Warning Signs

From the National Assoction of the Remodeling Industry:

Warning Signs During Interviews

Avoid remodelers at all costs when:

· You can’t verify the name, address, telephone number or credentials of the remodeler.

· The salesperson tries to pressure you into signing a contract.

· The company or salesperson says your home will be used for advertising purposes so you will be given a “special, low rate.”

· The builder/remodeler tells you a special price is available only if you sign the contract “today.”

· No references are furnished.

· Information you receive from the contractor is out-of-date or no longer valid.

· You are unable to verify the license or insurance information.

· You are asked to pay for the entire job in advance, or to pay in cash to a salesperson instead of by check or money order to the company itself.

· The company cannot be found in the telephone book, is not listed with the local Better Business Bureau, or with a local trade association, such as NARI.

· The contractor does not offer, inform or extend notice of your right to cancel the contract within three days. Notification in writing of your Right of Recision is required by law. This grace period allows you to change your mind and declare the contract null and void without penalty (if the agreement was solicited at some place other than the contractor’s place of business or appropriate trade premises-in your home, for instance.)

In addition, be cautious when:

· You are given vague or reluctant answers.

· The contractor exhibits poor communication skills or descriptive powers.

· The contractor is not accessible.

· Your questions are not answered to your satisfaction.

· The contractor is impatient and does not listen.

· Only the work is addressed, instead of your needs as the homeowner.

· There is no presentation book of previous projects presented

Energy Effecient Remodeling and Tax Credits

May, 2009 - Homeowners now can claim up to $1,500 in expanded energy-efficiency tax credits for remodeling their principal residence to reduce energy consumption. Available until the end of 2010, the revamped Existing Home Retrofit (25C) Tax Credit  helps consumers save two ways: on their costs and on their utility bills.

“Remodelers can help find the best methods of saving energy in your home with an assessment, like a home energy audit,” explained NAHB Remodelers Chairman Greg Miedema, CGR, CGB, CAPS, CGP, a remodeler from Tucson, Ariz. “Tightening the house to reduce air leakage by adding insulation, fixing ducts, and installing a more efficient heating and air conditioning system can help save on energy bills today while also reducing next year’s tax bill.”

Energy Star

Mark of Excellence Remodeling presently offers New Jersey certified Home Energy Performance Audits. The fee is $125 which is reimbursable after $2,000 of approved energy saving work is performed. Homeowners may also qualify for up to $1,000 worth of free gap sealing throughout their home.

The expanded federal tax credit refunds 30 percent of the product replacement cost up to a total of $1,500. It can be used not only for HVAC systems, insulation and water heaters but also for windows and doors and insulation as long as the new products meet IRS qualifications. In some cases, installation costs may also be used to claim the tax credit.

Home energy audits can cost as little as $500, which remodelers say is an expense that pays for itself—and more—with savings from efficiency upgrades. And homeowners may be able to combine federal tax credits with local and regional incentives to maximize savings.

Here’s one example: Insulation improvements may be one of the easiest and most affordable ways to save on energy costs. Upgrading inefficient insulation (from R-19 to R-38) in the attic of a two-story, 2,000-square-foot Chicago home might cost around $1,000, but the tax credit brings that down to $700. Add that to Chicago’s MidAmerican Energy residential energy efficiency rebate program, which can return up to $600 spent on insulation or other energy-efficiency upgrades, and the cost drops to $100 – meaning a two-year payback period for the $51 estimated annual utility savings for this project.

Inspecting the ductwork, caulking and heating and cooling systems for possible upgrades or enhancements also help to provide additional energy savings, Miedema said.

Homeowners also can use the tax credit for heating and cooling components. For example, upgrading a standard 10-year-old air conditioner to today’s federal minimum 13-SEER (Seasonal Energy Efficiency Ratio) model may cost about $5,500 in Phoenix, but does not qualify for the tax credit. Spending as little as $2,000 more for a higher-efficiency air-conditioner (such as 16-SEER) earns the homeowner the $1,500 energy-efficiency federal tax credit. Plus, the local power company provides a rebate starting at $425. With the tax credit and utility rebate, the cost difference can be paid back in a couple of years, while the homeowner may enjoy utility bills savings for years to come.

“These are just some examples of how the energy-efficiency tax credit helps consumers save money in making home improvements and cutting down utility bills,” said Miedema. “Homeowners should contact a professional remodeler near them for advice on installing tax credit-qualified improvements in their home.”

Homeowners can use an energy-savings simulation from the NAHB Research Center at http://energysim.toolbase.org to determine likely costs of upgrades and savings. Information on rebates from utility companies and other state and local government incentives is available at www.dsireusa.org.

In addition to expanding the 25C tax credit, the Wind, Solar, Geothermal and Fuel Cell (25D) Tax Credit for renewable energy products now provides larger incentives for installing geothermal heat pumps, solar panels, solar water heaters, small wind energy systems and fuel cells. Although the upfront costs are high for these products, the tax credit is 30 percent and there is no cap on their cost through 2016. Taxpayers can claim the credits on IRS Form 5695.