Realtor ®-The Woodlands Real Estate

This is sad.  Anyone that can help...

But more importantly, it's the people that drive it. Without jobs we have no money.  Without money we have no economy.  Without both, we don't exist. The world is changing.  We are in an amazing era of awakening.  It is said that the jobs that our Middle School Age children will have when they graduate from College do not even exist today.

I often get asked why I am so passionate about Green Real Estate.  Preceding that question is why I am in Real Estate.  While that is a long story, I will sum it up in just a few sentences. 

Real Estate is a Major driving force in our economy.  Real Estate is an investment.  Real Estate and Homeownership is not only a dream in America but across the Globe.  How it differs from Location to Location is not the dream, it is the design.  Some Cities grow up, others grow out. Regardless, I find it fascinating on many levels.

To build a single Community, let's take in to consideration how many people it takes. 

It starts with a Vision, probably from a single person.  We then have an Architect or maybe even a team of architects.  Electrical Engineers, Plumbing Experts, HVAC Contractors, Landscape Architects, Transportation Engineers - Teams of people that figure out how in the world to get Electricity and Water to all of these people.

The list could be a blog post in itself.  But that is not the purpose of this.

The purpose is the People.  The purpose is how Real Estate alone can single handedly drive an economy and why it is time to stop ignoring it.  More specifically, how GREEN Real Estate is KEY to a Future Sustainable Economy.  I do not mean Sustainable as in Eco Tree Hugger like Economy, I mean a Sustainable Economy in which we thrive and flourish.  This post is the first of a Series about how Real Estate is often overlooked in the larger picture.  Actually, the people within the Industry.  It's not about CEO's that want bailed out because they made extremely poor decisions on how to handle their money.  It goes way beyond that.

We hear about Foreclosures, Short Sales and lack of Financing available.  But it goes so much further than that also.  Think about the whole picture.  The people.  How many people that have gone in to Foreclosure have jobs directly or indirectly related to Real Estate?  Most of them.

Engineers that design Commercial Buildings, Bankers that Finance those projects.  The people that are actually out there swinging the hammers to build all of the above.  All the way down to people that work in the Retail stores that sell products to our Communities and our Baristas at Starbucks that are working in buildings that are on...Real Estate.

But, enough of what is happening now.  What is going to happen in the future?  The Economy will turn around eventually.  And while we are all suffering in one way or another we should be careful to NOT be hasty and make rash decisions on how to fix the Economy right this second.  I said the other day on my Facebook that:

"I am offically redefining the term 'recession' as Get off your butt and think outside the box"

The key to Real Estate and it directly being a driving force in our Economy is not just about the Real Estate Agents.  It's not just about the Homeowners or even the Banks that give the Financing. 

The key is the number of jobs that it can create.  Specifically the number of jobs it can create with a Sustainable and Forward thinking approach.  We may be losing jobs, we may continue to lose jobs for another couple years.  Do we just sit around and watch it happen?  Personally, I do not like to think about what is wrong, I prefer to think about how to fix the problem. Every Business likely has a Business Plan.  Our Economy is one large Business.  Shouldn't it have a Business Plan also?

What we need is to combine another driving factor in our Economy with Real Estate.  Education - Job Training.

Education is looked at most often as for children.  Our Future.  And while the jobs that our middle school children will have when they grow up do not exist today, that does not fix right now.  I believe that we will see a surge in the number of College Students that will pursue Engineering and Architecture degrees.  But the term Engineer and their job profile will change dramatically over the next 15 years.  The people that will educate and train our children are right here today in the work force.

Again, Real Estate being a driving force behind that.  I believe that we, as an industry, will be forced to raise the bar in professionalism, knowledge and expertise.

The next post will be regarding possibly the absolute most important part in the Future of Real Estate. 

Architecture.

Architects hold the expertise to help make our future flourish and create jobs.  More specifically they are the key to a Sustainable Economy - and this time I mean in the way that most people would consider Tree Huggerish. 

But looking at the larger picture, its not about being a Tree Hugger.  It's about Smart Growth.  It's about not making a quick decision on how our future is going to work and how our economy will continue to thrive day in and day out.  It's about the people.  It's about us and our children.  Working.  Living.  The Dream that most of us in the Real Estate Industry are so passionate about.  Our Homes.

As part of Turning Houston Green's webinar series on how to green an existing home, here is the recorded version of our 4th program.  Michael Strong and I discuss Windows and Radiant Barrier.

It's not just about getting new windows or finding a radiant barrier.  Here we provide you with all of the questions you may have and/or need to ask your installers to get the biggest bang for your buck.  We also talk about the new Tax Credits to help you maximize what is available.

Our next webinar is on March 28th and we will be going over Indoor Air Quality.  We would love to have you join us!

I would also like to take a quick moment to Thank our Sponsors for helping to bring this to you:

Pella Windows

Bluegill Energy Management

Lutron Lighting and Electronics

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"How do people have the money to buy homes that need foundation repair and tons of work?" 

Answer:  They don't need to have the cash to do it.  Here's the story.

