If you are currently a homeowner, you have probably noticed that there are so many people trying to get your money through the means of various products with promised rebates, warranties, or savings otherwise. Now, as with most things, there will be some truth to the savings you may experience. But how do you know what to take the plunge on and make the purchase for and what to stay far from? We\’ll look at how to determine what products and services are worth further exploration and which are not.
In your home, major systems utilize electricity, gas (natural or propane), and electricity. These are often the areas where smooth-talking salespeople will try to sell you additional services that you may or may not need.
So before you buy that solar, that water softener, or that HVAC system–there are three considerations as a filtering means for these purchases which are;
- How long do you plan to stay at the current property?
- What is the break-even cost and benefit thereafter of the investment?
- Will the investment add to your property\’s ROI (return on investment)?
The main areas that you may have either considered or been sold on are:
- Solar: This system allows you to create energy from panels that feed into the grid and reduce or eliminate your electricity expense. These systems can be very expensive to install and even maintain, so applying the three considerations will ensure the investment is worth it.
- Water Heater / Water Softener / Reverse Osmosis: These systems heat or cleanse the water that comes through your faucets. Oftentimes you can spend thousands on just these systems. Moving from a traditional water heater to a tankless one could provide you with not only energy savings and rebates but also resale value perks, but make sure that the investment is actually worth it in relation to the return.
- Home Warranty: You can get a warranty on pretty much anything these days; a home and its major components are no different. There are warranties and insurance policies protecting everything from your plumbing, appliances, roof, or an overall home warranty, much like a bumper-to-bumper vehicle warranty. Often these warranties are not worth the ongoing premium, so considering the cost of the warranty or insurance policy in relation to the potential risk of a major repair will help you determine whether a larger emergency savings account would make more sense than an ongoing premium.
- Energy-efficient appliances: Replacing your old appliances can help with your overall energy use, as well as having the possibility of getting local energy provider and manufacturer rebates. You may consider prioritizing replacement based on high-use appliances like an HVAC system, refrigerator, or washer, especially those most viewable or experienced by guests. Appliances that may be out of sight, out of mind may be less important. For example, moving from an evaporative or swamp cooler system to refrigerated air could add significant value to your home.
- Insulation / Doors / Windows: Considering when and to what extent to increase the thermal resistance or R-Value value of your home all depends on how harsh your climate is. If you live in the southwest\’s extreme heat or the northeast\’s extended winters, you may more heavily consider better insulation, doors, and windows than a more temperate climate. Be careful not to overdo it for your neighborhood or climate, though.
- Subscriptions: Thinking about recurring servicing to appliances like filter changes on your HVAC system, duct system cleaning, or pest control, it\’s important to find out how often this needs to be done, especially to avoid voiding any manufacturer\’s warranties. These subscriptions can often get out of hand if you have regular maintenance on various items–but they can also be a lifesaver when it comes to the longevity of these systems.
- Amenities: Amenities would include your sprinkler or drip system, a pool filtering system, a pond, or some other additional system.
Planning not only for the maintenance of the systems that you currently have in your home but also for those systems you will either be adding by means of a pool or hot tub or replacing by means of seeking better efficiency, rebates, or resale value, it is important to count the cost. Figuring out not only what the break-even cost is from the initial and ongoing cost and related savings but also the resale benefit or even drawback that each may bring.
You have heard it said that location, kitchen, and bathrooms sell homes. So if you\’re having a difficult time figuring out the best location to put your money when it comes to these improvements, look at the value return based on the area you are investing in. Installing new appliances in a kitchen may make more sense than additional insulation in the attic.
CTA:
My call to action is to seriously look at what your home needs and look at the three considerations as to whether the investment is worth the trade-off!
