The Nitty Gritty Behind the Pretty

The desire for a more beautiful, comfortable, functional home prompts most remodels. The vision of the finished product gives most homeowners the courage to proceed. And perhaps it’s because issues like heating and cooling, electrical wiring, and plumbing are out of sight they often remain out of mind.

“Usually clients talk about the types of things they want a space to do, then they talk about it being comfortable and warm,” says Michael Anschel, principal and designer at Minneapolis-based Otogawa-Anschel Design-Build. “Unless the house has some quirks or something isn’t working right, the focus is on the visual.”

Bob Boyer, president of Boyer Building Corporation in Minnetonka, agrees. “If it’s a kitchen, clients think about new cabinets and countertops, but they never consider that the electrical system might not meet code requirements. And they forget that in older kitchens the electrical system doesn’t have designated circuits for microwaves, refrigerators, and computers.”

But according to Boyer, a remodeling project offers the opportunity not only to beautify a home, but to better it by creating a healthier environment, improving energy efficiency and adding to the home’s resale value. “There are ways to improve the air quality and the insulation value of your home—along with all the cosmetics—that will add value down the road.” And it offers the chance to take advantage of some of the latest technologies found in new homes.

Why Upgrade
Save Energy and Money

When people do decide to make a change, one of the first considerations is often energy efficiency. Energy conservation has become the springboard for adapting a more sustainable lifestyle. More products and options are available to address this trend. “There are so many good options when it comes to materials, systems, and building methods that we can make good decisions and choices,” Anschel says. “In the plumbing arena there are a number of low-flow fixtures that are stylish, well-made, and cut water consumption dramatically. A family of four can save about 10,000 gallons of water per year with dual flush toilets, and they’re in the low $200s.”

With water heating bills accounting for twenty percent of an average home’s annual energy bill, Excelsior-based Lake Country Builders vice president Sue Jacobson notes that a tankless water heater requires less energy than a typical water heater, saving up to fifty percent in water heating costs. Determined on a case-by case basis, prices typically fall between $4,000 and $5,000 installed, with an additional charge for electrical hookup. Even more efficient is a point-of-use water heater, a small unit installed under the sink for around $1,000 to $1,500 per unit.

For escalating heating bills, Jacobson suggests installing a heat pump on an existing furnace, provided the furnace is already fairly efficient. Though it can cost between $2,100 and $5,500, she says, “It can cut your bill by fifty percent.”

Why Upgrade
A Healthier Home

Another motivating factor can be health and well being. Because poor indoor air quality has been linked to asthma, allergies, and a host of other health problems, more and more new homes feature a Heat Recovery Ventilation (HRV) system. An HRV system provides a continuous stream of fresh, filtered outdoor air to the home, and because the system draws upon the exhaust air to preheat incoming fresh air, the end result is not only cleaner air but also lower energy bills. An HRV system, generally priced around $2,000 installed, removes stale air from the kitchen and bathrooms, where humidity most often occurs, and also can include return vents in bathrooms and laundry areas, where the majority of indoor air pollutants are generated.

Existing homes can take full advantage of similar systems with a little planning, says Boyer “If you anticipate installing an HRV it’s a great opportunity to install vents in bathrooms and laundry areas to improve the air quality inside the home.” While this may add some to your costs, the long-term gain when it comes to energy savings and healthier air can be a solid tradeoff for the homeowner.

Boyer also stresses that remodeling gives you the opportunity to make a home more resistant to mold and mildew problems. By upgrading your heating and cooling systems, you can tackle these moisture problems head on because effective ventilation is one important way to help keep mold and mildew at bay and improve the overall health of your home.

Why Upgrade
Return on Investment

Another great reason to take a look at updating your home’s mechanicals is the impact an upgrade could have on current market value and future resale. “Markets that have certified green programs have already shown that certified houses outperform conventional homes in the real estate market,” says Anschel. “Whether the market is up or down, they hold their value and grow in value at a rate that’s different than traditional homes.”

These upgrades can be so important that Boyer encourages homeowners to seriously weigh their options and consider what will add long-term value to the home for current and future owners. For instance, he cautions against blowing the budget on elaborate home media systems. “Often people buy a house that’s pre-wired for electronics but the previous owners ripped out the equipment. So the new owners have no idea how to hook up the wires and end up having to redo it all anyway. I don’t think it adds a lot of value.”

Instead he suggests focusing on the nuts and bolts issues that keep a home healthy and efficient. “Furnaces and water heaters, particularly if they’re high efficiency, are big sellers in Minnesota. You maintain your house, you improve the systems that it’s built around and keep it in tip-top condition, and it really pays out when you go to sell it.”

Plus, Jacobson also points out, many tax rebates and incentives exist for consumers who purchase more durable and energy-efficient materials and appliances. And she anticipates there could be even more in the future. Currently, both Xcel Energy and CenterPoint Energy offer rebates for the purchase of qualifying energy efficient furnaces, air conditioners, and boilers.

Plan for the Unexpected

Unfortunately there’s no crystal ball to help predict issues that pop up during a remodel. Sometimes these unexpected discoveries can lead to added expenses. What starts as a modest kitchen upgrade can become more complicated if midway through you discover your electrical system needs to be upgraded in the process. While some things are avoidable, “there are always things that come up,” says Jacobson. “It’s really how you handle them. People like when their builder is a can-do person and finds solutions.”

For these unexpected complications, Anschel says, “I would encourage people to allocate an additional five percent of their budget to deal with issues. Some may be obvious; some may have been put off.”

He also suggests hiring a builder who is a member of an association like National Association of the Remodeling Industry or Builder’s Association of the Twin Cities. “They adhere to a code of ethics. It’s very unusual to hear about a contractor who did the wrong thing who was an association member.”

As a true partner on a project, remodelers want to build trust. They also want to avoid the unexpected just as much as the homeowner does. As Anschel notes, “It’s not our job to try to sell you on a vision or a dream and ignore the depth of what’s really going on. The purpose of hiring a good remodeler is to have him investigate and find that stuff. Houses are difficult, complicated things.”

That’s one reason why Lake Country Builders guides clients through the remodeling process with its Healthy Home Checklist, a comprehensive study initiated in the design phase that addresses home issues from the building envelope to the mechanical room. As Jacobson says, “If something pops up it could impact a project.” But she adds, “It’s not like the homeowners have to do it all now. There may be things that they might want to do during the remodel because we have the walls open. There may be things that are easy to upgrade later.”

And because the checklist was inspired by Lake Country’s participation in the Minnesota GreenStar certification process, it represents a convergence of conventional and green applications and is designed to look for ways to improve the air quality and comfort of a home while also conserving water, electricity, and gas.

As soon as the remodel is complete, many of these new energy-efficient, healthier additions are once again out of sight and mind. But in the end, it’s these upgrades that really enhance the comfortable new-house feel a remodel leaves behind.

Top-to-Bottom GreenStar Photo courtesy of Otogawa-Anschel Design-Build, L.L.C. This house just off Lake of the Isles in Minneapolis’s Kenwood neighborhood exudes 1920s charm, but its new incarnation will include some of the best “green” features of the 21st century, thanks to Minnesota GreenStar guidelines. Well before the project was underway, designer Michael Anschel—whose firm, Otogawa-Anschel Design-Build, helped develop the state benchmarks—asked his team to brainstorm ways this whole-house renovation could use less material, energy, and water. The result will feature cutting-edge systems such as geothermal heating and cooling, and rainwater collection. Learn more about this project.