Can geothermal heat boost your property value?
A significant portion of the decisions that homeowners make regarding the remodeling and upgrading of their houses take into account whether or not the change will affect the value of their property. This is an important aspect to evaluate when determining whether or not the improvement will provide enough of a return on investment. If you’re considering the benefits of geothermal energy, this is a factor that will no doubt come into play. The initial upfront cost of a geothermal heating and cooling system may be well worth it if the technology can have a positive impact on the property value.
Rising awareness
The fact is that previously, there was a considerable lack of consumer awareness about geothermal heating and cooling. When these technologies were still relatively new in the realm of residential green energy practices, many buyers may have overlooked their advantages when evaluating a home. Now, however, geothermal solutions have been gaining increasing attention for their ability to offer energy savings and lower utility bills. As more people recognize these potential rewards, they are beginning to seek out homes that offer sustainable systems such as geothermal heating.
In 2011, the Appraisal Institute approved a Residential Green and Energy Efficiency Addendum, which provided real estate appraisers with a specific method for documenting energy efficient upgrades. The result of this development was that realtors are now able to analyze the differences between the values of green homes and traditional properties better.
According to Geothermal Genius, The Appraisal Journal released an article with some promising findings about the effect that energy savings can have on a home’s value. After analyzing several years of home sales, the source found that for every $1 decrease in annual utility bills, a home’s value increased $20.
Endless rewards
One of the main reasons that geothermal systems have garnered increasing appeal is the 30 percent federal tax credit that is currently available for homeowners. It goes without saying, therefore, that prospective buyers will be attracted by the possible savings they could build up merely by owning a home that features geothermal heating. Beyond that, though, there are also other rebates, reduced utility rates and low interest loans available for geothermal system owners. Additionally, it’s worth noting that these solutions ensure low operating and maintenance costs. Unlike a conventional furnace, geothermal heat pumps don’t demand frequent, regular maintenance other than simple measures that can be easily done by the homeowner, thus vastly decreasing the costs associated with owning a home. So when it comes time to sell your home, there are a multitude of perks to incite buyers.
There’s also the simplicity aspect of geothermal systems to give your home added attraction. Because ground source pumps can capture excess heat and make hot water, these multi-purpose solutions are incredibly versatile. These solutions can even keep your swimming pool heated to an ideal temperature.
One thing is for sure: Geothermal heating and cooling systems are not likely to decrease your property value – as long as they are implemented properly. That’s why it’s crucial to hire a reputable contractor for high-quality installation so you can avoid any risks that could hinder your home’s value. It’s clear that buyers are beginning to value sustainability. So in today’s housing market, geothermal energy offers the opportunity to gain a considerable competitive advantage.
Tags: Residential Energy Efficiency, Smart home, Water Heating