Recently, Joan from Denver, CO became concerned. Her neighbor told her that energy efficiency upgrades could increase value of Colorado homes. Joan was getting ready to sell and hadn’t considered this practice.
She came to us to get an online home appraisal and find out if green energy upgrades add value to property prices in Colorado.
Overall, real estate appraisers have noticed energy efficiency trends among home owners who invest money to make their homes greener. We have heard stories of sellers who saved hundreds of dollars a month with everything from solar panels to the installation of energy efficient windows.
But, how does this affect the a real estate appraisal in the long run, as Joan would like to know?
Home owners and property appraisers must look at hard numbers to determine if a green home sells for more money.
Home owners that made their house green have said that the money saved on energy bills would prevent them from ever buying a home that did not feature things like solar panels. They also said that if they were looking to buy a house and one was to come on the market with green energy upgrades, they would pay more upfront to buy a home that helps them save money on energy bills down the line.
This means that appraisers can look at utility bills to determine how a home uses energy. This may help in the home sale.
The result of a study of several homes indicated that energy upgrades can add 6-9 percent to the market value of a home!
Energy efficiency, because it reduces operating expenses, produces numbers appraisers can work with. Proof of performance, as evidenced by utility records, is the biggest consideration.
There are, of course, non-energy benefits too. For example, better indoor air quality and improved longevity of the home. The better control of heat, air and moisture in the home, the longer the life of a home!
Ultimately, because the green home market is still developing, appraisers, home owners like Joan and lenders should become aware of green trends so they can make the best of the market.Tags: appraisal, buy homes colorado, colorado home appraisal, colorado home buy, colorado home value, colorado property, denver colorado, home appraisal, home appraiser, property appraisal, real estate appraisal, real estate colorado, what is an appraisal
Categorised in: Valuating Green Energy Homes
This post was written by Joseph Castaneda