless Water Heater, it still uses ELECTRICITY to start up.  THEN uses the Gas to heat the water.  This means that during a power outage, you will STILL NOT HAVE HOT WATER.  Because of this, Tankless Hot Water Heaters fall under the Energy Efficiency portion of the Stimulus Bill.

What does that mean to you?  You can get a Tax Credit for 30% of the purchase UP TO $1500 on ALL of your Energy Efficient Improvements - (such as windows which will be another post)  Max.  That's It.  $1500.

Now, Solar Water Heating:

This is considered to be Renewable Energy.  No electricity or gas is really required.  That means that you are solely using electricity derived from a Renewable Source, in this case THE SUN.  During a power outage you WILL HAVE Hot Water.  (not that the power outage has anything to do with, just making a point)

For these reasons, it falls under a completely different category.  Actually, it falls under the same category as GeoThermal and traditional Solar Panels. 

What does this mean to you?  You can get a Tax Credit for 30% WITH NO CAP!! 

Personally, I would use the Energy Efficient Tax Credit for Windows, Insulation, etc. and maximize by upgrading to Solar Hot Water.  You can only get a Maximum One Time Tax Credit of $1500 for Energy Efficiency, yet there is no cap on Solar/Renewable Energy right now. 

With a typical cost of $5000 for Solar Water Heaters - That would give you an ADDITIONAL $1500 Tax Credit if you are making other Energy Efficient Improvements to your home. 

Just a little food for thought.  To sign up for our Webinar Series on Saturday for more details on the Benefits of Energy Efficient Water Fixtures in your home, you can register here.

***Source:  Pages 125-127 of the Division B Tax, Unemployment, Health, State Fiscal Relief and Other Provisions from the Department of Energy Website***

***Photos:  These are from Houston's First LEED Certified Home Built by Greenhaus Builders***

This past Saturday Michael Strong and I held the 3rd Seminar in the set of 8 on Greening the Existing Home.  We reviewed HVAC and Insulation - What is SEER - Kinds of Insulation - What part is DIY if you wanted?

The Series is really coming along, the crowd is starting to open op and ask more questions.  If you think you would like to know about any of this, we would love to have you!

To sign up for Future Webinar Series, I invite you to register with this link.  We have the registration links posted for the duration of the Series and is expected to end on April 2nd.

Here is the rest of the schedule right now - Again, all links are for registration.

• Feb. 24th from 7p-8p       Radiant Barrier and Windows
• Feb. 26th from 7p-8p     Water Conservation Fixtures and Delivery Systems
• March 28th from 11a-12p         Indoor Air Quality
• March 31st from 7p-8p       Durability
• April 2nd from 7p-8p       Top 10 Practices and Green Guidelines

And now, the recorded session.  :0)  You can read the Chat Archive here

I would also like to take a quick moment to Thank our Sponsors for helping to bring this to you:

Pella Windows

Bluegill Energy Management

Lutron Lighting and Electronics

***

For those that have been around the Houston area for an extended amount of time, you are familiar with North Harris Montgomery College - The local College that not only offers courses for those starting out their College Education, BUT ALSO a Huge Variety of Continuing Education Courses for both Professionals AND Homeowners!

North Harris College this past year changed their name to Lone Star College Systems!

One of the Courses that is on the Spring 2009 Schedule for the location on WW Thorne by Intercontinental Airport is 'How To Make Your Home More Energy Efficient'!  If you follow my blog, you guessed it right.  It's being taught by Yours Truly - Stephanie Edwards-Musa - Houston's Realtor and Certified EcoBroker -

The course costs $35 and I guarantee that I will have that money back to you through a lower Utility Bill with what you learn in the class.

The Course runs 2 nights a week for 2 weeks in both March and April from 6p-8p in the evening.  The majority of the coursework will be what you can do yourself over a weekend with some Homework at the end of each day to make it a little more fun learning and so that you can get a good idea of how YOUR particular home works.

