Tag Archives: investment

Why You Don’t Want to Select the Lowest Quote

Posted by Admin on August 23, 2011 None comments

The answer is simple: Accountability.

Businesses exist to make a profit. Profits are how businesses hire new employees, stay in business year after year, and respond to claims/defects regarding their product.

If a business is not generating a profit for the owner, then the owner has no reason to countinue running their own company. It makes shutting the business down at the first offer of a good job seem like an attractive proposition. What happens when something falls apart 3 years after being installed, and you can’t find the company who originally installed it? The $2,000 you thought you saved by going with the less expensive stucco quote turns into a $4,500 repair. And that’s coming out of your pocket.

So why go with the contractor that your gut is telling you is the right one, but your brain can’t wrap itself around because it’s a slightly higher investment? Because that contractor will stand behind his work. He knows he will be around in 10 years and doesn’t want to have to go repair his shoddy work, so he does it right. That extra $2,000 you invest will save you $2,500 (because the $4,500 repair won’t need to be done).

So why don’t you want to select the lowest quote?

Rhode Island Dryvit Make over Winner Selling Home

Posted by Admin on December 12, 2009 None comments

This summer – a contest was put on in Rhode Island in which the grand prize was a home make over using Dryvit’s Outsulation System. The lucky home owner was thrilled (who wouldn’t be, when you just increased the value of your home by $70,000).

You can view the follow up here:

http://www.foxprovidence.com/dpp/rhode_show/dryvit-systems-remodels-viewers-home

And if you really want to, you can buy the home here:

http://www.chrisslocum.com/area/5-mill-wheel-rd-warwick-rhode-island-02886/?utm_source=rss&utm_medium=rss&utm_campaign=rss

Dryvit Systems remodels viewer home

Home makeover winner’s house revealed

Updated: Friday, 11 Dec 2009, 10:30 AM EST
Published : Friday, 11 Dec 2009, 10:30 AM EST

WEST WARWICK, R.I. (FOX Providence) – This summer, The Rhode Show held a contest on foxprovidence.com. The grand prize? An exterior home makeover from Dryvit Systems .

And just like that, Susan Malone’s Warwick home was on the path to a whole new look. Old, drab wooden shingles that surrounded the house would be stripped away, and the finished piece would look like a model home

“We’re going to make sure there is a nice weather barrier up there, and put some insulation on the outside,” said Barbara Catlow, Director of Marketing for Dryvit Systems .

That outsulation is what Dryvit Systems specializes in. With the new look comes an added level of comfort to the home. It keeps your home cool in the summer, and warm in the winter, saving in energy costs all while giving your home a face lift.

Dryvit contracted R&R Imperial Board Company of Warwick to do the installation, and the work began on the house.

“We took down the original wood siding on the home and we put up an exterior insulation system, insulated the home from the outside, and put on a beautiful new finish,”added Barbara.

“There was some challenges, but nothing we couldn’t deal with,” said Al Zabbo, Field Service Manager for Dryvit Systems.

And the beauty of outsulation is that the work stays outside, while you go about your business inside.

“We tried not to obstruct sue at all. We tried to stay outside and not make too much noise. But yeah it was virtually out of the house the whole time,” said Domenic Colombo, foreman for R&R Imperial Board.

Needless to say the home’s transformation has blown Susan away.

“I love my house! It’s just amazing the work that they did. So completely amazed that it came out looking exactly like the picture they had shown me. I couldn’t imagine it at the time and it’s just absolutely beautiful.”

Ron Phipps of Phipps Realty explained how a Dryvit remodel can significantly increase the value of your home.

“When this house goes on the market, it will be worth more money not merely because it looks a lot better, but because it’s going to cost less to the next owner to continue to own. So frankly it’s a home run, both on the maintenance costs ongoing, but also the overall value of the property,” said Ron.

And as one final piece to her beautiful home makeover, Dryvit did something extra special.

“Sue had a birdhouse that was kind of falling apart, the roof was off, and, we decided whatever extra material we had we were going to help the birdhouse out and re-clad the birdhouse and made it to match the house. Same color same design,” said Al.

Since the home received Dryvit’s exterior home makeover, it now appraises for $70,000 more, which is double the investment. And, energy costs have dropped nearly 19 percent, the equivalent of patching a hole the size of a soccer ball.

Replacing Cladding is The Best Bang For Your Buck

Posted by Admin on September 9, 2009 3 comments

Remodeling Magazine surveys thousands of renovations and home sales each year to discover which renovation is currently giving the best value for your dollar (or “cost recoup”) using real world data, in it’s Cost vs. Value Report. Sitting again at the number one over-all position with a whopping 86.7% return on investment is Fiber-Cement Siding Replacement. Coming in second (for it’s category) at 80.4% is foam-backed vinyl siding.

