U r b a n T r e k k e r

What's a Green Home?

With rising oil prices and electricity (read: Dominion Power to increase electricity rates), there couldn't be better time than now to go green.

You know the trend is when it received MSM's attention which bring it to the mainstream. Check this out. Washington Post has created a new section dedicated to 'Green' topics, which means that green is in. Green is no longer for enviro geeks only. It is 'officially' mainstream! Because sooner or later, it'll be costlier to maintain a non-green home than a green one.

In other words: Going green is good for your wallet.

Here is the first question before we even go that far: What is a green home anyway? The organization that certifies green buildings known as LEED - Leadership in Energy and Environmental Design - has a very simple definition of a green home.

"A green home uses less energy, water and natural resources, creates less waste and is healthier for the people living inside compared to a standard home. It’s as simple as that!"

A standard home is simply on the other side of a green home.

image: USGBC

A green home can take different shades: green, greener and greenest. It all depends how deep of a green shade you want to create. You want to just build or green remodeling your home to be more energy-efficient, or want to take it to the next level by using certified green products and produce your own 'renewable energy' from solar, geothermal and wind. I meant, the sky's the limit. The possibility is endless. It all depends on what your budget is. And what you want to achieve. Efficiency. Sustainability. Eco-friendly.

image: solar-powered grid connected home

If you want simply build or green retrofit your house to be more energy-efficient, i.e. you can be looking at using better insulation, energy-efficient appliances (like 100% Energy Star appliances), high performance windows.

To find out how to retrofit the house more energy-efficient, you can start with this web-based DIY energy audit tool to guide you through the process.

Or, you can also check it out here. And decide what you want to do next.

Say, you want take it to the next level. The use green building products is your next stop. For reference, here is a checklist (.pdf) of what green building products are and links where to get them re:sources.

Beyond that is the 3rd level, the more comprehensive approach. The third level achieved when you take holistic approach for the whole house which include the target of generating energy from renewable sources like sun, wind or down under (thick layer of soil).

In Washington DC region, if the energy produced is more than your house need, you can sell the power  back to the utility co. This is a way to read your meter backwards via 'Net Metering.' Depending on where you live (DC, MD or VA), you pay a minimal amount just to connect to the grid. The power from the grid serves as backup for your just in case.

Once you decide how green you want to be. What comes next is very important in the green homes business. That is, the 'voluntary' certification for the home itself. Green homes typically is certified by independent third-party verifier. Stockwell Manor in McLean is a Energy Star qualified homes, Cromley Lofts is LEED condos.  Carsten Crossings in California is LEED homes. These communities were either Energy Star certified homes, or LEED.

Think of certification like 'seal of approval' for the green homes.

There are so many certifications, somewhere in the neighborhood of 70 certification programs that exists in many different parts of the country. Here is a few of the certifications, via Green Home Guide.

• LEED Homes
  
• Energy Star Qualified Homes
• Arlington County Green Home Choice Program
• NAHB (the Association of Home Builders) has National Green Building program
• EarthCraft House
• EcoBuild
• Florida Building Coalition
• Building America

And more.

Does it mean that without certification we won't be able to put a label that this house is green? Yes you got it right. Though, the certification itself is 'voluntary' but, you can be assured that this is almost a 100% sure thing. For labeling purposes, it is required to get the homes 'independently' certified. The thing is without certification, there won't be green homes. Who's to say that the home is in fact a 'green home?' How do we (customers) know it? 

On the other hand, if your green home is geared towards energy efficiency, the labeling is a bit easier. All you need to do is to show how 'ridiculously' low (like $12 a month for connection fee) your home's utility bills and the type of clean energy from where you get the electricity from - be it solar/wind or geothermal - that might be all you need to back up your claim. You need no labeling.

Other than that, if you want to attach a 'green' label for your home - the 3rd party verification is needed - to tell the world that your house is indeed certified.

** UPDATE:

Perhaps I should explain how Net Metering works in DC-MD-VA. Other states here.

District of Columbia

"Credited to customer's next bill at utility's retail rate."

Maryland

"Credited at retail rate and carried over to customer's next bill; granted to utility at end of 12-month period with no compensation for the customer."

Virginia

"Credited to following month at utility's retail rate; either granted to utility annually or credited to following month."

Weekly Real Estate News Roundup

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F.C. Council Unanimous, It OKs Hilton Garden Inn
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Residents Weigh In On Diamond Hotel Proposal
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Housing Market a Mix Bag
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Arlington New Transit Hub and Projects Approval

The new Shirlington Transit Hub, county's first enclosed bus transfer station, is officially open for business. The station located at 2975 North Quincy Street next to Shirley Highway/ I-395. This station should complement the already hip Shirlington Village that offers lots of community amenities, such as anchor grocery store like Harris Teeter, Busboy and Poets, Capitol City Brewery, etc.

