LED Lighting / Electrical system luxuries - Good selling point?

Question

Gooday

I have 2 questions really, the first one is this: How much of a return can I expect after converting lighting to "all LED" and marketing it as such? And really, many other electrical system upgrades have been installed. I don't mean just the cheap stuff, all Lutrom Maestro. We have 17 can lights that have all been converted with the trims/LED bulb assemblies built together, so its not all just BR-type bulbs. In addition to the cost of the bulbs, I had to upgrade all our dimmers, and companion dimmers to make 3-ways work, (6) total dimmers. Also have fancy bathroom timers and astronomic timer for automated exterior lights that accounts for daylight savings. I'm not expecting a full return obviously, I'm just wondering if it's something buyers would see? If nothing else it saves a lot of money on the power bill.

Second question: Is this the right place to post this?

Happy hump day!

Loren Thomas · Answer

@jon

Thanks for the response. I'm still in the learning phase, I want to be a buy and hold type. I really like the phrase about only invest in what you know you will get a return on. I posted here because I assumed the eyes in the rehab section would be best. Should it have been in general questions?

Jon Holdman · Answer

You could try calling a few appraisers and ask if they would make any adjustment for that sort of thing.

Some folks will care, most won't.  If offered two houses that were identical except for these upgrades and a $1000 higher price on the upgraded house, I'd guess that 99% of buyers would pick the cheaper house.  As a rehabber (I assume you are) you should ONLY spend a dollar if you KNOW it will earn you back more than a dollar.  Spending money on something you like that you don't KNOW will increase the selling price is just wasting money.

Loren Thomas · Answer

@Jon Holdman

I'll take a look at some comps and see. Hadn't thought of that. I doubt many houses around me have similar electrical upgrades, certainly not marketed that way. I'll look closely at the comps pictures I guess. The way I see it it's a nice wow factor, albeit a pretty expensive one.

Loren Thomas · Answer

@Roy N.

I'm talking about personal residence, so when we sell the buyers will likely your average married couple with 2.3 (or whatever) kids.

Outside of the initial cost, LED is better in every way. A worthwhile upgrade for so many reasons, but I hadn't thought about student housing lighting. Just adds another line in the pro column.

Jon Holdman · Answer

Seems unlikely to produce any return at all.  Nice feature.  Might get a buyer quicker.  But an actual increase in price?  Seems unlikely.  Any comps that would support a price increase?

Roy N. · Answer

@Loren Thomas

Who is your buyer?  Dick & Jane, an investor, etc.

We have been putting LED lighting in our {student} rentals for the past three years. Motivation for this move is:

1) Longevity - the fixtures we are using are rated for an 22-25 year life;

2) Cost reduction - the bedroom fixture we use replaces 2 60w incandescent bulbs (120watts) and consumes  ~15watts

3) Theft reduction - Students never buy light bulbs ... at least not until they have gone through every bulb in the house ... they just pull bulbs from other fixtures to replace the where the "need" a light.