Could This Happen To Me?

Why owning an Energy Efficient Home is valuable.

Dennis and I began building energy efficient homes in the 1980’s. We understand construction math and profitability. It costs 5-10% more to build an energy efficient home than “standard” homes.

Many people pay deluxe home prices for fancy looking features but they get only paltry energy saving benefits.

When we first started building energy efficient homes in the 1980’s builders were pleased if they had$10,000 left to share with investors per home after completion, bills paid, and the home sold. Twenty years later builders aim for $100,000.

At this point, you should be wondering how much money was actually spent on the construction of your home?

The following is a list of major line items in the cost of construction of a home.
• Acquisition cost of the land, including fees
• Legal fees for township/municipality approvals
• Engineers fees
• Architects fees
• Building permit fees
• Site improvements, i.e. sewer or septic systems, and water
• Insurances, builder’s liability and worker’s compensation
• Home construction
• Financing fees
• Investor’s return on investment (ROI)
• Real Estate agency fees
• Builders’ soft costs
• Builders’ profit

The actual construction cost of a home is a small percentage of the entire development process. Home construction quality is often times sacrificed to pay one or more of the other line items.

The homebuyer pays the price three times. Once in the purchase price of the home, the second time for increased operating costs, and the third to repair the cost cutting measures.

Did you or someone you hire physically check your home for adequate attic insulation before the purchase? The answer is most likely no, because most people don’t think about it.

The purpose of this article is NOT to make you feel dumb or stupid but to educate you not to make the same mistakes again.

You may not be facing financial hardship at this time, but what will happen when electricity rate caps end in your area? Rate caps control utility price increases.

Pennsylvania electricity rate caps end in 2010. In the meantime, electricity rates will increase by 20% in 2008.

According to Public Radio News dated February 2, 2007-- “When rate caps expired in Maryland, one utility tried to raise rates 72 percent, all at once. It was a public policy and public relations disaster.”

We are presently conducting a state by state investigation to determine which states are removing rate caps, when they are due to end, and the amount of the increase consumers will pay. We will make this information available to our readers when completed.

How will a 20%- 30% or more electric rate increase affect you?

© 2007 Energy Efficient Homes Team – Siti Crook

Article Source: http://www.energyefficienthomearticles.com

Additional information about energy efficient homes and the Energy Efficient Homes Team™ may be found at energy efficient home articles.

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