Lake season is right around the corner, but before you invest in that new bathing suit and head down to the water, be sure to take the proper steps to de-winterize your lake home.
Window Wisdom
Months ago, before the first cold front hit, you checked all your windows for damage, improper seals and cracks around your windows and frames.
Well now’s the time to open them back up and let in the sunlight and fresh air.
You don’t have to seal your home for the entire winter for the air to get stale; even if you’re only away for a couple of weeks, you might be starting off your lake season with some unwelcome odors.
As you air things out, make sure all your windows have no new breaks or cracks and that no screens have been torn and need replacing.
Pipe Protection
The key to de-winterizing your pipes is to go slowly.
Before turning the water on, check that all bathtubs and faucet nozzles are turned to the “off” position, and remove the aerators from each of your home’s faucets.
Aerators are the small, screens inside the faucet that save water and reduce your utilities bills, but minerals can build up on them and limit your water pressure.
Next, carefully turn open the water valves beneath your sinks, toilets and water heater by rotating them counterclockwise.
You will also want to turn on an outdoor water valve before turning on the main water supply, located on your home’s water meter.
The main supply should be opened slowly. Allow a small flow of water for 20 seconds, then allow a small amount more. Increase the flow in small increments until the source is fully open.
Inside, run water from every faucet, and flush every toilet. As you did before, start with a small water flow in each faucet, and increase the flow in small increments. Don’t get in too big a rush; if there is too much pressure inside the pipes, sudden changes could cause them to crack and even burst.
Make sure your water heater is full before cutting off the electricity until your first spring home-stay.
Reattached all your fixtures’ aerators and turn your faucets back to the “off” position before you leave.
Rooftop Recommendations
Winter weather usually means heavy snows and high winds, and you may find unwelcome evidence on your home’s roof.
Check for any missing shingles (the wind can whip them off clean), and look for damage from fallen limbs. It’s also important to look for holes, cracks and breaks in your home’s gutter system.
Also, if you take some time to rid your gutters of the small accumulations of leaves, sticks and other debris, you can prevent not only damage to your gutters, but also damage to your home from overflow during hard rains.
A 2017 article by Money.com reported only 10 percent of homeowners successfully sold their homes without the help of an agent. The other 90 percent chose to work closely with real estate professionals who were familiar with their local markets.
In lake real estate, working with agents who live, work and play in their local markets is key to successful real estate ventures.
These veteran experts are intimately familiar with the many nuances of their lakes — such as which parts are most active or best for fishing, and what the off season looks like — but more important, how to best gauge current market conditions.
So, what should you look for when it’s time to hire a listing agent for your lake home? We can help with that.
Listing Agent vs. Selling Agent
It’s important to learn the distinction between the roles of listing agents and selling agents, because though they sound like the same thing, they are quite different.
A listing agent works on the homeowners’ side of the real estate transaction and in the best interest of the seller.
These agents list properties on their MLSs (multiple listing services), which make them visible to other real estate agents who have clients looking for similar homes. Additionally, these MLSs feed a host of real estate websites, like LakeHomes.com, Realtor.com and Zillow, providing national exposure to their listings.
Listing agents also help the sellers price the home, assist in contract negotiations and serve as trusted advisers on various other real estate-related minutiae.
A selling agent works with prospective home buyers. Most often referred to as buyer’s agents, selling agents are responsible for representing the buyer in the transaction.
In-Depth Market Knowledge
Perhaps one of the most important things to take into consideration when hiring a listing agent is how familiar he or she is with your market. In fact, in 2017, 80 percent of sellers named local market knowledge as one of the top deciding factors when choosing an agent to work with. In specialized markets, like lake real estate, local market knowledge can be invaluable.
For example, how to price your lake home is typically one of the biggest questions you and your listing agent will face because traditional estimated value programs often incorrectly evaluate these properties.
Tools like the Zillow Zestimate use public records such as property tax records, and user-submitted data to approximate the value of a home.
