Do Energy Efficient Home Have A Higher Value?

how exactly does a more eco friendly home raise your property value?

Do Energy Efficient Home Have A Higher Value?

Homeowners often look for ways to raise their home value before putting it on the market to be sold. A common way to do this is by making energy efficiency upgrades. So how exactly does a more eco friendly home raise your property value?

  • Energy Efficient Homes Have Lower Energy Bills
  • Government Programs Allow For Property Tax Exemptions For Solar
  • Energy Efficient Homes Are Typically Newer
  • Energy Efficient Homes Have Lower Energy Bills

When a homeowner makes energy efficiency upgrades to their home is an attempt to make it more eco-friendly, their energy bills almost always go down. So how exactly does this happen. Energy efficient appliances and lighting are one of the first things homeowners will usually upgrade. The lights and appliance work by being able to perform the same task, whether this is lighting your bedroom or washing the dishes, while using far less energy than more primitive models of that same device. This means still getting the same output without having to input as much energy and thus receiving a lower energy bill every month. A similar thing occurs with solar installations. When a homeowner installs solar, they are now pulling less energy from the grid because they are able to provide some, if not all, of their energy for themselves. By pulling less energy from the grid, your local utility will charge you less each month. These lower energy bills can be highly attractive selling points to potential buyers of your home. If they don't have to spend as much money on utilities every month, they can keep more of their disposable income to spend on things that are more enjoyable. This added benefit of an energy efficient and eco friendly house can quickly put multiple parties into a bidding war that will drive up the cost of your home when it goes on the market.

Government Programs Allow For Property Tax Exemptions For Solar

Typically, as the value of your home goes up, your property taxes also go up. This can be an unintended consequence of making upgrades to your existing home or adding an addition to your home to make it bigger and more spacious. Many seeking to make their home more eco friendly or sustainable may wonder, do solar panels increase home value? The answer to this is yes and luckily there are many state programs that allow you to reap the benefits of solar without having to pay higher property taxes the next time your home value is assessed. This is because of a solar property tax exemption. Let's say your home is worth $200,000 and you decide to spend $10,000 on a home solar system. With most $10,000 home upgrades, your home property taxes would usually be assessed at the new value of $210,000. Solar is exempt from property tax assessments so the property taxes remain the same. This is a government incentive to encourage more homeowners to upgrade their home to be more eco friendly.

Energy Efficient Homes Are Typically Newer

While the concept of energy efficiency has been known about for decades, the idea to implement it into homes is a relatively new one. Homes that were built 50 years ago are typically built more for style and much less for energy efficiency. Homes being built today are typically built with both style and energy efficiency in mind. Newer homes will typically be more valuable than older homes. This usually has to do with the fact that new homeowners will not have to make upgrades themselves and other aspects of the home, such as the roof, will not need to be replaced for years to come.

Making a home more energy efficient and eco friendly absolutely increases its value. If you are considering selling your home in the near future, you should strongly consider taking a few easy steps to make it more energy efficient and thus more valuable.

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