R&A Magazine: Ask the Experts

Before responding directly to the question, let's look at it from a different perspective. Could you save money by taking your own food to a restaurant and requesting that the chef prepare it for you? Or, could you save by taking mail ordered auto parts to the car dealership and asking their mechanic to install them? Well, actually, you'd likely consider those scenarios laughable, but you're not at all alone in wondering about your remodeling project.

To answer your question as straightforwardly as possible, based on industry experience, there would be little to no savings on the overall expense of your project by supplying your own materials. There are various reasons for this, as described below. However…that does not mean you shouldn't be involved in the selection process! By all means, you need to make informed decisions about what you want, because you'll be living with those decisions for years to come.

Plumbing professionals have historically done an outstanding job of connecting the links between them, the homeowner and their suppliers to provide the best quality products in the most efficient way. Do they make a profit in that process? Yes, but it's well-earned, and in the long run, it's minimal. They assume many responsibilities in that process, such as proper sizing, integration with existing systems, order scheduling, and most importantly, product warranties. They don't warrant something they haven't sold, and in the case of water-bearing products, warranties are EXTREMELY important!

So, in this age of Internet shopping, mass retailers, big-box home centers and buying clubs, you may find what you believe to be better deals on job materials, but in the long run, you'll save money and time by scheduling a visit to a local, professional showroom, and then letting your contractor take it from there.

Hajoca Corporation's Kitchen & Bath Showroom on the Fruitville Pike has been serving this community for decades, and though Hajoca recently celebrated its 150th anniversary, their showroom is cutting-edge for today's discretionary consumer. Work with professionals, save yourself the headache, then go out and enjoy a delicious, chef-prepared dinner!

Interest rates have remained at record lows for some time now, which would make this a GREAT time to consider that addition or renovation to your home that you've been contemplating.

While there are many design decisions to make so your renovation or addition turns out just as you've pictured it, one of the most important decisions you will make is how to finance your project. This decision can be intimidating and sometimes even confusing. There are many options, but with the right information you can make the financing decision that best suits your needs.

The three most popular home improvement financing options include a refinance of your existing mortgage, a home equity loan or a home equity line of credit.

To finance your project you may decide to refinance your existing property. In this situation, the lender will give you the money you need to pay off your existing mortgage and then disburse the remaining funds as your project progresses. Interest is charged only on the amount that is disbursed so you won't be making a full mortgage payment until after the project is completed and all funds have been used. Alternatively, some lenders will give you the money you need to payoff your existing mortgage but then deposit the funds for the project into an escrow account to be disbursed as the project proceeds. In this situation you would start making a full mortgage payment shortly after settlement. The benefits to refinancing are that you will have one loan and your monthly payments can be stretched out for as long as 30 years.

Another option would be to finance your project with a home equity loan or line of credit. Both options allow you to borrow against the value of your home and the interest you pay may be tax-deductible. Chances are one may make more sense than the other based on your individual situation.

A home equity loan provides you with financing for a specific, one-time purpose such as a home renovation or addition. You receive an up-front lump sum to pay for your home renovation or addition. The benefits of a home equity loan are that the interest rate and term on a home equity loan are fixed, making your monthly principal and interest payments a set amount.

A home equity line of credit enables you to borrow funds only as you need them, repay them, and borrow again if you wish, much like a credit card.

The interest rate on a home equity line of credit is typically lower than a home equity loan, however the rate fluctuates with the Prime Rate and therefore your monthly payment amounts may vary depending on the current rate. The main benefit of a home equity line of credit is that you can borrow funds on a revolving basis.

There is also a newer home equity line of credit product that is a hybrid of the home equity loan and the home equity line. This new financing vehicle works like a line of credit, but gives you the option at any time to fix the interest rate and payment on all, or a portion, of your balance. This option may be ideal for financing your home renovation or addition because you can enjoy the benefit of advancing funds only as you need them and have the option to move your balance from a variable rate and payment to a fixed rate and payment at any time.