Public records don’t always properly reflect the actual size and configuration of certain homes, and because much of a lake home’s value is determined by factors like proximity to the shoreline, lake views and nearest access points, public and user information can only give homeowners a rough estimate.
At Lake Homes Realty, lake home listing agents utilize resources like our Lake Real Estate Market Report — which features real estate data from more than 100 MLSs across 23 states — to analyze market trends, compare prices, and determine how local markets fit into the state market as a whole.
Armed with this wealth of information, lake-focused agents are best equipped to price your home objectively and appropriately for your market’s climate.
Strategic Marketing Plan
You can’t sell a secret, and if your listing agent hasn’t laid out a strategic marketing plan for your property, you might consider finding someone else to work with.
Many lake home buyers come from out of state, which means your listing agent must go beyond putting your home on the local MLS in order to reach these prospects.
One of these best ways to do this is to target marketing efforts via search engines and social media campaigns.
Lake Homes Realty agents tailor listing promotional efforts using Google Analytics web-traffic data to determine which areas are most frequently shopping their sellers’ markets.
This powerful tool not only shows sellers how visible their listing will be on a national level, but also shows the age demographic most interested in homes on their lake, gender and how frequently users are shopping on LakeHomes.com.
From this information, listing agents can determine who sees their listing advertisements by specifying it only be shown to males, ages 54 to 65 within 25 miles of Nashville who are interested in fishing, boating and real estate.
Trust Level and Responsiveness
How trustworthy and responsive a listing agent is are the two most important qualities sellers look for when hiring. A strong sales history, positive online and peer reviews, certifications and performance awards are all key indicators of these.
Red flags that may signal a less-than-effective listing agent include the agent encouraging the highest possible initial listing price, an unusually low commission split and unfamiliarity with your specific type of property.
Also, the best listing agents are full-time real estate professionals. This enables them to be more easily accessible to answer any questions sellers may have, provide advice on offers and to provide peace of mind that sellers have made the right choice in choosing to work with them.
Additionally, a good listing agent will respond to every client, every time, to make sure his or her client’s transactions go as simply, effortlessly and conveniently as possible.
We’ve said it before, and we’ll say it again: one of the biggest reasons a home doesn’t sell is pricing.
A smart asking price can be the key ingredient to the success of your home’s sale. Even in a bad market, a home will sell if the price is right. Choosing to forego expert advice, however, can lead to your listing stalling out on the market, which usually results in a price drop.
While asking for less may help you sell your home, there are some consequences of price drops that could be counterproductive to the sale.
Why Overpricing Is So Common
There are a handful of reasons sellers give for padding the asking price of their home.
Some point to unique, decorative features, like a brick pizza oven or wine cellar, as evidence that their property’s value is higher than it is. However, quirky add-ons, as opposed to neutral touches, have a higher chance of backfiring. Not all buyers will share your same tastes and some upgrades, like a luxury bathroom or tricked out kitchen, won’t garner as many returns on investment as homeowners think they will.
There’s also the mistake of setting an asking price based on what you need from the sale rather than what the home is actually worth.
Some lake homeowners aren’t likely to get as much from the sale of their home as they may have originally planned. Thanks to the 2008 recession, the demand for second homes isn’t as high as it was a decade ago. According to Forbes, vacation homes have been slower to rebound from the housing bust than off-lake properties.
In fact, since 2009, with the exception of 2010, markets with the highest concentration of vacation homes have under performed every year. So while a seller may be committed to selling a lake home at a certain price point, the property value may not have bounced back enough from the housing bust to make it happen.
Unfortunately, buyers don’t care what a seller needs for personal financial reasons. They’re only concerned with the home’s real value.
The Aftermath of Price Drops
Anything can happen that results in an inflated asking price. However, when a seller finally decides to lower expectations, there are consequences.
Price cuts usually happen after a home has been on the market for too long. “Too long” can mean different things for different agents. To prevent a listing from “going stale,” some agents suggest price cuts after two weeks on the market, while others will give it a month.
Either way, after a significant price drop or too much time on the market, one question always arises: “What’s wrong with it?” Potential buyers understand that you get what you pay for, so a listing that frequently gets cheaper and cheaper will have them questioning the quality of your home.
