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Boy do I have a story for you. (Home purchase tax credit rejected)

Old 03-30-10, 11:31 AM
  #26  
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

I'm looking to replace an oil boiler and looked into the energy tax credit for home improvements. The way the feds setup the program is misleading because even though their literature implies the credit applies to upgrades to energy star appliances, the fine print actually limits eligibility to even stricter standards. In general Energy Star models must be 85% eff, but for the tax credit they must be 90% eff. What gets me though is that if I were on gas I would have dozens of mainstream options that qualify, but there are only 2 oil boilers that qualify and they cost 2.5-4x as much as a regular energy star certified unit. Running the numbers, even after the tax credit oil costs would have to triple for me to break even in 25 years.

So basically this program is worthless to people, like me, where gas isn't an option. For people currently using oil with a gas option it is an incentive to switch (or I should say additional incentive since gas is cheaper already), and for people currently on gas it's free money.
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Old 03-30-10, 11:40 AM
  #27  
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

doesn't gas burn more efficiently than oil?
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Old 03-30-10, 12:04 PM
  #28  
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

Yeah gas in general is significantly better for heating than oil.

The new burners these days are pretty impressive efficiency-wise as well.
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Old 03-30-10, 12:13 PM
  #29  
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

Originally Posted by wmansir View Post
I'm looking to replace an oil boiler and looked into the energy tax credit for home improvements. The way the feds setup the program is misleading because even though their literature implies the credit applies to upgrades to energy star appliances, the fine print actually limits eligibility to even stricter standards. In general Energy Star models must be 85% eff, but for the tax credit they must be 90% eff. What gets me though is that if I were on gas I would have dozens of mainstream options that qualify, but there are only 2 oil boilers that qualify and they cost 2.5-4x as much as a regular energy star certified unit. Running the numbers, even after the tax credit oil costs would have to triple for me to break even in 25 years.

So basically this program is worthless to people, like me, where gas isn't an option. For people currently using oil with a gas option it is an incentive to switch (or I should say additional incentive since gas is cheaper already), and for people currently on gas it's free money.
So you understand the entire reasoning behind the credit. What's your complaint, that people still using inefficient oil burners should get the incentive money even though they won't change?
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Old 03-30-10, 12:33 PM
  #30  
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

Originally Posted by Dr Mabuse View Post
Wait just a damned minute, H&R Block doesn't know tax law?


you'd think the 8 hour training session would have covered that.
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Old 03-30-10, 12:33 PM
  #31  
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

I am surprised there was a realtor involved on a deal where they bought from a relative. What's the story there?
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Old 03-30-10, 12:45 PM
  #32  
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

Originally Posted by wmansir View Post
I'm looking to replace an oil boiler and looked into the energy tax credit for home improvements. The way the feds setup the program is misleading because even though their literature implies the credit applies to upgrades to energy star appliances, the fine print actually limits eligibility to even stricter standards. In general Energy Star models must be 85% eff, but for the tax credit they must be 90% eff. What gets me though is that if I were on gas I would have dozens of mainstream options that qualify, but there are only 2 oil boilers that qualify and they cost 2.5-4x as much as a regular energy star certified unit. Running the numbers, even after the tax credit oil costs would have to triple for me to break even in 25 years.

So basically this program is worthless to people, like me, where gas isn't an option. For people currently using oil with a gas option it is an incentive to switch (or I should say additional incentive since gas is cheaper already), and for people currently on gas it's free money.
So wait...a nicer product cost more money! Imagine that!

Course it also reminds me everyone who buys a Prias to "save money on gas". OK you just spent about $5,000 more than a nicer Corolla that barely gets 10-15% less MPG....just how long to plan on keeping that car!! LOL
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Old 03-30-10, 12:54 PM
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

Originally Posted by kvrdave View Post
I am surprised there was a realtor involved on a deal where they bought from a relative. What's the story there?
I'm sure meant loan officer.
There would be no reason to involve a realtor.
Unless you they wanted to throw away money.
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Old 03-30-10, 12:59 PM
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

or the realtor is another family member/close friend and they jacked up the price of the house a bit to share the wealth
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Old 03-30-10, 01:16 PM
  #35  
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

Originally Posted by clappj View Post
I'm sure meant loan officer.
There would be no reason to involve a realtor.
Unless you they wanted to throw away money.


I had a guy who tried to sell his own land for about a year. He had it tied up with a buyer who couldn't buy. They were in the transaction for $130,000. I listed it and in 10 days got him an all cash deal of $275,000. He then tried to get me to cut my commission because "I didn't really do anything."
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Old 03-30-10, 01:28 PM
  #36  
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

Originally Posted by kvrdave View Post


I had a guy who tried to sell his own land for about a year. He had it tied up with a buyer who couldn't buy. They were in the transaction for $130,000. I listed it and in 10 days got him an all cash deal of $275,000. He then tried to get me to cut my commission because "I didn't really do anything."
Must be nice.

