By: Gil Rudawsky
Published: September 16, 2009
Upgrading to a qualifying energy-efficient metal or asphalt roof can cut your cooling bill as well as knock off up to $1,500 from your tax bill.
The roof of your house protects against more than rain. The sun's rays beat down relentlessly, especially during summer. The intense heat can raise the temperature inside your home. Proper venting and insulation help keep the cool air in and the warm air out. So, too, do energy-efficient roofing materials, which take the brunt of the solar onslaught. Uncle Sam is encouraging homeowners to improve the roofs of their primary residences with a tax credit worth up to $1,500.
During 2009 and 2010, you can claim a credit for 30% of the cost of qualifying asphalt or metal roofing materials. The credit, which should be taken on IRS Form 5695 for the tax year in which the work is completed, can be split between 2009 and 2010 but can't exceed $1,500 total for both years. You can't claim more in credits than you owe in taxes.
To qualify for the tax credit, you must use either metal or asphalt roofing materials that are designed to reduce heat gain-the amount of heat transferred into a home-and meet the requirements of Energy Star (http://www.energystar.gov), a federal program that promotes energy-efficient products and practices. Metal roofs must have appropriate pigmented coatings and asphalt roofs must have appropriate cooling granules. Asphalt materials can be either traditional shingles or modified bitumen (rolled asphalt sheets). Energy Star has a list (http://downloads.energystar.gov/bi/qplist/roofs_prod_list.pdf) of all of its approved roofing products, but only the metal and asphalt materials may qualify for the tax credit.
It's a good idea to hang on to manufacturers' certification statements (http://www.gerardusa.com/Energy%20Star/ESTaxCert.pdf) that attest to the tax credit-worthiness of the roofing materials you purchase. These can usually be found on product packaging or company websites. You don't need to file these with your tax return, but the IRS could ask for them later. Consult a tax advisor.
Dean Kucharski, a 22-year veteran of the roofing business in Pontiac, Mich., estimates that for a typical 2,200-square-foot home, a mid-range asphalt roof will run about $7,000 to $12,000, including labor. The good news is that it will likely last 20 years or more. For a metal roof, expect to pay twice as much, though it can last for 50 years, he says. If you hire a contractor, get an itemized bill that breaks out the cost of materials since labor doesn't count toward the tax credit. Materials should account for about half the bill on standard roofing jobs.
You can get a rough estimate of how much roofing material you'll need by figuring the square footage of the footprint of your home and adding about one-third more to account for roof pitch, overhangs, dormers, gables, and so on. Roofing contractors often quote in terms of "squares." One square equals 100 square feet. So if a roofer says your house is 20 squares, it means it's roughly 2,000 square feet-20 times 100.
Once you're ready to pick a roof type, Kucharski suggests talking to an area building wholesaler or a company that specializes in roofing materials. It's important to consult with someone who knows what types of materials are appropriate for a given region's climate. Big-box retailers may not have as wide a selection or knowledgeable staff.
Finding a good roofer entails the same steps as finding any qualified contractor: ask neighbors for recommendations, collect at least three bids, check references, and get everything in writing. Craig Silvertooth, executive director of the Center for Environmental Innovation in Roofing (http://www.roofingcenter.org/), recommends finding a contractor through the National Roofing Contractors Association (http://www.nrca.net/), which has about 4,000 members.
You'll get the most bang for your roof-renovation buck if you live in a hot climate, namely the South and Southwest. Expect to save between 7% and 15% on your cooling costs with energy-efficient roofing materials, says Michelle Van Tijen of the Cool Roofs Rating Council (http://www.coolroofs.org/). If you pay $300 a month to cool your home, figure you'll cut your monthly bill by up to $45.
Ironically, with roofs there is such a thing as being too energy efficient. In winter months, roofing materials with very high heat-deflecting qualities can increase heating bills. However, you're more than likely to make up the difference on your air-conditioning costs. That's especially true if you live in an area where you run your air conditioner much of the year.