Even if there are no significant structural issues with the property, a potential buyer who’s already made negative assumptions about your home will be conditioned to see the glass as half empty no matter what.
Each price decrease also indicates that a seller lacks confidence in his or her own asking prices. So, when you mark your home down once, some buyers will just wait for another price cut. If the seller isn’t confident in the asking price, why should the buyer be?
These flip flops in pricing leads to even more time unsold and puts your property at higher risk for going stale. In real estate, an extra week or two added to a home’s shelf life can make a big difference.
Your real estate agent’s goal is to sell your home as quickly as possible for the best price. He should have enough market knowledge at their disposal to calculate your home’s real value, which if you follow his suggestions, will help the listing move faster.
So price it right the first time by trusting the expertise of an experienced professional.
In an age where cell phones are smart and “Google” is a verb, it’s no surprise technology has taken root in real estate’s back yard. And while this relationship has been mutual so far, Silicon Valley is inching closer and closer toward total takeover.
Zillow’s Consumer Housing Trends Report 2017 however, indicates this mission will likely fail.
At Lake Homes Realty, though we have a robust online component in our business model, we still believe in the power of local agents.
We believe the power of people, combined with the power of technology, is critical for success as a real estate company today.
And so we say, “long live the real estate agent!” However, in case you need a little more convincing, take a look at these top reasons Realtors still reign.
People value expertise
Despite the wealth of information available online, 74 percent of today’s buyers and 94 percent of sellers still choose to work with a human real estate agent.
But why would consumers pay money for a person to tell them that which they can find online for free? The answer is simple.
These sites are good for arming buyers and sellers with a lot of basic information, but they lack something only “boots on the ground” can provide: local expertise.
In fact, about 80 percent of both parties named local market knowledge among the Top 3 most important factors in deciding to work with an agent, rather than go it alone.
This intimate familiarity becomes even more valuable in niche markets, like lake real estate. Only agents who live, work and play in their local markets are best equipped to help clients navigate the rough waters of buying or selling a lake home.
These agents possess knowledge about who owns the lake, dock restrictions and where buyers most frequently come from.
Additionally, these expert agents can provide insight into market-specific questions that online resources might not be able to, like how susceptible a property is to water and weather damage, and what parts of the lake are most family-friendly.
Agents serve as trusted advisers
A lot goes into the buying and selling process. Without the help of a veteran in the field, it can be easy to lose track of all the moving parts.
Eighty-two percent of buyers and sellers reported that an agent’s guidance through the real estate process is the most valuable component in their client-agent relationships.
This factor alone outranked both previewing/screening homes and providing legal advice on the buyer’s side.
On the seller’s side, consumers ranked agents’ guidance at the top of the list, just under finding interested buyers (at 87 percent.)
Consumers in lake real estate not only rely on local experts to provide them with advice about hard real estate data but also about the communities and nuances of the lakes themselves.
Buyers often find themselves uninformed about which lakes best match their desired lifestyle and what markets yield the best return on investment. For sellers, these trusted advisers help price listings according to what the market is saying, rather than what the neighbor’s place sold for last year.
Both sides also value agents’ legal advice (75 percent and 76 percent) on subjects like title insurance and property lines. Lastly, 75 percent of buyers and 73 percent of sellers value agent referrals on mortgage lenders and home inspectors.
Negotiating is a superpower
Sure, an online bidding war over a $20 pair of shoes on eBay doesn’t sound bad. How comfortable would you feel about doing the same with a multi-million dollar lake home?
Even face-to-face, negotiating a home’s final sale price isn’t easy, especially when it comes to making both parties happy.
Thankfully, good real estate agents are good negotiators. Being able to negotiate is a superpower of sorts, one that 82 percent of consumers on both sides of a transaction value.
In fact, leading contract negotiation is the No. 2 (buyers) and No. 3 (sellers) most important factor consumers consider when choosing a real estate agent to work with.
