Real Estate Advisor: January 2009

• Efficient Heating
• Winter Home Buying
• Selling your Home in Winter

Heating your home efficiently

Regardless of what the weather brings this winter, heating your home efficiently is probably something on your mind. Keeping your home a comfortable temperature when the weather turns bad doesn't have to be a financial drain. With a little bit of work, you can actually save a great deal on your heating bills:

Stopping Air Leaks
The first step to making your home more heat efficient is to identify air leaks. Common air leak sources such as recessed lights, doorframes, window frames, and electrical outlets can be a big drain of heat and money. You can check for air leaks yourself by walking through your home with a lit incense stick (horizontal smoke indicates a leak), or you can hire a technician for a more thorough inspection. Simple fixes like sealing around outlets and switches, caulking gaps in the framing, and plugging gaps surrounding pipes will typically result in noticeable savings.

Duct Problems
One of the most important systems in your home may be quietly wasting your energy dollars. Often overlooked, typical duct systems lose 25-40% of the heating or cooling energy put out by the central furnace, heat pump, or air conditioner. Common duct system problems include:

• Leaky joints or visible holes in the duct surface
• Disconnected ducts that have fallen away from each other
• Inadequate or poorly finished duct work
• Un-insulated or poorly insulated ducts in attics and crawlspaces

Most duct repairs should be made by a trained professional, especially those that will take place in unconditioned spaces. A qualified pro can also help you more accurately assess the duct problems that you have. If you decide to make minor duct repairs on your own, keep in mind that duct tape is usually only intended as a temporary fix. Silicone caulking or cement with mastic are better sealing options. Improving your duct system efficiency can cut your annual utility bills by as much as $300, and will improve the overall air quality in your home.

Keep your Home Insulated
Properly insulating your home is one of the most cost-effective ways to cut down on energy loss. Improving the insulation in your home can cut your heating and cooling costs by as much as 30%, and will create a more uniform, comfortable temperature in your home. Better insulation will also help decrease outdoor noise. Check the insulation in your attic, ceilings, exterior and basement walls, floors, and crawl spaces to see if they meet recommended standards for your area. The U.S. Dept. of Energy provides information on recommended insulation levels for each region. Typically the easiest and most cost-effective way to improve your home's insulation is to add insulation to your attic.

Thermostat Solutions
That little box on the wall can be a tool for big energy savings. You can save up to 3 percent for every one degree that you lower the temperature in your home over a 24-hour period in winter. You can also save up to 10% annually in your heating and cooling bills by adjusting your thermostat down 10% to 15% for an 8-hour period each day. Turning the heat down while you sleep or while you're away at work is a simple and logical energy efficiency solution. If the prospect of waking up to a chilly house doesn't excite you, buy a programmable thermostat. They are inexpensive and adjust the temperature in your home based on schedules that you determine.

Ceiling Fans
While most people think of ceiling fans as a cooling solution, they can also help maintain a warm temperature in your home during winter. Running a ceiling fan in reverse circulates rising warm air back down to living areas. Consider ceiling fans for your home, particularly if you have rooms with high ceilings that seem to stay colder. Ceiling fans vary in price depending on things like material and size, but many are inexpensive and easy to operate.

Home buying advantages in the "slow" season

Winter is often considered a slower season for real estate. The demands of the holidays and less-than-perfect weather conditions typically lead to fewer listings and fewer buyers searching the market. The relatively quiet winter real estate market can actually be a great opportunity for motivated buyers for 3 main reasons:

1. Sellers who list their homes during this period are usually highly motivated. They may be relocating for work or may be in the process of purchasing a new home themselves. Whatever the reason, it's likely that they are looking to sell the home more quickly than the average seller. This means they are more prone to accept lower offers or conditions more favorable to the buyer.
2. Fewer buyers means less competition. Though there may be a lower number of homes on the market, there are also fewer buyers fighting you for those listings. A slower marketplace keeps houses on the market longer and allows you to discover great properties.
3. Mortgage interest rates tend to be a little lower during the winter.

January is a great time to buy a home, but don't forget that preparation is the key. There are still important steps to take prior to looking for a home. Research your credit history as soon as possible; this way you can clear up any discrepancies that could prevent you from getting a good loan. Once you feel your credit record is in order, contact a lender to secure pre-approval for a mortgage. Having pre-approval will let you shop this great market with confidence, and will mark you as an informed homebuyer. Remember that all sellers are looking for serious buyers, even if buyers are in short supply.

A professional buyer's agent can help you begin your buying plan, guide you through the pre-approval process, and act as a skilled negotiator once you find the home you're looking for. The New Year is an ideal time to purchase a new home. This may be the right opportunity for you!

Make your home a hot winter commodity

Selling a home can be trickier during the colder winter months. If one of your New Year's Resolutions was to finally get your house sold, consider these tips for post-holiday curb appeal:

• Take down your holiday decorations in a reasonably short amount of time. While most people appreciate festive displays of spirit, Christmas lights in February can give the impression that your home isn't always well maintained. It's now the season to box up all of those holiday touches!
• Check the gutters and downspouts around your house. This is an important chore throughout fall and winter, as accumulating leaves and small branches can clog gutters and create quite a mess. By checking the gutters every so often, you will avoid having to clean up a much bigger problem later. Messy gutters are also a needless detraction from your home's appearance.
• One's mood can be greatly affected throughout the dark winter months by lighting. If your home has a warm feel both inside and out, it will be more likely to attract the winter buyer. Accent lighting can be an effective (and usually inexpensive) way to improve your home's aesthetic. Don't waste what little light Mother Nature provides, either. Keep drapes and blinds open during the day to let as much natural light in as possible. Take a look at your house from the outside at night and ask yourself how warm and inviting it seems.
• Be prepared for what the weather may throw at you. If it's reasonable to expect snow, make sure you have a good shovel and the will to put it to use. Wind and rain can strew branches all over your property. Act quickly to clear such debris away and restore a more tranquil look.

These are just a few ways that you can improve the marketability of your home throughout the season. Talk to your real estate professional about putting your home on the map this winter.