As you probably know Arlington has 11 neighborhoods designated as 'urban villages.' Seven of those have access to metro station. A few of those, like Shirlington doesn't have direct access to the metro station. The closest metro is Pentagon City but that is not something walkable. So, having an enclosed bus transit (helpful in the winter time) is a plus for the hood.

As the principal transfer point for Metrobus and Arlington Transit (ART) bus service in South Arlington, Shirlington Station connects thousands of regional commuters via 11 Metrobus and ART bus routes to locations throughout Northern Virginia.

Oh what's cool about the station. It has indoor waiting area equipped with customer seating and restrooms.

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The county also OKs two projects: Monument View and expansion of Arlington Mill Community Center. Monument View project, is that off-and-on land swap deal with Monument Realty. Via BizJournal.

The board voted 4-1 Tuesday night to approve the deal, which transfers 28 acres of county-owned land to Monument in exchange for 5.5 acres. The county will build the multimillion-dollar sports complex, while District-based Monument plans a $250 million mixed-use site with 343 residential units and 326,000 square feet of office space.

Monument View

Arlington Mill community center

Arl. Mill community center site plan

The 4.71 acre site is bordered by I-395 on the West, George Washington Parkway on North and East and southern edge of 10th Street South. The project is slated for 8-story office building with ground floor retail and a four-to-seven story building for the residences (condominium?). The two buildings aim to achieve to be on the green: LEED for building and homes.

Arlington Mill Community Center is a private-public partnership development aim to expand the community center and transform it to a mix-use development with homes, shops, public plaza and parking. When they say, public-private partnership in which part of the funding will come from bonds (for gym, community center, plaza and parking) financed through county voters, then there is $11M through Fed income low-income housing tax credit program and some $3M from upfront value of land lease to support the 61 affordable housing units.

The plan calls for adding supply of affordable housing desperately needed for the county. Furthermore, according to the county.

"The plan also calls for a 159-unit residential building on the northern portion of the site and a six-story mixed-use building on the southern portion that will house the community center, ground-floor retail and 33 residential units.  In addition,an underground parking garage to serve the entire project and a new public plaza facing Columbia Pike are planned. The Board approved a use permit under the Columbia Pike Form Based Code. The mixed use community center will have a LEED Silver certification. The residences will achieve either the LEED Homes certification or the Earthcraft certification."

It will also provide 192 residential rental units in which 61 of those will be set aside for people who are earnings at or below 60% area median income which means that the rent for the affordable housing approx. between upper-$900 to upper-$1400.

Potomac Club Residents Bitter: Post

The new home owners were looking for Fairfax County alternative and thought Pr. William would provide them with alternative, such as Potomac Club. Wrong. The market shifted. And PW has one of the largest portfolio of foreclosures in Metro DC region. Of course they'd be bitter.

From Washington Post.

• By the time the new residents moved in to the community, they see their housing valuations declined by - $100,000! - while their tax bill go up.

But Klepac and other Potomac Club residents' confidence in the county has slipped. Klepac paid $412,000 for his 2,100-square-foot townhouse. By the time he and his wife, Renee, moved in, the asking price for a similar unit was $319,000. His home was valued at $337,000 in March.

• Delivery of homes were delayed. The word 'estimate' delivery have a meaning in a builder's vocabulary. It might be buried somewhere in the contract that you signed.

• The Potomac Club, which supposedly the 'it' community center, still not completely build out.

So, basically they're stuck.

The good news is: The new wave coming in to PW will find better deals there, since prices of all kinds of homes new or resale, have gone down so much since then.

Take home message when buying a new home: Have a 'wait-and-see' attitude. First, you want to see how the community grows over time before jumping the band wagon just because price is affordable and they showered you with all kinds of incentives. Unless the new home community is in close-in hoods, it is always good to wait.

And in a market where prices still have to find new ground, you have to think twice before moving forward. Because you're paying for 'delayed delivery price' of your 'new' home.   

FHA About to Scrap Down-Payment-Assistance

Sometime last week, a Federal Housing Administration official talked something about that they wanted to take buyers' subsidy program aka 'down-payment assistance' or in their jargon 'DAP' program off the table because of higher rates in foreclosures.

“Data clearly demonstrates that FHA loans made to borrowers relying on seller-funded downpayment assistance go to foreclosure at three times the rate of loans made to borrowers who make their own downpayments,” Montgomery said at a National Press Club event.