This information is simultaneously beneficial and flawed for the purposes of EIFS / stucco. While the cementitious base-coat layer of EIFS is indeed “fiber-cement”, the actual product they are referring to is more than likely a solid-cement factory-made siding (such as Hardie Board), which has become popular due to it’s ability to withstand hurricane-force winds and debris. The problems James Hardie siding is currently dealing with (and that EIFS has long since corrected) is how to allow moisture to drain out that becomes trapped behind the siding (take a look at the hall of shame for an idea of what I’m talking about). I suspect that in the coming years the problems will begin to surface more frequently and it’s high value will drop some.

Then there’s the issue of geography. This information is based on data from the United States, not Canada. It is averaged over many different climates, not solely a cold-climate such as the one we have in Toronto. This means that energy efficiency renovations such as exterior insulation, or replacing a water heater, won’t have the same impact as they would have in Canada. On top of that, Toronto is by all rights the largest consumer of EIFS in North America – Canada and the U.S.A. While it’s not as popular in some of the states because of it’s history with lawsuits, that problem has been largely avoided here in Toronto using a different type of EIFS: Dual-Barrier.

Nevertheless, it shows that re-cladding your home is the sure-fire way of getting the most bang for your buck when it comes to home renovations. Factoring in the advantage of lowered heating bills in our climate due to the exterior insulation, and the superior aesthetic of EIFS to Hardiboard (and vinyl siding by a landslide), I feel confident in saying that EIFS renovations actually increase the value of a home beyond what a home owner pays for it. As much as 110-120%. Being that there is no data to back this up however, I’ll limit my claims to the next closest thing — the fiber-cement siding 86.7% ROI from Remodeling Magazine.

Update: The 2010 Cost vs Value Report can be found here

Exterior Insulation Government Rebates and Renovation Tax Credits

Posted by Admin on September 9, 2009 1 comments

The Canadian Government is currently running two concurrent programs to help home owners with home renovations. These programs provide monetary incentives to home owners who perform renovations on their home, stimulating the economy by providing work for skilled trades, and benefiting the home owners by helping them increase their home value.

Retrofit Rebate Program

The first program is the Retrofit Rebate Program, in which the home owner contacts one of the Auditors listed on the  Home Energy Audit Program website. The auditor performs an evaluation of where your home currently stands in terms of energy consumption and efficiency. This audit typically costs around $400, of which $150 is covered by the Government of Ontario. If you currently have a mortgage with Royal Bank of Canada (RBC), they have a program which covers the rest of the cost of the initial inspection, and unfortunately for the rest of you, they seem to be the only bank to do so. From the time of the inspection, home owners are given 18 months to complete any and all eligible energy efficiency renovations and have the auditor return to do the final inspection. Once the final inspection is complete, you are assessed for a rebate for upwards of $10,000 in the form of a cheque, split between the Government of Ontario and the Government of Canada, which tends to take 8-10 weeks to arrive. The genious behind this program is that these subsidized renovations actually DECREASE your expenses. This income gets spent instead on paying back the loan you took out (whether it was line-of-credit, or re-mortgaging), increasing your equity and investment in your largest asset — your home.

So why, with all the other renovations available, would you choose to re-clad your home with EIFS (exterior insulation finish system)? Simply put, it has the biggest pay back. Of all the renovations, exterior insulation (the “EI” in “EIFS”) provides the largest single rebate at $3,750. Furthermore, re-cladding your walls with EIFS has the largest potential to reduce your heating bills. See Saving Money on Heating/Cooling Bills. Additionally, EIFS helps improve air sealing — potentially adding another $480 to your rebate.

Home Renovation Tax Credit (HRTC)

The second program is the Home Renovation Tax Credit (HRTC), put on by the Canada Revenue Agency. Under this program, you are reimbursed for 15% of renovations between $1,000 and $10,000, for up to $1,350 [($10,000 ? $1,000) × 15%] on renovations done between January 27th, 2009 and February 1st, 2010. While the math may seem funny, it is nonetheless real money you get back. This money comes back to you in the form of a tax credit.

Simply keep your receipts/invoices for the renovations you had done (making sure that it is first eligible under the program), and present it to your accountant when you have your personal income taxes done.

Total Rebates and Credits

For the average $15,000 home EIFS renovation in Toronto, most home owners are looking at getting back $5,100 (plus possibly air sealing), putting the actual cost around $10,000. Factor in the increase in your home’s value and the money you save on heating/cooling bills and only a fool wouldn’t take advantage of this opportunity.