In general, clients rely on expert negotiators who’s skills include being able to handle emotional clients with respect and empathy and being able to withhold personal reactions to negative actions from the opposing side.
Additionally, consumers value expert agents who come to the negotiating table armed with knowledge about who the other side’s decision maker is, and in which areas concessions are most likely to be made.
Lastly, above all else, the most valuable weapon a heroic negotiator can possess is a willingness to walk away when it is in his clients’ best interest.
Technology will forever be intertwined in the industry, that much is clear, but Silicon Valley may be wrong about the future of real estate.
The key isn’t agent-enabled tech, but tech-enabled agents who’s community knowledge, skills and market expertise is invaluable.
When you hear “lake home,” those words can conjure various images. Contrary to popular belief, not all lake homes are waterfront homes.
As a matter of fact, many people who own lake houses aren’t even close to the waterfront! Because of this, many lake homes are more affordable than you might think.
There are three major types of lake property: lakefront, lake access, and lake community. Each has its pros and cons, both functionally and financially.
Waterfront Property
Lakefront, also known as “waterfront,” property extends to the shore of the lake itself.
It offers the most prestige, the most access, and a direct line to the lake right out your door.
Lakefront property can be incredibly beautiful, and there’s nothing like looking out your back patio directly onto the calm waters of the lake in the evening.
Naturally, such prestige comes with a high price tag. Waterfront property is significantly more expensive than similar property, even a block away from the water.
It also brings with it many more responsibilities.
Waterfront property is the most vulnerable to flooding, erosion, and inclement weather. There are often special insurance requirements, and upkeep can be a significant commitment of time and money.
If you plan to build or improve on waterfront property, make sure your plans fit with the local regulations. Many lakes have restrictions on docks, signage, and landscaping.
Since there is a limited amount of shoreline on each lake, property on the water’s edge often appreciates the fastest.
Waterfront is also very attractive to vacationers. This can pay dividends if you intend to rent it out.
Waterfront property is perfect for those who have their heart set on the water’s edge and have the time and money to maintain it.
Lake View Property
“Lake view” property, also known as “lake access,” is near the water but does not extend to the lake itself.
This property can be a literal stone’s throw away from the water and is often just as picturesque as the lakefront.
Prices vary from lake to lake, but lake view property is typically much less expensive than lakefront.
Lake view property isn’t as scarce, doesn’t have the same water access, and doesn’t have the convenience or prestige of being directly on the waterfront.
At the same time, a lake view can give many of the benefits of a waterfront at a fraction of the cost or the headaches.
Owners still typically have easy access to the lake without needing to maintain their own stretch of shoreline. Weatherproofing and maintenance costs aren’t as significant, either.
Most lake communities have options for those who live on the lake to enjoy its benefits. Marinas can store boats until you need it, and there are usually access points for swimming, fishing and water sports.
If you want a property close to the water’s edge but have a limited budget, a lake view property may be for you.
Lake Community
Most lakes have neighborhoods arrayed about them. Many of these homes aren’t within clear view of the water’s edge but are still very much part of the lake community.
Homes situated in a lake community a short distance from the water can cost a fraction of waterfront property.
Nicole Anderson Walters, a Lake Homes Realty agent specializing in real estate on Logan Martin Lake, Alabama, offered, “you can save money by being in a lake view or lake access neighborhood. Many have water views and community areas with boat launch.”
“Where a home may cost you $89 per square foot off the water, the same home could cost upwards of $168-$200+ per square foot directly on the water,” she added. “You can often find a much nicer home off the water with amenities in the neighborhood.”
Depending on the size of the lake, these neighborhoods can range from high-end gated communities to condos and cabins to retirement communities and everyday suburbs.
These lake communities are often a short drive to a short walk or drive to the lake itself but still have easy access to fishing, swimming, boating, and other lake activities.
As an added benefit, most avoid many of the upkeep costs and restrictions associated with lakefront property.
Many communities are also situated near state parks, landmarks, shopping centers, and other attractions. If these appeal to you more than living near the water, look for lake communities within a short distance of the lake.
Find what works for you!
Every lake is different.
