Tim Cahill MBA, EcoBroker

Are you a home-buyer who's looking to get "more home for your money"? What buyer isn't, right? Or perhaps you're a current homeowner who would like to make some much-needed repairs to your home. If so, keep reading...

A HUD-insured 203(k) loan may just be the financing tool you need to buy or create your perfect home! With a 203(k) loan, available through any FHA-approved lender, you can purchase or refinance a property PLUS include the costs of making repairs and improvements (not just energy-efficient improvements either).

You could also combine the 203(k) financing with other financing options as well. Consider having a home energy audit completed at the same time and you could also qualify for an Energy Efficient Mortgage, which offers either a lower interest rate, fewer points, or even a reimbursement for the cost of the energy audit. (For more information on Energy Efficient Mortgages, see my earlier blog entry on the topic.)

What properties are eligible?

• Property must be a one- to four-family dwelling that has been completed for at least one year. The number of units on the site must be acceptable according to the provisions of local zoning requirements. All newly constructed units must be attached to the existing dwelling. Cooperative units are not eligible.
• In addition to typical home rehabilitation projects, this program can be used to convert a one-family dwelling to a two-, three-, or four-family dwelling. An existing multi-unit dwelling could be decreased to a one- to four-family unit.
• HUD also permits Section 203(k) mortgages to be used for individual units in condominium projects that have been approved by FHA, the Department of Veterans Affairs, or are acceptable to Fannie Mae and Freddie Mac guidelines.

You can use the 203(k) program to finance such items as painting, room additions, decks and other items even if the home does not need any other improvements. However, there are some requirements that MUST be completed as part of the overall rehab. These health, safety, and energy improvement requirements must be satisfied before the other improvements can be made.

For more information on the HUD 203(k) Home Loan program, check out the Home Improvement page on HUD's web site. For the detailed requirements of the program, visit the Rehab A Home page as well. For a listing of HUD-approved Lender's visit their Lender List and find a lender near you. And as always, you can check my web site at CyberGreenRealty.com for more localized information on the Boston green real estate market.

Until next time, Peace!

-TMC

Don’t think of this as just a “winter” topic either – you can save money on your cooling costs starting now by taking some simple steps to seal (or “tighten”) your home.

• Air leakage amounts to 30-40% of a home’s heating and cooling costs.
• Stopping air leakage is important not only for energy savings, but also for protecting your home from the damaging effects of moisture and resulting mold.
• When air leaks in through walls, it carries humidity. When it hits a cold spot, it condenses and causes insulation and the surrounding wood to get wet, resulting in wood rot and mold growth.
  

Most people assume the majority of a home’s air leakage occurs through windows and doors – but this really only accounts for 10-15% of air leakage in a home. So before you spend a lot of money on just replacing windows and thinking you’re saving lots of energy, consider taking some of these steps first:

• The greatest areas of air leakage occur around the top of the foundation and around the penetrations to the attic. Seal the foundation (rim joist) with caulk or expanding foam. To seal the attic penetrations, push back the insulation and seal the holes around the wiring and plumbing stacks.
• To seal around the existing windows, use a clear caulk around the window frames where the trim meets the wall. Add weatherstripping if necessary.
• Seal around all ceiling fixtures, heat registers, medicine cabinets, bath tubs, kitchen cabinets, drain and water pipes where they enter the wall in kitchen and bath and any other interior wall penetrations.

Visit your nearest Home Depot or Lowe’s and pick up these simple materials. They can really help you save a lot of money year-round. And keep in mind, a trained professional with proper training and equipment is always best-suited to pinpoint specific points of air leakage and recommend the necessary improvements.

Have you tried any of these solutions to stop air leakage in your home? Share your experiences and costs savings here.

For more information, visit CyberGreenRealty.com for links to locally-trained professionals in the Arlington, Massachusetts area.

Until next time, peace!

-TMC

With so much discussion this week regarding the new clean energy bill now heading to the Senate, I thought it would be interesting to hear what other Realtors and real estate professionals think of the latest version of the bill.

As a Certified EcoBroker, I am, personally, disappointed that NAR helped to water down the requirements for energy audits in real estate transactions, but I can also understand their concern, and the concern of my fellow Realtors, about its affect on real estate sales.

Which is more important to you - selling property or trying to live up to some sustainable-living, renewable energy ideals?

