A house is often the biggest asset a person will purchase throughout their lifetime. As a result, homeowners are generally always interested in increasing their property value. Given how important environmental wellness is among the aging millennial generation, the growing trend of "going green" is helping homeowners do just that. Buyers all around the country are becoming more willing to pay more for a home equipped with green technology. Homeowners looking to take advantage of this trending opportunity should consider implementing the following green technology into their homes:
1. Programmable Thermostat
Programmable thermostats are not new by any means, but they have been significantly improved and updated in the past decade. The programmable thermostats of the past required homeowners to establish a schedule for the temperature to increase and decrease. Many homeowners would often fail to make the adjustments as needed, making the thermostat ineffective. However, there is now a programmable thermostat on the market that learns your behavior and sets the heating and cooling schedule accordingly.
It is estimated that you make your money back on purchasing a programmable thermostat within two years of installing it. However, if you are selling your house, it will provide instant value and savings to the buyer. On average, these thermostats can save homeowners $150 a year on their heating and cooling expenses.
2. Tankless Water Heaters
Running out of hot water in the middle of a shower is a problem that every homeowner hates and wants to avoid. Thanks to green technology, this is no longer an issue. Tankless water heaters actually heat the water in a home on demand. Therefore, every time you want hot water, it will be there. It also means that you don't have to pay the extra money to keep gallons of heated water stored in a traditional hot water tank.
The cost of purchasing and installing a tankless water heater can be expensive, ranging from $2,000 to over $3,500. However, this helps make it a great feature to mention when selling your home. Zillow conducted several studies that found homes with tankless water heaters sold for more money and faster than expected. The tankless heaters will also help you save roughly $80 a year on your electrical bill.
3. Solar Panels
Solar panels are items that many homeowners wish they had on their homes, but have never pursued. That, however, could be changing. The National Renewable Energy Laboratory found for "each additional $1 in energy bill savings (from your solar installation) adds $20 to your home's total value.” Another study found that for every kilowatt (kW) of solar power that is installed it raises the property value by over $5,900.
Of Course homeowners are excited about the money solar panels will save them on their monthly bills, as well as increasing their home’s property value, but it is also good for the planet! While the expense of installing solar panels is not cheap, homeowners usually see a 200% return on investment (ROI) – making them well worth the investment.
Why a Green Home is a Great Investment
The real estate market can be a great place to spend your investment dollars as it traditionally provides a good return on investment (ROI). Green homes, however, are doing even better. If you are interested in invest in real estate as a second home, a rental, or even a fix and flip, due to the interest of buyers and renters alike, a green home currently is the way to go.
Purchasing a green property to use as a rental can help diversify your investment portfolio, while providing you with additional income each month. The value of the green home will allow you to increase your monthly rent and not charge the renters for utilities – which in return will make your listing appeal to more renters. Investing in a green home is well worth the funds, whether you are using your current investment funds, or borrowing with a hard money loan.
Green technology has come a long way and it is continuing to make progress. Adding this technology into your home will not only help you reduce your monthly bills, it will help you increase your property value. Plus, on top of those two great benefits, and most importantly, it is good for the planet, making it a win-win any way you look at it.