Property Bought and Sold

When it comes to home improvements, homeowners’ prioritize the kitchen and the bathrooms. This article talks about how updating to energy-efficient windows saves on electricity costs and increases resale value on your home.

                                Image Source: marketwatch.com

Replacing windows with more efficient ones doesn’t provide an immediate payoff for homeowners, from an energy-cost standpoint. Yet, come resale time, updated windows can be a plus.

That’s why one reader recently sent an email, explaining his dilemma:

“New windows would make no sense from an energy-saving payback (30-year payback at best), but I am starting to come around to the view that there are fewer and fewer DIY types in the market and that ‘green’ is an increasingly pertinent selling catch phrase, regardless of costs. But, then, if I do take the plunge — is it stupid to install the new windows 10 years before I move?” he wrote.

The short answer: It’s not a stupid idea, according to the contractors, real-estate agents and energy-efficiency experts to whom I posed this question. Still, it pays to pinpoint why you’re doing it.

Comfort and aesthetics

“Most people buy windows because their old ones are shot and drafty, and they know they’re losing energy,” said Paul Vosen, president of Degenhardt Home Improvement in Madison, Wis.

Some also swap windows for those that are easier to maintain or clean. Vinyl windows, for example, need less maintenance, and some windows can be cleaned from inside the house, Vosen said. New windows can reduce the amount of noise that can enter the home, as well as lessen the amount of ultraviolet light that comes in — which will reduce fading on flooring and furnishings, said Kathy Ziprik, spokeswoman for Simonton Windows, a manufacturer of windows and doors.

It’s not out the question for windows to last 30 years, if they’re taken care of, Vosen said. Buy them about a decade before you move (as the reader contemplated doing), and you’ll both enjoy them while you live in the home and still have windows new enough to appeal to an eventual buyer.

Resale appeal

On a national average, you can recover 78.7% of the price of a midcost vinyl-window replacement and 76.6% of a more expensive vinyl-window replacement at resale, according to Remodeling magazine’s 2014 Cost vs. Value Report. Meanwhile, you can recover 79.3% of the cost of a midcost wood-window replacement and 74% of an upscale wood-window replacement at resale.

That potential return on investment is one reason John C. Kmiecik, a Chicago-area real-estate agent, recently spent $18,000 on new windows for his 3,000-square-foot suburban Chicago home. “We are probably going to stay in the house about five to seven years, and, when we do sell, we’ll be able to market that property with newer windows,” he said.

Most buyers see new windows as a big perk. In fact, Kmiecik has seen some buyers decide against buying certain homes because the windows were old and needed to be replaced soon — an investment that would easily cost them in the five-figure range, he said. New windows also add curb appeal.

That said, if you’re planning on replacing your windows, make sure you don’t overspend on them. If your house is worth $100,000, you probably shouldn’t put in the highest-quality windows on the market; you won’t recoup as much of that investment at resale, he said. But if your home is worth, say, $500,000, you may want to opt for more of a premium window, Kmiecik said. Don’t know what your house is worth or what grade of windows to install? Call up a local real-estate agent for some advice, Kmiecik said.

Also, when listing the home, consider having a Building Performance Institute professional do a home energy audit, said James Lebair, president, owner and designer of JRL Design, in Oreland, Pa. Alternatively, he suggested, have a Residential Energy Services Network rater grade the home on the Home Energy Rating System Index, the nationally recognized system for inspecting and calculating a home’s energy performance. Share results of the audit or rating with prospective buyers, explaining what they’ll save in energy costs and what they’ll gain in comfort and indoor air quality, compared with similar homes nearby that aren’t as efficient, he said.

Be ready for buyers to ask to see a sample of your monthly energy bills, said Jim Liptak, a real-estate broker in Paso Robles, Calif. People often do this to get a sense of what it costs to run the house.

Energy savings

It takes many years to recoup money invested in new windows based on energy savings alone. Still, you’ll save energy from the start.

Of course, there are other ways to save energy. In fact, if that’s your main goal, consider a home energy audit before making any improvement, Lebair said. That will help you prioritize projects that will make your home energy efficient. Perhaps new windows won’t be at the top of the list.

