If you’ve been considering making your home more energy efficient now is the time to act. Not only will “greening” your home help you save on heating bills this winter and reduce your environmental imprint but it can also cut your tax bill.

In an effort to combat growing energy problems, Congress passed the Energy Policy Act in August 2005. The law offers a tax credit to consumers making specific energy-efficient upgrades to their homes. These upgrades include everything from installing insulation to weatherproofing your doors and windows and investing in approved energy-efficient appliances.

The catch? The tax credits are set to expire in December, so those interested in taking advantage of them will need to act fast.

The Alliance to Save Energy offers a list of home improvements that will help you save on taxes:

Furnace and boiler: credit up to $150

Homeowners are entitled to a rebate of up to $150 of the purchase price, including the cost of installation. To qualify, the furnace must meet exacting efficiency requirements. For detailed criteria, visit the Alliance to Save Energy Web site.

Exterior windows, skylights and storm windows: credit up to $200

Homeowners are entitled to 10% of total cost, not to exceed $200. All windows must meet the standards of the 2001 or 2004 International Energy Conservation Code and must be expected to last for at least five years.

Central air conditioner, heat pump or water heater: credit up to $300

Homeowners are entitled to up to $300 of purchase price. This includes the cost of installation. All products must meet stringent energy-efficiency standards.

Insulation, exterior doors: credit up to $500

Homeowners are entitled to 10% of the cost of the product up to $500, not including installation. Qualified improvements include storm doors, seals and weather-stripping designed to limit air infiltration. Insulation and doors are required to meet the 2001 or 2004 International Energy Conservation Code standards for your region and must be expected to last for at least five years.

Pigmented roofs: credit up to $500

Homeowners are entitled to 10% of the cost of the product up to $500, not including installation. Pigmented roofs must be expected to last at least five years and must meet Energy Star requirements.

To ensure that you receive all the money you have coming to you after you’ve completed the improvements, Ronnie Kweller of the Alliance to Save Energy advises printing out IRS form 5695 and bringing it with you when you visit your tax preparer.

Remember: In order to receive the credit, energy-efficient home upgrades must be done at your principal residence and must be in place by Dec. 31.

For other information on energy credits and energy saving tips, please visit http://oregon.gov/ENERGY/ .

Information above is courtesy of:

Bob Milano
Branch Manager/Sr. Mortgage Banker
Directors Mortgage Inc.
4550 SW Kruse Way, Suite 340
Lake Oswego, OR 97035
Phone:  503.636.6000  Ext. 165
Fax:  971.327.2898   Cell: 503.970.9714      
E-mail:  bmilano@directorsmortgage.net
Website:  www.homeloansbybob.com

The recent report of market activity shows that the Metro Portland market is still fairly slow for sellers.  At the end of September 2007, there were 16,054 active residential listings, with nearly 5,000 of those newly listed in September.  There were only 1,866 closed sales in September.  At that rate of closed sales, it would take approximately 8.6 months to sell off all available inventory.  This is the highest inventory rate since January 2000, when inventory reached 10.1 months.   

In September 2005, when interest rates were extremely low and Portland was experiencing a seller’s market, the inventory rate was 1.9 months.  2005 was the golden year for sellers.

Despite the heavy amount of inventory, appreciation is still favorable.  When comparing average sales prices from end of September 2006 to end of September 2007, RMLS shows that the average sales price appreciated by 6.9% ($337,700 vs $315,800).  These figures indicate that sellers are still profiting from their sales, but it’s taking a longer market time to realize those profits.

If you are looking to buy a home, this is the best market for you since sellers are competing against so many others and are typically willing to negotiate more in sales price and terms in order to sell.  If you are a seller, it may be best to wait a month or so before listing your house for sale to see if the market turns more in your favor.

Like the stock market, real estate is cyclical and is very difficult to time.  Please let me know if I can assist you with making the best decision regarding your sale or purchase.  You can reach me at 503-421-2407 or at phyllis@pointclickandpack.com.  I look forward to working with you.

All my best!

Phyllis