Learn what features consumers are looking for in design and construction this year.

By Hannah Shipley, FrontDoor.com | Published: 7/20/2010

During a panel at the 2010 International Builders Show, Eliot Nusbaum, executive editor for home design for Better Homes and Gardens, explained that practicality and price are fueling decisions on how homes are designed and built.

Nusbaum says the homeowner of today is "looking for a home that fits the entire family — from a multi-tasking home office, to expanding storage space needs, to a living room that can adapt to advancements in home entertainment and technology."

A Smaller Home

Today’s consumers are buying homes with less square footage. Purchases of smaller homes are up 36 percent from last year.

But just because a home is small doesn’t mean homeowners are sacrificing precious living space. Open concept floor plans are the resounding trend in smaller homes, where higher ceilings and an easy flow maximize perceived living space and allow rooms to serve multiple purposes.

Energy Efficient Appliances

Saving energy and money go hand-in-hand when using Energy Star appliances in the home. These eco-friendly products use less electricity, thus helping to lower your utility bill

Efficient HVAC Systems

Today’s HVAC systems are far more efficient than those of a few years ago. Not only do they bring increased comfort and improved air quality to the home, but they also use less energy and help to lower utility costs.

An Efficient Design With Lots of Storage

Homebuyers are looking for ways to maximize space and make better use of a home’s square footage.

An efficient design, with an open floor plan and multi-functional rooms, is complemented by a lot of storage.

With more people buying small homes, unique and practical storage solutions allow homeowners to have enough space to stay organized.

More Natural Light

Going with the theme of eco-friendly living, homes that maximize natural lighting don’t require as much energy to stay well-lit inside.

Plus, by adding more windows (or just larger ones) to bring more natural light into your home, you’ll make your living space feel larger and get better outdoor views.

A Separate Laundry

Being able to keep the family’s personal items out of sight is a luxury many homeowners want in their home. No one wants to feel like the washer and dryer are in the middle of the cooking or entertaining area.

A home with a separate area for laundry, whether it’s a designated room or just a space away from the higher traffic hot spots, offers a world of convenience.

An Outdoor Living Area with Private Backyard

A well-constructed porch, deck or patio can do wonders for a home’s perceived square footage. Plus, with proper landscaping, the backyard can allow for outdoor fun and relaxation without feeling like the whole neighborhood is watching.

Eat-In, Partially Separated Kitchen

A designated spot for dining in close proximity to the kitchen is important to homeowners, as is a partially separated kitchen. Being able to maintain an easy flow of space while keeping the kitchen from overflowing into other parts of the home allows families to dine together with ease, but it keeps the hustle and bustle of a kitchen from taking over the rest of the house.

Guest Bedroom and Bath

You want your overnight guests to enjoy their visit. You don’t want them feeling like they’re taking over an office or living room by sleeping on a foldaway couch.

A guest bedroom with additional bath may seem like an extravagance, but the extra living space adds value while also offering guests a private area where they can feel more at home.

A Comfortable Family Gathering Space

Think of a family room as a combination of a formal living room and a den — a place where the family can gather together for fun and relaxation. With family time a priority, many homeowners are coming up with new and inventive ways to customize a designated space to share with their loved ones.

A Home That Multi-Tasks

Today’s home office is more than just a desk and some shelves. Homeowners want a designated, functional space that allows them to work away from the rest of the family and not have to run back and forth throughout the home to get things they need. They are integrating features for productivity and convenience, such as a media system with TV, Internet and phone service, and refrigerator and freezer drawers for enjoying drinks and snacks without leaving the room.

Improved Home Electronics

Today, technology can integrate all sorts of home systems, allowing devices to "talk" to each other and share information. Home entertainment systems can be designed to stream content from your TV, Internet or DVDs. Smart phones can be connected to your alarm system, security cameras and lights so you can access and activate them when you’re not at home. Plus, energy dashboards let you monitor the energy you use and how much it costs.

Large Three-Car Garage

The garage has come a long way from being the place where you park your car. A large garage is a necessity for homeowners with multiple recreational vehicles, like motorcycles or boats. Other people will section off part of the garage and use it for storage, as a workout/gym area or as specialized work space, like an artist studio or workshop

A Low-Maintenance Exterior

Homeowners don’t want to spend time and money continually repairing siding, re-sealing the deck or dealing with other home exterior hassles. They want healthy landscaping and a beautiful home without having to keep up with all the maintenance.

