According to U.S. News and World Report, if a home seller can demonstrate reduced energy costs of $1,000 per year for their home, the average homebuyer will pay around $7,095 more for it — a 14 percent rate of return.
Make it more energy efficient.
Like many homeowners, you might think that making as many improvements as possible will increase your property’s value when it’s time to sell your New Orleans house. But not all home upgrades are created equal.
Energy efficient houses typically not only sell well, but also for more money. According to U.S. News and World Report, if a home seller can demonstrate reduced energy costs of $1,000 per year for their home, the average homebuyer will pay around $7,095 more for it — a 14 percent rate of return.
Although newly constructed homes tend to be more energy efficient than older ones, homeowners are increasingly remodeling their homes to improve energy efficiency. As the number of energy efficient homes continues to rise, homebuyers are beginning to choose these updated homes over traditional ones because of the potential long-term savings. Here are the repairs and upgrades that are attracting today’s buyer:
Attic Insulation
In the winter, insulation keeps the heat from leaking out through the walls and roof of a home, and in the summer it keeps the heat from seeping in, an important consideration for homebuyers as heating and cooling costs continue to rise. Because heat rises, you lose more heat during the wintertime through the roof than the walls, and to make up for this, you’ll need more insulation in your attic area. The extra insulation there will also cover summer heat gain that is highest in the attic, where daytime temperatures can reach 150 degrees Fahrenheit. According to a recent survey, homeowners can recoup as much as 166 percent of the costs of attic insulation.
Energy Star-Rated Appliances
If any of your appliances are more than 25 years old, it’s likely time for an upgrade. Energy Star, the U.S. standard for rating products based on energy efficiency, is a major upgrade that homebuyers look for in a home. According to Energy Star, household appliances account for almost 11 percent of the energy usage in the average home, and one study found that 94 percent of all homebuyers are looking for Energy Star-rated appliances, including dishwashers, refrigerators, and washing machines.
Efficient HVAC Systems
Although it is one of the more expensive energy upgrades you give your home, replacing your HVAC system with a new, more efficient one has the most potential return on investment. Even if your furnace has been rated for energy efficiency, the standards have changed in the last 20 years. As HVAC systems age, they become less efficient, so an update could still be in order.
Solar Energy
Solar energy can help significantly lower your energy bill and, in turn, increase the value of your home. Although the initial setup cost can be relatively high, you could be eligible for federal, state, and local tax credits and rebates if you invest in a photovoltaic system. If you can’t afford a whole new system, smaller improvements like smart thermostats, LED lighting, and programmable timers that can switch off lights when nobody is in the room will appeal to homebuyers focused on saving energy.
Batteries as Backup Generators
Adding battery storage to your solar panel system can help you get the most out of your solar investment and increase its efficiency. This smart addition allows you to save excess solar energy as a backup in the event of a power outage, fully preparing you for hurricane season or any other cause of an electricity failure. The cost for these storage options have been falling rapidly, so don’t overlook the added value of optimizing your use of solar.
Contact an Experienced New Orleans Realtor
For suggestions on how to make your home as energy efficient and appealing to buyers as possible, check out our suggestions for thinking like a buyer and contact a Satsuma Realtor at (504) 483-8884.