April is National Asbestos Awareness month.  From time to time we get questions about asbestos in houses and so we thought this article might be helpful to everyone.  Most home inspectors are trained to identify potential asbestos problems that may need further investigation.

Washington D.C. Homeowners Utilizing Eco-friendly Materials instead of Asbestos

In the Washington D.C. real estate industry, there are many things to consider when purchasing or remodeling a home. Located in the Northeastern part of the United States, the city is known for being the nation’s capitol, hosting the presidential White House and the U.S. congress. Aside from politics, Washington D.C. is known for being the largest metropolitan city in the country and its rich history.

Living in the 21st century, many cities are adapting to the new green paradigm, updating old homes and buildings to suit the needs of a healthier environment and home. Utilized in homes as a form of piping and insulation throughout the 20th century, asbestos manufacterers were aware of the corrosive effects of the substance, but continued manufacturing it anyways.  This obsolete building material can easily be replaced with green methods of insulation that can even reduce annual energy costs!

Potential Washington D.C. homeowners should know that homes built before 1980 have the chance of containing asbestos. This should not make you too worries because asbestos exposure can be prevented by taking easy and simple precautions.

If you believe asbestos is located in your home, sometimes the best action is no action at all. Experts will advise to leave it un-disturbed, as this can cause its fibers to be broken down and released into the air. If you are embarking on a remodeling project, a general contractor will usually be responsible for providing materials, equipment and labor for a remodeling project. Prior to the renovation, they should be aware if any hazardous materials are present.

Prolonged exposure to asbestos can sometimes lead to the development of mesothelioma, a rare but severe lung ailment. Mesothelioma causes are as a result of inhaling asbestos fibers that become ingested in the inner linings of your lung. Due to the fact many mesothelioma symptoms are similar to less serious ailments, Diagnosis of mesothelioma is one of the more difficult tasks physicians encounter.

If asbestos removal is necessary, it can be costly but the worth the price of obtaining a healthy and safe home. The removal of asbestos from homes, buildings and public facilities should be performed by a licensed abatement contractor, who is trained and licensed in handling hazardous materials.

Recently, President Barack Obama signed the American Recovery and Reinvestment Act into law. Included in this act were extensions to the tax incentives placed for energy efficiency in 2005, as well as new credits for homeowners who remodel or build using eco-sustainable methods. Some of the measures that are eligible for tax credits include added insulation to walls, ceilings, or other part of the building envelope that meets the 2009 IECC specifications, sealing cracks in the building shell and ducts to reduce heat loss. Storm doors paired with U-factored rated wood doors are also eligible.

As education and technology of green sustainable practices increase, the numbers will continue to rise. Alternatives to asbestos include cotton fiber, which can reduce energy consumption up to 25 percent, and cellulose. In the 21st century, there is no need to put yourselves and your families at risk at the hands of asbestos. These new alternatives will allow real estate men, women and potential homeowners to be free and clear of any health damaging substances.

Check out the article our very own Veronica Seva was quoted in about real estate sales in the Washington DC area: Existing Home Sales Up Nationwide. 

So will the new stimulus package include enough meat to bounce the DC real estate market?  Everyone is hopeful, and I remain optimistic.  Here are six points, courtesy of Luke Mullins of US News and World Report.  Click here to see his blog. 

I’ve added my commentary to the points below to give you a sense of perspective in relation to DC Area homebuyers and sellers.

• Eight grand, new buyers: The tax credit included in the economic stimulus legislation is much narrower than the $15,000 proposal. This credit is equivalent to 10 percent of the purchase price of the home - although it’s capped at $8,000–and applies only to first-time home buyers and principal residences. But unlike an earlier $7,500 home buyer tax credit, this one does not have to be repaid. 

The provision that this credit does not need to be repaid is particularly helpful.  We saw nearly no return from the previous “credit” because it really acted as a loan with the repayment provision.  $8000 is great – the tricky part is the income limitation below.

• First time buyers defined: For the purpose of this legislation, a “first-time home buyer” is someone who hasn’t owned a principal residence for three years before buying a house. (The date of purchase is considered the day that the title is transferred.) That means if you’ve owned a vacation home - but not a principal residence - within the past three years, you would still qualify for the credit. 

Fantastic!  The first time home buyers are powerful fuel in our market and this directly speaks to that large demographic.  Many of our clients are first time home buyers that now understand it is time to get into the game.  This should move more people into the market place.

• 2009 buyers only: Only those who purchase a home on or after January 1 and before December 1, 2009 are eligible for the credit. Anyone who bought a home last year won’t be able to take advantage of it. 

Though I wish the credit were longer than one year, this can certainly be a short term shot in the arm.  Will the buyers that have been waiting on the sidelines for various reasons now move off the fence?  I think many will, yet some will wait until the best opportunity has passed.  It is easier to wait, rather than take action.  Those that take action are jumping far ahead of the pack already.

• Income limits: The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit, that’s $150,000 for married couples. Those earning more than these thresholds may be eligible for reduced credits. 

Many of our clients, and buyers in the DC area in general, will not qualify for the full credit because of the income limitation.  However, a reduced credit is still better than no credit at all!

• Refundable: Because the tax credit is “refundable,” qualified buyers can take advantage of it even if they don’t have much tax liability. 

This is very powerful – essentially cash in your pocket!

• Recapture: Buyers have to own the home for at least three years in order to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government. (Exceptions will be made in certain cases, such as death or divorce.) 

This is a solid provision.  We want people to understand real estate is a long term investment – 3 years minimum.

What remains somewhat unclear is how this credit interacts with the already in place DC First Time Homebuyers credit of $5000.  Details to follow in the days ahead.