Thanks to more durable building materials, like vinyl, cement fiber siding and composite woods, exterior upkeep is much easier. Plus, low-maintenance landscaping requires less water and less time for weeding, mowing or pruning.

Homebuyers should be prepared for extra costs and delays as cautious mortgage lenders order stricter reviews.

By Marcie Geffner of Bankrate.com

Homebuyers and sellers who expect an appraisal to sail through to closing without a hitch may be surprised to discover that home appraisals today can be problematic. The reasons for the change are complex, but there’s no question that mortgage lenders have started to demand more reviews and do-overs.

Rob Johnson, vice president of lending at San Diego Funding, a mortgage company in San Diego, attributes the increase in home appraisal reviews to lender-specific requirements imposed because of past problems with certain types of home loans. For example, a mortgage lender might demand more scrutiny of an appraisal if the borrower has a marginal credit score or high debt level relative to income or if the property was a foreclosure that was fixed up and flipped by an investor.

Appraisals may lag home prices
Home prices are also a factor. When prices are on the rise, perhaps because buyers have bid more in a multiple-offer situation, appraised values might still be lower. The reverse is also the case.

"Any time you have a market in transition, appraisals aren’t going to keep up because the appraisal is based on historical data," Johnson says.

Inadequate "comps" can present problems as well. ("Comps" are recent sales of nearby homes that are similar, or comparable, to the home that’s the subject of the appraisal.) The mortgage lender may deem the comps inadequate if the homes were too far away or were sold in such nontraditional circumstances as a short sale or foreclosure or if the sales occurred too long ago. If the comps aren’t sufficient, the lender may order a review or second home appraisal to verify that they were chosen correctly.

"If (the appraiser) can’t find three comps within that area and has to expand, that is where you start to get appraisal reviews or secondary appraisal requirements to make sure the appraisal was valid or that (the lender) was comfortable," Johnson says.

The term "second appraisal" generally refers to a new, start-from-scratch valuation. An appraisal review could be a "desk review," in which the appraisal gets a second look by an office-bound person, or a "field review," in which the appraisal is subject to another drive-by or in-person inspection of the property. A review is more common than a second appraisal.

New guidelines distance lenders from appraisers
Leslie Sellers, president of the Appraisal Institute in Chicago, says a lender might order a new home appraisal if the first one was based on factual errors or the appraiser wasn’t competent in the area.

Some second appraisals, he adds, result from a misunderstanding of the Home Valuation Code of Conduct, guidelines that were meant to prevent undue pressure being placed on appraisers to inflate home valuations, but that may have caused some lenders to cut off communication with appraisers.

"The banks are thinking they can’t even talk to the appraiser," he says.

Sellers can offer comps to appraiser
An appraisal review can cost several hundred dollars while a second appraisal generally involves a second full fee, says Sara Schwarzentraub, owner of Inter-State Appraisal Service in San Diego. These costs usually are paid by the buyer.

"It’s commendable that the lenders are being cautious and having stricter criteria to protect themselves, because in the long term that protects everybody, but it does make it more costly," she says.

Home sellers can offer the appraiser information that might affect the appraiser’s opinion of the home’s value. This information is best handed over before the appraisal is prepared.

"If you know of a sale that’s similar to your house and it was a foreclosure, short sale, divorce or anything of that nature, make the appraiser aware of that," Sellers says.

Real-estate brokers can help buyers and sellers find comps to offer the appraiser, Johnson says. If the broker believes comps may present a problem, the buyer and seller can plan accordingly.

"A good real-estate agent is aware of these issues. Many times, an agent will call us and say, ‘I know we are going to have problems with comps on this," he says.

Neither the buyer nor seller can choose the appraiser, but Sellers says buyers can insist on a minimum competency, which he defines as having local market knowledge and being certified as well as licensed.

Buyers and sellers also can agree on longer time frames for the home appraisal contingency and closing date. Schwarzentraub says that asking for a 45- or 60-day closing, rather than 30 days, is not unreasonable.

Buyers are entitled by federal law to a copy of any appraisal for which they’ve paid a fee. Buyers should look over the appraisal and notify the lender of any errors that could have affected the appraiser’s opinion of the home’s value.

