Get "greener", Raise Values?

[msdmckee]

I'm not much for granite countertops, but understand higher grade physical attributes in a home which bring higher values/appraisals...

My Question is about photovoltaic cells/panels.......solar power additions...things to offset power consumption costs obviously benefit the homeowners bottom line, but do they "enhance" the sales value of the property.

Given they are done right, are sound and work well of course......

Thank you for your considered input!

 

[Urbanz]

I think so, appraisal is based on the theory that we reflect the value of upgrades by determining what a typical buyer pays for the upgrade in the marketplace. A pool for example, may cost $25,000 but it will only bring in whatever the typical borrower in the marketplace is willing to pay for it. I think things like solar panels will bring good return because they are not only expensive upgrades, but there is a monetary payback in the form of lower/no electric bill.

 

[Blueprint]

Really depends on the market your house is located in. Are they common in your neighborhood? Photovoltaic cells/panels are pretty expensive. If they are common, they will definitely enhance the value of your property and you might see a decent return.

Most likely they are not that common and most likely you will not see a return even close to what they actually cost you as most markets across the country would not be willing to bear the costs of these types of improvements.

How long do you plan on living there and how much money do you plan on saving down the road using these solar panels??

 

[Restrain]

For things like solar sales, solar HWH, etc, look at your return on cost vs. reduced energy costs. Don't look at real estate market returns. Here's why.

During the run-up into the high-tech home, people spent tens of thousands of dollars hard-wiring their homes for the latest/greatest systems so the computers could control lights, ac, etc. Now, you can do it with your desktop computer and off-the-shelf switches that replace the typical light switch. For a small fraction of what it did cost, you now have an upgradable system that is superior to that which cost as much as $50,000 just a few years prior.

The same thing is going to happen with all these eco-friendly systems. Someone else is going to come out with better units, high efficiencies, lower costs. Just the way things work. So, don't look at ROI on the home, look at start-up and maintenance cost vs. the return on your actual utilities. If it makes sense, do it. If it doesn't, don't. It's that simple.

 

[Scott R Marshall]

In my market, I have typically found that "green" homes sell for somewhat higher than what is currently considered the standard. As I have not appraised a "green" home in quite some time, I do not know if the additional costs in construction or installation are offset by an increase in value, or whether there is a gain or loss, and even if I did that analysis, it would only apply to my specific market. Every market is different but one thing that I have noticed in general is that if it is financially profitable to do so, whether on a resale basis or just because people are tired of paying high utility bills, there will be a substantial increase in the number of homes with this feature in your market area over a PERIOD of time. If its a "new" fad, you may want to wait on making a decision until its a benefit proven within your market, as opposed to knee-jerk reactions by homeowners (Y2K and homes off the grid come to mind) or a really good neighborhood salesman.

 

[tonywilkey]

I received $0 credit in an appraisal for the "Green" features in my home plans. I have R52 composite ICF walls, R40 roof insulation, Efficient hurricane impact windows and a tankless water heater. My plans/project was compared to standard 2x4 construction with r13 walls and contractor grade windows. In appraiser speak my house would have been "overimproved" for the area. Don't count on extra value for better construction or added features. They are invisible to many appraisers.


Tony

 

[Restrain]

Just one other thought. If you are building new, the use of Insulated Concrete Form construction, insulated sandwich panels, and the like will be economically feasible. Retrofitting can be far more expensive vs the return on investment.