50% Less Energy with Geo + a big Check

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Almost Free!!

When talking about how energy efficient homes are today my thoughts often have me asking the question, “How can we get new homes any tighter and more efficient than they are today?” The answer is we can, but at what cost and how long is the payback which every new home buyer wants to know. For the huge increase in equipment costs and doubling the cost of superior proven insulation methods, is it just a diminishing return?

Surprisingly the answer is yes. The additional cost over time, and energy prices not going down any time soon, you will easily recover those costs. Ten years in the life of a home is a relatively short time to recover those initial costs when you think of a homes useful life or over 100 years. Even if you don’t get to take full advantage in the short term, buyers will gladly pay a higher price for a superior efficient home.

Now for some really great news for those who choose to go this route when building a new home. You can get a tax credit, not a deduction, of 30% the initial cost of those improvements for a new Geothermal System. With those incentives you can get a home with a geothermal heating system unit for as little as $3,000 in additional cost, making the payback well under 5 years!

Whether or not you like the government incentive programs, someone is going to take those funds and improve their home. Let’s take an example of a home built in Cedar Falls: Total cost of the geothermal system, $30,000 for a home of around 2000 square feet). Now lets deduct the dollar for dollar tax credit of 30% ($10,000 in this case) now the geo heating and cooling system is costing you about $5,000 above a standard super high energy efficient heating system which is approximately $15,000. You must comply also with the Energy Star Program however the good news is most builders in our area comply with this regulation anyway.

“This credit for geothermal, heat pumps, and other innovative energy savings system products does not have to be for your principal residence like the other energy credits ; so, rental units, second homes, etc... are all eligible. Go to www.EnergyStar.Gov to find all about what credits and energy efficiency products are available for you. These credits for geo systems expire on 12.31.2016. You do have some time to plan but like all tax credits, subject to change, like cash for clunkers when the allocated funds run out. So I would act now. There are also many tax credits for existing homes and most of those expire at the end of 2010.

Sounds really good so far right? Well it gets better, Cedar Falls Utilities will rebate you another $600 dollars for each ton of a system required for heating and cooling a home, in this case the home would take about 5 Tons of unit size. $600.00 X 5 is a rebate of $3000.00. Your net cost is $2,000.00 and a heating and cooling system that is 50% more efficient to run than a traditional forced air heated and cooled home. The payback now is almost immediate. In Waterloo, and other areas of the Cedar Valley that Mid American Energy is serving, they give a flat rebate of $2,000.00 per installed unit.

At Fairbanks Builders we have made a commitment to geothermal by offering the system, in all of our Villa Condo Single Family Homes in Cedar Falls. We will pick up the balance of the cost between the adjusted tax cost of the geo system and the cost of a traditional high energy efficient system up to $3,000.

Stable building costs, some severely reduced costs, available local home Builders that need to fill a schedule, interest rates at 4.5% for a fixed 30 year loan most days, low home inventory if you need to get your current home sold (Market time of 97 Days according to the WCF Board of Realtors) First time homebuyer credit of $8,000 and a $6,500 tax credit for anyone buying a home.

I have never seen a better time to invest in building or improving a home in 35 years of building. When the housing market improves the credits will disappear.

“Invest when others are fearful and sell when others are confident. Warren Buffet 2009.

If you have questions about any of these programs feel free to contact Craig

Craig Fairbanks
Owner
Fairbanks Builders / Realtors
www.FairbanksBuilders.com
319-404-0412

Craig is immediate past president of the Northeast Iowa Association of Home Builders
Also a Certified aging in place specialist. (CAPS) NAHB

Good New for House Tax Credits

The following article was written in todays New York Times and indicates that likley the $8,000 tax credit to purchase a home will continue and not only for first time home buyers.

Democrats May Extend Tax Credit for Homes



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By JACKIE CALMES
New York Times
Published: October 7, 2009

WASHINGTON — Democratic Congressional leaders are working with the White House to extend an expiring $8,000 tax credit for first-time home buyers, and aides said Wednesday that they were considering making it available to current homeowners who purchase a new residence.


Extending and possibly expanding the popular home-buyers credit, which is due to expire after November, is high among options for further stimulating the economy and creating jobs, Congressional aides said, though a White House official said it was only briefly mentioned on Wednesday in an Oval Office meeting between President Obama, Speaker Nancy Pelosi of California and Senator Harry Reid of Nevada, the Senate majority leader.