Cosmetic issues are easy to remedy

By Michele Dawson

Home shopping for first-time homebuyers it’s an exciting, albeit nerve-wracking, experience. If you’re like others in the market for their first home, you probably have in mind exactly how your soon-to-be home will look.

But it’s important not to fall into the bad decorating, dingy walls and dirt-bare back yard equals bad-home trap. If you don’t see past the hideous wallpaper, funky light fixtures and avocado green carpeting, you may miss out on a home with great potential.

And, if you’re looking for a home in a seller’s market where homes are being snatched up as soon as they go on the market, you’ll come to realize you can’t be choosy if you want to make a competitive offer.

One of the first things to do is to get pre-approved for a loan and determine the maximum you can afford to offer for a house. Don’t look at homes that are asking for more than 5 percent above your maximum, otherwise you’ll be setting yourself up for disappointment if you find the perfect—but outside your budget—home.

So what to do?

The floor plan of the home is extremely important. If a floor plan isn’t quite to your liking, consider rearranging it or adding on. If you’re looking at an existing home and will need to remodel or expand to suit your needs, the estimated cost of renovation needs to be considered when making an offer.

Also, consider the features of a home:

• Walls. While these are among the easiest to remedy, they also make a huge first impression. If the walls need to be painted, are covered in wallpaper or are painted a color you find distasteful, picture them crisp and clean in the color of your choice—that’s how they could look after you paint them.
• Floors. Like walls, carpet or floor surfaces that are old or outdated can be easily replaced. You could even ask for a carpet allowance in your bid, especially if you’re in a buyer’s market.
• View. Things like old, ugly—even dirty—windows and window treatments can make a view appear less desirable. Those things can be improved, so unless the only view you have is of your neighbor’s clunker on the side of the house, don’t get hung up on what is surely a fixable view.
• Landscaping. Your best bet is a moderately landscaped yard because you can always improve landscaping without spending too much. Worst case, even if you’re looking at dirt, landscaping is one of the easier projects to tackle. Plus you get to design it however you’d like if you’re starting from scratch.
• Closets and garages. You can never have too much storage space, which is why so many newer homes have three-car garages. But if you encounter a converted garage that is now a bedroom or storage room, don’t give up. Converted garages can almost always go back to their original purpose without much cost or labor.
• Kitchen. The most popular room in the house, many homeowners want their kitchen to be large and have modern appliances. Don’t let outdated color schemes deter you because there’s nothing like a fresh coat (or two) of paint to make a kitchen your own. Plus, if you like the rest of the house enough to make an offer, you can give the kitchen a minor spruce-up with some new appliances or a major overhaul complete with new countertops, cabinets, and flooring.
• The exterior. If the home doesn’t have good curb appeal, try to picture it with a fresh coat of paint and revitalized landscaping.
• Pools. If you want a pool, buy a home with a pool already built in. Pools are expensive and you will not get a full return on the cost when you go to sell. Let someone else lose the return. The cost of repairing a pool is less than putting one in, so if you’re looking at a home with an old pool that looks like it’s in bad shape, it’s still a better bet than putting one in later.

When making an offer, consider what you can’t live without, as well as your budget. Also, be sure you hire a professional home inspector to inspect the house. If the home’s systems are in good working order and the house has everything you want except a minor item or two, make an offer accordingly.

Most importantly, keep in mind that unless you’re building your dream home from scratch, you’ll probably never find the perfect home. But seeing past a previous owner’s bad decorating choices to the core of the home and its potential for livability will yield you the home you’ve always wanted. It may take some work, but hey—it’s yours.

Copyright © by Realty Times

Get the most out of your home’s next remodeling project by following advice from the pros.

By MyHomeIdeas.com

1. Good plans equal great results.
Successful remodeling projects require careful planning and a realistic budget. "Many people want to build it cheap and fast," says builder David Lisenby, certified graduate remodeler, of Lisenby Construction. "They want an estimate before they even have a plan." A solid strategy will ensure that the homeowner and the builder are on the same page, saving both parties time and money.

2. Quality counts.
Potential homebuyers have more sophisticated tastes than ever. That’s why spending a little extra on good design, quality materials and careful craftsmanship can garner big rewards when it comes time to sell.

