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Energy Efficiency

4 Ways Energy Efficiency Increases Your Home Value

Your home is one of your biggest investments. Here are four ways that you can increase its value with energy efficiency.

Your home is more than just a cozy haven from the outside world. It’s also one of your biggest investments. Even if you’re not looking to sell anytime soon, increasing your home’s market value should always be top of mind. Cosmetic changes like a new coat of paint or an upgraded kitchen can certainly help, but their boost to home value is dependent on wildly varying factors such as buyers’ tastes or design trends that become dated before you know it.

 

Making your home energy efficient, on the other hand, is a low-risk, high-reward endeavor. Not only does it put more cash in your pocket today, energy efficiency dramatically improves the market value of your home for the long-term. Here’s how.

 

Energy efficiency saves money.

The U.S. Department of Energy reports that the average American family spends $2,200 annually on utility bills. But they also note that with the help of energy efficient upgrades, those costs shrink by close to 30%. This is the kind of big savings that attracts today’s home buyers. Case in point: In a survey titled “What Home Buyers Really Want,” the National Association of Home Builders asked 4,000 house hunters to prioritize their must-haves. In nearly all categories, buyers favored green features over non-green features, citing the potential dollar savings that energy efficient homes offer.

 

  • Suggested energy efficient improvement: Update insulation levels and seal ventilation passageways. These actions can save up to 20% of heating and cooling costs. If you’re not sure how to determine where in your home energy deficiencies occur, start by getting a certified home energy audit.

 

Energy efficiency prepares for the future.

As the effects of climate change grow more severe each year — intense wildfire seasons, longer droughts, strained power grids — energy costs will rise, too. And with it, the benefits of installing energy efficient measures. No matter how small (converting to LED light bulbs) or large (replacing windows), the steps you take today offer major perks for tomorrow. This matters a lot for your home value. Why? Because when buyers purchase their forever home, it’s just that — forever. It’s a home that they hope will meet their needs for the long haul.

 

  • Suggested energy efficient improvement: Employ solar solutions. Solar technology helps homeowners produce their own energy, which locks in electricity costs for years to come.  

 

Energy efficiency appeals to eco-conscious buyers.

It goes without saying that home buyers want the most value for the lowest cost. But there’s a new, and increasingly growing, crop of would-be homeowners whose buying power has major market impact: those that deeply care about their environmental footprint. These buyers actively seek energy efficient homes where the sellers have made sound green upgrades to increase the house’s sustainability.     

 

  • Suggested energy efficient improvement: Make your home smart. A truly connected house — think automated lighting, smart thermostats, energy monitors — brings a whole-home approach to energy efficiency. 

 

Energy efficiency offers quantifiable value.

Whether you’re refinancing or selling, proper documentation of improvements you’ve made to your home is essential. Processes like Pearl Certification are geared toward raising a home’s value and maximizing its price with regard to energy efficient measures. How it works: After improvements are completed by Pearl’s verified contractors (Pearl accepts only the top 5% of all contractors in the U.S.), you’ll receive a Pearl Certification Report and Appraisal Addendum. The report details specific installations, product information, photos, and comparison data.

 

  • Suggested energy efficient improvement: Partner with a Pearl-approved contractor. These companies know how to properly document your home’s energy efficient, high-performing features in order to translate them directly into home value.

 

It’s Time To Increase Your Home Value

Do you want to see how your home's energy efficiency compares to houses around you? Find out your Home Energy Score today and find out what you can do to improve it.