Green is the Smart Home Buying

Perhaps you’ve heard that this is a good time to buy a new home in Northern California because of historically low prices and interest rates and the price id down. This is certainly true, and there are many bargain homes on the market to choose from, but some are in run-down condition and need considerable work before moving in. Too often new owners do not see the opportunity to take advantage of all of the sustainable improvements they can make and simply add a new coat of paint, install carpet and a couple of kitchen appliances, mow the yard and that’s it.
Today, however, it is possible to do substantial sustainable upgrades to make your home much more energy- and water- efficient, improve indoor air quality, and allow you to live comfortably while both saving money and having a positive impact on the environment.
Fortunately there are many resources for buyers who want to upgrade a home into a healthy, high- performance green one. So with a little planning, proper financing, and a skilled contractor, along with some rebates and tax credits, your new home could actually cost less at the end of the year to live in than comparably priced homes without these improvements.
Here’s how you can purchase and turn a toxic, run-down, energy-wasting house into a beautiful green home:
First, get pre-qualified by a mortgage broker not only to determine your price range but to choose the best mortgage or mortgages for you.

Two of the best ones are the FHA’s 203K and Energy Efficient Mortgage (EEM) because most of the costs of improvements can be included in the mortgage package. Make sure your broker has knowledge and experience with these kinds of loans.

… A proprietary combination of FHA EEM / Renovation financing which has been optimized with the power of our “Superior Financing” system...to deliver homeowners and homebuyers with market rate financing that has been specifically structured to fund “Acquisition/Greenovation” & “Refinance RetroFit/Greenovation” projects .

The Superior Financing program is focused on one goal…
To identify the “lowest total cost of ownership” for the homebuyer / owner.

¨ Base loan amounts up to $729,750
¨ Energy Efficient Retrofit allowance up to $29,312.50 (without apprais-al considerations), over and above $729,750.
¨ Alternative Energy Systems allowance up to 20% of the value of the home, over and above the $729,750 (subject to appraisal considerations)
¨ Can be combined with Renovation Loan OR Conforming Loan
¨ H.E.R.S. (Home Energy Rating Systems) Report establishes “savings”

Now you are ready to contact a REALTOR® to help search for your dream home. Be sure your agent is familiar with existing green features of the homes you are considering, since these can save you money right away.

News flash to buyers!!
The old mantra “location, location, location” has now been replaced by “location, location, energy rating.” You will soon find out why.

When your offer is accepted, open escrow, and if you are using an EEM or 203K, you will need to hire an energy auditor and contractor. They will test the home to find air leaks and other sources of energy losses, and then help draw up a plan for improvements and upgrades along with cost estimates. Your real estate agent can apply for a rebate of up to $250 for the energy audit from the California Association of Realtors. Make sure your agent does this for you.
Your upgrades will usually fall into the following categories. Improvements in energy and water efficiency carry the most weight in green certification programs, followed by air quality.
• Energy Efficiency. Possibilities could include increasing insulation especially in the attic, caulking air leaks, installing low-e windows and new efficient lighting, ENERGY STAR® appliances and a high-quality HVAC system, all aimed at making your home very energy efficient. These will save you money every month on electricity and gas.
• Water Conservation is very important in California. Some homeowners have noticed as much as a 50% decrease in their water bill simply by landscaping the front yard with native vegetation and using drip irrigation. Indoors, you might be looking at replacing toilets, water faucets and shower-heads, as well as dishwashers and washing machines for increased water efficiency. These upgrades will also save you money every month.
• Air Quality. Check on the chemical content of products you will use, especially paints, finishes and glues, as well as carpets, pressed woods and all other materials for volatile organic compounds (VOC’s), especially formaldehyde, and in homes built before 1978 check for lead-based paints. Make sure the home is well ventilated.
• Materials. There are many environmentally friendly choices here. Choose woods, carpets, flooring, countertops, and cabinets that have been certified as non-toxic and renewable. Have fun choosing materials as well as paint colors because they are highly visible and will reflect your personal decorating style.
Some good resources for green rehabs are Eric Corey Freed’s “Green Building and Remodeling for Dummies” and the U. S. Green Building Council’s “Green Home Guide.” (www.greenhomeguide.com)
Don’t forget about rebates and tax credits. Energyupgradeca.org and local city, county and water district offices are sources for rebates, and so are the manufacturers of products you are buying. Your accountant can give advice about tax credits.
Want to have your new home certified green?
The ultimate green home meets standards of organizations such as the U. S. Green Building Council, California’s Build it Green, and ENERGY STAR®. Ask your contractor about these when you are drawing up a plan for your home.
Now you are ready to close the transaction. Some improvements might have already been made, but others will be completed follow closing depending on the terms of your mortgage. Enjoy living in your new home, knowing that it will be comfortable, high-performing and economical, as well as very beautiful.
Example of a HERS rating by an energy auditor. (Source: U. S. Department of Energy. For a HERS 2 rating certificate, see car.org)
Victoria Wells, DRE# 01252398
Eco-Broker, Bradley Real Estate 415-710-4090 Http://www.MarinBestHomes.com