3. Insist on coherent design.
A good remodel or addition should complement the original structure. Pay particular attention to roof lines, trim details and window sizes and styles.

4. Meet expectations.
What buyers want varies from area to area and from one price range to the next. Do some comparison shopping to see what your competition will be like should you decide to sell. And talk to a real-estate agent who knows your neighborhood.

5. Consider the neighbors.
The value of nearby houses affects the value of your home. Remodeling or adding on to a house that’s smaller than surrounding homes will yield a greater value than adding on to a house that’s already one of the largest on the street. A general rule of thumb: Don’t overbuild for the neighborhood.

6. Get permission.
Before starting any type of remodel, make sure the design conforms to all local building restrictions. Some neighborhoods also have their own stipulations and design review processes. Double-check that necessary building permits have been acquired before construction begins.

7. Build up to code.
Plumbing, electrical and building codes help ensure safety. Licensed contractors should perform work that meets all codes.

8. Exercise patience.
If you can, wait for the right time to sell. “In a strong market, the value will catch up with the cost,” Lisenby says.

9. Know the market.
Some types of remodeling projects can return more than average and speed up resale.

10. Experience matters.
Substandard work on your remodel is a buyer turnoff. "You don’t want someone learning on your project," Lisenby says.

Coldwell Banker Burnet

As true as the old saying “you shouldn’t judge a book by its cover” may be, many homebuyers don’t always heed its advice. So as the region begins to thaw out from another cold winter, the warm weather opens up another area that sellers need to ensure is in tip-top shape – the yard. According to an annual survey of homebuyer preferences by AVID Ratings Co., outdoor living space made the list of top 10 must-have features.

“What your home offers outdoors can be just as important as what it offers inside,” said Robin Peterson, president of Coldwell Banker Burnet. “So step into a buyer’s shoes and consider the ways you can make your outdoor space more livable, and ultimately desirable.”

Set the stage outdoors to better showcase your property:

• Spring clean. Winter weather can wreck havoc on outside features. Repair any loose bricks in walkways and mend loose boards in the deck. Consider power washing concrete patios or steps that may have gotten stained during the winter months by leaves and debris trapped under layers of snow and ice.

• Highlight focal points. Front doors, garden gates, large trees, or a wide front porch are strong focal points for your home. Highlight these exterior gems by planting flowers that will hold up through spring or potting decorative plants. Ask your Realtor for an objective, third-party opinion on what you should emphasize to make your front yard shine.

• Work what you’ve got. Tell a story through your home’s outdoor amenities – whether it’s a front porch, a backyard patio or a child’s play set. Work with your Realtor to stage these areas so buyers can visualize themselves enjoying those spaces in the future. Use the tools you have to create an eye-catching outdoor seating area or romantic garden.

Six tips that tell you it’s time

By Michele Dawson

Figuring out whether you’re ready to buy a house — whether you’re a renter or are aiming to move up or size down — can be a daunting task. But there are signs that will indicate whether you’re ready to take the buying plunge.

If you are thinking about buying, you’re not alone. So are you ready to make the move?

You might be if you:

1. Are familiar with the market. If you’ve been paying attention to how much houses are listed for in the neighborhoods you’re eyeing and have a realistic view of how much a house will cost you, you’re in good shape. But if you’re dreaming about that big corner house with no clue about it’s asking price, you may want to spend some more time becoming familiar with the market and how much houses are going for.

2. Have the money for a down payment and closing costs. The down payment is a percentage of the value of the property. Freddie Mac says the percentage will be determined by the type of mortgage you select. Down payments usually range from 3 to 20 percent of the property value. Also, you may be required to have Private Mortgage Insurance (PMI or MI) if your down payment is less than 20 percent. Closing costs include points, taxes, title insurance, financing costs and items that must be prepaid or escrowed and other settlement costs. You can expect to pay between from 2 to 7 percent of the property value. Generally, buyers will receive an estimate of these costs from your lender after you apply for a mortgage.

3. Know how much you can afford. Freddie Mac says that as a general guide, your monthly mortgage payment should be less than or equal to a percentage of your income, usually about a quarter of your gross monthly income. Also, your income, debt and credit history go into determining how much you can borrow. As a general rule, your debt -credit card bills, car loans, housing expenses, alimony and child support — should not be more than about 30 to 40 percent of your gross income.