Think hard before replacing a roof that's in perfectly good shape. Consider instead a roof coating, a material painted over your existing roof that offers insulation and sun reflection, says Silvertooth. Roof coating costs about 75% less than replacing a roof, though it doesn't qualify for the tax credit. Another affordable way to save on cooling costs that doesn't even involve the roof is to add more insulation (http://www.houselogic.com/articles/tax-credits-adding-or-replacing-insulation/) to your attic. This home-improvement project can even be tackled by weekend warriors, and it qualifies for a federal tax credit.
This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.
Gil Rudawsky has been covering business and consumer issues as a reporter and an editor for 18 years, most recently as a business editor at the Rocky Mountain News. He lives in a house built in the 1930s, and always keeps the home's character in mind when making upgrades.
Reprinted from HouseLogic (houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS® Copyright 2009. All rights reserved.
You probably know many steps you can take to make your home more attractive to would-be buyers. Keep the yard mowed and edged, put a fresh coat of paint on the front door and you’ve started boosting its curb appeal. Inside the home, be diligent with cleaning chores and putting things away so the house looks its best whenever a buyer shows up.
But consider taking the presentation of your home even further if you want to the best chance to sell it quickly and for the highest possible price. That’s where home staging comes in. Staging helps you make the home more appealing to the widest possible audience.
Staging works best when someone with a practiced eye evaluates your home to give you tips to make it more sellable. Most people have a hard time seeing their home objectively enough to make good staging decisions.
Your Realtor® may have experience staging homes or at least have suggestions to get you started. He or she may also have a list of staging professionals for you to consider hiring. As with hiring other professionals, you can ask friends for referrals and you should inquire about the stager’s references. Also, make sure to ask the home stager whether they will give you a free estimate.
Home staging may involve removing some furnishings, making changes to the décor, or moving some furniture around. Some stagers may bring in new furniture or suggest accessories that can make a difference. You might get advice about painting a room a different color.
Remember that staging your home is not the same as decorating it. Staging is all about helping potential buyers focus on the property’s best features while minimizing the less attractive ones. Knowing that, you shouldn’t be offended if the home stager recommends changes to the master bedroom that you spent so long getting just the way you like it.
It’s not about you anymore; it’s about the people who will consider buying your home. And the better the impression your house makes on buyers, the closer you will be to making a sale.
Whether you're interested in buying your first home, your next home, or just want to know more about home-ownership in general, I encourage you to check out a couple of great online resources: http://www.texasrealestate.com/ or http://www.har.com/ and for all of your Pearland TX and Northern Brazoria and Galveston County real estate needs, please visit my site at http://www.danfrankrealty.com/. All of these sites offer tons of useful, real estate-related information geared specifically for Texans.
Danny Frank is a local Pearland TX Real Estate expert! You can see my entire blog at http://www.pearlandrealtyblog.com
My column was also published in the 14Nov09 edition of the Galveston County Daily News
When you purchase a house, you’re not just buying land and a structure. You're also choosing the community you’ll live in. Finding the right neighborhood for you is an important consideration. After all, many details of your daily life depend on your location. And while you certainly can describe a neighborhood by a subdivision name or the streets that form its boundaries, a neighborhood is much more than a section on the map. It is defined by the people, amenities and character of the area.
Set your priorities
Deciding on a neighborhood that fits your lifestyle and desires is an important step in ensuring your happiness. It can be challenging, too. There are so many things to consider.
Quality schools top many homebuyer lists of desirable neighborhood amenities. It may surprise you that being in an area with good schools is important even for people without children because of the influence on resale value.
It’s unfortunate that we have to think about it, but crime statistics of a neighborhood are important, too. Take your time and do your research on this one.
You will also want to consider transportation issues, such as how living in this area is going to affect your commute and the ease of access to public transportation and major thoroughfares.
Some people would like to be in close proximity to healthcare facilities. Others find that having quick access to shopping centers or their favorite grocery store or restaurants is a top priority. Still others may value features such as public pools and parks, access to bike routes and jogging and walking trails.
