How do Energy-Efficient Upgrades Increase Your Home’s Value?
Renovating your home can be incredibly costly! While many homeowners will see a return on their investment when they decide to sell, some may not.
Remodeling Magazine recently released the Cost vs. Value Report which compares the average cost of remodeling projects with the value those projects retain at resale in one hundred different U.S. markets. For the first time, the report included an energy efficiency measure which was fiberglass attic insulation. The results helped to show the value of energy efficiency upgrades in home.
Home Energy Pros discussed the Cost vs. Value Report in depth, saying:
Most projects covered in the report have a higher cost than value, with homeowners only recouping an average of 64 cents on the dollar for the 30 remodeling projects examined. The highest return project in the report this year—and the only one with a greater-than-100-percent cost vs. value ratio when averaged out nationally—was an attic insulation project. The researchers found a 166 percent return, based on an estimated average cost of $1,268 and an increase in real estate value just 12 months later of $1,482.
While there are numerous renovations homeowner can do to improve the energy savings of their home, it seems that certain renovations will help increase the value during resale more than others. A rigorous study of 66,000 San Antonio, Texas homes found that a green designation, like a label or certification, increases selling price by almost 1 percent and that energy efficient features raise selling price by about 6 percent.
9 Energy Saving Home Improvement Ideas
There are a variety of energy saving ideas that one could build into the construction of their new home or renovate into their existing home. First and foremost, you should ask yourself how important this particular project is to you. Some people will want to upgrade regardless if they would get their money back in a resale. Others want to make certain they will get all money back during a resale – or better yet, make money on the venture.
U.S News and World Report lists several energy efficient home improvements you can add to your home in order to increase its value:
- Seal all cracks and leaks. This is important due to the fact that when you run your heat or air conditioning, it leaks out of the house through these cracks. Sealing all of these leaks can save you money and keep you much more comfortable in your home.
- Insulate upstairs. Did you know that half of the homes in the United States are under insulated? By adding upstairs insulation you can help keep your home comfortable through all seasons of the year.
- Seal the ducts. Air ducts carry hot and cold air to particular areas of the home. When they are not sealed properly, the air can leak out and not end up where it is supposed to be, thus causing a certain room to be extra hot or cold.
- Install a programmable thermostat. Smart thermostats can save up to 10 percent on your heating and cooling bills, so they literally pay for themselves in a few months.
- Replace old windows with energy-efficient ones. This is a huge cost, but it has been proven to be well worth the money in resealing your home. Replacing old leaky windows with new energy-efficient ones makes your home greener, and also makes for good resale!
- Install energy efficient doors. Avoid hollow metal doors, but rather choose good, solid wooden doors help save on energy bills.
- Add storm windows. Some people prefer this over the costly replacement of all windows. This can add value to your home, but not as much as actually replacing the windows.
- Install high efficiency water heaters. Water heating can add 15-25 percent to your energy bill. By installing an efficient water heater, you can save a bundle.
- Replace your old heating and air system with a new energy saving unit. Most people buying an older home are interested in the quality and how old the system is. They know replacing an AC system is a huge cost that they do not want to pay out-of-pocket after they buy a home. Advertising in your sale that you have a new central heating and air system can raise the value of your home tremendously.
Gagne Heating and Air Conditioning A/C installers service all of Atlanta and we’ve been keeping customers happy for over 20 years.
If you are considering new construction or energy savings renovations, contact a friendly technicians at Gagne to learn more about the value of new heating and air systems, as well as other upgrades.
For additional reading, check out: Replace or Repair? Five Factors That Will Help You Make the Big Decision.