Return on Investment – Blog 1 – Introduction
When it comes to replacing equipment in your house, you often don’t get a choice as to when. Parts and fixtures often fail suddenly, so return on investment is not a consideration. Major appliances like furnaces, water heaters and boilers require immediate attention. They also offer an extensive and confusing myriad of choices as you scramble around for quotes. Not only will you need to consider brands but also, “good, better or best” options for efficiencies, bells and whistles.
Of course, the highest efficiency and quality you can afford coupled with the features like wireless control from your phone are easy choices when you are planning on staying in your home for the long term, but not everyone is. When it comes to choosing options for a home you plan to sell, what features are worth it? Which will provide the best return on your investment?
When considering a higher priced, higher efficiency model of furnace, an add-on cooling feature like a heat pump, an HRV for improved ventilation and air circulation, or even an on-demand (tankless) water heater to replace the traditional version, we often hear, “is it worth it?”. To that, we ask our customers how long they are planning to stay in their home. This is because the payback period is often long. If you are upgrading strictly for the efficiency and savings in utilities cost then you will need to be in your current house for 7-10 years for some options to be worth it. If you are planning on selling sooner than that, then the next question will be about return on investment.
Those planning to sell their house will want to consider things that will add value to the selling price, or attractiveness to buyers. This is where you will see a return on your investment if you’ve made the right choices. Buyers expect the heat to work, so while a new furnace is a plus, it won’t actually increase the selling price on its own. We all know that new kitchens and bathrooms will increase the selling price, but only if done well and with the right features. What features will help?
To answer these questions, I have interviewed one of the North Shore’s top realtors Lance Phillips, for his opinion. After 33 years in the business, he’s got a definite feel for what sells.
Read the rest of the series to see what guidance Lance can provide. We’ll focus on things like choosing the right heat; when to replace when to fix; and what items will serve you well. The last part of this series discusses kitchen and bathroom renovations. Are you competing with professional developers? Find out what features are buyers expecting, and at what price point?