4. Know what additional expenses will come with owning a home. This includes homeowners insurance, utility bills, maintenance costs — roofing, plumbing, heating and cooling.

5. Have your credit in good shape and make sure your credit report is accurate. Potential lenders will view your credit history — how much debt you’ve accrued, how many accounts you have open, whether your payments are made on time, etc. — to determine whether they’ll give you a loan. You should get a report from each of the three credit reporting companies: Equifax, Experian, and Trans Union.

6. You haven’t made any recent major purchases, particularly a vehicle. If you do, you may have a harder time getting a loan — or it could potentially lower the amount you’ll be approved for.

In a tough real-estate market, it’s more essential than ever that your home stand out, but in the right way.

By Tisa Silver of Investopedia

In this economy, houses aren’t selling like they used to. If you have a house on the market, or are considering selling yours, there are some ways to improve your chances. Here are seven tips that will make it easier to sell your house and make a smooth transition from one owner to the next.

1. Maintain neutrality
This policy has worked for Switzerland, and it can also work in real estate. Customizing your home is great if you plan to stay there, but extreme colors and themed rooms can scare off potential homebuyers. If you have customized every room with extremely bright or dark colored paint, wallpaper or wall fixtures, you may want to consider toning it down a bit. Using neutral colors on the walls can help prospective buyers create their own vision for the house, and will also leave them with less work to undo if they buy the house.

2. Less is more
Even though you have not moved out yet, removing some of your furniture can help the house move off the market. If you take pictures for your listing, having less furniture can help the home appear more spacious. When potential homebuyers arrive, having less furniture can also provide clear walkways.

3. That new house smell
Honestly, the new house smell isn’t always the most pleasant, but at least it is new. In preparing to show your home, you should avoid strong smells. To avoid odors, make sure to take out the trash and clean the refrigerator regularly. It’s also good to be mindful of what you cook in the days leading up to a showing; certain foods have strong scents. If you have pets, keep an eye on the litter box. Any smell that is too strong could send potential homebuyers running out the door.

4. Pay attention to the details
It’s not a good idea to make major renovations when you are ready to sell your home; you may not recoup your investment. If you never got around to starting or completing that total kitchen or bathroom makeover, then you can make some small, inexpensive changes to spruce things up. Replacing the hardware on cabinets is a quick way to improve the appearance of older looking fixtures. Upgrading small items such as light switch and outlet covers can add a nice touch.

5. Maximize your "curb appeal"
The front of your home is the first thing prospective homebuyers will see, so keeping it presentable is a must. If there is a yard, keep the grass to a reasonable height and, if there are trees, be sure to keep the branches under control. The path to your front door should be a clear and welcoming one, not an obstacle course.

6. Don’t get too personal
Upon entering your house, everyone will know it is lived in, but they do not need to see all the evidence. Get rid of excess clutter such as newspapers, magazines and mail. Be sure to put away your laundry and shoes. It may also be a good idea to put away some other personal belongings, like pictures on the refrigerator or mantle. For you, the pictures may make a house a home or display your personal touch. For the new homeowner, it may appear too personal.

7. Take care of repairs
Waiting to make repairs until after you find a buyer can be tricky. Depending on the nature of the repairs, you may not be able to find a buyer. Depending on how fast the buyer wants to close on the house, you may not have enough time to make the repairs. Save yourself some time and potential trouble by making repairs before you list your home. The repairs will have to be made anyway, so it is better to get them out of the way sooner rather than later.

First impressions can make the difference between a sale or no sale. Keeping things simple can give you a leg up on similar houses on the market.

The peak buying months could be just around the corner with help from the $8,000 homebuyer tax credit.

By Mai Ling at MSN Real Estate 

If you’re thinking about selling your home in 2010, you might want to push your planning into high gear.

Even though the peak buying months have been in summer for the past decade, according to Forbes that trend could get pushed up by a season or two because of the newly extended $8,000 homebuyer tax credit, which requires buyers to close on a home by April 30 to participate. From Forbes:

“The beginning of the year is going to be make-it-or-break-it,” says (Trulia.com spokesman Ken) Shuman. “If you’re a seller, get your property listed as early in the year as you can.”

