Boost Property Values: Eco-Friendly Edition
If you’re looking to get a good price on the real estate market, you need to know what your buyers want. Most younger home buyers are interested in a property that will provide them with maximum comfort, but not at the expense of the environment. So, to attract the right crowd, there are some eco-friendly upgrades you need to invest in.
These green investments will boost the value of the property, increase interest and put you on the map of the real estate world. However, not all eco-friendly upgrades bring good ROI. Here’s where the money lies:
Many house flippers and independent sellers overlook insulation when prepping their property for sale, but this can be one of the fastest, easiest and most cost-effective ways to reduce energy waste and green up the house.
Adding insulation to the property’s envelope, but also to the attic, crawl space and basement can keep the property cooler in the hot months and warmer in the cold months allowing you to keep your cooling and heating at a minimum. According to reports, insulating just one part of the house (attic or basement) can add almost $1,500 to your property value.
This is probably one of the most expensive eco-friendly upgrades, but it’s worth every cent due to its high return on investment. Almost every house in the world, no matter if you live in hot Australia, USA or cold Canada, requires a HVAC system that usually drives the energy bill pretty high (your AC and your furnace usually account for just under %50 of your bill).
If you decide to replace your heating and cooling system, especially if they are over 12 years old, you can expect a reduction in your electricity bill for an estimated %30, which is very attractive to buyers. When buying a new HVAC system, make sure to keep an eye open for Energy Star labels and SEER (seasonal energy efficiency ratio)—you want the minimum value of 15. The higher the SEER ratio, the more energy and money the future homeowners will save.
Another big, yet cost-effective upgrade is investing in solar panels. Actually, this technology was never as effective, affordable and accessible as it is today, so your expenses might not even be that big. With solar panels, you will provide future house owners with an opportunity to harvest FREE and CLEAN energy and use it in the household. This addition to your property will lower their energy bill and make them more independent from the grid.
For places like Africa and Australia, these solar panels can be very effective due to plenty of sun and great offers from the state. With certain credit cards, you can even get interest free solar panels and save money right from the start! Plus, you might be eligible for federal tax credits and rebates as well.
Probably the most cost-effective upgrade you can perform on your property is replacing traditional light bulbs with modern LEDs. Due to their design, LEDs are able to emit light and use energy more efficiently compared to incandescent lights and compact fluorescent lamps.
A single LED bulb can save between $10 and $20 per year. Plus, they just look more modern and aesthetically pleasing, which will also attract buyers.
New roofs also bring a great ROI, but they also require a lot of investment and work. But, if your old roof is ready for an upgrade, consider investing in a so-called cool roof. These roofs are usually white (or some other bright color with good reflective properties) and the material is designed to absorb minimal heat while reflecting the sun’s heating rays away from the house.
According to research, cool roofs remain 50 degrees cooler than other materials, and all that in direct sun. Not willing to invest in a new roof? Make your existing roof cool with a coat of specialized thick paint. If you live in an area with warm all-year-round temperatures like Australia, this is a great investment buyers will appreciate.
Recently-built properties already have modern energy-efficient appliances, but older homes often have one or two relics from the olden times that drain the energy. Usually, new Energy Star models of all appliances waste between 15% and 50% less energy than old models. Since most homes get a kitchen upgrade before they end up on the market, make sure to put ‘new appliances’ at the top of your renovation list.
Provide Water Saving Benefits
For a truly green property listing, you need to pay attention to water usage. With a few simple upgrades (low-flow fixtures, dual-flush toilets, rainwater harvesting systems, etc.) you can provide future homeowners with great water-saving abilities.
There are really no downsides when upgrading your house into a green property. You will get to boost the property’s value, attract the right buyers, lower electricity costs and waste and keep the planet cleaner. Going green is the best choice a home flipper or an independent home seller can make!