How to Go Green and Reduce Your Home's Expenses

Going green isn't just for environmentalists anymore...it's for all homeowners who want to save thousands when building a new home or updating their current residence. There are a variety of ways to make your home more energy efficient, from simply switching to Compact Fluorescent Light Bulbs (saving about $30 or more in electricity costs over each bulb's lifetime), to installing solar panels (saving up to $2,500 on an average home's annual utility bill). Plus, according to the Appraisal Institute, for every dollar saved on a property's utility bill, a home's appraised value increases about $20.

As a Member of the Top 5 in Real Estate Network(R), I am frequently asked about the best ways to make a home energy efficient-here are some suggestions to consider:

1 Lower utility bills. Appliances, insulation, windows and heating systems all have the ability to be energy efficient. By upgrading everyday appliances to energy efficient models, such as Energy Star, homeowners can expect a minimum of 10-15% savings on their electricity bills right away. What's more, tax credits are available at 30% of the cost, up to a $1,500 lifetime limit, for installation in 2009 and 2010 (for existing homes only) for these products: windows and doors, insulation, roofs (metal and asphalt), HVAC, water heaters (non-solar), and biomass stoves. Installation costs may even be included as part of the tax credit calculation for certain HVAC, water heater, and biomass stove installations.
2 Materials matter. Outside the home, recycled plastic lumber and wood composite materials reduce reliance on chemically treated lumber and durable hardwood for decks, porches, trim and fencing. Inside the home, when it comes to flooring, next to natural wood, greener flooring choices include low-VOC (volatile organic compounds) carpets for better indoor air quality, laminates that successfully mimic scarce hardwood, and linoleum, a natural product making a design comeback.
3 Control your environment. Install a programmable thermostat to set your heating and cooling equipment to automatically turn on or off to match your schedule and create a comfortable and energy-efficient living environment. These units typically offer savings of 10 to 15% and cost anywhere between $40 and $100.
4 Think outside of the box. Not all greening is done within the walls of the home. Thanks to the Wind, Solar, Geothermal and Fuel Cell Tax Credit (Tax Code Section 25D), tax credits are available at 30% of the cost, with no cap through 2016 (for existing homes and new construction) for Geothermal Heat Pumps (use the earth as a source of heat in the winter, or as a coolant in the summer), Solar Panels (use light energy from the sun to generate electricity), Solar Water Heaters, Small Wind Energy Systems, and Fuel Cells. More detailed information on Solar Energy can be found at the American Solar Energy Society website: www.ases.org.
5 Conserve water. This includes both inside and outside. Toilets, showers and faucets account for 60% of water usage in the home, according to the EPA. Green efficiency experts recommend that homeowners install low-flow showerheads, for example, which will save on water heating and use. Repair water leaks in tubs, showers and sinks. Replacing household appliances like dishwashers with more efficient models can save 11,000 gallons of water per year.

Lastly, when looking to upgrade your home, keep an eye out for the Manufacturer's Certification. This is a signed statement from the manufacturer certifying that the product or component qualifies for the tax credit. The IRS encourages manufacturers to provide these certifications on their website to facilitate identification of qualified products. Tax payers must keep a copy of the certification statement for their records, however, they do not have to submit a copy with their tax return.

New Passport Law

The new Passport Law takes effect today. With all the summer vacation plans for this summer, please make sure if you are leaving the country even just to Canada that you have your passport with you. You will need it for re-entry to the US. This change was delayed from 2007 but it is in full effect now. So if you are travelling might be a good idea to check with your travel agent to be sure you have all the paperwork you need to get to your destination and back!

In the meantime, Happy Trails to you and your family. All the best, Mike

Gov't allows short-term loans for tax credit

By ALAN ZIBEL AP Real Estate Writer

Updated: 05/29/2009 03:26:04 PM EDT

WASHINGTON-Thousands of first-time homebuyers will be able to get short-term loans so they can quickly make use of a new $8,000 tax credit to pay for some of the costs of buying a home.

The Federal Housing Administration on Friday released details of a plan in which borrowers who use FHA loans can get advances from lenders that let them effectively receive the credit in advance, so they don't have to wait to get the money from the Internal Revenue Service.

Most borrowers will still have to come up with the FHA's required 3.5 percent down payment, unless they work through a state or local housing agency or an approved nonprofit. Ten states have such programs in place, according to the National Council of State Housing Agencies.

But there are many other potential uses, such as for closing costs and fees, or to beef up the down payment beyond the minimum level.

The FHA which insures about a quarter of new home loans, is projected to guarantee about 2.2 million loans in the next budget year.

Any buyer who has not owned a home in the past three years is considered a first-time buyer and eligible for the program. Borrowers can claim the credit by filing an amended 2008 tax return or can wait for their 2009 return.

The change "will present an enormous benefit for communities struggling to deal with an oversupply of housing," Housing Secretary Shaun Donovan said in a statement.

The tax credit was included in the economic stimulus

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package signed by President Barack Obama in February. It is not available to individuals with incomes above $95,000 or couples with incomes above $170,000 and expires Nov. 30.

Real estate agents and homebuilders generally welcomed the change. Jerry Howard, chief executive of the National Association of Home Builders, called it a "great step in the right direction." On Wall Street, shares of such builders as Toll Brothers and D.R. Horton rose on the news.

Still, some real estate agents were concerned that many buyers won't benefit at all if they can't use it for a down payment-a big hurdle for many first-time buyer

According to the CT Post this morning, the petition for a Referendum on the Town Budget fell short of the required number of signers needed. This Referendum would have asked for a reduction in the Board of Education budget for FY2010 of over $2 Million. The budget currently includes a .32 percent or approx a one third of one percent increase over the prior year.

With the Referendum not passing, now all eyes turn to Hartford where the State Legislature is still debating. Recent reports say they will very likely miss their June 3rd deadline for finalizing a budget. Some even say June 30th is in doubt. So this means that the State and every town & municipality may start the next fiscal year either unsure of funding or short on funding...this will impact Towns and Boards of Educations everywhere.

Our State Leaders really need to consider the impact for their inability to reach agreement on the people they serve. Please keep your fingers crossed that they can work things out in the weeks ahead.

Thanks, Mike