There are also alternatives to a window replacement, Lebair said. If, for example, you like the look of your old windows and don’t want to get rid of them, you could invest in an energy-efficient storm window, such as the QuantaPanel, that would help protect the window from the weather and increase its efficiency, he said. That could save you about 50% or more in installation costs, he said. There are other techniques to repair and weatherize old, historic windows, so owners of homes with that distinction have options.

Proper installation is important to getting the optimal efficiency of a window, Vosen pointed out. An inexpensive window installed correctly could be much more efficient than an expensive one installed incorrectly, he said. Homeowners considering installing windows themselves should be very confident they can do the job right; otherwise, it might be best to get a professional to handle it.

The continuing pro-democracy protests in Hong Kong are expected to cut the number of mainland tour groups heading to the city by nearly a third, which will take a toll on real-estate sales and retail outlets here.

Home remodeling projects are costly only for people who don’t know how to get the most bang for their buck. This article dishes 15 ways to scrimp and save while still achieving the remodeled look you envision for your home.

When Carolyn Leonhardt and her husband, Ted, sold their Seattle graphic design business more than a decade ago, she had no idea she would find herself in the home design/renovation business. After successfully remodeling three small cottages in Napa Valley, word got out and Leonhardt found herself with several clients looking for help with their renovations. And then they led to more projects.

Leonhardt's remodels are not lavish affairs, but they're sensibly and tastefully refurbished and have taught her where to spend and where to save. How does she pull it off? As she tells us, “I study the space to understand how it does and does not work, and I try to use what's there when possible. Sometimes cosmetic work is enough—new cabinets, new appliances, etc. Other times, major surgery is required, but careful planning and smart choices can keep costs down.” Read on to learn Leonhardt's secrets.

Above: In a 1920s Napa cottage, Carolyn Leonhardt opened up the roof and added French doors with transom windows above to let light into the living room.

                                  Image Source: remodelista.com

1. Pay attention to the foundation. If you're buying a house, ask the agent about setbacks and lot coverage. Not every house is expandable. Always examine the foundation before you buy; replacement is expensive and disruptive. It's almost always most cost-effective to maintain the footprint and envelope of the existing building. 2. Make at least one spectacular change. I think the biggest bang for the buck is to open up a ceiling. If you have an attic or a pitched roof, it's likely that you can open it up. It's not cheap, but it's life changing.

3. Keep the same size windows, if possible. That said, you can also make a spectacular change with really big windows or French doors. Increasing natural light is always a good investment. If you have single glass windows—even if they're in decent shape—it may be worth replacing them with insulated windows, which will save money on heating and cooling and also help reduce sound. 4. Use existing plumbing locations, if possible. In the UK and Canada, plumbing is outside of the building, but in the US it's in the walls, so changing it requires much more work. (Many houses have a crawl space or a basement, which makes plumbing and wiring more accessible.) 5. Insulate all exterior walls and ceilings. If you open up any internal walls, put in insulation, particularly around bedrooms and bathrooms. It's cheap and it helps reduce sound.

Above: Custom cabinets in a kitchen with a marble countertop. The existing window above the sink was replaced by one with double-paned glass.

                                    Image Source: remodelista.com

6. If you can afford it, go for custom cabinets. If you're on a budget, Ikea cabinets are a great buy. 7. Two words about countertops: Remember resale. Spend a little, and it usually pays off in the long run. The newest quartz products (Caesarstone and Silestone, for example) include many lovely and discrete options. Also, Ikea sells great, well-priced Numerar butcher block counters. For the low-down on each option, see our Remodeling 101 posts on Engineered Quartz Counters and Butcher Block Counters. 8. Unless you're a serious cook or money is no object, don't buy an expensive commercial-style range and fridge. There are many mid-priced, great-looking appliances out there. Appliances are standard sizes, so start with what you can afford, you can always move up later. Save your money for custom cabinets and countertops. 9. There's a trend now to make kitchens and bathrooms huge, but they needn't be—after all, they're also the most expensive to build. Opt for functionality over size. A nice touch in a shared bathroom is a separate room for the toilet. It can be pretty small, but include a window if you can, and if not, add an exhaust fan.

