This month, there are two things on our mind: the heat, and this hot real estate market. We are here to help you weather both!
Right now, saving money on energy is all the rage. But we have seen clients sink tons of money into energy-efficient upgrades that don't necessarily pay off in resale value.
That might not matter to you if you are planning on staying in your house for a while. But even it there is a possibility you might sell your home within the next couple of years, it is worth thinking about the numbers.
Check out our list below for the best and worst energy-efficiency upgrades in terms of resale value.
Best energy-efficiency upgrades for resale value:
We have sold hundreds of homes in the valley, and based on our experience, these upgrades pay off both in energy savings and increased resale value.
- landscaping with shade trees
- upgraded fixtures with fans in all rooms
- energy-efficient appliances
Worst energy-efficiency upgrades for resale value:
Of course, none of these upgrades are bad for resale value. In fact, if you did all of these things, it should improve the market value of your home AND save you money on your energy bill. However, we don't recommend these costly upgrades as much because you probably wouldn't see the greatest return on your investment in terms of resale value, and the energy savings might not even be worth it if you are selling your house anytime soon.
- Installing a more energy-efficient AC unit
- Upgraded insulation
- Dual-paned windows/shade screens
This is especially an important consideration in today's seller's market. We've recently helped several clients who weren't planning on selling, but changed their minds after seeing what their homes were worth in today's market. Home prices have climbed almost 8 percent since this time last year (price per square foot).*
You should check out how much your home is worth by visiting this link here. The number might surprise you.
Along with these recent price increases, however, we are seeing demand drop off ever so slightly. This is a good thing, as it's a sign of a healthy market, rather than a market bubble.
But with prices still on the rise, potential buyers might want to get serious about making the move soon. Median home prices have increased 6.5 percent in just two months (from $230,000 in mid April to $245,000), and it doesn't look like they have reached their peak yet.
We would be more than happy to help out in any of these scenarios, even if it's just for more information about how you can enjoy home now, while strengthening your resale value for a decision you might make down the road.
*Research from Mike Orr