In addition to those listed here, market prices can vary greatly between lakes. If you can’t find the kind of property you are looking for at one lake, look for others nearby.
The mortgage interest deduction and the state and local property tax deduction are probably the best-known tax incentives for homeownership and real estate investment.
That’s no surprise. Roughly nine out of 10 home buyers borrow money to buy a home, meaning they likely pay some form of mortgage interest. And property taxes are a near-universal expense for homeowners.
Both deductions are crucial to making homeownership possible for the average buyer.
But there are other real estate-related tax incentives that might not be as familiar.
Capital gains exclusion
All homeowners hope their property will appreciate.
The flip side is that anyone selling an asset that has gone up in value may get hit with a tax bill for the profit, also known as the capital gain. Thankfully, homeowners have some help in their corner.
An individual selling his or her principal home can qualify for an exclusion of up to $250,000 in capital gains, and married people who file jointly may qualify for an exclusion of up to $500,000.
There’s no need to report gains up to these limits on a tax return.
To take the exclusion, sellers must pass the IRS’ ownership and use test, but it’s fairly straightforward.
Essentially, they must own the property and have used it as a primary residence for a total of two out of the five years preceding the sale. Even if owners currently rent the property and depreciate it — as we’ll discuss shortly — they might still meet the use and ownership test and qualify for the exclusion. And even if sellers haven’t lived in the home during the past five years, they might qualify for a partial exclusion.
That’s a big help, as well as a recognition of the fact that millions of Americans depend on their home to build wealth throughout their lives.
1031 like-kind exchanges
The “1031 like-kind exchange” sounds like it’s ripped right from an accountancy textbook, but it’s actually fairly easy to understand.
Let’s say a person owns a single-family, detached rental home as part of an investment portfolio. If the home appreciates, the owner will likely owe capital gains taxes in the event of a sale — unless he or she uses the proceeds to buy a condominium in a market with higher rents.
Because the single-family home and the condo are both investment properties, tax law treats them as “like kind.” And because this transaction is a “like-kind exchange,” the owner won’t pay capital gains tax until he or she sells the new property.
This gives investors an incentive to put any realized gains back into the economy rather than pocketing them. And it’s a big deal: Major real estate investors and mom-and-pop investors alike can benefit.
Depreciation on rental property
Homeowners who rent a portion or all of their property might be able to “depreciate” that asset, which means deducting some of the cost of the property each year on their tax return.
That could result in a significant income tax deduction.
If you do earn money on the sale of your home after depreciation is taken into account, you’ll generally owe tax on the depreciated portion at the 25 percent “depreciation recapture” rate.
Any other gains will be taxed as capital gains.
Changes may be coming
For more than a century, the United States has recognized the benefits of homeownership and real estate investment.
It strengthens communities and helps individuals grow nest eggs for themselves. However, Congress is considering tax reform proposals that could have sweeping implications for real estate incentives.
That’s something to keep an eye on.
Everyone’s tax situation is unique. Before you count on any of these incentives, you may want to talk with a tax professional. But if you’re ready to take the plunge into homeownership or real estate investment, tax benefits — some obvious and others perhaps less so — are out there.
NerdWallet is a Lake Homes Realty / LakeHomes.com content partner providing real estate news and commentary. Its content is produced independently of Lake Homes Realty and LakeHomes.com.
When it’s time to sell, you’ll want your investment to impress buyers and earn top dollar.
A real estate agent can suggest ways to make the process go smoothly, but all homeowners can take some basic steps even without professional help.
Here are five important steps to take when you’re ready to sell your house.
1. Declutter
Remove knickknacks, toys and other belongings that clutter the rooms in your house to make the spaces seem larger and more open.
Buyers will also have fewer distractions as they walk through the home.
Don’t plan on shoving your clutter into closets, though, because potential buyers will open closet doors as they tour your house. If you have a lot of clutter and find it hard to get organized, consider temporarily renting storage space for some of your belongings.
2. Repair damaged items
If you have small issues, such as holes in walls or lights that don’t work, now’s the time to fix them.