So did you cut it?
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Old 03-30-10, 01:35 PM
  #37  
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

Hell no.
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Old 03-30-10, 02:10 PM
  #38  
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

Originally Posted by Sdallnct View Post
So wait...a nicer product cost more money! Imagine that!

Course it also reminds me everyone who buys a Prias to "save money on gas". OK you just spent about $5,000 more than a nicer Corolla that barely gets 10-15% less MPG....just how long to plan on keeping that car!! LOL
That commercial with the "poor college student" who's just ecstatic that she's saving money on gas because she bought a Prius always has me shaking my head...

Since the OP is a distant relative, the guy should just sell it to him and get the 8000 dollars, then sell it back and get another 8000.

Wait, you need to live in the house, and it has to be a new home? Who reads that kind of fine print! Stinking government.
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Old 03-30-10, 04:41 PM
  #39  
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

Regarding the energy tax credit, my point was that for people without a gas option this is like the Cash for Clunkers program, but with the new car having to be a $100K Tesla. Meanwhile if you have gas, like the real C4C program, all but the most inefficient cars are eligible. And there is no trade in requirement. So for one group it's not much of an incentive, and for the other it might induce some to make a purchase they wouldn't otherwise but mostly it's free money for those who would have bought anyway. In both cases it's efficacy as a way of promoting "green" behavior is questionable.
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Old 03-30-10, 06:05 PM
  #40  
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

I'll bite, how much of an energy benefit are you getting if you go to an 85% Energy Star qualified oil heater? And I'd think part of the reason the 90% ones are so expensive is because of the government rebate...
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Old 03-30-10, 09:05 PM
  #41  
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

I don't know what my current heater's efficiency is, but my heating guy estimates it to be in the mid to low 70's, considering it's design and age. FYI, all new boilers must be 80+% eff, so energy star adds 5% to that, the tax credit requires another 5%.

I'm sure you are right about the rebate affecting prices.
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Old 04-01-10, 08:12 AM
  #42  
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

Originally Posted by kvrdave View Post


I had a guy who tried to sell his own land for about a year. He had it tied up with a buyer who couldn't buy. They were in the transaction for $130,000. I listed it and in 10 days got him an all cash deal of $275,000. He then tried to get me to cut my commission because "I didn't really do anything."
I am sure he could have sold it for $300K if he had access to the MLS
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Old 04-01-10, 12:16 PM
  #43  
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

All you need is a web browser to access the mls
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Old 04-01-10, 12:47 PM
  #44  
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

Originally Posted by al_bundy View Post
All you need is a web browser to access the mls
Anyone can add listings to the MLS?
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Old 04-01-10, 05:46 PM
  #45  
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

Originally Posted by orangecrush View Post
I am sure he could have sold it for $300K if he had access to the MLS
I'm sure that is what he thinks. He was a guy who listed stuff with other agents, would get offers, and finally decide not to sell. When I listed the stuff, I got an all cash offer with no contingencies, so he was forced to sell. When trying to negotiate a lower commission he offered to let me sell his house (very over priced) and the commission on it wouldn't even be the same amount as he was trying to get me to take off.

So in the end, I got him twice as much as he could get on his own, and now he hates me.
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Old 04-01-10, 06:22 PM
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

Originally Posted by orangecrush View Post
Anyone can add listings to the MLS?

Depends on the local mls, but a lot of them allow anyone for a fee. There is also craigslist.
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Old 04-02-10, 08:47 AM
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

Originally Posted by kvrdave View Post
I'm sure that is what he thinks. He was a guy who listed stuff with other agents, would get offers, and finally decide not to sell. When I listed the stuff, I got an all cash offer with no contingencies, so he was forced to sell. When trying to negotiate a lower commission he offered to let me sell his house (very over priced) and the commission on it wouldn't even be the same amount as he was trying to get me to take off.

So in the end, I got him twice as much as he could get on his own, and now he hates me.
He probably read Freaknomics and decided that agents aren't worth the commissions. To be fair, a lot of real estate agents aren't worth a crap. Though, I would probably hire you. *






*That is, if you didn't charge such a ridiculous commission rate
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Old 04-02-10, 08:48 AM
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

Originally Posted by al_bundy View Post
Depends on the local mls, but a lot of them allow anyone for a fee. There is also craigslist.
Somehow I doubt Craigslist is a viable option in dave's town...
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Old 04-02-10, 09:43 AM
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

What kind of family do you have when you sell a piece of shit house to another family member?
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Old 04-02-10, 10:44 AM
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Re: Boy do I have a story for you. (Home purchase tax credit rejected)

Originally Posted by orangecrush View Post
He probably read Freaknomics and decided that agents aren't worth the commissions. To be fair, a lot of real estate agents aren't worth a crap. Though, I would probably hire you. *






*That is, if you didn't charge such a ridiculous commission rate


I don't think he was a big reader.
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