With the wide array of financing options available in the market today, making the right decision can seem like a big challenge. But finding a lender who takes the time to listen and understand your goals can make the process less intimidating. In the end, the satisfaction and enjoyment you receive from a new addition or renovation can be worth all the effort—and now may be the perfect time to start the project you've been dreaming about.

For more information, you can contact me at listening@fult.com.

It's a great idea to consider efficiency levels when replacing your home's mechanical systems. According to www.energystar.gov, water heating can account for a whopping 14-25% of the energy consumed in your home.

The water heater market has been known over the last several years for improving efficiencies in gas and propane models. Many homeowners have been reaping the benefits with lower utility bills. But homeowners without access to natural gas or propane have had to watch in frustration while their electric bills rise.

Electric water heaters differ from their fossil fuel burning counterparts, because they are already highly efficient. Fuel burning water heaters gain efficiency by reducing the amount of energy lost during the fuel burning process. Electric water heaters are closed systems and the only way to increase their efficiency has been to increase the amount of insulation... UNTIL NOW.

Introduced into the market in 2009 is the Electric Heat Pump Water Heater. It looks much like a standard electric water heater, except for the small heat pump attached to the top. It works by extracting heat from the ambient air in the room, intensifying it with a condenser and transferring it to the water. The important part about this product is that it takes much less energy (aka money) to run the heat pump than the direct heating element in the water heater. So the more the heat pump portion is used, the lower the electric bill.

Each unit comes with a control panel that gives you the ability to decide what mode fits your lifestyle at any given time. If you have overnight guests and have an unusually large demand for hot water, you have the ability to change to electric only mode or a hybrid mode that will use both heating methods. Energy saver mode (heat pump only) will give you the biggest savings.

There are other bonuses to a heat pump water heater. As part of the heat pump feature, the area around the water heater will experience a cooling effect...which may help with overall cooling costs of your home in the summer. Dehumidification is another byproduct which is perfect for most basements.

Savings. The Department of Energy estimates that the average household can save almost $300 per year on its electric bill compared to a standard water heater. In addition, the only electric water heaters that may qualify for the Federal Tax Credit of 30% up to $1,500 are solar and the heat pump water heaters! PECO and PPL Electric Utilities customers may qualify for additional rebates.

here couldn't be a better time—take advantage of the rebates and tax credits to start saving today. Don't delay— the tax credits for energy efficiency expire at the end of 2010. If you are interested in more information on this product or other ways to improve your home's energy efficiency, call Haller Enterprises today at 717.625.1500.

There are many homes on the market that may lack curb appeal due to dated features and tired interiors. Some houses may appear to be hopeless but they are just an ugly duckling waiting to become a beautiful swan. There are a few homes on the real estate market that may be a real challenge and an unwise investment due to their condition. There are many more that just need some TLC and some sweat equity to enhance your investment. An interior designer can help with space planning, furniture layout, and ideas on colors, renovations, and additions.

Is it wise to consider space for an addition when purchasing a home? Yes, it is always wise to plan ahead. Later, you may need the extra space for a growing family, home business/office, or first floor master bedroom & bath. Depending on the lot size, setback lines, and zoning, it may be wise to check with the local township or borough before purchasing the property.

An interior designer can help with ideas for an addition and renovations; the talent and skills of an architect can help with drawings of floor plans and elevations. Basic drawings can be very helpful to help you visualize your renovation, addition options and involvement of cost and time.

What types of ideas can update a home? Depending on the age and condition of the home, the renovations can be a facelift or a major renovation. Whether you are a "do it yourself" person or use the help of contractors, you can improve the home's appearance when aesthetic pleasing choices are made.

On the exterior, new landscaping or just grooming the existing shrubbery and trees can give great curb appeal. Adding new walkways and architectural detail can update the exterior. Changing the paint color of the trim, doors and shutters can give the house a new makeover. Don't forget to add landscape lighting.

