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| Remodeling |
A recent study conducted by economists at the University of California, Berkeley and University of California, Los Angeles called “The Value of Green Labels in the California Housing Market” is the first to provide statistical evidence that, holding other factors constant, a green label on a single-family home in California provides a market premium of up to 9 percent compared to a comparable home without the GreenPoint Rated label.
Build It Green is a membership-supported nonprofit organization whose mission is to promote healthy, energy- and resource-efficient homes in California. Its slogan is “Smart Environmental Solutions from the Ground Up” so since 2003, it has offered a comprehensive package of local government support, professional training, collaboration forums, consumer education and green product marketing to a range of stakeholders.
The following three strategic objectives guide the work of Build It Green:
Build It Green’s program development strategy has been to incubate good ideas in the San Francisco Bay Area and then expand them statewide, helping to establish California as a role model to other states and the nation for developing pragmatic solutions to environmental challenges. It strives to design its programs to have wide-reaching policy impacts that positively can impact many Californians.
Energy-Efficient Mortgages (EEMs) are available for homebuyers purchasing energy-efficient homes. EEMs allow buyers to qualify for larger home loans based on quantifiably low monthly energy bills. Ask your lender to explain the EEM products provided by Fannie Mae, Freddie Mac, the Federal Housing Administration (FHA) and the U.S. Department of Veterans Affairs (VA). It is even possible to refinance a home with an EEM to make it more energy efficient. Visit www.hud.gov/offices/hsg/sfh/eem/energy-r.cfm to learn more.
Developing A Realistic Remodeling Budget
Review the following simple tips from NARI about developing a budget.
— Determine What You Can Afford
It may seem obvious, but often homeowners may expect a remodeling contractor to create the budget for them. This is not a good idea. Following are some better ways to begin the process:
Financing
If the job requires financing, shop around for the best terms on the financing, including the interest rate, terms of the payout and finance charges. As with any financing agreement, you should calculate the entire cost of interest and charges for the term of the loan.
Build It Green is a membership-supported nonprofit organization whose mission is to promote healthy, energy- and resource-efficient homes in California. Its slogan is “Smart Environmental Solutions from the Ground Up” so since 2003, it has offered a comprehensive package of local government support, professional training, collaboration forums, consumer education and green product marketing to a range of stakeholders.
The following three strategic objectives guide the work of Build It Green:
- To drive policy development: Build It Green partners with government to establish credible and accessible green-building policies that promote private-sector innovation and provide consistent guidelines statewide.
- To increase supply of green homes: Build It Green trains building professionals on latest best practices and connect green product suppliers with consumers.
- To stimulate consumer demand: Build It Green builds awareness of the benefits of green building by providing GreenPoint Rated as a trustworthy, recognized brand for green homes.
Build It Green’s program development strategy has been to incubate good ideas in the San Francisco Bay Area and then expand them statewide, helping to establish California as a role model to other states and the nation for developing pragmatic solutions to environmental challenges. It strives to design its programs to have wide-reaching policy impacts that positively can impact many Californians.
Energy-Efficient Mortgages (EEMs) are available for homebuyers purchasing energy-efficient homes. EEMs allow buyers to qualify for larger home loans based on quantifiably low monthly energy bills. Ask your lender to explain the EEM products provided by Fannie Mae, Freddie Mac, the Federal Housing Administration (FHA) and the U.S. Department of Veterans Affairs (VA). It is even possible to refinance a home with an EEM to make it more energy efficient. Visit www.hud.gov/offices/hsg/sfh/eem/energy-r.cfm to learn more.
Developing A Realistic Remodeling Budget
Review the following simple tips from NARI about developing a budget.
— Determine What You Can Afford
It may seem obvious, but often homeowners may expect a remodeling contractor to create the budget for them. This is not a good idea. Following are some better ways to begin the process:
- Keep a reserve. Once you determine how much you can afford to spend on a remodeling job, decrease that amount by 10–20 percent. This reserve should be put away to cover any change orders or incidental charges accrued along the way. This will prevent a frantic scramble for additional funds at the end of the project.
- Keep “change orders to a minimum.” It is easy for a homeowner to say, “A little more on this fixture doesn’t matter. It’s very little money.” Unfortunately, having that attitude also makes it easy to overextend a prepared budget. While it’s rare that any remodeling project proceeds without a single change order, homeowners can keep them to a minimum by sticking to their original plans. A change order is a written document detailing any requests to alter, change or remove any items in the contract or project. There are four key origins of a change order:
- The homeowner initiates one because they have changed their mind about the design or a specific product.
- Unexpected damage was found (e.g., termites).
- A code violation is uncovered that affects the project.
- The proverbial “while you’re at it…” phrase can annihilate a budget. While it’s tempting for a homeowner to have his remodeling contractor complete handiwork, it’s good to remember that any work not specified in the original contract will have an additional cost attached to it.
Financing
If the job requires financing, shop around for the best terms on the financing, including the interest rate, terms of the payout and finance charges. As with any financing agreement, you should calculate the entire cost of interest and charges for the term of the loan.
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