Home buyers and sellers in Boulder Colorado can receive tax credits for including energy efficiency into their everyday lives. It isn’t just good for the environment; it’s also good for your wallet! While you may discover that the latest energy efficient appliances can be more expensive, you can save money through federal tax credits. For example, if you are building or buying a new home, you can qualify for tax credits on any products bought before January 1, 2009. Find out if you’re eligible and learn about more rebate programs in Boulder County.

To be eligible for the tax credit, the product must meet or exceed the requirements of the 2000 International Energy Conservation Code. Also, find a manufacturer in your area who is knowledgeable about the credits and sells products that qualify. Another reason to go green – tax incentives are not merely deductions. They are tax credits that directly reduce your tax bill! They can even be rolled over to the next year.

Following is a list of rebate and incentive programs in Boulder Colorado.

1) Center for Resource Conservation is offering rebates for energy saving insulation and air sealing projects before the end of 2008. Prepare for winter and save money at the same time.

2) Home energy efficiency tax credit which allows up to $500 for home improvements that involve energy efficiency such as new windows. What a great deal!

3) Residential solar and fuel cell tax credit that is up to $2000 for installation of a solar electric, solar water heating, or fuel cell system. Fight global warming and get money back! A smart choice!

4) Discover the rebates from utility companies such as Longmont Power, Poudre Valley REA, and Xcel Energy. These utility companies serving Boulder County offer the rebates on energy efficient appliances and upgrades, such as evaporative coolers, energy efficient lighting, solar and wind energy, and EnergyStar appliances.

5) The City of Boulder offers water rebates on residential items such as high efficiency washers, low-volume toilets, and water-efficient irrigation systems. For more information, visit the City of Boulder rebate web site. 

As you can see, going green helps the earth and our budgets. Are you a home buyer or seller who would like to benefit from tax credits and other incentive programs? It’s easier than you think!

It doesn’t matter if you live in Boulder Colorado or any other part of the country and it doesn’t matter if you’re a homeowner, buyer, seller, fix and flipper, or part time re-modeler.  Knowing what makes property value go up or down is important to maximize your return on every dollar you spend on your home.  It is especially important when listing your real estate in a buyer’s market that you separate your home from others with home improvement projects that increase value.  Don’t waste your time or money installing that swimming pool, unless your swimming in money, in Boulder Colorado and read about some of the basic forces that determine real estate value.

How is value determined?

All real estate value is determined by the interaction of buyers and sellers in the marketplace.   According to appraiser, Chet Boddy, the real estate market goes up and down in cycles for reasons which can only be understood after they occur.  The economic principle of supply and demand prevails.  In a buyer’s market, supply exceeds demand, driving prices down. In a seller’s market, demand exceeds supply, driving prices up.

There are ways to increase the value of a home that go beyond remodeling your kitchen.

One way is to clear up any potential legal issues ahead of time when getting ready to list your home. For example, unrecorded access easements are a big turnoff to buyers so be sure to record any easements.  If you share a private drive, make sure the easement is recorded on your deed.  Sometimes this is something that needs to be worked out with the neighbors and possibly a lawyer but will pay off in the long run.  Don’t wait until your home is under contract to find out that there is an issue or your deal might fall and then you are back to the drawing board!

Consider ordering a survey and obtaining building permits as it may be necessary to clear up any discrepancies with boundaries, code violations, etc.

We recently had this experience during the sale of one of our properties.  Sometimes we make improvements without obtaining the proper permit(s) and this can come back to haunt you at a later time.   Some buyers do not want to buy non conforming property or property remodeled without the proper permit(s) being pulled.  It can take awhile to get through the permit process – do it right away!

Now for the fun stuff!

Yes, you know – remodeling the kitchen.   Many times it adds the most bang for your buck but there is no need to go overboard.  Its’ quality should not “out do” the rest of your home.  If you own a $150,000 home there is no need to spend 75K or more to remodel your kitchen.

Fresh exterior and interior paint.  There is nothing like a fresh coat of paint to cheaply and effectively create the WOW factor prospective buyers are looking for.  

Work with what you have.  No need to construct and addition to your home or pop the top.  Look at transforming your unused or wasted space into a fantastic deck, finished basement, usable attic, or functional garage which will entice buyers and separate you from the other sellers on the block.  

I can’t emphasize this one enough – LANDSCAPING!  Buyers usually make their decision about your home when they see it for the first time.  I’ve had many, many buyers tell me to drive on when we come to a home that doesn’t have curb appeal.   The saying “you can’t judge a book by it’s cover” does NOT apply especially when the buyers won’t even consider going into the home.  First impressions are very important so take some time to spruce up the outside of the home, specifically the front of the home.  

Upgrade the bathrooms or install an additional one.  Master baths are GREAT selling features.  

Food for thought – While some remodeling may enhance the value of your home, don’t do anything major right before you sell.  Studies have shown the most profitable home remodeling projects recovered only about 60 to 90 percent of contractor costs when the home was sold.  Let the buyer remodel the home to their liking.  Save as much money as you can for your next home.  

Leave home remodeling to the pros unless you have the experience.  While DIY projects can be less costly than hiring experienced professionals, if it doesn’t look professional and high quality, it can be a major turnoff for buyers and may actually reduce the value of your home.

We’ve all read the headlines, heard the horror stories, and asked ourselves “Is this the right time to buy?”.  Whether you are a first time home buyer, real estate investor, or just looking to upgrade, the time to buy real estate in Boulder is here!  Some real estate experts are predicting the housing market

won’t bottom out until late 2009 or even 2010.  Although home lenders have tightened borrowing requirements, interest rates are still at historic lows and home loans are obtainable without a 20% down payment.  2008 will be another year of increasing foreclosures as the 5 year ARM loans issued in 2003 mature.  Large inventories of foreclosures won’t be around forever.  Once foreclosures start drying up, housing prices will stabilize.  As demand for home ownership increases and new home inventories shrink, prices for existing homes will increase.  Historically, Boulder real estate appreciates over time as new home growth is limited and demand for home ownership is high.  What are you waiting for….?