Renovating your home with more energy efficient high performing products may feel good and be the right thing to do, but does it add value to your property?
The short answer is yes. The return is mainly due to cost savings on energy bills, and/or appealing to a broader market of buyers which reduces marketing time as prospects don’t need to update older inefficient systems.
When considering home improvements whether the ownership plan is long or short term, your concern should be focused on the best upgrades that give you the highest return on your investment. Green alternatives are always a smart choice.
Turning your property into a more energy efficient GREEN house doesn’t mean you need to install solar panels or a windmill; in fact small changes can make a big difference. Changes such as replacing old light fixtures with LED lighting, replacing old windows and doors, sealing cracks and vents (ever think about that open dryer vent in winter months), adding insulation and rain barrel collectors are just a few minor changes that garner big returns. Larger ticket items may include photovoltaic solar panels, high performance “energy star” rated kitchen appliances, high energy HVAC and smart hot water management system, and recycled and sustainable building materials.
Quantifying the return on energy efficient remodeling is challenging for professionals; however more focus is finally being spent in this area. Proving that any home remodeling project increases value via matched paired analysis (a very fancy appraisal term meaning comparing line item adjustments to sold properties) is extremely difficult and highly subjective. Real life proof is comparing old energy bills to current bills after the renovations.
Keep in mind all changes for energy efficiency are good and don’t need to be done all at once. The beauty is you make the changes as your budget allows, and the savings can be used to fund the next project.