To get an idea of what you need to repair, walk through your home and imagine yourself as a buyer, or walk through with a friend you can trust.
Are there defects that you’ve learned to overlook but that would catch your attention when seeing them for the first time?
You’ll also want to make sure you correct major issues that a buyer may not see immediately, such as problems with the heating and cooling system, before you put your home on the market.
A potential buyer will probably hire a home inspector before closing. If the inspector finds problems, the sale could be put on hold until they’re resolved.
3. Deep clean
Go beyond your weekly cleaning routine.
Every surface a potential buyer sees is a surface that needs to be clean. Messy spaces could send the message that you don’t take care of your home, and it could make potential buyers wonder what else is wrong with the property.
A deep cleaning means shampooing carpets, washing windows and cleaning tile grout throughout the house.
Pay special attention to bathrooms; make sure fixtures are sparkling and wipe out any dirt rings or mold patches.
Keep up the cleaning routine while your home is on the market. If you’re pressed for time, consider hiring a weekly cleaning service.
4. Plan pleasing scents
You probably don’t want buyers who enter your home to catch lingering odors from last night’s dinner.
For a nicer aroma, add fragrances around the kitchen and throughout your home.
The smell of freshly baked cookies is pleasant for many buyers. If you prepare a batch just before a showing — and offer them to the buyer and real estate agent — you could make your home stand out.
There’s no need to worry if you’re not much of a baker.
A few well-placed sticks of cinnamon or citrus fruit, such as oranges, can also produce a refreshing scent.
In fact, a 2013 study published in the Journal of Retailing and reported by the Wall Street Journal determined that a simple orange aroma encouraged buyers to spend more money at a home decor store, compared with other scents.
5. Stage your home
Your decor expresses your personality, but home shoppers may have different tastes.
Consider changing the decor to appeal to a large number of buyers. This practice is known as “staging,” and it could mean you rearrange furniture, tone down dramatic wall paint with more neutral colors or even rent new pieces of furniture until the home is sold.
In a 2015 National Association of Realtors report on home staging, 52 percent of buyers agents reported that their buyers were willing to increase the amount of money offered for a staged home compared with a similar property.
You could ask your real estate agent for design suggestions and stage your home on your own. Or if you’d prefer a professional home stager, your agent may be able to suggest someone.
You can also contact the Real Estate Staging Association for names. The survey showed the median amount homeowners paid for staging services was $675.
Take note of these five steps to get your home ready to sell before you put it on the market. The effort you make repairing, cleaning and staging can pay off big when a buyer makes an attractive offer on your house.
NerdWallet is a Lake Homes Realty / LakeHomes.com content partner providing real estate news and commentary. Its content is produced independently of Lake Homes Realty and LakeHomes.com.
Many homeowners view their outdoor spaces as their own personal oases, places where they can relax, dine and spend time with their friends and loved ones.
In light of this, it makes sense that homeowners consider investing in major features that will transform their outdoor areas into additional living spaces.
Like any home-renovation project, however, outdoor renovations can easily get out of control if you don’t have a good handle on how much things will cost, what your goals are and whether you’re doing the work yourself or need professional help.
Before you dive into an outdoor improvement, take these key considerations into account to help you stay on budget and ensure that your project is successful.
Match plan to budget
One of the key factors in the success of any outdoor project is determining a realistic budget long before you put shovel to topsoil.
Only once you’ve decided what you’re comfortable spending can you define the scope of your project.
The 2016 Houzz Landscaping & Garden Trends Study, conducted among registered users of the residential remodeling website, found that 88 percent of respondents had done or planned to do substantial renovations or complete overhauls, while only 12 percent had done or planned to do minor updates.
Knowing the scope of your plans in the beginning will help you get a basic sense of what the project will cost you.
In the Houzz study, nine out of 10 homeowners working on minor updates spent or planned to spend less than $5,000, but substantial updates called for bigger budgets — more than two in five homeowners working on a complete overhaul spent or planned to spend $20,000 or more.
