Will the Cap and Trade Bill Have an Impact on Housing Sales?

By
Real Estate Agent with The Buyers' Counsel

House with reflectionIn the interest of creating a better environment, new legislation that is along the lines of the Waxman-Markey Cap and Trade Bill is scheduled to be unveiled by the end of the month.  The bill will include language for a new National Building Code calling for homes to be more energy efficient. 

With regard to new construction, there have been some notable innovations in green building designs and the use of these should be encouraged in new homes.  

However, according to a recent article, the proposed code has a provision which would mandate that all housing transactions be required to undergo and pass an environmental inspection.  In older home sales this could be significant.  Windows that are not airtight and appliances that are not Energy Star certified would have to be replaced before the sale could happen.  

The fear is that this bill could possibly affect the sales of "fixer-upper" homes; however, I cannot honestly see the government moving in with these types of restrictions at this point which would severely impact the sale of the huge inventory of foreclosure properties now sitting on the block with millions more expected.   

Currently, sellers in Massachusetts and many other states are mandated to have smoke and carbon monoxide detectors as a requirement before any property can be transferred.  Also, owners with private septic systems must have a Title V inspection and it fails, they are required to remedy the problem by installing a new septic system. 

Most people are onboard with these items since they have a huge impact on safety and protecting the environment.  However, if home sellers have to repair every problem prior to a sale, it could significantly drive up the cost of selling a home.  

At a time when the country is spending countless sums of money to shore up the housing market with a first-time tax credit and the possibility of extending and expanding this program, it seems contradictory to come up with legislation that could sabotage these efforts. 

I will be on the lookout for more clarification of this bill in the coming weeks and hope that the stir about it is more smoke than fire.  

With the housing market still in a depressed state, it is hard to imagine that the government would choose this time to make housing sales more difficult.

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  Copyright 2009 - Claudette Millette, President, TheBuyersCounsel -  800-392-1446, E-mail    

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Re-Blogged 4 times:

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  1. Vicky Henry 09/26/2009 08:34 AM
  2. Dana Devine 09/27/2009 08:38 AM
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  4. Sandy Mitchell 09/28/2009 05:41 PM
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Anonymous
Anonymous

Always allow a free market to dictate what we want in a home, not Congress.  The government is not all knowing and all seeing.  contact your reps and senators and block this cap and trade bill....or as many call it, crap & tax bill.

Sep 27, 2009 12:50 PM #105
Rainer
8,462
John Bennett
Charles Rutenberg Orlando Florida - Mount Dora, FL
John Bennett

Jirrius,

 

You say 99% of the Scientist agree.   Please EXPLAIN these 31,000 do not!!!  there are only about 200 on the  UN    

http://www.petitionproject.org/

 

And there is the PROBLEM the earth (according to NASA) is getting COLDER! For the last 10 years now.

 

 

Sep 27, 2009 01:25 PM #106
Anonymous
Anonymous

Although this is a great article and some great comments, I suggest each one of us in the real estate industry take the time to write our public policy officials at NAR and  your state associations.

Cap and Trade would ruin the real estate and connstruction industry as we know it. From sales, to affordable construction to the dilema of getting rid of properties that would cost more to rehabilitate than to build new.

Another factor in this is the toll this bill would take on cooperative electric companies who are already looking ar alternative fuels, many of whom have invested milllions in renewable energy sources. Natural gas stores are at an all time high, but the government would have you believe we have no alternatives. Government control is cutting into every facet of your lives, those who are foolish enough to believe it is all for the "universe" think again. Every action is money driven by private investors just as Al Gore who spent millions of your tax dollars in contracting to build energy efficient cars than the average American will never be able to afford to drive. (by the way, they are NOT built in America).

Be prudent, be wise,.. and get informed. Talk to your associations, and to your legislators. Cap and Trade not just one, but about ten leaps toward government control of your everyday life.

Sep 27, 2009 01:42 PM #107
Rainmaker
510,489
Delaware Junk Removal Residential And Commercial Hauling Clean Outs
Delaware Junk Removal 302-530-9186 - Wilmington, DE
Whole House Clean Outs, Basements, Garages, Attics

Jirius- Good Sir, you tell me that global warming is real and "The science regarding carbon emissions is irrefutable."  Yet you fail to address the points I made above and say 99% of scientists agree with you and algore doesn't need the money so he is telling the truth?  That's weak my friend.

John posted this link above  http://www.petitionproject.org/   that 99% is incorrect.

Sep 27, 2009 03:09 PM #108
Rainer
40,693
Scott Perry
Jireh Business Information Solutions, Inc. - North Huntingdon, PA

Great post, Ms. Millette.  In answer to your question, in a word, YES!  "Cap & Tax" will kill the economy by raising taxes and increasing energy costs while doing NOTHING to help the environment.  The Obama administration has admitted as much, according to CBS News.