We have all seen those homes.  You walk in and it is in dis-repair needing paint, flooring - Maybe it's outdated and needs some new appliances.  Sometimes it is difficult to look past all of that and picture a beautiful home.  One that your family can live in and enjoy.

Others see a home with 'potential'.  The home is a good consideration, especially at that price!  Let's look a little further.  And then, Uh Oh.

What are all of these cracks?  There may be some around the windows, where the sheetrock comes together in the corners.  The floor, it feels like we are walking downhill!  We then go outside to see significant cracks in the exterior of the home.

Immediately people think foundation problems.  With everything else, why would I want to tackle that?  It can be very costly, maybe we should just keep looking.

Well, maybe it is foundation problems - Maybe it isn't.  Maybe it is just an older home that has settled naturally.  It is not uncommon here in the Southern Region of the United States.  Especially if the home has sat vacant for a long period of time.  Often times people will walk away.  They feel that they do not want to do inspections and find out if there really is a problem they just keep moving and find another house. 

But you know what?  SOMEONE will buy that house.  6 months later you may see it back on the market by an investor that does a complete makeover on the home and you know what else?  You would never believe it unless you had seen it with your own eyes 6 months earlier.  You hear whispers of 'Can you believe it? Do you remember how much that home SOLD for?  I can't believe it!'

It must have been an investor with a lot of money.  Or, let's just leave that one to an investor with a lot of money.  That's what was heard before, when it needed work.

Home Buyers are looking for 'deals', but here in Houston, the homes that are 'perfect' still sell quickly.  They also sell for a higher price. However, the one I mentioned above that sits on the market for a while?  It may go for a REALLY great value to the Home Buyer.

Using an FHA 203K loan a regular Home Buyer, one that intends on LIVING in the home and ENJOYING the home can still purchase at just 3.5% down.  You know what else?  They can have ALL of the questionable repairs done.  EVEN THE FOUNDATION REPAIR!

FHA 203K is the ONLY loan that I am aware of that allows for Foundation Repair to be rolled in to the loan.  Along with paint, moving walls, landscaping, new countertops...just about anything!

ATTENTION Buyers looking for a good deal:  Consider these Mortgage Products!  Renovation and FHA 203K Loans. 

• As little as 3.5% down
• Roll in the cost of repairs
• Work must be done by qualified and licensed professionals
• Usually within 60 days of closing
• Competitive Interest Rates

Someone will buy that really neat home that needs a lot of repair and probably at a great price.  It may as well be you! 

If you need the name and number to a Qualified Mortgage Professional that can do these loans and has experience with them, just send me an email.  I would be happy to send you their name and number.  If it is the home for YOU, just make it happen!

Because I write about Green Real Estate, well, always...I hear this.  "I don't care." "I'm tired of hearing about it." "It will never go mainstream"  "It will go away like in the 70's and 80's"

I understand what you are saying.  I really do.  Before we consider a few things to help make a point, I'm going to go way out on a limb, in writing.  The term 'Green' in 'Green Building'. Yes.  It will go away.  Homes built to what is considered to be 'green' today will not be called this forever.  As a matter of fact, I predict that within 7-10 years the term will completely go away, if not sooner.

Notice I say 'the term'.  The science behind 'green building' is going no where.  'Green Building' will be NORMAL.  In no more than 10 years I predict that 'Green Building' will be CODE in most large Municipalities around the Nation.  There, I said it. I also predict that within the next 2-3 years the building industry will be taken by storm with reports on how unhealthy some of the building materials are that we use and it will be backed by major and well respected Non Profit organizations.  For example, maybe the American Cancer Society.

Now.  Let's consider the 'term' Code.  We know this as the law in which homes MUST be built.  However, I'm going to translate the term Code using a definition from someone I know.

"Code. If a builder tells you that their home meets Code, what they have just told you is that essentially they have just built you the WORST possible product allowed by Law."

Consider that.  Why in the world would I say all of this?  It's not because this is what I do.  It's not because I think every builder and City across America is going to all of the sudden want to save the Environment.  It's not about being a Treehugger.

Here are a few things that have happened just in the last 12 months:

• There are now Cities that require a HERS Rating to be performed on both new construction AND resale homes
• The City of Houston as well as others require Commercial Buildings over 10,000 sq ft to be built LEED Certified.  (that means Green)
• The City of Houston adopted the IEC 2006 as Energy CODE for Residential Properties built within the City limits.  To translate, that is said to be close to 10%-15% above Energy Star

Quick side note.  Energy Star is supposed to be 15% ABOVE Texas Building Code.  Not only have we seen an increase in required ratings for Energy Star products, but will possibly see Nationally, an increase in what is required for an Energy Star home because that worst possible home built in some Cities EXCEEDS ENERGY STAR STANDARDS.

• The State of Texas is considering making it mandatory to have a HERS Rating as a mandatory field on all MLS, but not necessarily required to have one performed. We can tell where that is headed.
  
• The City of Houston is making a website where you can go to see how your Energy Usage compares to your neighbor's

I could go on and on.  If you go to a home show it is not uncommon to have a Consumer stop by a booth and know more about the systems involved in Green Building than the builder themselves.  What do they do?  Well, they move on of course.  They find one that knows what a sealed attic is and how to do it or whatever else they are looking for in their home.