Having a general understanding of the projects that are most popular among outdoor renovators can also be helpful as you develop your budget and scope.
Across all outdoor projects reported in the study, many homeowners were updating outdoor systems such as irrigation and lighting (82 percent), beds and borders (80 percent) and structural elements such as patios, terraces and gazebos (72 percent).
The costs of these projects vary significantly based on a number of factors, such as project nature, scope and professional involvement.
For example, while most standard outdoor systems such as irrigation or lighting in medium to small yards can be upgraded for less than $2,000, updates to beds and borders can range from a few hundred to thousands of dollars.
Renovation of outdoor structures is typically quite expensive and can easily start at a few thousand dollars and go up based on the type of structure and the extent of upgrades.
Pick your priorities
The next key factor to consider: What are you trying to accomplish with your renovation?
If outdoor living is top of your mind, you might concentrate on adding outdoor furniture, a fire pit or cooking features to enhance comfort.
If a low-maintenance space is a top priority, you might focus on adding plants that require little care and are resistant to cold, drought and wildlife.
When it comes to design, outdoor renovators most valued one that complements the style of their home (46 percent), promotes outdoor living (45 percent) and is stylish and beautiful (43 percent).
In terms of function, a space that’s easy to maintain ranked highest for homeowners (80 percent), followed by an area suitable for group gatherings and entertainment (49 percent).
Beyond creating an outdoor space that is aesthetically pleasing and easy to spend time in, many homeowners tackled specific challenges during their projects. Top issues included drainage troubles, lack of privacy and drought or water shortages.
Identifying your outdoor pet peeves or pressing concerns should make it easier to set project scope and budget. This will help you avoid project-scope creep.
Hiring a professional
More than half of outdoor upgraders in the Houzz study hired a landscape contractor or landscape architect/designer (52 percent) to help them bring their vision to life — and for good reason.
Landscaping professionals can open your eyes to a wide variety of options for your space that you might not be aware of, provide guidance for staying on schedule and budget, and tackle projects for which specialized skills are particularly beneficial.
Certain projects also require the hiring of licensed professionals to comply with local regulations.
Once you determine your budget, scope and top priorities, consider meeting with a professional for an initial consultation to discuss what you have in mind for your project.
Finding the right landscape contractor or landscape architect can make an entire project come alive. You may be surprised at how reasonable the professionals’ fees are compared with their contributions to the project and the quality of the final outcome.
An outdoor makeover can make an enormous difference in how you and your family enjoy your time at home.
In fact, after the completion of their outdoor project, 75 percent of homeowners reported resting and relaxing more often in their yards, 64 percent did more gardening and 55 percent entertained more frequently in their outdoor areas.
Keeping these tips in mind will help ensure that you not only complete your project without damaging your finances but also achieve an ideal outdoor space that you and your family will enjoy for years to come.
Nino Sitchinava is principal economist at Houzz, a residential remodeling and design platform and community.
NerdWallet is a Lake Homes Realty / LakeHomes.com content partner providing real estate news and commentary. Its content is produced independently of Lake Homes Realty and LakeHomes.com.
In fact, they’re often willing to pay more for homes with “green” upgrades, says Sandra Adomatis, a specialist in green valuation with Adomatis Appraisal Service in Punta Gorda, Florida.
Just how much your home will increase in value depends on a number of factors, Adomatis says, like where you live, which upgrades you’ve made and how your home is marketed at sale time.
The length of time to recoup the costs of green upgrades also depends on the energy costs in your area.
In 2014, upgraded homes in Los Angeles County saw a six percent increase in value, according to a study from Build It Green, a nonprofit based in Oakland, California, that works with home professionals.
Upgraded homes in Washington, D.C., saw a two to five percent increase in 2015, according to a study Adomatis authored.
While upgrades like a gleaming new kitchen or a finished basement may give you more bang for your buck than energy-saving features, going green has its benefits. Here’s where you can begin.
Getting a quick energy assessment or a more thorough energy audit can determine how much energy your home uses, as well as which upgrades would make the most sense for your home and your finances.
