There are a few valuable home improvements that Florida home buyers often forget to factor in when negotiating the price of a house they are interested in.  Today I will discuss two of them: hurricane shutters and sprinkler systems.

The number of hurricanes that have affected us in recent years has caused many Florida homeowners to invest in hurricane shutters. This is good.  However, the vast majority of Florida homes still do not currently have hurricane shutters, which is unfortunate because they can make a difference in the severity of damage caused by a hurricane.  The cost of hurricane shutters can vary greatly - from a low of about $1,200 to well over $10,000 - and depends on a few things, but most importantly on the number of openings (doors/windows) you want protected as well as the type of shutters chosen. Accordion shutters cost more than panel-type shutters but are generally easier and faster to open and close.  There are other types but these are the two most often installed nowadays. When comparing one home that includes hurricane shutters with another home that does not, it's important to take the cost into account when negotiating the house price.

The importance of having an automatic sprinkler system is another item that Florida home buyers often overlook. The cost of having an automatic sprinkler system installed varies - probably around $1,400 on the low end to over $5,000 if the property is very large. An automatic sprinkler system can also save you money via a lower water bill as most homes that have one use either well or lake water, so the cost is usually limited to the electricity used by the pump and system maintenance. While some home buyers may not think this is an important amenity, they often change their minds after a few months or years of having to water their lawns themselves. If a Florida lawn is badly neglected and needs replacing, it can cost hundreds of dollars to replace with new sod. Here, again, when comparing a home that has a functioning automatic sprinkler system with another home that does not already have one, it's important to take this into account when negotiating the purchase price of the house. One last note about sprinkler systems: be sure to find out (preferably first hand) whether a home's sprinkler system is in working order. Just because you see sprinkler heads in the lawn does not mean the system is functioning properly, though a lush green lawn is usually evidence enough.

There's been a lot of talk lately about how much our home energy bills have risen. To find out if your energy use is above average, take 5 minutes to complete this home energy analysis. To perform this worthwhile test you'll need to know your home's age, square footage, number of occupants, and energy bill totals for a consecutive 12-month period (1 year).

Here's a breakdown of what the typical energy bill pays for:

• 45% - Heating and Cooling
• 15% - Other*
• 11% - Water Heater
• 10% - Clothes Washer & Dryer
• 7% - Lighting
• 6% - Refrigerator
• 2% - Dishwasher
• 2% - TV / VCR / DVD
• 2% - Computer & Monitor

* "Other" represents an array of household products including stoves, ovens, microwaves, and other small appliances. Individually, these products account for no more than about 2% of a household's energy bills. Source: EnergyStar.gov

Wondering what to do to reduce your home's energy consumption? Here are some resources to assist you:

• Home Energy Checklist for Action
• Energy Savers: Tips on Saving Energy and Money
• "Ask an Energy Expert" free service, US Dept. of Energy
• Home Energy Saver: The First Web-Based
  Do-It-Yourself Energy Audit Tool
• Swimming Pool Heating

As a Florida Realtor, I'm occasionally asked which home improvements provide the greatest return on investment (ROI).  My answer really depends on several factors and in order for me to provide useful advice, I must be familiar with the property in question as the options can vary somewhat from house to house.  Having said that, there are a few rules of thumb that are rather standard no matter what the property.

Generally speaking, kitchen and bathroom improvements will provide sellers with the greatest resale value.  However, this does not mean it must be a complete makeover.  Sometimes replacing items such as flooring, countertops, sinks, faucets, cabinet hardware and/or lighting fixtures can make a room look considerably more updated than before.  Applying a fresh coat of neutral-colored paint is among the easiest and least expensive improvements you can make to any room.  On the outside of the property, well-maintained front yard landscaping can also provide a good return on investment. 

Another factor to consider when deciding what home improvements to make is the neighborhood the property is located in. Many real estate investment books advise home buyers and real estate investors to purchase the worst home in the best neighborhood in order to get the best value for their money.  Keeping this in mind, you don't want to over-improve your home or landscaping so that it becomes the best house in the neighborhood unless you are doing it for your own enjoyment and not for resale value.

The suggestions in this article can be useful even if you own a condo. If you are thinking of placing your Florida condo for sale, it helps to know what types of improvements or upgrades your neighbors have made before deciding what, if any, updating you will make to your own condo before selling.  The older the condo building is, the more useful this knowledge and research will be to you.

High on the list of things to take into account when making decisions about home improvements is whether you will be selling during a buyer's or seller's market.  In the hot seller's market that we experienced in recent years, I found that even properties that were not in good condition were selling quickly, sometimes at or near full price.  However, now that the market has cooled down somewhat and there are more properties on the market for buyers to choose from, buyers have the luxury of being pickier and expect more for their money.

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