The Democratic leaders met with the president to discuss a broad range of options to combat persistent high unemployment, officials say. The existing credit for first-time home buyers will expire at the end of next month if not extended, and two other components of the economic safety net — unemployment compensation and health care benefits for those who have been out of work for long periods — will expire at the end of the year.

Keeping the home-buyers credit and broadening it has been a priority for real estate agents and the home builders lobbies, and for Mr. Reid, who faces a tough re-election race next year in a state that has been among the hardest hit by the housing crisis since mid-2007. In a statement after the White House meeting, Mr. Reid said the government should “continue efforts to strengthen the housing market by extending the home-buyer tax credit.”

By the time it is scheduled to expire, for home purchases that close before Dec. 1, the home-buyers credit will be responsible for nearly 400,000 sales of new and existing homes, out of total sales of 1.4 million, said Mark Zandi, chief economist at Moody’s Economy.com. That is roughly in line with estimates from the National Association of Realtors.

Mr. Zandi, who formerly advised Senator John McCain, Republican of Arizona, and is now consulted by Democrats in the administration and in Congress, has advocated extending the credit through next August and making it available to all home buyers.

Allowing the credit to expire this year would result in a decline in sales of homes that are not facing foreclosure just as sales of foreclosed homes are expected to pick up, Mr. Zandi said in an interview, “putting further downward pressure on house prices.”

“The economic recovery will not evolve into a self-sustaining economic expansion and risks unraveling back into recession until house prices stop falling,” he added.

But the tax break is not cheap. Congressional analysts put the cost in lost tax revenues at about $1 billion a month. Mr. Zandi said that expanding the availability of the credit to more home buyers through August would cost perhaps $30 billion. While some in the housing industry have proposed nearly doubling the credit to $15,000, Mr. Zandi said $8,000 “seems to have been a sufficiently powerful incentive.”

While Democrats in Congress and the White House emphasize that no decisions have been made about the home buyers credit or any other measures, two officials said that the cost of extending the credit could be covered by redirecting money in the two-year $787 billion stimulus package that was scheduled to be spent after this year.

The current credit is limited to buyers who earn up to $75,000 a year, or couples who make $150,000; in gradually smaller amounts the credit is available to individuals with income from $75,000 to $95,000 and to couples making from $150,000 to $170,000. While the housing industry supports lifting the income caps so that even wealthy home buyers are eligible, White House and Congressional aides say that is not under discussion.

Industry officials counter that expediting home sales helps to stabilize home values now, which is essential for sustaining economic growth. And unlike car sales, home sales have a multiplier effect that spurs job-creating growth throughout the economy. Lawrence Yun, chief economist for the National Association of Realtors, said each house sale on average yielded $63,000 spent on goods and services, like moving vans and furniture.

Craig's Observations
All of this signals continued solid environment coupled with the lowest interest rates for mortgages that has not been seen in our lifetime. Building materials and products for new home construction have plummeted in price over the last 18 months.

Keep posted for additional credits allowed for building and improving your new home, like a 30% tax credit of the total cost of geo thermal heating for your home.

This is the time don't miss out!! You know it won't last for long as the government will need to pull back to pay off the deficit.


Craig Fairbanks
Owner
Build Buy or Sell Homes

REALTOR® Magazine-Condo Buyers Beware

Buyers, Builders and Realtors Beware!!! There are a few extra steps that need to be taken when considering a purchase of a residence or condo with an association. You need to make sure these associations are using good practices before purchase or face being denied financing at approval time. Click the following link and make sure your agent or builder is checking these things out as well.
REALTOR® Magazine-Daily News-Condo Purchases Require Extra Steps

Shared via AddThis

Craig Fairbanks
Owner/Broker/Builder
Build Buy or Sell Homes.com

Parade of Homes 2009/ Condo Explosion

One of the events that people in the area look forward to is the Home Builders Cedar Valley Parade of Homes. Again this year there are an abundance of homes to view (17) and this year we have included remodeling that showcases what our remodeling contractors can do with your existing home. Lots of home owners are choosing to update and make significant changes and add additions rather than embarking on the new location required in the building of a new home.

We appreciate the public participation in the CV Parade of Homes as it funds scholarships for students seeking a career in the building trades. We need those new people to be retained and trained for our future needs in the housing industry. These will be the new innovators in our business and the builder of our future homes.

Also this year we have some condo units on display as that housing option is becoming more and more sought after. I personally have seen a huge shift in what buyers are looking for. Condo inquiries or stand alone condo units come in at more than 2 to 1 vs custom home building. Its our aging population and more so in the Cedar Valley. Did you know that the age of our head of household in the 45+ age range is 60%, not surprising that condos are becoming more popular.