Everyone’s list will be different. The key is to find a neighborhood that scores well in areas you deem important. That’s a good place to concentrate your search.
It would be great if you found everything you were looking for, and I hope that you do. However, if you’re like many people, you may have to make some sacrifices. A neighborhood you’re considering may score well on most of your checklist but not meet every single one of your criteria. That’s when you have to decide if a missing attribute can be offset by the presence of another.
Now that you know what’s important
Once you establish what you want in a neighborhood, how do you find a place that has what you’re looking for?
A great way to judge the character of an area is to go out and view it with your own eyes. If you have the opportunity, get in your car and drive around or walk through the neighborhood. Don’t limit yourself to one particular time of day. Visit the neighborhood during rush hour, mid-day, on weekends and other times to see if there are significant changes at different times.
Talk to people who live and work there. Ask them to candidly describe their neighborhood. Check out the schools and stores.
If you are relocating to a new city and want to get a feel for the area, subscribe to the community newspaper. You can find out a lot about a neighborhood through a local paper.
Searching the Internet can yield interesting results, too. Many neighborhoods have online communities where frank, lively discussions of neighborhood issues are common.
You also can find sites that offer demographic information, data about crime, statistics about public and private schools, business reviews and much more.
Get local expertise
When you purchase a house, you’re also making an investment in a neighborhood. As a result, choosing the neighborhood should be a primary consideration when you begin your home search. Many Realtors specialize in specific neighborhoods and can offer valuable insider advice and local expertise.
Whether you're interested in buying your first home, your next home, or just want to know more about home-ownership in general, I encourage you to check out a couple of great online resources: http://www.texasrealestate.com/ or http://www.har.com/ and for all of your Pearland TX and Northern Brazoria and Galveston County real estate needs, please visit my site at http://www.danfrankrealty.com/. All of these sites offer tons of useful, real estate-related information geared specifically for Texans.
Danny Frank is a local Pearland TX Real Estate expert! You can see my entire blog at http://www.pearlandrealtyblog.com
My column was also published in the 09Oct09 edition of the Galveston County Daily News
Does it surprise you that Texas homeowners pay more for homeowners insurance than residents of any other state in the U.S.? You may wonder why residents of Florida, with all of its hurricanes, and California with earthquakes, mudslides and wildfires don't pay more. Average Texas rates easily surpass those states, though, according to information from the National Association of Insurance Commissioners. Weather is a major factor in the cost and Texas has historically had hail, hurricanes, tornadoes and floods.
Although insurance companies determine your rate by looking at data across the state as well as by zip code, there are steps you can take to make sure you're getting the best deal possible.
Consider the property
When purchasing a house, you may want to consider its age. The newer the home, the cheaper it usually is to insure. Also, when you purchase a new home, some insurance companies will give you a discount because they believe fewer problems will occur. Now that doesn't mean you should buy a new home solely because of insurance costs. But it is a factor to keep in mind.
When purchasing an existing home, you may want to inquire about that property's CLUE report (Comprehensive Loss Underwriting Exchange). Only the homeowner can order this report, so you must request it from the seller. The CLUE report will enable you to learn about the history of insurance claims for the property. Not only will a lengthy list of claims be of interest to you regarding the property's condition - it might have some bearing on premium costs and your ability to secure coverage.
Increase the amount of your deductible
The deductible amount you choose makes a significant difference in your premiums. The deductible is the amount of money you have to pay toward a loss before the insurance company will begin covering your claim. If you choose a higher deductible, you will save money on your insurance premiums. Basically the more risk you take on, the lower your premium will cost. But make sure you have the means to pay your deductible if a loss should occur.
Don't over-insure
When you are considering how much coverage to buy, don't include the value of the land. The land, for the most part, is not susceptible to damage like the structure of your home is prone to, such as hail, wind, theft, etc.
Use security devices
Many insurance companies will offer a discount - sometimes as high as 20 percent - when you install a security system that includes a burglar alarm to call the police. Even just installing deadbolts and smoke alarms can save you a few dollars. Before making a major change in your security measures, talk to your insurance company about what kind of discounts they offer and how much it would lower your premium.
