I know it has been a while sinse my last post and I apologize for the delay. Recently I was having multiple conversations with buyers who have purchased bank repossessed homes, and a few business friends one of whom is an energy auditor. I can not say I was surprised or shocked when the number one problem that these home owners stated was the home cost them more than they were prepared for.
One couple told me how they wanted the American dream of owning a home but until recently they were unable to find a home in their price range. When the particular home became available they are currently living at a fraction of the selling price of most homes they had seen they jumped at the chance. Soon after they started the remodeling process as the roof needed some repair, a few windows needed to be replaced because they were broken, and there was some mold. They started with removing the dry-wall where the mold was and discovered more mold on the inside of the wall. Once they had now removed 3 walls of there mold covered drywall they discovered the floor had mold. The Realtor had told them not to worry about the mold it was just from the house sitting over the winter empty and that some bleach would take care of the problem. The new home owners now found themselves pulling up flooring that had obvious water damage from underneath and found some rot and pest issues. Now they needed to hire a contractor and a pest company. The contractor said they would need to get a remediation company in to treat the mold before they could start work. Soon the bills started to escalate. With bills now up over $18,000.00 they still hadn't tackled projects like the roof, the kitchen, or flooring. They finally finished remodeling after depleting there 401k and savings to a tune of $37,000.00. What they hadn't taken into consideration were energy upgrades. 6 months after the remodel with the thermostat turned up to 75 degrees they were huddled together under blankets to stay warm. 7 months later they found themselves replacing the furnace and the well pump. Both of which they were told were in operating condition by the home inspector. Sadly they lost the home after both lost their jobs and were unable to continue paying the mortgage because they had used up all their savings.
This isn't an uncommon story today. At the risk of damaging my own reputation, I to have faced a similar situation and face surmounting legal battles without the funds to affordlegal defense. Home ownership looked easy by going to a builder who stated they offered financing and easy possession with a land contract. I was unable to build my market share in real estate and was let go. This left us unable to continue with the land contract that at the time of signing was stated that should either party be unable to fulfill the contract either party would be able to walk away. That was until the builder hit us with a $14,000.00 plus law suit for "damages" and "costs". The house being 2 years old, still they claim damages of which we are now left with the burden of proving were not the conditions in which we left the home. But the point here is that the home itself at only 1350 square livable space cost us $300.00 monthly in heating costs. This piled up quickly depleting our savings rapidly. The wind found just about every way into the home it could. We discovered through the use of infrared thermal imaging we had multiple points in which the walls were not sufficiently sealed, mostly around the window and door framing, and the band joist. With out savings to secure a lawyer with we very easily could land up on the loosing end of this.
Recently when talking with my friend who is an energy auditor he relayed to me the stories of how people are fixing up there homes then coming to him for answers when their homes stay cold. His answer though correct is unfortunately the story I hear from many people. They haven't been explained the facts about what a home actually costs. Sure, they are made aware of the fact that there are taxes, but those vary. They are made aware of insurance, and title costs. Certainly they are made aware of the mortgage payments and interest on the mortgage. Seldom are they told that by having a licensed contractor/builder that is in good standing in the community inspect the construction of the home could save thousands of dollars not to mention endless headaches and the frustration. Often many are not told that an energy audit can show them where they are loosing heat and what the best return on investment would be for renovations.
That said, here are some simple ways you can get avoid these problems. First look for a Realtor that can clearly explain, without being prompted by you, the costs involved with home ownership. I recommend going to your local Home Builders Association, they can help direct you to professionals that can answer your questions about renovations and home ownership costs. Look for a Green Consultant. Most Green Consultants offer their services to individuals and companies and are well versed in energy efficient and green built homes. Do your research, talk with mortgage companies that can help you locate financing that will help you make energy efficient improvements, not only for a purchase of a new or existing home, but refinancing energy improvements into your home. Talk with your local Better Business Bureau to find competent, insured, and qualified home inspection services. The Home Builders Association will also be able to point you in that direction.
The best advise I can give is understand that when you have enough money to have multiple inspections on 2 or 3 perspective homes, then you are in a position to afford a home. Just like your health, getting a second or third opinion is always the best way to proceed. A home has multiple components each costing thousand of dollars. A home inspection typically does not cover the well, the septic system, proper insulation, mechanical equipment beyond a visual inspection, or proper home sealing. These should all be inspected so when you purchase the home there are no hidden expenses. Think of it this way; imaging buying a car on-line, you get to the dealership to drive home your new car to find out the motor and the brakes are extra. The motor of a home is it's comfort level. To achieve this you need properly sized, and in good working condition, heating and cooling equipment, proper insulation, and a well sealed home. An energy audit should be the first step in the home inspection, and can identify areas of energy loss. In my opinion this should be mandatory before you can even purchase the home.
