When you are buying, or selling a home, your most important step to take is choosing the right real estate agent or buyer's agent. The process is very detailed and difficult and you will want someone that could potentially save you from mistakes that can cost a great deal of money.

Sunday, July 5, 2009

What you should know about "Cap and Trade" legislation and the real estate market

With all the news flood about Michael Jackson's death and funeral plans, little has been said about a legislation that was passed in the House of Representatives. The Waxman-Markey Cap and Trade Bill or also know as the National Energy Tax bill is now in the Senate which has a super majority which will drive very hard to push it through and get it to President Obama for a signature.

The premise behind this legislation is that the United Estates needs to take a leadership in the world regarding the reduction of green house gasses. It is a set of measures that is supposed to reduce our carbon emissions and help the world curb the eminent effects of "global warming." It is supposed to cut the energy consumption of homes by 62 percent by 2029. However, President Obama said "make no mistake, this is a jobs bill."

Whether you believe in global warming or not, there are some facts about this legislation that will affect you as a home buyer, home seller, or home builder.

New Home buyers: Saving up to buy a new home? Count on saving longer. The new legislation will require all builders to adhere to the new costly California building codes. These codes require builders to build "green" houses which can significantly increase the cost of building.

Home Builders: If your state does not agree with the Federal law, the Federal Government can assess huge penalties. Even if you invest in complying with all the rules, the requirements can be added unto by "consensus" of bureaucrats.

Home sellers: Do you think this is a tough market? The new legislation would require you to have an "energy audit" that could penalize you for older windows, original fixtures, and dated appliances. These are all things that are usually negotiated between the buyer and the seller but now, the seller would be mandated to make the changes. And who is conducting this "audit"? A government bureaucrat! Hope you are not selling your home during election and you have the wrong political sign on your yard!

The bill is so large, nobody has had the time to completely analyze the scope of government intrusion. On the last day of discussion of the bill before vote, a 300 page amendment was added that possibly furthers the regulatory control over a sale of a house.

More Reading:
- The Waxman-Markey Cap and Trade Bill Will Control Housing Standards

- Waxman-Markey Cap And Trade Will Make Homes Cut Energy Consumption 62 Percent

- Speaker Pelosi's National Energy Tax: More Mandates, More Regulations, More Costs

posted by Patti Lora 0 Comments