We are at a tipping point now where it is almost a liability to NOT know what this stuff means. 

Like it or not, the writing is on the wall.  Energy Codes are changing at Warp Speed and 'Green' is a major component of that.  We as an industry need to stay up to date and educated about all of it.  Regardless of what industry you are in or if you are a consumer- If you are rejecting the idea of learning about it now is the time to start.  If you are a Real Estate Professional, don't let it get to the point where your clients know more about it than you do. 

It's no longer going to be questions about post tension slabs and double pane windows.  It is overall Home Performance.  No one is trying to shove a concept down your throat or change your beliefs, it's just a little food for thought.

***Shameless Plug***  If you want to learn more about all of this, feel free to sign up for my webinars or listen to the recorded ones.

Oh Wow.  I know where I'll be going next week.  This is SOOOO neat.  Thanks Anne for sharing this!

Wow.  This is really interesting.  It's nice to know the story behind things.  Just goes to show that opinions and feedback really are heard throughout the blogosphere.

Thanks Zillow Guys for keeping us posted on changes.

We have heard ALL THE RAVE about how the Stimulus Bill had a ton of Energy Efficient Tax Credit stuff in it.  No cap on Solar and Geothermal - 30% up to a MAX of $1500 on Energy Efficient Improvements ...

One of the best parts of that is being able to get up to $1500 back for New Windows.  You know, those crummy single pane windows that you would love to rip out.  But, Hold On!  Have you read to see what qualifies?  I went in to Home Depot the other day and not a SINGLE WINDOW QUALIFIED that they had in there.

That does not mean that the product was bad.  That's not the case at all.  As a matter of fact, the majority of windows that are Energy Star Rated will not qualify.  The Guidelines to receive the Credit are very strict.  The U-Factor AND Solar Heat Gain CoEfficient BOTH have to be = or Below .30

To get the Scoop I went to visit Bob Birner with Renewal By Andersen Windows.  You may also know Bob as the Host of the Home Improvement Hotline on Sunday morning from 9a-12p.  If you are wanting to change out your windows and reap the benefit of the $1500 - Make sure that you listen in so you are not an angry Tax Payer next year.  By the way, all of you folks in the Houston area - Bob has Windows that qualify under both ratings.

The Stimulus Bill, it's rather confusing.  I have previously posted some of the Positive Sides to the Bill and this is part 3 of my Energy Efficiency Tax Credits in the '09 Stimulus Bill.

If you have been following my Webinar Series through 'Turning Houston Green' on Greening the Existing Home, you know that this Saturday, Michael Strong and I will be going over Water and Lighting Fixtures.  Part of this will be in regards to Energy Efficient Water Heating Solutions which includes Tankless and Solar Water Heating.

In doing our research, we noted that the Stimulus Bill changed the Tax Credits for this also.  Because the changes go through 2010, we think it is important for people to understand what it is you can actually get with your Tax Credits.  Be an educated consumer so that you can make the most of you upgrades.

So, here's the 411:

Tankless Water Heaters - Whether you get one that is Gas or Electric, it still needs Electricity.  Why?  There is an actual start for these babies to kick in and start heating your water.  So, with a Gas Tankless Water Heater, it still uses ELECTRICITY to start up.  THEN uses the Gas to heat the water.  This means that during a power outage, you will STILL NOT HAVE HOT WATER.  Because of this, Tankless Hot Water Heaters fall under the Energy Efficiency portion of the Stimulus Bill.

What does that mean to you?  You can get a Tax Credit for 30% of the purchase UP TO $1500 on ALL of your Energy Efficient Improvements - (such as windows which will be another post)  Max.  That's It.  $1500.

Now, Solar Water Heating:

This is considered to be Renewable Energy.  No electricity or gas is really required.  That means that you are solely using electricity derived from a Renewable Source, in this case THE SUN.  During a power outage you WILL HAVE Hot Water.  (not that the power outage has anything to do with, just making a point)

For these reasons, it falls under a completely different category.  Actually, it falls under the same category as GeoThermal and traditional Solar Panels. 

What does this mean to you?  You can get a Tax Credit for 30% WITH NO CAP!! 

Personally, I would use the Energy Efficient Tax Credit for Windows, Insulation, etc. and maximize by upgrading to Solar Hot Water.  You can only get a Maximum One Time Tax Credit of $1500 for Energy Efficiency, yet there is no cap on Solar/Renewable Energy right now. 

With a typical cost of $5000 for Solar Water Heaters - That would give you an ADDITIONAL $1500 Tax Credit if you are making other Energy Efficient Improvements to your home. 

Just a little food for thought.  To sign up for our Webinar Series on Saturday for more details on the Benefits of Energy Efficient Water Fixtures in your home, you can register here.

***Source:  Pages 125-127 of the Division B Tax, Unemployment, Health, State Fiscal Relief and Other Provisions from the Department of Energy Website***

***Photos:  These are from Houston's First LEED Certified Home Built by Greenhaus Builders***