10. Buy a good toilet—the new ones are quiet and use less water. Most showrooms don’t have working models, so be sure to check reviews. The Toto Drake ($271.68 at Amazon) is a favorite of mine. In general, dual-flush models are a good option. 11. Choose shower curtains over custom glass shower doors. Glass doors cost about $1,500; great-looking shower curtains cost next to nothing—and you can change them out regularly to get a new look. Plus, you don’t have to squeegee them every time you take a shower.

Above: Leonhardt turned a small pass-through leading to a kitchen into a study. She painted the space a dark color to make it feel bigger.

                                   Image Source: remodelista.com

12. Study your lighting needs—it's much more cost effective to introduce lights during a remodel than after. I'm a natural light freak and also a big fan of incandescent lighting, though it's no longer PC. The good news is that CFL's and LED's have come a long way in the past few years, and many are available on dimmers. I use dimmers (almost) everywhere. They let you completely control the light and are well worth the extra dollars. 13. Don’t overlook the big-box hardware stores as a source for materials and inspiration. Home Depot has Velux skylights, Daltile tiles, Kohler cast iron bathtubs and sinks, and a pretty decent selection of kitchen and bathroom faucets. 14. Spend on door hardware, light fixtures, and faucets. Details that get used daily need to be not only good-looking but durable. 15. Never underestimate the transformative powers of color. Paint offers immediate gratification, even the good stuff is relatively inexpensive, and a careful amateur can do a good job. Hate your house? Try paint first.

Interested in seeing one of Leonhardt's houses? Go to Spring Street Cottage in St. Helena. On Gardenista, have a look at a 186-square-foot garage remodeled into a guest cottage, aka The Grottage.

You’re not the only person out there looking for a home, and when the time comes that you meet your competitor, these tips from Fox News will help you get the home you’ve been dreaming about.

Image Source: foxnews.com

Buying a home, particularly in a hyper-competitive markets, can really be a contact sport. If you get caught in a bidding war over a home you can’t resist, here are some tips on how to make sure you seal the deal.

Have a Solid Loan Offer

The surest way to lose out on a great home is to have your offer fall through when lenders fail to back your bid. You may have pre-qualified for a loan, but that doesn't mean you have a solid guarantee that you're going to land a loan. Make sure that you have been pre-approved for a loan and include your pre-approval letter as part of the offer. 

Establish a Timeline

Money isn’t everything when it comes to an offer. A seller is more likely going to side with a buyer that is willing to work within the timeframe they set. While you might be ready to move in next week, you’ll need to defer to them if they aren’t ready to move out for another month.

Make Sure You Have Everything Lined Up

Once you’ve made an offer, there are several key steps that you need to take before the sale goes through. To decrease the chances of the deal falling apart, you’ll want to make sure that you have everything lined up in advance. Before the offer can be accepted,  you’ll need to do your due diligence on the home, which means hiring a building inspector and a home assessor. Make sure your inspector and assessor are available and ready to go — you don’t want to lose out because they are on vacation or booked up for the next three weeks.

Sell Yourself

Many homeowners would rather sell to a great family that will love and cherish the place than a speculator that's just looking to flip it for a profit, even if the speculator comes in with a higher offer. When dealing with the owners, tell them why you love the home and talk about your appreciation for the neighborhood. You want to make a connection with them on a human level.

Don't Insult the House

Looking to get a lower price on a house, many potential buyers will highlight a home's flaws. The thinking goes that if they can point out how much work the home needs, maybe the owners will be forced to reconsider the price. This strategy might work with a used-car salesman, but it is less effective with homeowners, who often have strong emotional attachments to their homes. They might have lived there for decades and  raised a family there, so speaking ill of the place will only turn them off.

Escalate When Necessary

A common tactic in a bidding war, an escalation clause is a promise to beat any other competing offer by a certain amount. While this tool can help you win a home, be warned: it can also lead to an expensive purchase and buyer's remorse. Before you offer to add an escalation clause to your bid, make sure you set a cap that you are comfortable with.

Work With a Buyer's Agent

Some prospective buyers prefer to go it alone when house hunting in the hopes of saving the commission paid out to a buyer’s agent. While this can be a good way to keep the cost of buying a new home down, you should think twice about doing this in a highly competitive real estate market. Real estate agents are trained in the art of negotiation and in a bidding war, they might be able to help you land your dream home without losing your shirt.