To Mr. Isaac:  There is actually more evidence of global COOLING than of warming, anthropogenic or otherwise.  Even if one were to accept the premise that the earth is warming (which I don't), solar activity rather than human would be the more likely cause.  Consider also that climate models are notoriously inaccurate due to the complexity of the ecosystem and the failure by climatologists to take into account factors such as solar activity and water vapor as the predominant "greenhouse gas".

Scientists, being human, are often motivated by factors other than the pursuit of objective scientific truth, such as ego (don't want to admit they could be wrong), economics (don't want to lose their funding) or even political considerations.  To think otherwise is naive and shortsighted.  You really should open your mind to alternative ideas, my friend.  It's the "progressive" thing to do.

Sep 28, 2009 09:10 AM #109
Anonymous
Anonymous

What Jolene may not be aware of is that in the State of Washington our legislature tried and failed to pass their own version of a Cap and Trade bill that state analysts said "would double our cost for every kind of energy in 5 years."  

Citizens were grateful the bill did not pass - all except our glorious Governor.  Within weeks of the end of the last legislative session she, by "executive order", created a Cap and Trade program for the State of Washington.  The only thing the program doesn't have is the tax part, which she believes the State Legislature will pass in the next session.

For those who think our State or Federal Government has our best interests at heart - think again.  They will act with or without the approval of the people who elected them and who are their "bosses".

Sep 28, 2009 09:45 AM #110
Anonymous
Jeff R

I have an idea.  Since CO2 is deemed to be bad for the environent... everybody in the world can hold their breath for 1 minute about 15 times a day.  15 minutes per day X 365 days X 6.7 billion X CO2 saved per minute = a lot of CO2.  Of course millions of defenseless plants will sufficate.

 

 

 

Sep 28, 2009 10:37 AM #111
Rainmaker
196,598
Jirius Isaac
Isaac Real Estate &TriStar Mortgage - Kenmore, WA
Real Estate & loans in Kenmore, WA

Scott Perrry and all the others out ther that do not believe humans are causing some of the global warming and think that scientists because they are human or how they are paid are getting bought out, does that exclude you.  Do you not think that any potential evidence or change that affects your bottom line dollars is not effecting how you see the world?  Most of the corporations and businesses that are shoving this no global warming going on down are throats are doing so because it is in their best interests to do so.

It is the same as the $8000 tax credit.  How many realtors are against it?  And yet, in the long run, is it good for our economy?  Maybe not.  Yes, there are a lot of factors that relate to global warming, but there are a few things that we humans are doing to contribute and we do not want to stop doing so because it is inconvenient and expensive.  And that is the bottom line.  You can make a case for either side.  But, just follow the power of the majority of the vested interest and you will see who has the most to lose or gain.

Sep 28, 2009 10:58 AM #112
Rainmaker
510,489
Delaware Junk Removal Residential And Commercial Hauling Clean Outs
Delaware Junk Removal 302-530-9186 - Wilmington, DE
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Jeff- That is the best comment on this subject that I have seen since this issue came up.   I love it!

Sep 28, 2009 10:58 AM #113
Rainmaker
510,489
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Delaware Junk Removal 302-530-9186 - Wilmington, DE
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Jirius-  You said "corporations and businesses that are shoving this no global warming going on down are throats are doing so because it is in their best interests to do so."

Jirius, WE are the corporations and businesses and citizens who are having this shoved down OUR throats by YOU and the democrats in government. 

No one is telling us what to say or think, we make our own decisions and have decided that cap and trade and this fascist way of thinking is not what we want sir.

Sep 28, 2009 11:12 AM #114
Rainer
40,693
Scott Perry
Jireh Business Information Solutions, Inc. - North Huntingdon, PA

I submit to you, Mr. Isaac, that it is the height of human arrogance to assume that mankind is able to have any significant effect on the climate of this planet.  Furthermore, most people who call themselves "environmentalists" don't really care about the environment, at least not outside their own sphere of influence.  In the now-famous words of humorist George Carlin, "narrow, unenlightened self-interest doesn't impress me."  The planet is fine.

Sep 28, 2009 11:27 AM #115
Rainer
27,116
Dave Hymes
El Dorado County, CA - Coldwell Banker - Placerville, CA

I don't find it hard to believe at all that the government would make it more difficult at this time or any time to sell homes. You don't have to look any further then HVCC to find evidence of that.

Sep 28, 2009 12:24 PM #116
Rainmaker
196,598
Jirius Isaac
Isaac Real Estate &TriStar Mortgage - Kenmore, WA
Real Estate & loans in Kenmore, WA

I am not a democrat, but you guys that do not believe in global warming are obviously republicans.  I am an independent thinker.  The Rand Corporation is a conservative think tank.  They do think that humans are adding to global warming.  there are no republicans or democrats shoving anything down anyones throat because they have no power to do so.  Both parties would love to, by the way.  But you guys only see one side of it. 

For example, we cannot solve the health care insurance crisis because of insurance, pharmaceutical, and attorney lobbyists.  They are the problem and they have a lot of clout because of their size, money and sole aim to take care of themselves.  I do not care what party they belong to.  They are the problem because they care only about their own self interests.  Realltors do the same, but they do not have as much power

I am done responding to any more of this nonsense.  This has nothing to do with politics.  I hope you can eventually see that.  Good luck to all of you.  I hope you can step outside your own tunnels.