Finally do your research. There are a vast array of helpful websites that discuss the cost of home ownership. Look for classes offered by your local Association of REALTORS or community college on home ownership. Above all look for references, insurance, and good standing in the community for any one you choose to work with.
I provide Green and Energy Efficiency for single family and multifamily homes, subdivisions and land development, commercial buildings, and Marinas. I also provide Green Lifestyle Coaching. For more information log on to www.greengamut.com Just be aware it's a new site and still under construction.
Green built homes are designed to provide home buyers with comfortable, durable, healthy homes that are cost effective and resource efficient providing years of healthy quality living. Through careful design and efficient building techniques, home owners enjoy security in investment dollars in their home.
When consulting with clients I encourage them to consider both the short and long term gains in home investments. Today's home owners have a wide range of quality, energy efficient, sustainable, long lasting, and low maintenance home choices. This means home owners will spend more time enjoying their home and less time keeping up with the cost of home ownership.
Green design lowers operating costs improving your housing budget significantly. The high quality, longer life, durability and lower maintenance translate into greater value in the housing market.
Total net housing costs typically account for 40 to 45 percent more than the base mortgage. Here's the issue: the biggest challenge with owning a home is not the down payment. The big challenge is being able to afford the monthly costs.
Call to schedule a consultation to discuss how you can benefit by investing in sustainable housing. Log onto www.greengamut.com for a complete list of consulting and seminar series available.
Tony Zimmerman can be reached at (231) 534-5656 or by email at: tony@greenhomestc.com
With fuel costs rising, a struggling real estate market, and a down turn in employment; building and renovating green, efficient homes for working class families goes a long way towards keeping homes affordable.
Green homes costs less than conventional homes over the long run and can even reduce construction costs. Green, high performance techniques, systems, and materials will deliver more efficient, durable, and therefore more valuable housing. The returns accrue to owners, residents, neighbors, local governments, and the regional economy.
To learn more about what is being done in Northwestern Michigan to support these efforts, visit the Green Solutions 4 Expo on October, 25, 2008 at The Hagerty Center in Traverse City, MI.
For directions, exhibitor application, and ticket sales visit www.taar.com or contact:
Traverse Area Association of REALTORS®
852 S. Garfield Avenue
Traverse City, MI 49686
231-947-2050
I had alot of requests from clients to suggest simple ways to save on utility bills. So over the next several weeks I will be posting money saving tips that are green so check back often and as always let me know what ways you have found to save money while going green. So here is the first in this series.
Your furnace and air conditioner will run most efficiently if you know how to use the thermostat effectively. Installing programmable thermostats and learning good habits are easy ways to incorporate energy savings. With energy costs on the rise, a great investment in energy savings is to install a programmable thermostat. You can program the system to set back the thermostat a few degrees when you leave in the morning, and adjust it again a short while before you come home. With an energy savings of approximately 10 percent - one percent for every degree it's set back over an eight-hour period - a $50 thermostat can pay for itself in just one heating season! While it is widely debated as energy consumption, keeping the air circulating can significantly reduce temperature fluctuation, thus reducing the time your furnace will run. Set the fan to "on" rather than "auto." The fan will circulate the air throughout the house continuously, while the furnace will cycle on and off just as it usually does. This will help keep temperatures more even throughout the house by reducing temperature stratification. Let the thermostat do its job; don't judge the efficiency of your furnace by the sound of the fan shutting on and off. The blower will continue to circulate warm air up to 15 minutes after the furnace has stopped.
I am proud to announce the Green Solutions 4: event/expo coming up this fall in Traverse City, MI. It's an idea I brought to our area association of Realtors and local home builders association, and they ran with the idea. I am proud of what they are doing and I ask for your support and attendance. I have included the press release and look forward to meeting every one of you that can attend the event. You may also contact me for all the details, directions, and information on the event.
FOR IMMEDIATE RELEASE: September 8, 2008
CONTACT:
Traverse Area Association of REALTORS
852 S. Garfield Avenue
Traverse City, MI 49686
231-947-2050
Providing real solutions for people to live better, healthier lives, save money, reduce their ecological impact, and save our precious resources; Traverse Area Association of Realtors and Home Builders Association of the Grand Traverse Area, are proud to present the first annual
Green Solutions 4:
•· Home Building
•· Commercial Construction
•· Remodeling and Rehabilitation of Existing Homes
•· Real Estate
This family-friendly event/expo connects people with ideas and information to inspire everyone to make a positive difference both in their lives and that of the community. The Green Solutions 4: will highlight the latest in green products, services, and green housing developments; innovative technologies, and educational resources available in the green building marketplace today. This event is for everyone from the average homeowner to the savvy industry professional. It will interest those that want to know what green building is about as well as those deeply committed to a sustainable future. Consumers will learn about green homes and communities. Experts will be on hand to answer questions on going green.