Such loans are currently one-third of the government agency’s portfolio, he added, and led the agency to book an additional $4.6 billion in unanticipated long-term losses in an annual re-estimate. [h/t Housing Wire]

Now the story has hit the mainstream. Via Wall Street Journal. 

That's raising concerns among critics who blame no-money-down mortgages for many of today's housing market woes. And while federal housing officials are moving to end the practice, for now home builders are promoting the programs to move unsold inventory.

I think the problem is not so much the program, but it is how affordable is the payment for the house. If you make only $50,000 and trying to buy a house with payment more than 50% of your salary - that is pure wrong - from a financial perspective. What if the person gets 'pink slip?'

And if home builders trying to use it as a marketing tool - and pushing the envelope! - as opposed to 'truly' helping buyers, that's not right, either.

"The bottom line...is these promotions work," John F. Eilermann Jr., chief executive of McBride & Son Enterprises Inc., the parent company of Vantage Homes, said in an email.

So bottom line: Price and affordable payment for the house. Not so much focused on the assistance. The assistance should be there for those who needs help the most.

image: WSJ

We know now that FHA loans take up a higher percentage of closed sales transactions in Washington DC region. (here, and here) The numbers are out there. What we don't know is what percentage of the home purchase was financed using DAP. (Data is not available)

Based on 'personal' observations, I found that only a small percentage of "single" buyers, have some savings saved up for a house compares to - two household income earners.

There's always two-sides of the story. Critics say that DAP is a some kind of money laundering program. Supporters says that 'it helps first-time buyers and low to moderate income purchase homes.'

Here is my client side of the story. (Yes, she's got her '15-min claim to fame' on front page of Wall Street Journal.)

Gloria Harris, a 57-year-old human-resources consultant, says she couldn't have bought her $216,000 two-bedroom condo in McLean, Va., in January without the $16,000 contributed by the seller to cover the down payment and closing costs. "I was having a hard time just trying to save because I was spending from week to week trying to live," she says. [emphasis added]

And that's her story.

Foreclosure Watch: McLean, Vienna, Oakton and Great Falls

Foreclosures, short-sales truly affects everyone regardless. The McLean, Vienna, Oakton and Great Falls hoods are the areas you find mansions and luxury (read: multi-million dollars) home.

I noticed that a few of the sold properties (either foreclosures or short-sales) looks like these houses got into some multiple contracts situation, which is a nice problem to have these days. These were properties sold for more than it listed for.

These two properties definitely went above its original price. Bid above listing still happening but not 'common' anymore.

1. 607 Meadow Ln. SW (Vienna). A single family house. Orig. price $460,000. Went for $490,000 or 6.52% above listing.

2. 1952 Kennedy Drive #201 (McLean). A foreclosed condo. Orig. price $189,900. Went for $215,000 or 13.22% above listing.

The rest of the pack, sold for below the original price.

A Few of 'THE' Best Deals

1. 627 Echols St. SE. -25.33% of its original price. Chevy Chase bank foreclosed this property for $560k.
2. 8704 Park St. Sold for -24.86% of its original price.
3. 1580 Spring Gate Drive #4203. Sold for -19.91% of its original price.

On average, these listings were sold 91.71% of original price. And the average median price was 97.3% of listing. Which tells us that 50/50 rule: There were properties sold close to or above listing price and there were those that sold way below. Higher 'average' tends to show that more properties get sold close to the price it listed for.

YTD Stats:

* Total number of foreclosed sold= 36 homes.
Under contract= 12 homes.
Active=14 homes

* Total number sold (conventional or non-distressed)= 624 homes.
Under contract=338 homes.
Active= 1049 homes

* Months supply of homes= 7.08 months (strong buyers' market)

So you see, the number of foreclosed homes ain't that bad for McLean-Great Falls and Vienna-Oakton corridors. It hardly make a 'dent.' What that means to you, if you're still waiting on the fence to buy in these areas, once you see something, gotta make a quick move.

Sales for Month of May 2008

link:

* listings (good for 30d)

data: MRIS

Home Energy Audit

This video on home energy audit shows how homes' wasting energy and tips of fixing it.

Weekly Real Estate News Roundup

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Does Your Senator Get a VIP Loan?

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What Koppel, Kennedy and Snow Have in Common

Declining housing valuation, foreclosures knows no title or affiliation. They're not in foreclosure by any means, it's just that they have to 'adjust' the asking prices. The three 'DC insiders' were said to have witnessed the 'reality moment', according to Politico.

Apparently, the housing crunch is nonpartisan. Washington insiders such as Ted Koppel, Ethel Kennedy and Ken Mehlman have priced to sell in a market that’s taken a noticeable downward swing.

Read full story here.