Sep 28, 2009 12:40 PM #117
Rainmaker
402,023
Claudette Millette
The Buyers' Counsel - Ashland, MA
Buyer, Broker - Metrowest Mass

Thank you everyone for your interesting and thought-provoking comments. 

Please be sure to check my latest post with some updated information on this subject:

http://activerain.com/blogsview/1258169/correction-re-cap-and-trade-bill-nar-does-care-about-us

Thank you again.

             - Claudette

 

 

Sep 28, 2009 12:50 PM #118
Rainmaker
510,489
Delaware Junk Removal Residential And Commercial Hauling Clean Outs
Delaware Junk Removal 302-530-9186 - Wilmington, DE
Whole House Clean Outs, Basements, Garages, Attics

Jirius- I never said you were a democrat and I am not a Republican.  I do agree with you that lobbys have too much power and we need to take that power back.  Tax reform is the way.

The people who are making this a political issue ARE mainly democrats.  obama said our electric bills will "skyrocket" yet you help him with this plan. 

We are not killing the planet, its a hoax and you have bought into it sir 

Sep 28, 2009 02:08 PM #119
Anonymous
Anonymous

Cap and Trade is really all about TRADE - trade the credits back and forth like a bushel of corn or a barrel of oil in the trade board and pocket the premium! It will do nothing for anyone in our profession or for our customers and clients.

What will happen when the $8,000 tax credit expires and the latest flood of REOs hits YOUR neighborhood? All the appraisers marking "Stable" or "Increasing" prices on the 1004MC will have been wrong.

Sep 28, 2009 04:43 PM #120
Rainmaker
197,780
Mark Velasco
Realty Source, Inc (Luxury Homes Division) - Whittier, CA
Friendly Hills Homes for Sale - Whittier, Ca. Real Estate - Listings

I hope that this is not the case Claudette. Most Sellers have very little equity to work with as it is.

Sep 28, 2009 08:31 PM #121
Anonymous
Anonymous

Cap and trade is going to pass, so why argue if it is good or bad?  Of course it will be bad for the economy, jobs, us, etc., but hey, at least the lawyers will be getting paid.  And that is why it will pass.  Who do you think writes the bills? The other reason it will pass is that everyone is so preoccupied with healthcare, no one has noticed this has already passed the house.  Oh well, get ready to double your electricity costs.

Sep 28, 2009 10:58 PM #122
Rainer
31,150
George Wilson
Lincolnton, NC - Lincolnton, NC

Diane #97: First, the cigarette tax was conceived to reduce smoking related health problems; just like the bill running through HOUSEcommittees to add a 4% surtax on all times of food that uses or contains sugar( IE milk, bread, baked products, soda, enriched water, etc) yogurt to reduce obesity related health problems; reduce waste in our dumps by adding 3% surtax on product containers. Like any new Congress bill it will create jobs on one side & reduce jobs on the opposite side. I have seen new businesses locally that to increase efficiency & reduce waste caused by human error are using automation (factory that 5 yrs ago would require 100 employees now need just 25). I agree that Eco-friendly building codes are good on many levels but if to be mandatory then mandate on new construction not on older buildings.

Cap & Trade will probably pass. It will create jobs but the unintended consequences is also a loss of jobs. As has happen locally, when businesses see a net capital loss to their stockholders (IE textile & furniture mills) the jobs move overseas with lower business costs. The idea of mandating energy efficiency on older buildings is ludicrous; do you think REO/Bank owed properties are going to be fixed to meet this standard; I don't think so as they are already selling homes "As Is w/ no repairs" w/ no HVAC systems.

As for environmentalists, IMO follow a plan of do as I say not as I do. They are so concern about the environment that they fly or drive to their meetings and usually by themselves (don't count the pilot, the aircrew or support staff).  Use technology to hold your meetings or use public/commercial transportation to get where you have to be. I have seen real estate caravans using multiple cars instead of 1 bus for all; excuse is always I have to meet a customer so I have to drive myself so I can meet them when they call. How about having customer meet at office then carpool to see properties? Don't say you're for protecting the environment but then drive by yourself to multiple properties to show a customer his/her list of homes.

Finally, For all the "climate warming" people, I read somewhere in a scientific journal that a steady increase in human carbon footprint was showing up in Arctic ice samples around the 1700's sandwiched between volcanic ash from eruptions in Europe & South Pacific. It then jumped dramatically during the industrial revolution & expansion. A simple but extreme solution to significantly reduce human carbon is for the world to revert to a 1700 business model & we all become farmers.

Oct 08, 2009 10:41 AM #123
Rainer
333,262
Paul Gapski
Berkshire Hathaway / Prudential Ca Realty - El Cajon, CA
619-504-8999,#1 Resource SD Relo

yes they look so nice but Foreclosures are such tough on to stomach.

Sep 12, 2011 02:17 AM #124
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Claudette Millette

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