Geothermal heating

[Damon Pedersen]

We have quite a bit of them here in Iowa and South Dakota. I agree with Richard for what I have seen or been able to extract here for added value, however there are very few sales to support that. And, as usual, the sales that are available are in rural areas. I would estimate about 50% of the homes being constructed in 2006-2007 have a geothermal heating and cooling system in the rural areas I appraise in, which shows that the market is switching to this type of system. Some also run the in-floor basement or garage floor heat off of the system.

 

[Oregon Doug]

We have a number of 'em scattered around here (my neighbor has one). They are costly to install but econimical to operate. Our market dosen't seem to notice when it comes to existing home resale but the cost is factored in during new construction.

Oregon Doug

 

[Lawrence R.]

We have some down here, but not for heating, for the cooling benefits. They are build exactly the same, but when it is 102 outside, it is a lovely 68 15 feet down. Makes a very efficient cooing system.

They aren't THAT much more expensive, depending on what kind you get. Down here, AC units have to be so big just to keep up, the cost difference is small.

Even so, many people don't have them because they don't know much about them.

Most buyers say oh, cool, but don't seem to be willing to pay more for them. I don't adjust at all on a regular sized house and very small adjustment if the home is large, because the savings does influence the marketability of the larger homes.

I saw a CG adjust one 50K because he had no idea what it was. I wrote him a letter telling him to stop doing residential appraisal until he got comepetent to do so.

 

[Tom Barclay]

Any appraisers in here from Klammoth Falls Oregon? I have heard all the homes in the entire town are heated from natural geothermal wells.

Mike,
That isn't quite true. There is a municipal geothermal system heating public buildings in Klamath Falls. That said, they have had nothing but trouble with the system since it went in in the 1980's. Broken pipes, reduced flows, etc. Seems that the system only operates at around 20% of capacity, and they have struggled to get folks to connect to it. I really don't know if there are private homes connected though I am sure they would love to have them. It would spread out the maintenance and operating costs.

 

[jdbiggers]

A company called Rammed Earth, Inc. did a study on it. I just checked, and it is no longer on their web site. Hopefully someone here might have copied their study verbatim to include in a report. The bottom line was that the system was more valuable as a tax credit than an actual energy savings, and conventional backup systems were highly recommended. In addition, if the copper-coiling method was chosen (where they actually coil copper tubing inside the slab that carries the heat further), it was recommended that a flooring system that can handle stress cracks be installed over the slab such as carpet or floating floor wood system rather than tile. In their best case scenario with varying climates, it parred with forced electric over a period of 9 years in terms of overall costs for a basic system, while the water assisted systems fared much worse (there are MANY types of "geo-thermal" heating AND cooling.

I had to go over all of this in 1999 on an assignment where I had to evaluate different "green" construction models for a simple rammed-earth home becaus ethe lender was a pinhead and thought if it wasn't made of block or wood it was worthless.

Personally, though I think all a market buyer wants to know is "will this heat my house or do I have to buy some system?" If it heats the house they usually could care less what the heat source is unless they are a hippy.

Myself, give me natural gas and an efficient blower: heck, I'll even take propane. Never been impressed when I walked into such homes in the winter, and this is ARIZONA: 45 degress is "freezing" here!

JD

 

[Doug Wegener]

Klamath

Any appraisers in here from Klammoth Falls Oregon? I have heard all the homes in the entire town are heated from natural geothermal wells.

I used to appraise in Klamath Falls. Its not true the entire town is heated with geothermal wells.

However, there is a neighborhood called "Hot Springs" which has quite a few, maybe 30-40% of the homes.

That type of heating is considered desireable by buyers due to the cold winters in Klamath Falls. The heating is free (less maintenance costs) which is quite a plus. Its been a few years since I was there but if I remember correctly $10,000 was a typical adjustment, more or less.

 

[Farm Gal]

Homes with Geo-thermal tend to have other upgrades... no specifically identifiable value difference readily identifiable as geo- at least so-far in MY market, but more homes are coming on-line with this type of system all the time.

Typical in this area is a heatpump/geo-thermal combo that both heats and cools.

Agreed that the Rural Co-op rebates and tax incentives mean more than cost savings in short term analysis of 'owner benefit'

There used to be a form (can't even recall what it was called), that let you calc the cost savings of energy efficiencies to the owner. Used it through the early 90's.. Sometimes meant the LO could get someone in a home because their cost of living was measurably less than in a standard stick home!

 

[Mike Boyd]

Mike,
That isn't quite true. There is a municipal geothermal system heating public buildings in Klamath Falls. That said, they have had nothing but trouble with the system since it went in in the 1980's. Broken pipes, reduced flows, etc. Seems that the system only operates at around 20% of capacity, and they have struggled to get folks to connect to it. I really don't know if there are private homes connected though I am sure they would love to have them. It would spread out the maintenance and operating costs.

You would know better than I. It was well over 40 years ago when I heard that. Maybe the town was smaller then. LOL. However, that was in the early 1960s, not the 80s.

 

[Tom Barclay]

You would know better than I. It was well over 40 years ago when I heard that. Maybe the town was smaller then. LOL. However, that was in the early 1960s, not the 80s.

Mike,
I also would have to defer to Doug W., as he has actually worked there. I was only refering to what I have heard through the media, it's been over ten years since I have been through there. Funny you should remember something from the 60's; I can't remember a thing from that whole decade.

 

[Mike Boyd]

Mike,
I also would have to defer to Doug W., as he has actually worked there. I was only refering to what I have heard through the media, it's been over ten years since I have been through there. Funny you should remember something from the 60's; I can't remember a thing from that whole decade.

I know a number of people, mostly from San Francisco, who don't remember much of that decade. LOL

I worked in Oregon about 6 months back in the 60s building a power line through the Cascades. Had I elected to stay there, I might have accepted a transfer to Klammath Falls. That is when I learned about the Geothermal heating.