The interior has many options for change and updating. Sometimes the paint color or dated wallpaper can be a little scary but changing the wall appearance is simple. Paint is great for making changes fast without major cost.

Natural and artificial lighting is very important to the interior of your home. Windows, skylights, and solar tubes can be added for natural light. Depending on the structure of the house, recessed lighting is a great option for additional lighting. Don't forget those light fixtures. They are very easy to change. Updated finishes and new style will enhance the house's appearance.

Depending on the condition, kitchen and baths can be a major renovation or a simple facelift. If the cabinetry is in good condition and a good quality, new countertops, and hardware are a great way to update the kitchen or bath. Plumbing and light fixtures are also easy upgrades. Then change the flooring and wall finish for a completely new look.

If you are adding new tile or hardwood flooring, the base trim needs to be removed. It is a great time to upgrade your base trim to a higher height and new profile. While the trim carpenter is there, add crown molding and/or chair rail.

There are so many great options for improving homes. It can be overwhelming to a buyer as they tour homes while visualizing furniture layout and needed changes. If you are in the market for purchasing a home, consider working with a realtor who is ALSO an interior designer.

Anita C. Yoder, a realtor with Home- Town Realty Professionals in New Holland AND an interior designer with 20 years experience, can be reached at 717.575.4191.

There's lots of promotion surrounding incentives for energy-efficient HVAC equipment such as furnaces and heat pumps. The tax credit created under the American Recovery and Reinvestment Act expires December 31, 2010. Many contractors are pushing the program as a means to spur replacement equipment sales before a year-end rush. But selecting equipment that qualifies for the credit also means selecting a product with a higher price point.

Why? The federal program does not provide a credit for all energyefficient HVAC equipment. Instead, it has selected specific SEER/AFUE. A homeowner with an old unit at the 10 SEER level would see a comfort and financial benefit from upgrading to a 12 SEER. Often, these are in the middle of a price range. They do not, however, qualify for a federal tax credit. That means selecting a product with a higher, upfront price point.

So is it worth it? For HVAC equipment, the tax credit is set at 30% of cost up to $1,500.00. The equipment must be installed in an existing home and in your principal residence. New construction and rentals do not qualify.

Equipment at 14-SEER or higher range in price. In Central Pennsylvania, you may find a qualifying product beginning at $4,900.00 for a heat pump, $2,600.00 cost for a furnace and $4,700.00 for a central air unit. (These are ranges only.) SEER, the manufacturer's brand, installation issues and your selected contractor all may impact price so you will want to factor these things into the equation when answering the question, "Is it worth it?"

When determining if your HVAC replacement equipment should fall within the energy-efficiency guidelines in order to benefit from the tax credit, you can also consider your monthly energy savings. Some manufacturers provide energysavings calculators on their web sites, which allows you to input variables related to your equipment and regular energy usage and then calculate the projected savings of certain equipment upgrades. Some contractors can help you identify savings as well. Also consider your long-term goals such as how long you plan to live in the home.

For the second question: Where can I turn for accurate information about this type of purchase? There are plenty of unbiased resources online that can help. Start with www.energystar.gov for FAQs and credit information. As mentioned before, product manufacturers have valuable information, but remember that this may be skewed toward their own product line.

You should also speak to your accountant prior to making a purchase. While some contractors and manufacturers instruct you on how to apply for the tax credit, it's always a good idea to seek professional accounting advice before making a purchase that will impact your tax filing.

At Cocalico, we council homeowners to take their time when selecting an HVAC contractor. Interview up to three contractors. Ask your family and friends for referrals. When buying replacement HVAC equipment, it's important to purchase a unit that is right-sized for your home. A unit that is too large or too small will not provide the comfort you need. That means your decision should be based on more than just the tax credit and your projected monthly savings. Now is a good time to upgrade your HVAC unit. The current program may not be extended beyond 2010. But it's important to select a unit that meets your budget today as much as one that lowers your cost tomorrow. Choose wisely.