Low mortgage rates have created a boom in remodeling — a wise investment in uncertain times. But it's not wise if energy efficiency is not near the top of the list in your projects.Granite or Corian counter tops, multimedia rooms, hookups to broadband Internet connections in every room, laundry rooms with folding areas, posh bathrooms with two sinks and a jacuzzi, family room additions, master bedroom suites, a deck addition overlooking the woods, additions to accommodate elderly parents, and even whole-house remodeling have become the rage along with home improvement TV shows.
The remodeling industry is booming. Low interest rates spurred homeowners to refinance their mortgages for large amounts to use the additional money for home improvements or take out a home equity loan for the same reason. Consumers have discovered that plowing money into their homes is a wise investment in uncertain times.
But it's not wise if energy efficiency is not near the top of the list in your home improvement and remodeling projects, notes the Alliance to Save Energy because energy efficiency easily:
- Reduces your energy and water bills
- Increases home comfort and health
- Decreases pollution and greenhouse gas emissions
Smart Home Energy Efficiency Investments
As you seek to improve the quality of your life and lifestyle and enhance the livability and value of your home, the Alliance to Save Energy suggests the following smart home energy efficiency investments:
- Updating/remodeling kitchen. One of the hottest remodeling categories, kitchen remodeling can recoup 70 - 90 percent of the cost when the home is sold, according to experts. A nice kitchen helps sell a house. Upgrade all of your kitchen and laundry appliances to those that are ENERGY STAR certified , indicating energy efficiency. You will realize immediate savings on your energy and water bills — up to 30 percent in each product category. Click here to visit the kitchen remodeling page on the ENERGY STAR website.
- Replacing old windows and glass doors. Consider replacing your drafty rattling single pane windows with high efficiency double pane windows with low-emissive coatings that are ENERGY STAR certified. They will reduce heating and cooling costs, street noise, and protect your furniture from the sun's discoloring rays. Single pane windows can diminish a home's value, notes the Wall Street Journal. For specifics to meet your climate and needs, visit www.effectivewindows.org. Also check out The Money Pit Home Improvement Radio Show interview with the Alliance to Save Energy on this topic.
- Heating and cooling systems. Heating and cooling systems can account for as much as half of a home's energy costs. When replacing a furnace, heat pump, or room air conditioners make sure that they ENERGY STAR ertified to ensure their energy efficiency. Your central air conditioning system should have a Seasonal Energy Efficiency Ratio (SEER) of 12 or higher to use 20 percent less electricity than a new unit. SEER 13 will be the new standard.
- Home office addition or remodeling. Make your home office energy efficient from the start — from insulation to products that use less energy. Your energy use impacts on your bottom line. For tips, see how to Set up a Home Office That Costs Less to Operate. You can also visit the ENERGY STAR page for home offices.
- Earn 50 percent on your investment by installing insulation and weather stripping to cut your heating and air conditioning costs, advises Andrew Tobias, personal finance editor, PARADE magazine, in "How to Invest in Uncertain Times." Insulate your attic — which can reach temperatures of 115 degrees! (See North American Insulation Manufacturers Association (NAIMA) consumer web site www.simplyinsulate.com
- Buying a new home? Energy Star homes can improve your home's resale value by $20 for every $1 reduction in utility costs and reduce pollution. Find participating builders and developers in your area at www.energystar.gov/homes
Resources
- ABC-TV - Extreme Makeover - Home Edition (abc.go.com/primetime/xtremehome/), sponsored by Sears
- Home Remodeler (www.energystar.gov/homeimprovement)
- Remodeling Magazine
- The Money Pit Home Improvement Radio Show (www.888moneypit.com)
- Realtor Magazine (www.realtormag.com)
- National Association of the Remodeling Industry (NARI) - (www.nari.org)
- Alliance's Shopping for Energy Efficient Products
- National Association of Home Builders (NAHB) - (www.nahb.org)
If you're planning to refinance your mortgage, consider borrowing more than the amount needed to pay off your existing mortgage, and use the extra cash to make energy-efficiency home improvements. Here's why.
Alliance talking points for selected episodes: