Making your home energy efficient can make you feel good, save money and raise your selling price.
A study on the value of homes that carry green or eco-friendly labelling brought sellers 9% higher selling prices than comparable homes without the sticker. The research came from an analysis of 1.6 million homes in California during the 6 year period 2007 to 2012.
This study was conducted by economists at the University of California and the University of California. In some areas of California, the additional value of a green sticker could have translated to more than $50,000.
In the US, Energy Star, LEED for Homes, and GreenPoint Rated have been established to show consumers that the home features efficient water use, sustainable non-toxic building materials, and other features that reduce impact on the environment.
Homes Garnered 9% in Price, and Perhaps More in Attention
Why were buyers willing to pay 9% more for green-friendly homes? Not all regions were similarly impressed with the Green label. But in those regions that were, researchers surmised that those in hotter climates were impressed with the lower cost of keeping the home cool. And the other major factor was the environmental consciousness of the people in that region.
That draws it down to saving money on air conditioning and achieving more social status by adopting eco-friendly solutions. There may be other elements, however the researchers stated they included all buyer motivations.
There may be other Factors at Play Here
A couple of aspects they might have looked at closer is the more modern appearance of eco-friendly solutions since many home building solutions are very new and modern, including vinyl windows and doors. New energy efficient doors come in some impressive designs too. Buyers may also be sensitive to the future energy-efficiency of the home. And one last factor is the collective value of all the features of an energy efficient home.
You can learn more about the research at: Building Green
A similar labelling program has been used in Europe and studies proved to show the same results. In some areas, the placement of the label is mandatory. Other studies showed green rated homes selling 22% faster.
Based on the data, it makes sense to upgrade your home to achieve the Energy Star rating. National Resources Canada stats that; An ENERGY STAR® qualified new home is on average 20% more energy-efficient than a home built to code. And a home built with an R-2000 home include:
- High insulation levels in walls, ceilings and basements
- High-efficiency windows and doors
- High-efficiency heating
- Whole-house mechanical ventilation
- Testing to ensure minimal air leakage
- Water-conserving fixtures
The choice to buy energy efficient home improvements might be a no brainer. If you’re buying windows, you may want to ensure you have new doors and that both are sealed properly against walls to ensure better air containment. Of course, the energy savings, appearance, and comfort of new windows add value to you. If you’re selling your home, that 9% will be a nice bonus.