Our BBB “head’s up” this week is quick, easy, not so sexy, but VERY important if you are a homeowner.
In the past 12 months, BBB | Greater Maryland has received 10,820 inquiries about businesses within the home improvement industry. As consumers’ belts are tightening, homeowners are investing in their homes rather than a new mortgage. It also seems as if they are less interested in home improvements that enhance the curb appeal of a home and more interested in improving the home’s efficiencies to reduce monthly expenses.
When I open up my local newspapers or turn on my radio or T.V., it seems as if all the window replacement companies are vying for my business. I am further enticed by the seductiveness of these words . . . “Stimulus bill, tax credits, $1,500”. And when I read Energy Star reports, I see we can all save up to 20% on heating/cooling costs or up to 10% on our total annual energy bill by sealing and insulating our homes. So, if we all do our homework, we should be able to take those enticing advertisers up on their offers, cut those utility bills, and get a tax credit all in one shopping trip! Here’s how to do it in three easy steps.
Step 1:Go to
www.energystar.gov and research federal tax credits for energy efficiency. You will learn for 2009 and 2010 tax years, tax credits are available on energy improvements made to your current, existing home for 30% of the cost, up to $1,500. But NOTE: these tax credits are ONLY for products at the highest efficiency level which typically are more expensive.
So, if you are buying new windows, make sure you purchase windows with U Factor (this measures the rate of heat transfer and tells you how well the window insulates) less than or equal to 0.30. The lower the U-Factor rating, the better the window keeps your home’s air in and the outside air out. But be ALERT! If you go into the store and simply ask for Energy Star rated windows, you could walk away with a genuine Energy Star window that has a higher rating and lower cost, but would not be eligible for that tax credit.
Step 2:Choose a reputable home improvement company to purchase and install your windows. In the past 12 months, BBB has closed 90 consumer disputes with home improvement companies in Maryland, and regretfully, only 44% of those complaints were actually resolved or settled by the companies. Choosing a business you can trust with your consumer dollars is more important than ever before – we just don’t have money to waste!
So visit
www.bbb.org; insert your zip code and when you land on Maryland BBB home page, click on “check out a company”, insert the company name of the home improvement business you are considering and review their consumer experience BEFORE you walk in that business’s door.
Step 3:Remember, any home improvement service provider must be licensed by Maryland Home Improvement Commission which is a division of Maryland Department of Labor, Licensing and Regulation (DLLR). As a consumer, you are at financial risk and with little/no recourse if you choose to do business with someone who is not licensed. Check out a company by clicking on this link:
http://www.dllr.state.md.us/license/occprof/homeim.html.
Now use common sense by getting references, visually inspecting work that has been done on other homes similar to yours, and ask questions about the firm’s use of subcontractors and the type of insurance they carry. Do your homework, be armed with the “specs” from Energy Star, and you should save a buck to put toward some summer fun!
Let me know if this information helps you and if you run into any problems with your home updates. Talk soon - Angie
