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From Forbes, Via GreeningSF
These are home improvements that are an investment even in a recession
Just a few years ago, a real estate flipper
could parlay a several-thousand-dollar upgrade into a substantial
profit. A $30,000 investment in new kitchen tiles, countertops and
appliances, for example, might reap $60,000 upon resale.
Those days are over. Contractors' phones
are no longer ringing off the hook, and as housing prices continue to
drop, cash-strapped homeowners are remodeling in different ways.
One
clear favorite? Going green. "Sustainable" and "renewable" materials
and appliances are in high demand based on present trends, according to
the American Institute of Architects.
A large part of that has to do with how people
now view their homes. As flipping has stalled, and many would-be
sellers are sitting out the market, they're turning to green changes as
a way to reduce their energy bills and improve their quality of life. Based on AIA research in February
that polled 500 architects in the residential sector, buyers are
willing to pay $5,000 extra for an energy-efficient home.
Kitchens
have always been home-design hot spots, and that is unlikely to change.
But instead of shelling out for a stainless steel Sub-Zero refrigerator
or marble countertops, homeowners are opting for renewable materials.
"There
is a growing interest in eco-friendly features for kitchens, such as
bamboo and cork flooring, and concrete and bamboo countertops," says
Kermit Baker, the AIA's chief economist. He says that this trend
continues to the bathroom, where water-saving toilets and LED lighting
have displaced demand for luxury installations like towel-warming
drawers, double-sink vanities and whirlpool baths.
Radiant
heating, though, is a luxury buy that for some is also economical.
While outfitting an 800-square-foot space with such a system, which
entails installing heatable coils below the floor surface, can run
between $5,000 and $7,000, the U.S. Department of Energy estimates that
radiant heating saves 20 percent a year in energy costs.
While energy-efficient features like these will undoubtedly require an outlay, many come with
large tax rebates. In heating costs alone, the Environmental Protection
Agency estimates as much as $465 in savings when EnergyStar windows are
used to replace single-pane ones. What's more, you'll get a tax rebate
of 10 percent of costs, up to $200.
But
before you hit up your local home store, take heed. Appraisers stress
that simple cosmetic touch-ups often have the highest rates of return.
"It can be as simple as making sure
landscaping looks good, or that the exterior paint is fresh," says Alan
Hummel, chief appraiser of Minneapolis-based Forsythe Appraisals.
"Especially with median to luxury homes, curb appeal is very important."
That
means additions like carriage-style garage doors or a well-manicured
flower bed. Garages, in particular, can take up one-third to one-half
of a home's exterior, and a sharp door and drive might impress online
house-hunters and create a favorable impression once they get there.
One
final note: Given the current state of the market, you might have to
settle for these improvements merely helping to sell your home faster,
as opposed to netting more cash at the bargaining table.
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