That is why we have been building the stand alone Villa Condo homes where you have an an association to just get the lawn work done and snow removal. By working with more home owners the cost for this service per home is less. We will be coming our with some new twin homes or zero lot line units to further improve on a new price range that buyers are seeking. These units will start at $199,000 for an over 1600 square foot home that is univerally designed with a large double garage lots of storage and a screened in porch. 3 and 4 season rooms will be available as options as well.

Look forward for the details as they come available. Check out our Villa Home Page.

Stop back and check out our blog or website for more details. Also great discounts as much as 50% on Geothermal heating systems in new homes.

Craig Fairbanks
Owner

Geothemal HVAC System for Free!!!

I believe that the single best thing that has come to the forefront in all the talk about sustainable homes and reducing energy usage, is the whole concept of Geothermal heating and cooling of our homes. Just doing this one thing in every home where possible would take us along way toward energy independence.

If I could offer one option that will no doubt pay for it self Geo would be it. So we have embarked on a promotion to make it possible for every home we build to have this high quality system. The article published is how satisfied one of our customers is with the system that we installed for them. The Flory's recognized early on that they wanted the most energy efficient home possible.

You can see the offer we have currently on a new custom Villa home with a Geo system installed. We can include a Geo system in your new home starting at the reasonable price of FREE!!

The following article is used with permission from the Waterloo Courier Home and Garden section.

Geothermal systems may be worth front-end investment for new homes

By Amie Steffen | Images by Rick Chase

Dave Krejchi, owner of Dalton’s Plumbing, Heating and Cooling, says in-floor geothermal is ‘the most comfortable heat’ because there is no air movement.
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Geothermal systems may be worth front-end investment for new homes
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When Denise and Ronald Flory of Cedar Falls were building their new home, energy savings and limiting their impact on the environment were big factors.

Others they knew had raved about geothermal heating and cooling systems, and the Flory's were persuaded.

It’s more expensive to install than a traditional furnace and air conditioning system, noted Denise Flory, but she’s undaunted.

“In the long run, it’s going to be well worth the added investment,” she said. “Our home is very comfortable.”

The Flory's join an ever-growing population around the Cedar Valley choosing to install geothermal, or ground-source systems, into their new or renovated homes.

Dave Krejchi, owner of Dalton’s Plumbing, Heating and Cooling in Cedar Falls, said that’s been fueled lately by both increases in traditional utility costs as well as substantial incentives to go greener. Homeowners get a 30-percent tax credit on installation of a geothermal system as well as rebates from utility companies.

“When energy gets high, that’s when we sell them,” Krejchi said.

A geothermal system uses the earth’s constant temperature — which varies between 52 and 55 degrees — to draw out heat in the summer and pump heat in during winter months. The Environmental Protection Agency has said it is “the most energy-efficient and environmentally sensitive of all space conditioning systems.”

The system still runs off electricity, but a smaller amount.

“You’re going to ... see energy bills cut 70-plus percent,” Krejchi said. “It can be substantial.”

Flory agreed, noting her 1,800-square foot home’s highest heating bill last winter was around $90.

“Energy costs are going to continue to increase, especially when we’re looking at natural gas or anything generated by coal,” she said.

Tim Hanson, a salesman at Young Plumbing and Heating in Waterloo, said geothermal is becoming popular in schools as well. He noted efficiency with the systems can run at 300 to 400 percent.

“For the most part, (the reasons people buy geothermal are) saving money, they know it’s very efficient and a lot of them know it’s environmentally safe,” Hanson said.

Most geothermal systems involve burying loop fields underground, which capture the heat and are buried either vertically or horizontally — so a good-sized yard is key to installation. Also, older homes aren’t always equipped to handle the system.

They work much like a traditional furnace/air conditioning system does: with a heat pump. Loops of refrigerant are pumped through a refrigeration cycle that moves heat. Instead of taking the heat from the air, however, geothermal systems take it from or give it back to the ground.

The system is run with a typical thermostat, and loops buried outside are not visible.

“The unit is a little larger than a regular furnace, but very quiet, and our energy bills have been reasonable,” Denise Flory said.

Homeowners can choose between a duct system or in-floor heating. Flory has a duct system, while Krejchi said he’s installed in-floor geothermal in his own home.

“It’s the most comfortable heat you’ll ever have ‘cause there’s no air movement,” he said. “Instead of moving air, you’re heating objects and it radiates.”

