Seattle, Bellevue, and King County Real Estate Blog

Senators agreed to extend the $8,000 first time buyer tax credit, and they have also agreed to create a tax credit for repeat buyers.  This is great news for both buyers and sellers and all of the professions that depend on real estate.

For the past few months I had been beginning to worry about what would happen to real estate when the tax credit expires at the end of November and the traditionally slow winter/holiday months hit.  I certainly felt a sense of relief when the news broke; I want to see the progress the real estate market has made continue. 

The added tax credit for repeat buyers will likely play a more significant role on homes priced $400,000 and above.  That portion of the market has recently begun improving as people with secure jobs and income gained confidence in our economy.  This tax credit should further that improvement.

Here's the article: http://seattletimes.nwsource.com/html/nationworld/2010156829_credit29.html

Before I get into some ideas on ways to save money around your house, make sure to consider the cost of making changes to the benefit you will get. As in, if you think you may move in a year, then adding/upgrading insulation in the attic and basement would cost more then the savings you would get over the course of a year.

Beyond that, I hope you enjoy these easy ideas that you can implement on your own:

1. As noted above, upgrading your insulation to a higher R-value can have a dramatic effect on your heating. I don’t recommend ripping down any walls, so stick to easy to access areas like your attic or crawl space / basement. Heating efficiency is often lost through exterior doors, so weather stripping around your doors also helps.

2. Help keep your water bill low by using a shower head that reduces water flow, some of which can be quite inexpensive. Additionally, many people crank the water to the fullest in the shower when only half pressure may do the trick. Older toilets generally flush more water than newer toilets, so look into replacing your toilet if you plan to be in your home long enough to enjoy the cost saving benefits.

3. Ceiling fans can be relatively cost effective and easy to instill. Fans are an excellent way to keep things cool in the summer and reduce your air conditioning costs. Ceiling fans at their lowest speed can even help circulate the heat coming from your floor heaters in the cold months, letting you enjoy more of the warm air.

4. Appliances these days are getting more and more energy efficient. If you plan to be in your home for years to come then replacing appliances will likely make sense for you (and it’s a great excuse to upgrade!). Just check out the energy savings tag at your local home improvement store to get an idea of the cost savings you may see. We have also recently seen utility companies giving rebates to people who purchase energy efficient appliances.

5. Replacing light bulbs to energy efficient bulbs is one of the easiest ways to cut costs. Puget Sound utility companies have even participated in exchange programs allowing you to replace your light bulbs in a very cost effective manner. Ultimately, energy efficient light bulbs are a no brainer over the course of their lifetime.

6. A programmable thermostat can drastically save heating costs by only heating your home during appropriate times. For instance, if you are at work and the kids are at school… basically if there are times of the day when your home is empty, then program your thermostat to be off during those time period. You can program the thermostat to start pumping warm air an hour before you get home. By doing so you come home to a warm house but didn’t have to pay to heat the home when unnecessary. Many people also turn off the heat over night and program it to come on shortly before waking up.

7. Monitor and replace your air filters as necessary. Dirty air filters reduce air flow and result in increased energy to heat the home the same way a clean filter allows.

8. When doing laundry be sure you are only doing full loads as opposed to multiple smaller loads. Also, consider washing all of your loads with cold water… there are detergents available that are designed to maximize cleaning in cold water.

9. Unplug your small electronics when not in use. Electrical items suck power even when they are not turned on and many of these items are easy to unplug. For instance the toaster or blender on your kitchen counter can easily be plugged in when needed and unplugged when not in use.

10. Lastly, the best way to reduce costs around your home is to be aware and conscious of things you can do. Most of us waste money on heating, water, etc simply because we haven’t trained our minds to think about it. The more aware of the possibilities you are around your own home, the more likely you will be proactive about finding ways to reduce costs.

The $8,000 first time buyer tax credit will expire at the end of November, meaning buyers must close by November 30th to capture the tax credit.

It will be interesting to see how the real estate market reacts after the deadline, but ultimately the deadline falls at a time when real estate generally slows going into the holiday season.  Regardless, the first time buyer tax credit has been a success as home sales have picked up which affects a multitude of professions; mortgage, title/escrow, inspectors, contractors, etc, etc.

There has been talk of extending the tax credit, but for now buyers are preparing to close by the end of November.  Normal transactions typically take 30-40 days once under contract, so buyers are moving quickly to find the perfect home by the middle of October.

If you are a first time home buyer then now is the time to start looking for homes to ensure you find the right home and can close in time. 

More information about our first time buyer services can be found at www.prosperarealestate.com/freebuyerservices