Before selling, are you looking to enhance your home’s value and curb appeal? Then, it’s worth considering renovations and remodels that make your home more sustainable and energy efficient. The return on investment in your home’s resale price often far outweighs the initial cost of the upgrades!
In fact, a recent survey by the National Association of REALTORS® shows buyers are more eco-conscious than ever and calls the current housing market a “green revolution.” In this blog post, the mortgage experts at the Mortgage Minds Group will define a sustainable home and discuss the most popular energy-efficient improvements that will boost your home’s sale price.
What Makes a Sustainable Home?
A sustainable home is operated and maintained in durable, energy-efficient, and eco-friendly ways. These green features rely more on renewable and human resources than fossil fuels, curbing one's carbon footprint and helping to combat climate change. Sustainable home design also cuts energy bills, leading to a higher ROI—an added perk that’s attractive to potential buyers.
What Is the Most Energy-Efficient Home Design?
Sustainable homes follow passive design principles, including features that take advantage of natural light, heat radiation, ventilation, and shade. Passive design is environmentally friendly and keeps your home comfortable by regulating indoor temperatures and improving air quality.
6 Energy-Efficient Improvements to a Home That Increases Its Value
What effect do sustainable home features have on resale value? According to ENERGY STAR, homes with an ENERGY STAR or Leadership in Energy and Environmental Design (LEED) certification increase resale prices by 2% to 8%. Additionally, a 2022 study by the Department of Energy found that homes sold for 0.5% more for every 1-point increase on the 10-point Home Energy Score™ (HES) scale.
If your home was originally worth $400,000, adding energy-efficient features could increase its value by anywhere from $8,000 to $2,000. Not only that, but you can qualify for an energy-efficient home improvement tax credit to help offset some of the costs of the upgrades.
Clearly, sustainable home design pays off! Let’s discuss the top six energy-efficient renovations and remodels that give you the most bang for your buck:
1. Energy-Efficient Heating Systems
Did you know upgrading your home’s HVAC system can boost its resale value by up to 7%? Plus, it means extra rebates and potential tax deductions for you as the homeowner. High-ROI sustainable heating systems include high-efficiency furnaces, geothermal (ground-source) heat pumps, air-source heat pumps, radiant floor heating, and hybrid heating systems.
2. Energy-Efficient Windows & Doors
New windows alone have a high ROI of up to 85%! Look for windows with a low-emissivity (low-E) coating, double or triple-glazing, and argon or krypton gas fills. Window and door frames with thermal breaks, well-insulated materials, and high-quality weatherstripping help prevent heat transfer through the frames. Energy-efficient doors often have insulated cores that help reduce energy loss.
3. Rooftop Solar Panels
A Zillow study revealed that homes with solar panels sold for about 4% more than those without them. In addition, the National Renewable Energy Laboratory reports that solar-powered homes sell 20% faster.
4. Water Conservation Systems
Water conservation systems may not be at the top of your list of sustainable home improvements, but they’re appealing to buyers. Consider upgrading your faucets, toilets, and showerheads to low-flow fixtures, recycling greywater, installing a tankless water heater, harvesting rainwater, and using water-efficient landscaping.
5. Sustainable Home-Building Materials
Sustainably sourced construction materials save energy and have a low environmental impact—qualities eco-conscious buyers value. For renovations and remodels, choose materials like bamboo, cork, cob, reclaimed wood, precast concrete, hempcrete, stone, recycled steel, glass, and plastics.
6. ENERGY STAR Appliances
A National Association of Home Builders survey indicated that about 81% of homebuyers put ENERGY STAR-rated appliances high on their most-wanted list of home features. Energy-efficient home appliances include high-efficiency clothes washers and dryers, dishwashers, furnaces, heat pumps, ductless heating and cooling systems, refrigerators, smart thermostats, and LED lighting.
Partner with Mortgage Minds to Explore Energy-Efficient Mortgages
Did you know there’s a special mortgage to finance eco-friendly home upgrades? That’s right—it’s called an energy-efficient mortgage! You use the loan to make your home more sustainable, increasing its value before you sell. Schedule a free consultation with our mortgage experts to learn if you qualify!