Seminars will be held throughout the day to inform the professional, and educate the public. We will showcase our Grand Traverse region and our community partners who are committed to world class eco-solution to enhance our unique and desirable region.
Green Solutions 4, a collaborative effort between two vibrant associations, Home Builders Association of the Grand Traverse Area, Inc. (HBAGTA) and the Traverse Area Association of Realtors (TAAR) are deeply committed to green building initiatives. This event is an opportunity to educate the public regarding the legitimate local efforts being made to improve and sustain our environment for future generations as well as demonstrate how individuals can be better environmental stewards.
The event date and times are:
The event will be held at The Hagerty Center, 715 E. Front St., Traverse City, MI 49686
Admission is $3.00 per person
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Green Home & Lifestyle Consultant. NAHB National Green Building Program Accredited Verifier. www.hasmancontracting.com
Verifiers accredited by the NAHB Research Center for its national green home certification program independently confirm, through a process of document review and on-site inspections, that all green program requirements and points specified by a builder are in place for a candidate home.
I have a broad range of knowledge I offer my clients. Whether that involves environmental assessment or the opportunity to reduce utility bills, I help my clients make the right choices. The housing & real estate industry is changing, I understand the newest designs, technologies, and environmental issues. With EcoBroker and NAHB National Green Building Program education I help my clients make sense of building green with practical applications and best managment practices.
My innovative energy and environmental perspective gaves me an edge in helping clients understand the true cost of housing. I am looking forward to continuing to positively impacting the quality, comfort, safety, and health of my clients through the consulting and verifier services I provide.
Tony Zimmerman, of Hasman Restoration & Construction Services in Traverse City has earned the NAHB National Green Building Program Accredited Verifier designation, having successfully completed a unique and informative training program on the energy and environmental issues that affect residential green building. Tony joins the movement of professionals pushing the real estate market toward energy-efficient, sustainable, and healthier design/features in homes and buildings. The "performance home" movement is getting a boost thanks to this type of high quality professional designation.
Taking a team approach I have assembled a group of professional service providers to answer any and all questions you may have about green & sustainable building. With the ever growing need for affordable housing, I work with individuals, builders, groups, government organizations, and community programs to establish green, energy efficiency, and sustainable housing that is affordable, comfortable, and healthy.
1. Green up your appliances. Getting rid of that old refrigerator in the garage could save you as much as $150 a year, according to the Environmental Protection Agency.
2. Watch the temp. Almost half a home's energy consumption is due to heating and cooling.
3. Save water. Put an aerator on all household faucets and cut your annual water consumption by 50%. Install a low-flow toilet.
4. Clean green. Stop buying household cleaners that are potentially toxic to both you and the environment. Read labels for specific, eco-friendly ingredients that also perform effectively.
5. Let there be energy-efficient light. Compact Fluorescent Light bulbs (CFLs) use 66% less energy than a standard incandescent bulb and last up to 10 times longer. Replacing a 100-watt incandescent bulb with a 32-watt CFL can save $30 in energy costs over the life of the bulb.
6. Save a tree, use less paper. You can buy "tree-free" 100% post-consumer recycled paper for everything from greeting cards to toilet paper.
7. Want hardwood floors? Opt for bamboo. Bamboo is considered an environmentally friendly flooring material due to its high yield and the relatively fast rate at which it replenishes itself. Also look for local manufacturers as importing bamboo contributes to energy consumption.
8. Reduce plastics, reduce global warming. Each year, Americans throw away some 100 billion polyethylene plastic bags. Reduce, re-use and recycle your plastics for one of the best ways to combat global warming.
9. Use healthier paint. Conventional paints contain solvents, toxic metals and volatile organic compounds (VOCs) that can cause smog, ozone pollution and indoor air quality problems with negative health effects, according to the EPA. Opt instead for zero- or low-VOC paint, made by most major paint manufacturers today.
10. Garden green. First, use compost instead of synthetic fertilizers. Use native plants as much as possible. Native plants have adapted over time to the local environment and support native animals. They also use less water and require less of your attention. Focus on perennials. Finally, consider using an old-fashioned push mower. The only energy expended is yours.
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