Every home is different, this course will teach you about YOURS in particular.

It's not just about Light Bulbs!  We will go in to how you need to have a strategic approach when sealing up your home and step by step what should be done to maximize the money you spend so that it is not wasted.

To register for the class you can call the College at 281-618-5400 and ask for the Continuing Education Dept.  I hope to see you there!  Below is a Calendar that has the Courses. 

March 17-26 on Tuesdays and Thursdays

April 20-29 on Mondays and Wednesdays

Just a quick reminder that the 3rd part of our Webinar series on how to make an Existing Home Green with myself and Michael Strong of Brothers Strong is this Saturday February 21st at 11 am.  The topic this week will be HVAC and Insulation. 

We will go over what you need to know about changing out and upgrading your existing Heat and A/C system to one that is more efficient and everything in regards to Insulation. 

We have changed the initial dates for the rest of the Series so that we can be all finished up by April 2nd that will have you ready to go for the HOT and HUMID Summer here in Houston!  You can take everything you learn to get those summer utility bills down! 

Here are the topics for the rest of the Series and below is the Calendar for TurningHoustonGreen.  Just take a quick look through and see if there is anything you are interested in!

Register for Part 3 Webinar

I would also like to take a quick moment to Thank our Sponsors for helping to bring this to you:

Pella Windows

Bluegill Energy Management

Lutron Lighting and Electronics

***

Energy Efficiency, Energy Efficiency, Energy Efficiency.  It is all we have heard for about a year and is one of the Hottest topics in the 2009 State of Texas Legislative Session.  However, in Houston we may NOT want to wait to see what happens this year - We should probably consider making the changes NOW!

Part of the infamous Bailout last October was to extend some Federal Tax Credits for Energy Efficiency and Renewable Energy.  While the Solar Tax Credits were improved AND extended through 2016, The Tax Credit for Energy Efficient Improvements was ONLY extended through 2009! 

The Federal Tax Credit includes:

• Windows and Doors
• Insulation
• HVAC
• Water Heaters
  
• AND MORE

Now, The Tax Credit is for 10% of the cost and UP TO $500 -

While that may not have you running to the Phone Book to find a Contractor, let's consider making these changes ON MEMORIAL DAY WEEKEND May 23-25 2009 -

Odd, I know, that I would recommend only doing this on ONE Weekend a year - Let me Explain.

The State of Texas has scheduled the Tax Free Weekend for Energy Star Items again this year!  It's on Memorial Day weekend and for what is Energy Star Rated, IT IS TAX FREE!  Here is what falls under the Tax Abatement:

• A/C Systems priced Under $6,000
• Programmable Thermostats
• Ceiling Fans
• Dishwashers
• Dehumidifiers (which could go under A/C)
• LIGHT BULBS (STOCK UP FOR THE YEAR OR TWO!)
• Refrigerators under $2000

Under the State of Texas Program this sometimes will also include some Installation/Delivery costs AND will work on all Online Purchases!!

So now, if you combine the two this year - You can get $500 back on your 2009 Tax Return AND save at least 8% on Tax when Buying it on Memorial Day Weekend!  Here's a breakdown:

• $400 Dishwasher - $33 in tax
• $50 Programmable Thermostat - $4.13 in tax
• HVAC based on $3000 System - $247.50 in tax
  
• Water Heater - $16.50 in tax
  

You could potentially save A LOT of money.  If you decide to only do the ones that can qualify TWICE you may want to consider an HVAC System and Water Heater over Memorial Day.

Let's hope that the Federal Incentive is extended past 2009 but I know for a fact that some Energy Efficiency items that I was personally holding off on, I'm going to do this year.

If you decide to take advantage of these items, be sure to stop back by and let us know how much you save!!

*****UPDATE*****

Part of the lovely Stimulus package that people either love or hate from Feb. 2009 has extended the Federal Tax Credit through 2010.  But still consider making these changes on Memorial Day weekend!