Looking forward to the discussion!

--TMC

PS. Fellow Realtor Casey Joiner posted a nice breakdown of the issues on his blog: http://activerain.com/blogsview/1136820/cap-trade-bill-myths-vs-facts

Now that we've begun July, we can take a preliminary look at the June 2009 Sales Trends for Middlesex and Suffolk Counties in Massachusetts. You can view the data below and perform your own analysis, but here are some interesting highlights:

• Highest Median Sales Price: Weston, MA ($1.29m)
• Lowest Median Sales Price: Lowell, MA ($187k)
• Largest sales price increase, year-over-year: Dunstable, MA (+13.10%)
• Largest sales price decrease, year-over-year: Shirley, MA (-30.00%)

Within my local area, Arlington MA has not been affected, median-price wise, by the recent turmoil in the real estate market. The prior period (2007 - 2008) median sales price in Arlington was $476,500 and the current period (2008 - 2009) was also $476,500 - a 0% decline! This was also true for Bedford and Carlisle, MA.

Overall, the Counties' median sales price has dipped over the last year by 8.50%, with the median price going from $410,000 to $375,000.

Check the data below. How did your town fare?

Until next time, peace!

-TMC

(My apologies for the quality of the images below)

Overview

Perhaps the most pleasant economic savings can be derived from judicious and mindful planting of trees and shrubs. The value of traditional plantings serving as windbreaks is well known. Additionally, well-placed deciduous trees can shade a building during hot summer months yet allow warming sunshine to enter a building when warmth is needed in the winter. The summer shading feature of trees is particularly important for the following reason. Most homes are cooled with traditional window- or central- air conditioners using fractional horsepower single-phase electric motors and modern refrigerants (chlorofluorocarbons that are less potent greenhouse gases than their predecessors). The electro-mechanical efficiency of air conditioner components ranges from 35-50% based upon the electrical energy available at the plug. But that electricity is arriving at your building with an overall efficiency of about 30% based upon the energy content of the fuel going into the central electrical power plant. So, when the overall fuel cycle is considered, building air conditioning is about 10-20% efficient, on the basis of energy flow. Fortunately, humans feel a cooling effect from simple air movement that increases evaporation from the skin. Most air conditioning rating systems incorporate this cooling effect, so their efficiency numbers do not appear quite so grim. However, when shade trees cool a house such that one unit of air conditioning energy is avoided, 5 to 10 units of primary energy are avoided at the power plant. This is not only an important economic savings to you, but also a very important environmental savings to the community.

Estimated Cost Savings

Air conditioning in buildings represents 13-15% of your annual electricity budget, and a larger fraction during summer months. By reducing the amount of air conditioning required, shade trees directly affect your bottom line. The cost of quality shade trees ranges from a few dollars for a seedling to several hundred for a much larger tree. Its a good idea to get at least an 8-10 foot high tree if possible. The sooner the tree grows shading capacity, the sooner you can enjoy savings. The amount of savings can vary widely due to local circumstances but typical savings are on the order of 10-20% of a summer electric bill. Similar savings from a windbreak will be realized in winter during the heating season.

Issues

Consider planting several varieties of trees: some fast-growing species (such as ash or aspen) for quick shade and more durable, slower-growing and longer-lasting trees (such as maple or oak) that will eventually dominate. Shop around for the best warranty on trees. Many nurseries provide planting and care instructions and will offer a oneyear replacement guarantee.

Regional Issues

Plant varieties appropriate to your climate. Some species of trees grow more slowly than others so you need to get started as soon as planting season arrives.

Installation (Getting It Done)

Spring and fall are the best times to plant. Be sure to follow planting instructions and err on the side of digging too large a hole. Be sure to incorporate organic material in the planting soil and to stake trees to provide mechanical support. Mulch heavily and water thoroughly during summer dry spells.

Be sure to get bids from two or three (or more) nurseries and/or landscaping contractors if you choose not to plant the trees yourself. Multiple bids will allow you to gain immediate perspective on the true costs and value of trees in your area.

References:

Cooling Our Communities, A Guidebook on Tree Planting and Light-Colored Surfacing, US EPA 22P-2001, January, 1992.

More Information On This Topic:

U.S. Department of Energy's Office of Energy Efficiency and Renewable Energy: Landscaping

U.S. Department of Agriculture's National Resource Conservation Service: Windbreak

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