Obviously, that’s not going to work out for everybody. One reason the strongest sale months are in summer is because it’s easier on families with children in school, not to mention that weather plays a big role in how a move turns out.

But for those of you who are a little more flexible with your sell date, Forbes urges you to get your home ready as soon as possible for buyers who are forced to speed up their decisions to take advantage of the tax credit:

“This year, we’re anticipating sales will peak earlier,” says Nicole Hall, editor-in-chief of Lendingtree.com, an online mortgage comparison service. “The best time to get your house on the market will be February or early March, and maybe even earlier if you want to avoid competition.”

No, the weather most likely won’t be working in your favor, especially if you’re unable to showcase your normally superb landscape when it’s covered in a layer of snow. But the article notes that there still are ways to show off your home and yard, including sprucing up holiday decorations and keeping your sidewalks clear of snow and other debris.

Pay close attention to what your local market is doing, too. Hall urges sellers to read local real-estate blogs, while keeping an eye not only on price fluctuations, but also on the unemployment rate.

And before you get in a panic, just remember, as Forbes points out, “Nothing about the last few years in real estate has been traditional.”

Energy-efficient upgrades mean lower utility bills, but they can also earn you tax credits – this year or next.

By Christopher Solomon of MSN Real Estate

It’s the time of year to think about things left undone around the house.

Here’s one task you’ve likely overlooked: making your house pay off as much as possible on your 2010 tax return. If you act fast, you may even qualify for breaks on your 2009 return.

Thanks to provisions in the American Recovery and Reinvestment Act of 2009 (aka the stimulus package), you could get

credit for thousands of dollars on your next tax return by investing in changes that make your home more energy-efficient. Combine that with the money you’ll save on your energy bill, and there’s little reason not to get started now “greening up” your home.

Here are the new or bolstered programs and what they offer:

The $1,500 credit
When you install any of several categories of products that increase the efficiency of your home, you can be eligible for tax credits of 30% of the cost, up to $1,500.

The 30% rule means that if you spent $5,000 on windows, you’d get a tax credit for $1,500. (Read more about how the tax credits work here.) Homeowners can take advantage of the credit until Dec. 31, 2010 — but any changes put in place by year’s end can be included on your 2009 tax return.

“There are several upgrades that qualify. One is windows and doors; insulation and HVAC (heating and cooling systems); roofing; certain water heaters; and then there are biomass stoves,” says Valerie Shelton, president of Green Power Living, a Fort Washington, Md., company that performs home energy audits and green home makeovers.

This tax credit replaces a federal $500 tax credit that had been in place for some years but that had confusing “sublimits,” such as a $200 cap on credits for windows, Shelton says.

Did you already take advantage of the $500 credit? It’s your lucky day. The slate is wiped clean. You can participate fully in the new program.

Now, for the fine print
Every deal has its fine print, and this one does, too: Only certain kinds of purchases count. (Sorry, that cool new thermostat can’t get written off.) More confusingly, just because a product in an approved category bears the federal government’s Energy Star label (a designation of energy efficiency) doesn’t mean it counts toward the tax credit. Here are the restrictions:

• Windows: Those bought after June 1 must have a “U-factor” less than or equal to 0.30 and a solar heat-gain coefficient (SHGC) of less than or equal to 0.30. “A low U-factor indicates good insulating value … whereas a low SHGC indicates less solar heat gain, which is particularly important in climates with high cooling demand,” according to the Efficient Windows Collaborative.
• Water heater replacement: Not all Energy Star water heaters make the tax-credit cut, says Karen Schneider, Web site manager for Energy Star. Electric storage-tank water heaters and electric tankless water heaters don’t qualify, for instance. Go here for more info. (A tip: Don’t trust a salesman to know whether something qualifies for the tax credit or not.)
• Roofing: All Energy Star metal and reflective asphalt shingles qualify. Check out info on Energy Star-qualified roofing here.
• Insulation: Most new insulation is covered; vapor retarders are, too. But insulated siding and cladding don’t count toward the tax break, Schneider says.
• Biomass stoves: Qualifying stoves must have a thermal efficiency rating of at least 75% as measured using a lower heating value.

These savings are on top of any utility-bill savings you’ll realize from having tighter doors, windows and the like. Wonder how much you’d save? Check out the Department of Energy’s calculations.

