If I installed energy efficient features to my house, will my house be worth more than before, how much more?

Question

If I installed energy efficient features in my house such as, Energy Star appliances, EcoQuest products, skylights, larger windows, and a solar power system on my roof; how much would these features contribute to the equity on my home?

Answer 1

Any upgrades you make to your home ideally make it worth more, but honestly this all depends on the housing market itself, what local properties are going for in your area, and what your property taxes look like. Your house will likely be more appealing to home buyers looking for energy conscious and cost-efficient properties, but if the housing market is dire in general than you obviously will not be getting much for your property regardless. It's hard to say to what amount your house will be worth more so much as it just makes your home more desirable and more marketable to potential buyers (and with any luck if you get more than one or two interested parties, you'll have bidding occur and reap the rewards.) That's all you can really do.

I heard some recent advice that I'll share: Keep up with, but don't surpass, the Jones. If you make too many upgrades to your home to the point that it prices it that far above what properties in your neighborhood are going for, they can be wasted features. Someone might be willing to pay a bit more for a house with amenities and features, but not so far above local competition.

That said, you may be able to claim all those upgrades as tax deductions this year, and potential home buyers might be able to make some very small deductions later, so that's to be considered to. Though I would check next year's tax codes as that's never a definite.

Answer 2

It will depend on your location and how much such items can actually contribute to lowering utility costs on your home. If you live anywhere other than the sunbelt, chances are that the equity improvement would be zero.

When an appraiser comes to evaluate your house, he will not take note whether or not there are larger windows, energy efficient appliances and the like. He will only compare your house to 'comparable houses', and generally such energy saving items are not specifically denoted.

Answer 3

Not much at all. The value of a home is based on location, location, location. And of course, LOCATION. It may make your home more desireable to a purchaser, compared to the same home down the street, but it will NOT raise the value of your home much. Typically renovations such as that, your return is about 10 cents to the dollar. Example you spend 10 grand in these upgrades, you might get 1 grand back. It may however reduce your living expenses in the meantime.
Example: How long I planned to live there. 5 years
Savings: $30.00 a month for 60 months $1,800.00
Cost: 10 grand for upgrades, saved 1800 bucks, raised the value of the home a grand..... In the end, cost you $7,200.00.
Good Luck

Answer 4

Its hard to say. If they will save you money and make you feel better about your contribution to the reduction in global warming, go for it. When I bought a house late last year, I looked for a modern thermostat with time of day settings, good thick windows, insulation in the attic, nice light in the rooms, and new appliances.

Different people value different features in a house differently.

I saw this house where there was a note: "The seller is willing to buy a washer and dryer and install it here." That meant a lot to me because I didn't have those appliances. To someone else, it might be of no value.

Answer 5

of course they will provide some equity. you can call an appraiser and ask general questions like that, a good one will give you some answers. also, not to mention the tax deductions.