Retire or kick the habit
Smokers typically have higher premiums because their homes are more susceptible to house fires than nonsmokers. Also if you are 55 years or older, ask your carrier if they offer a discount for seniors.
Use the same company for multiple policies
Some insurance companies give you a discount if you buy more than one policy from them, such as homeowners insurance and automobile insurance. This multiple policy discount can save you as much as 15 percent.
For more information about homeowners insurance, you can find a wealth of resources on the Texas Department of Insurance Web site, http://www.tdi.state.tx.us.
You can also talk with your Realtor. Realtors are knowledgeable about homeowners insurance and may be able to help guide you into making a decision that could save a substantial amount of money. Your Realtor understands insurance as well as all of the aspects involved with purchasing or selling a home.
Whether you're interested in buying your first home, your next home, or just want to know more about home-ownership in general, I encourage you to check out a couple of great online resources: http://www.texasrealestate.com/ or http://www.har.com/ and for all of your Pearland TX and Northern Brazoria and Galveston County real estate needs, please visit my site at http://www.danfrankrealty.com/. All of these sites offer tons of useful, real estate-related information geared specifically for Texans.
Danny Frank is a local Pearland TX Real Estate expert! You can see my entire blog at http://www.pearlandrealtyblog.com
My column was also published in the 23Aug09 edition of the Galveston County Daily News
Interested in a green home? I'm not talking about paint color. I mean green as in environmentally friendly.
Many consumers today consider the environment when making purchases. Just look at the popularity of hybrid vehicles, alternative fuels, locally grown produce and a host of other products designed to use fewer resources and reduce pollution and waste. Add housing to the list.
What pollutes more - a car or a house?
You don't think of houses being responsible for carbon emissions, but they are - to a significant degree. The energy you use for heating, cooling, appliances and lighting most likely comes from a source that produces carbon emissions. Other factors, like water use and building materials used to construct or remodel a home, can also significantly affect the environment.
You might think the best way to "go green" in housing is to start from scratch. And it's true. If you're building a new, custom home, you can make decisions that will greatly increase energy and water efficiency. You can also select the most environmentally friendly building materials and construction methods. But if you're not building a new home, there's no need to throw up your hands. There's still plenty you can do to make a difference.
How low can you go?
When looking to purchase an existing house, it's possible to assess some aspects of its energy use. How old is the air conditioning unit? Does the landscaping consist of native plants? You might even be able to secure energy bills from the current owner to review electricity and water usage (but keep in mind that your usage may vary considerably).
You can also hire a professional to better determine just how energy efficient or inefficient a home may be.
Whether purchasing a home or wanting to make the best of the house you already own, there are many steps you can take to improve energy efficiency. Here are some examples:
You probably know that efforts like these offer benefits beyond helping the environment. They also save money. Yes, you pay more on the front end to make improvements such as those listed above, but each one of them reduces your expenses - often paying for itself in short order. As energy costs continue to rise, the more you can do to cut consumption, the more it pays off.
Be informed
You can find information online about how to lower your energy consumption and make wise environmental choices in housing. The EPA's Energy Star Web site, EnergyStar.gov, offers resources and tips about new homes, home improvements and more. You can find advice, calculators and other helpful tools on other sites as well.
Your Realtor also can help you make informed, green decisions. Some agents have even taken courses specifically designed to help their clients reap the benefits of environmentally friendly practices.
Whether you're interested in buying your first home, your next home, or just want to know more about home-ownership in general, I encourage you to check out a couple of great online resources: http://www.texasrealestate.com/ or http://www.har.com/ and for all of your Pearland TX and Northern Brazoria and Galveston County real estate needs, please visit my site at http://www.danfrankrealty.com/. All of these sites offer tons of useful, real estate-related information geared specifically for Texans.
Danny Frank is a local Pearland TX Real Estate expert! You can see my entire blog at http://www.pearlandrealtyblog.com
My column was also published in the 16Aug09 edition of the Galveston County Daily News
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