With more people asking about geothermal systems for their homes and more companies offering it, Hanson said it’s important to go with an installation company you trust.

“Most of them like it. We have had very few complaints,” he said.

Contact the writer at (319) 291-1464 or amie.steffen@wcfcourier.com.


It seems we have entered a different mind thought about housing and families are thinking farther down the road in what they actually would like in their home then. People are not thinking bigger but shooting for a higher quality home with more higher end features. The paybacks and incentives on high energy items like Geo and efficiency items is now, it won't last for ever. If you would like to come in for a no obligation consultation on this topic or any building topic do not hesitate to contact me personally.

Craig the Builder

Craig Fairbanks

319-404-0412
Craig@BuildBuyorSellHomes.com
www.BuildBuyorSellHomes.com

Summer may have arrived

It has been a cold wet spring and people have really been upset and cranky with the weather. Well this week it changed, at least we have summer temperatures but also lots of rain. At the rate it is coming down you might think we are experiencing a monsoon as humid as it is. Hopefully we won't have the flooding we experienced from last year.

Any way it does really slow the building process, and delays occur but that is part of the normal process early in the year. From my perspective it would be nice to build everything in last September or early October the best weather of the year.

Speaking of the best time to build a new home, it may be now!!! Lowest interest rates ever, lumber prices not seen in this decade and subcontractors offering better pricing to keep crews and business moving forward. It won't last for ever and when the national economy recovers, perception will change and it will you will see pricing go back to previous levels. However, in our area it has been real busy for many of the custom builders in the area yet price adjustments have occurred. Are building permits down from the highs? Yes but we are just back to a good normal and the huge amount of homes built yearly we saw in 2006 and 2007was unsustainable.

Most of the customers we are working with are budget conscience and builders like ourselves are working to fit that home in their price concerns. Its really fun again to be able to make those price adjustment for our customers so that they get the best deal that can be had and we can make a little profit to keep building which is our passion.

If you have been thinking that you would like to make a move, the real estate market here is short of homes. Maybe its time to check out your current home value as they have been moving up. I know my personal goal this year is to sell my current home a get a new one built in a great building climate.

How is the real estate market? Really? Hot Hot Hot

Many people are asking these days "How is the housing market doing, I hear its really bad out there right now!" My answer been the same for sometime, "If it gets any worse I'll have to hire more help to keep up."

This data below I received from the Board of Realtor's this morning:

Iowa/Black Hawk County Foreclosure Data Bob Reisinger - 4/3/2009 7:58:19 AM

While preparing for a talk next week, I came across some statistics on foreclosure rates and numbers in Iowa. This might be of interest to your buyers and seller in our market:

Background: In 2008 IOWA had 5400 foreclosure filings. It was a 31% increase over 2007 and 136% increase from 2006.

Nationally IOWA ranked 37th in TOTAL Foreclosures and IOWA's foreclosure RATE was ranked 40th nationally. National RATE was 1.84% of Housing units filed. In IOWA, 0.41% of the housing units filed. Overall IOWA accounted for less than 1% of the 2,330,483 filings nationally.
Five (5) Iowa counties accounted for 67% of the 5400 filings.
Polk County (Des Moines) - 1735 filings - .96% rate
Linn (Cedar Rapids) - 627 filings - .69% rate
Scott (Davenport) - 519 filings - .74% rate
Pottawattamie (Council Bluffs) - 425 filings - 1.09% rate
Woodbury (Sioux City) - 297 filings - .71% rate

BLACKHAWK County had a rate of .07% and ranked 71st of the 99 counties in the state.
The above information is from the IOWA Independent - A center for Independent Media

I realize that with all the news we see everyday about how bad it is in our home building industry out there that I am thankful that our market has held up this well. We may not be getting all that we would like to see for our homes and products but we are a far cry from the financial detestation seen in other parts of the country. As long as you are staying in the area the spread to move up or down is about the same spread as it was in the good times.

Just today heard there were 10 lot sales this week in one subdivision and many more people starting to search. Our website activity is at all time highs. Low interest rates, 4-3/8 % for 30 years!!! WOW its the lowest that it has been in my 35 years in the building business and real estate business.

Prices for materials are really low, less than 1/2 of the highest price and many sub prices are steady and some are dropping. It's a fantastic time to build or buy, a once in a life time opportunity.

Judging by the huge up swing in the stock market and the rise in the homebuilders stocks the low prices will not last for long. You snooze you lose!!!

Craig the Builder