An audit may include an energy rating, a number that indicates how energy efficient your home is and how much it will increase if you make recommended upgrades.
The Department of Energy website lists ways to find assessors in your area. The Environmental Protection Agency’s Energy Star program offers assessor and advisory services to help you determine what to upgrade.
Your utility provider may also offer energy audits.
The cost varies depending on location and who’s providing the service. Your utility company may offer an assessment for free or at a discount.
A full audit may run $300 to $500 depending on the complexity, according to Don Knapp, senior marketing manager with Build It Green. You may not want to pay for a full audit unless you’re planning to take advantage of it with major upgrades.
Once you know where you can improve your energy use, begin by making the changes that are most affordable and have a quicker payoff, Adomatis advises. Then consider whether the costlier ones are worth the investment.
Here are some common energy upgrades, from least expensive to most.
Insulation. A 2016 Cost vs. Value report from Remodeling magazine found that the average attic air-seal and fiberglass insulation job costs $1,268, with an added value to the home at resale within a year of completion of $1,482. That amounts to a 116 percent return on investment. And according to Energy Star, homeowners can save $200 a year in heating and cooling costs by making air sealing and insulation improvements
Appliances. Your appliances account for about 15 percent of your home’s energy consumption, the DOE says. Certified clothes dryers can save you $245 over the life of the machine, according to Energy Star. A certified dryer from General Electric can run from $649 to $1,399.
When upgrading, look at the kilowatt-hour usage of a new appliance and compare it to your current one — a good Energy Star rating doesn’t necessarily mean it will use less energy than your existing appliance, Adomatis says.
Heating and cooling systems. These systems account for about 43 percent of your energy bill, according to the DOE. Replacement costs for an entire HVAC system — heating, ventilation and air conditioning — vary widely depending on equipment brands and sizing but may run several thousand dollars. Energy Star estimates you can save 30 percent on cooling costs by replacing your central air conditioning unit if it’s more than 12 years old.
While addressing your home’s heating and cooling systems, bear in the mind that leaky duct systems can be the biggest wasters of energy in your home, according to Charley Cormany, executive director of Efficiency First California, a nonprofit trade organization that represents energy efficiency contractors. The cost of a professional duct test typically runs $325 to $350 in California, he says.
Windows. Replacing the windows in your home may cost $8,000 to $24,000, and could take decades to pay off, according to Consumer Reports. You can recoup some of that in resale value and energy savings. Remodeling’s Cost vs. Value report found that installing 10 vinyl replacement windows, at a cost of $14,725, can add $10,794 in resale value. Energy Star estimates that certified windows, doors and skylights can reduce your energy bill by up to 15 percent. If you’ve already tightened the shell of your home, installing a set of new windows may not be worth the cost. But the upgrade may be worth considering if you live in a colder climate.
Solar panels. EnergySage, a company offering an online marketplace for purchasing and installing solar panels, says the average cost of a solar panel system is $12,500. The payoff time and the amount you’ll save will vary depending on where you live. Estimated savings over a 20-year period in Philadelphia, for example, amount to $17,985, while it’s more than twice that amount in Seattle: $39,452, according to EnergySage.
Last: Let Buyers Know
When it comes time to sell, your real estate agent can help you market your home as energy efficient.
Provide your agent with utility bills or your energy rating, if you received one with your audit, to include when describing the house on a multiple listing service, or MLS.
There’s a growing trend in the real estate industry to make energy upgrades visible, Knapp says; energy disclosures are now a common practice in cities like Berkeley, California, and Chicago. “If it’s reflected on the MLS,” Knapp says, “it’s more likely to be reflected in the resale value.”
Bottom line: If you weigh the costs and savings carefully, going green can be worth the investment.
Michael Burge is a staff writer at NerdWallet, a personal finance website. Email: mburge@nerdwallet.com.
This article was written by NerdWallet and was originally published by The Associated Press.
NerdWallet is a Lake Homes Realty / LakeHomes.com content partner providing real estate news and commentary. Its content is produced independently of Lake Homes Realty and LakeHomes.com.