Now, for the finer print

• These tax credits are only for existing homes.
• Any upgrades must be completed by the end of the calendar year in which they’re claimed.
• The installation cost can’t be counted toward the tax credit, but can be counted for larger, renewable-energy projects. (See below.)
• Keep receipts as well as a Manufacturer Certification Statement for your records.
• When applying for the tax credit next year, use IRS Form 5695. (Note: This is a draft version of the form. Before you complete your 2009 tax return, please visit IRS.gov to obtain the final version.)
• Spending a ton of dough? Sorry, you won’t get a refund if your credit exceeds your tax bill.

But wait, there’s more
Want even bigger savings? You can get it, and then some. You just have to think bigger — and then spend bigger.

If you invest in a renewable energy project for your house, “you get a tax credit for 30% of the cost, and there’s no upper limit,” says Green Power Living’s Shelton. “For instance, if it costs you $10,000 to install solar panels for your home, your tax credit would be 30% of that — so it’d be $3,000.”

Here’s what the “renewables” tax credit applies toward:

• Geothermal heat pumps
• Solar energy systems (including solar water heaters)
• Small wind-energy systems
• Fuel cells

The credit is available through the end of 2016.

Of course, these upgrades aren’t cheap. For instance, the California Energy Commission estimates that the average-size home would need a $7,500 geothermal heat pump system, or nearly double the cost of a conventional heat pump. But you’d earn a hefty $2,500 tax credit to cushion the blow. And you’ll recoup that initial outlay of money over time in the money you save.

Cash for Clunkers … for appliances
Here’s yet another way homeowners may be able to benefit: Earlier this year the federal government set aside nearly $300 million of the stimulus package to encourage the purchase of energy-efficient appliances.

The program, which will be administered by the states, is still in the final planning stages. It’s likely to apply to “products (that) offer the greatest energy-savings potential,” the government said, and will probably take the form of rebates for Energy Star-qualified appliances such as central air conditioners, heat pumps, boilers, furnaces, room air conditioners, clothes washers, dishwashers, freezers, refrigerators and water heaters.

When this article was written, the programs hadn’t begun. Stay tuned for more information about the program, which is likely to be announced as early as late 2009.

Think globally, act locally
You want even more incentive to “green up” your home? Good for you.

How about this: Even more money is available.

Many state and local governments and local utilities offer incentives and rebates for energy-efficient investments. That means purchases that save you money with the IRS on April 15 could also earn you cash back or credits on your state and local taxes. “You can double-dip on these,” Shelton says.

Check out the programs your state offers here. Find rebates on heating and cooling equipment here.

Don’t stop there; you’re on a roll. Also call your city or county government and your local utility directly to see if they have any other incentive programs. Your savings might be only beginning — just for doing the right thing

Mark Schill with Coldwell Banker Burnet (952) 476 – 3622 Mark@MarkSchill.com has earned the prestigious Certified Distressed Property Expert (CDPE) designation, having completed extensive training in foreclosure avoidance and short sales. This is invaluable expertise to offer at a time when the area is ravaged by “distressed” homes in the foreclosure process.

Short sales allow the cash-strapped seller to repay the mortgage at the price that the home sells for, even though it is lower than what is owed on the property. With plummeting property values, this can save many people from foreclosure and even bankruptcy. More and more lenders are willing to consider short sales because they are much less costly than foreclosures.

Hundreds of homes are in danger of foreclosing. It is happening in all price ranges. Local experts say that even high-priced homes are not immune.

“This CDPE designation has been invaluable as I work with sellers and lenders on complicated short sales. It is so rewarding to be able to help sellers save their homes from foreclosure.”

Alex Charfen, founder of the Distressed Property Institute in Boca Raton, Fla., said that Realtors® with the CDPE designation have valuable training in short sales that can offer the homeowner much better alternatives to foreclosure, which virtually destroys the credit rating. These experts also may better understand market conditions and can help sellers through the emotional experience, he said.

The Distressed Property Institute opened in January 2008 and provides training on-site and online. The CDPE is the premier designation for Realtors helping homeowners in distress and handling short sales.

“Our goal is to educate as many people as possible so we can help as many homeowners as possible,” Charfen said.

Mark Schill with Coldwell Banker Burnet (952) 476 – 3622 Mark@MarkSchill.com