Real Estate: Get The Most Out Of Your Investment

If you’re a homeowner, you probably want to get the best value out of your investment—regardless of whether you plan to sell in the near future or stay put for the rest of your life. The simplest ways to maximize your home’s worth? Keep it in tip-top shape. And remodel selectively.

Even in today’s sizzling real estate market, buyers are much more willing to pay top dollar for a well-kept house than one that needs serious repair.

“None of the components of a house last forever,” says home inspector Lance Luke. “It’s like a car. If all you do is put gas into it and drive it around, you’ll eventually find yourself stuck on the side of the freeway.”

All it takes to head off deterioration of your home is diligence. Clean house on a regular basis. It’s important to get rid of the dust, dirt and mildew that can damage paint, floors, countertops and tiles. It’s also one of the best ways to know what’s going on with your house—the countless fixtures, appliances, finishes, nooks and crannies. After all, it doesn’t take a professional to spot loose shingles, leaky faucets or termite droppings.

Take care of minor repairs as they arise. That way, your house isn’t just safer and more comfortable to live in—you’ll avoid bigger, costlier projects in the long run. This is crucial advice, even for homeowners with no plans to sell or rent out their homes.

“The vast majority of expensive repairs I see have to do with complacency, or what we call deferred maintenance,’” says Chris Terry, president of Distinctive Home Inspections. “Everyone drinks a cup of coffee in the morning—take your cup outside and walk around. I live by the saying, An ounce of prevention is worth five pounds of cure.’”

There are several issues that all Hawaii homeowners should keep an eye on:

The Usual Suspects

TERMITES are the bane of homeowners across the state. Drywood termites (the kind that leave telltale droppings) are bad, but ground termites (the ones that form mud tubes around the base of a house) are the worst. “It can get so bad that, in six months to a year, ground termites can level a house,” Luke says. Tent fumigation can kill drywood termites. For ground termites, the most effective remedy is an in-ground baiting system, such as Sentricon. Whatever treatment you buy, it pays to get the warranty, Luke advises. “That way, you’re covered if the termites come back within the next few years.”

ROOFING can last anywhere from 10 to 50 years, depending on the material used, as well as your neighborhood’s climate. “Say you have a wood-shingle house in Ma-noa or Kahaluu, where it rains a lot,” Luke says. “Although that type of roof can last more than 20 years, if it’s not maintained, it might need to be replaced in 10.” Fix leaks as soon as you notice them. Left unchecked, a leak won’t just cause water damage to your home, it can spur mold growth on everything from drywall to floors.

 Most homes need REPAINTING every four to seven years, with thorough prep work—stripping, sanding, re-caulking open joints and applying a prime coat—beforehand. You’ve waited too long, Luke says, when “the paint is chalky or you can see peeling or cracking.”

Unless you happen to be a licensed electrician, don’t tamper with your home’s ELECTRICAL SYSTEM. Call in the pros. It’s not just smarter, it’s safer. “A lot of home fires are caused by electrical problems, usually because something was done improperly,” Terry says. Some signs of outdated or inadequate electrical systems: lights dim when an electrical appliance is turned on, two-pronged outlets instead of three, messy wiring or the presence of three or more electrical panels (you may know them as fuse boxes) in a single-family home.

PLUMBING also usually requires professional help. Problems can range from old or incompatible piping materials to faulty fixtures and waste lines, resulting in dripping faucets, clogged drains and leaky pipes. How can you tell if your plumbing system needs to be replaced? “The water pressure gets lower and lower, until virtually no water is coming out of your faucets,” Luke says. If additional rooms were added to your home improperly, there’s a chance that your electrical and plumbing systems are overworked.

 Get to the bottom of things—inspect your home’s FOUNDATION. Unchecked ground-termite infestations, improper drainage systems and, especially if your home is built on a hillside, bad soil conditions can all lead to expensive problems later. “If there are cracks in the foundation, or you sink into the ground when you walk because the soil is soft, or there’s water coming out from under the foundation and it’s a sunny day, then something’s wrong,” says Luke.

 Set aside money each month for UNEXPECTED REPAIRS—just as condominium owners pay monthly maintenance fees.

“A lot of people live paycheck to paycheck, so it’s hard to say how much homeowners should set aside,” says appraiser Harlin Young. “We advise clients with income properties to set aside about 2 percent to 5 percent of their income, so they’re prepared for emergencies.”

Home Improvement

Repair before you remodel. Only once your home is in tip-top shape should you consider improvements or renovations. Then, plan carefully. There’s no guarantee that you’ll get back the money you put into those projects. What are some of the best ways to hedge your bets?

Indisputably, KITCHEN AND BATH improvements are the best ways to increase the value of your home. “People want kitchens with newer, higher-end appliances (gas, rather than electric, stoves are preferable) and updated countertops and cabinetry,” says Realtor Margaret Murchie, a vice president of Coldwell Banker Pacific Properties. “There should be enough room for an eat-in area. Bathrooms are important, too. People spend a lot of time in their bathrooms, so they should be as roomy and comfortable as possible.”

 Not so long ago, the three-bedroom, two-bathroom house was the norm. These days, more and more buyers expect no fewer than four bedrooms. The ADDITIONAL BEDROOM can be converted into an office, a den or a guest room. But “don’t even bother adding a bedroom unless you’re adding a bathroom attached to it,” advises Realtor Anne Oliver, also a vice president at Coldwell Banker. “These days, nobody wants to share a bathroom.”

Invest in a GREAT ROOM—that is, one large public room instead of smaller living or family rooms. “The days of the formal living room, separate from the rest of the house, are pretty much gone,” Oliver says. “People live a more relaxed lifestyle than we did years ago. People like a big room where they can relax, entertain.”

Incorporating the outdoors into your living space is one of the easiest ways to expand the living space in your home. ADDING A COVERED LANAI is an inexpensive, yet worthwhile investment in your home.

INSTALLING A POOL can increase the value of your home by up to $30,000, depending on the neighborhood. It’s important to install fencing around your property and gating around the pool to prevent your, as well as your neighbors’, children, from using the pool without adult supervision. A caveat: Because of such safety concerns, some couples with young children may avoid buying a home with a pool.

SMALER PROJECTS can boost your home’s value, as well, such as installing hardwood floors and replacing louvered windows with more modern ones.

One rule of thumb that applies to all renovation projects: Keep it simple. Ornate railings or funky-colored countertops can easily turn off prospective buyers, should you decide to sell your home.

If you plan to renovate your home, hoping to sell it at a higher price in the near future, Oliver suggests an almost all-or-nothing approach.

“If someone has a great piece of property and puts in a new kitchen, but the bathrooms are still dated, he’s not going to get the $70,000 back from the kitchen remodel,” Oliver explains. “Either you do a number of major renovations, or you do simple things to spruce up the house—new carpet, new paint, landscaping the yard—and let the buyer do the new kitchen and bathroom.”

It goes without saying: No matter what types of home improvements you take on, work with reputable, licensed contractors. If necessary, get the proper building permits for construction.

It’ll pay off in the long run.