A Solar Hydrogen House – Completely “grid-free”

OK – I’ve been hearing that this day would come and it seems it’s finally here. A totally self-sufficient house that gets all it power from somewhere other than the power company. Most solar houses that you hear about it have to stay hooked up to the grid for those times when there isn’t enough sun. These houses typically get more power than they need during sunny times and sell that power back to the electric company. The challenge has always been how to store the excess and use it during cloudy times. This man in New Jersey got it done.

Check out this video.

When is a Seagull like buying a house?

I heard an interesting parabolic riddle (I always wanted to say that) by an author on one of the morning television shows today. I was also on the phone, tripping over the dog’s water bowl and trying to make breakfast at the same time so I didn’t catch the name of the man who was talking. When my brain processed it a little later on it really struck me though.

If there are four seagulls sitting on piece of driftwood and one of them decides to fly away, how many are left on the driftwood?

The answer is four. DECIDING to fly away is not the same as actually making the flight.

It’s really the same with a lot of folks today who are looking at houses. We all know this is a buyer’s market and a lot of people are taking advantage of it to get some of the great bargains that are out there. There are lot of folks I talk to though, who have made the decision to buy but they are waiting: for prices to bottom out, mortgage rates to drop below the historic lows that we have right now, or they keep hoping that the next new listing that comes on the market will be the perfect home.

The fact is that it is only a buyer’s market for those folks who actually buy a house. At some point, prices will go flat and then rise, mortgage rates will go up, and there will be fewer houses on the market to choose from. Nobody knows when these things will happen.

The simple truth is that the stars are aligned pretty nicely – right now – for qualified home buyers. So if you’ve made a decision to partake in the buyer’s market, there’s no time like the present.

Government Incentives for “green” homeowners

As part the American Recovery and Reinvestment Act (Obama’s Stimulus Bill) put into place certain tax credits and rebates for homeowners and builders who take implement energy efficiency components into their homes.

In order to take advantage of these incentives it’s important for you to have a clear understanding of how they work.

Some of the things you can install to qualify include certain types of windows, skylights, “cool” roofs, insulation, duct-sealing and weatherization and much more.

This article from HGTV provides a detailed look at what you can do to get involved.

Home Valuation Code of Conduct

Effective on May 1, 2009 there is yet a new wrinkle involved in buying a home – specifically in the process of acquiring a mortgage. It is the HOME VALUATION CODE OF CONDUCT.   Although just now put into effect, the plan was developed in March and April of 2008.

The rationale behind this is to protect consumers and to help prevent inaccurate home appraisals that could over value a home which some believe to have been a factor in the current housing slump. Not everyone agrees that this will be of value, in fact, many believe it could slow down the process, and could even prevent some folks from getting loans that they otherwise might qualify for.

The code has a number of components but the big “new” thing is that in a lender’s organization the “Loan Production Staff” will not be involved in the selection of an appraiser. Basically it is creating a stronger division between the lender and the appraiser.  The appraisal will be ordered and the appraiser selected by a new entity called an Appraisal Management Company  – AMC.   Your loan officer, will have to pick up the phone and contact the AMC who will then select and order an appraisal.  Prior to HVCC, the  loan officer would order the appraisal directly from a local appraisal company.

The fear (isn’t everything based on fear these days) is that the appraiser, who is an independently licensed professional, could, in theory, be influenced by a lender to place a value on a home that is higher than it should be in order to match the selling price – thus making for a smoother loan approval process but, if this happened, could put a home buyer into a home that he purchased higher than the market value.

There is no evidence of any widespread fraud in the marketplace – this is just one of the new pieces of tighter control of the mortgage market being put in play. Whether we agree with it or not, it is now a factor in the process. You can read the details of the HVCC by clicking here.

Waiting for the bottom?

A lot of people shopping for houses today are moving very cautiously towards making a purchase as they keep their eye on the depreciating prices of houses.  Everyone wants to buy at the “bottom” of the market – which is a natural feeling – who wants to buy something today and have it be worth less in 6 months.

One of the challenge with this is that we are not going to know when the bottom hits until we can look back and point at it in our rear-view mirrors.  Once prices start to rise at some point, we will know, for sure, when the bottom was. Until then, we’re all just guessing – and gambling.

The second thing to consider is really a math exercise.  If, for example, there is a home that you like that you can currently buy for, let’s say,  $250,000.  If you wait 3 more months, the price might drop to, let’s say $230,000 giving you a “savings” of $20,000.

Let’s look closer at that $20,000. You have to consider what it is costing you NOT to buy for another 3 months.  If you are a first time buyer and you are currently renting, that means that you’ll be paying rent for 3 more months and not enjoying a tax deduction on the interest you’ll be paying in your new mortgage. The earlier in the year you make a purchase, the bigger your deduction will be on April 15, 2010.

If you currently own a home, compare your current interest rate to what you would be paying if you made a move sooner than later.  If you’re current rate is, let’s say,  7% and you can get a mortgage on your new home for 5%, how much will you be saving on your monthly payment.

Everyone’s situation is going to be a unique but you should take the time and do the math to figure out how much it will cost you to wait for “the bottom.”  You might be surprised.