Expert: Lisa Webber - 7/8/2010

Question
Hi,

I own a 2 bedroom condo in Montgomery Co. built in 1982.  I bought my condo 2 years ago and remodeled the kitchen and bathroom, and had planned to replace the HVAC, which is original.  Prices have dipped since then and although I'm not underwater on my mortgage, I wonder if I should invest more money in a condo that I (hopefully) plan to stay in only 1 or 2 more years.  

My questions are:

1) Should I stop at the kitchen/bathroom remodels or take advantage of the 2010 tax credits for energy improvements?  

2) What typically has better resale value/appeal:  new windows (also original) or a new HVAC?  I estimate replacing either will cost approximately the same.

Thanks!

W.

Answer
If you are wanting to take advantage of the tax credits and would like to do an upgrade, I would choose the new HVAC. Typically buyers will look at that first and 1982 windows aren't going to be *that* bad.  If a buyer purchases a home and the HVAC goes bad, they have to replace it.  Window upgrades are optional.  So if a buyer is coming in and says oh geez, look at that HVAC, it's original and may not last much longer so I'm looking at potentially shelling out $6k in the next year or two.  They don't say the same thing about windows since you don't have to replace them but you can at your own timetable.  The HVAC (and windows) will help with your electric bill over the next two years as well.  Hope this helps!