In today’s competitive real estate market, a home’s energy efficiency is a hot new selling point.

Record highs in oil and gasoline prices have initiated a new energy policy in the United States.

The U.S. Department of Energy is warning consumers to expect an increase in the cost of utilities, predicting that gas will cost 30 percent more than last year and home heating oil will cost 16 percent more. It is also giving incentives to homeowners who take steps to conserve energy  consumption.

The new “Energy Policy Act of 2005” now offers tax credits of $500 for taxpayers who spend money to upgrade their insulation, heating and air conditioning systems, thermostats, caulking, weather-stripping, windows and doors. Homeowners who install solar energy systems will be able to claim tax credits of up to $2,000 for power and hot water generating systems (except for those used to heat hot tubs or swimming pools.) Additional tax credits will be offered for those who install a clean-fuel vehicle re-fueling unit at your principal residence or at your place of business.

Making major energy-efficient home improvements can add significantly to your home’s market value.

For professional advice on all aspects of buying or selling real estate, talk to Anne Scott - 203.438.2284.

If you plan to sell an older property, you may have been advised to do some remodeling to increase the resale value.

Perhaps you’ve decided to expand your kitchen and create a luxury master bedroom suite, but are feeling completely stressed-out at the prospect of disrupting your home life.

How can you cope with the chaos of doing a remodel while living in the home?

First, choose your building contractor carefully. Ask your friends for recommendations based on their own experience and get local references. Put all of your expectations for the project in writing – what renovations are to be accomplished, the date of completion and the estimated cost. Ask the contractor to keep receipts for all materials and subcontract labor.

Set up basic house rules for the workers. Agree on what time they will arrive in the morning, how long their lunch break will be and when the work day will formally end. Set aside a place in the garage or basement for tools and materials to be stored overnight. Designate an entrance for the workers and a bathroom they can use.

If you set up clear agreements before the project begins and maintain open communication with your contractor, you will be more relaxed during your home remodel.

For professional advice on all aspects of buying or selling real estate, talk to Anne Scott at 203-438-2284.

Before you undertake a major renovation or redecorating project, call a professional Realtor for advice about how your plans will impact the marketability of your home.

We will be glad to provide a free consultation with no obligationeven if you are not planning to make a move in the near future.

Sellers often spend a lot of money on changes that won’t increase the value of their homes. They may customize their home by creating unusual room arrangements that won’t work for most buyers or by adding bold wall- paper that may not have wide appeal.

Even when you are remodeling for your own enjoyment, overall appeal should be your main consideration. You should also consider whether you could recover your expenses if personal circumstances or career opportunities required you to sell the house sooner than you planned.

Homeowners looking for a way to increase the value and beauty of their home prior to selling should think about upgrading the master bathroom. With creative interior design and a little imagination, you can create an ambiance similar to that of a deluxe spa retreat setting.

Letting in more light is an extremely popular design trend that will work beautifully if your home has access to attractive views. Add a window next to a Jacuzzi tub, creating a place to relax, enjoy the scenery and bathe away stress. Or install a deep soaking tub near a sliding glass door that opens to a private Japanese garden.

Repainting the walls in a light neutral color will further brighten the room. If your floor covering is outdated or uninspiring, replace it with luxurious heated tile or marble. Install warm fluorescent wall sconces that provide elegant illumination, or indirect cove lighting to give the room a comfortable glow. Increase bathroom storage with mirrored cabinets that reflect all the natural light and scenery.

A bathroom with a beautiful view will not fail to delight prospective buyers.

For most, homes represent our single largest investment and warrant an eye towards maximum return. Improving our abode is wonderful - improving it an getting an increased return is even better. Yet there is a balancing act between personal improvements and maximum returns at resale.

For instance, typically those improvements exceeding 20% of your average neighborhood value are dubious as to total return since even an 80% recovery at resale still represents a 20% loss. In certain markets it may be better to move than endure a major construction project.

However, financial returns are only one part of the equation. Comfort, peace and sundry other advantages that appeal to one’s soul are likely warranted although it helps to understand the financial realities of high cost, single use improvements, and/or radically unique expressions.

Likely Payoffs:

Bathroom and Kitchen Renovations -
New flooring, cabinets, countertops and appliances can be costly but buyers typically look for updated bathrooms and kitchens. Minor facelifts like painting, new floor covering, new cabinet doors with hardware, will often payoff in a faster sale at a better price. For best returns, light neutral colors, plenty of cabinets and counter space, new lighting fixtures, energy efficient appliances.

Room Additions -
Sun rooms and master bedroom suites are solid. For best results: try to blend with existing materials/style of house; consider traffic flow; accessibility to other rooms.

Deck / Patio -
Adds to communal comfort abodes naturally afford - a gathering place to extend family life outdoors - barbecues, brunches, midday respites. For best returns: redwood, cedar or pressure-treated wood; designing deck or patio to harmonize with the architecture of the house; consider a low-level deck for children’s safety.

Energy Efficiency -
Dual payoff with fuel bills now, resale later. For best results, many of which can be do-it-yourself projects: caulking and weather-stripping around doors and windows; attic insulation; setback thermostat; heat-reflecting awnings/shades; water-heater insulation; ceiling fans for air circulation; good maintenance of heating/cooling systems; a whole house electrical surge suppressor to maintain appliance efficiency and protect electronic equipment.

Common Mistakes
Excessive Improvements -
Ask for comparative market analysis to determine your home’s value - anything adding in excess of 20% above average neighbor value is dubious for full return on investment.

High Cost, Single Use -
Swimming pools, tennis court are luxuries with varying appeal and may in effect represent maintenance liabilities; thus you might have to wait longer to find a buyer willing to pay the extra price that would allow you to recover your investment.

Flamboyant Architecture -
Personal preference can diminish resale values unless you don’t mind waiting for that unique buyer who shares your tastes.

Elaborate landscaping -
One’s idea of a natural dedication could become another’s idea of maintenance demands - e.g., picket fences that need frequent repainting; complicated outdoor spotlighting which can require expensive repair.