How much $$ for Energy Efficiency? (solar panels, gas, furnace, stove)
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My house was built in 1920. Since we moved in, we've had the windows custom made and replaced by American Design, replaced the oil furnace, replaced washer and gas dryer, cook stove, installed a pellet stove, and had ceiling fans in every room. Total cost, about $20,000. It has been worth every penny, and we're probably saving about $4,000 on electric and fuel annually, and enjoying the more modern conviences every day.
I can't read your link without getting punted, but as a budget conscience buyer talking to a builder (presume you own your company) I can tell you this:
Like yourself, trying to keep your business stable by locking in costs where you can to stay on budget, homeowners with mortgage payments (stretched hard in some cases) have the same objectives.
More than a high end radio in a car or an HGTV staging moment in the case of a house, buyers are looking for value. Although energy efficiency costs more initially, when you can sell it on the basis of life of ownership costs it makes it an investment vs an frivilous extra (patios, bay windows, garden tubs, marble thresholds- you know).
Installing during new construction, I get the impression I'm saving while the walls are open. My guess is it's more economical than renovating/ retrofit down the road if you're cutting into the useful shelflife of what's already there. The downside to installing during new construction is that you've just put a money saving device into a mortgage package, which will acrue interest. Some would consider this an upside because they don't have the cash upfront. Without 20% down you wind up paying for PMI- money you never get back.
I'd buy things with quicker recoup costs. Having a comparison chart from a known authority to compare operating costs is the best selling tool around. I think the things that bite people in the butt are the things costing them huge sums after they've spent their last dime, resulting in buyers remorse. Letting them know in advance that a choice they're making will result in an electric bill double or triple what their neighbors pay for the life of the house is an eye opener.
Builders don't like surprises, and neither do homeowners. The investments that make most sense are the ones that increase the inherent value and appreciation. Resale mode, being able to show a new prospective buyer a streamlined electric bill during a peak season would be my selling tool down the road.
I'm willing to pay enough that I'll be getting solar shingles on the outbuilding on my next home I purchase. Apparently it's efficient enough to fully power a large home and outbuildings at least ten months of the year in a fairly sunny region.
I have wondered that myself. The houses we build are pretty energy-efficient but we don't get too many questions about it. Perhaps people just recognize it and don't feel the need to ask. However, over the years I have bought a lot of fixer-uppers and made them look adorable but didn't do anything to improve the windows, furnace, etc., yet they would sell in the first week just because they looked so good.
I guess the answer is, some people would pay a lot more for energy efficiency, and some people don't care as long as it looks good.
Depends on two things... how informed the buyer is to the benefit and cost recovery time line of efficiency and if the buyer plans to occupy long term as opposed to short term...
A LOT!
Beyond just the plain guilt of wasteful living I think it makes financial sense to invest in making the home more energy efficient IF you plan on being in it a while. I don't think it does a huge amount for resale value. A little bit perhaps but I don't think its possible to recoup the costs of making an older home energy efficient.
That being said we are buying an older home (older to us - 1984) and plan to gradually make it as energy efficient as possible. I'm talking about new HVAC systems, improved insulation in the attic, perhaps a radiant barrier (haven't researched that enough yet), replace some of the windows and oh-I-wish-we-could-afford-this-now Solar Panels!!
A LOT!
Beyond just the plain guilt of wasteful living I think it makes financial sense to invest in making the home more energy efficient IF you plan on being in it a while. I don't think it does a huge amount for resale value. A little bit perhaps but I don't think its possible to recoup the costs of making an older home energy efficient.
That being said we are buying an older home (older to us - 1984) and plan to gradually make it as energy efficient as possible. I'm talking about new HVAC systems, improved insulation in the attic, perhaps a radiant barrier (haven't researched that enough yet), replace some of the windows and oh-I-wish-we-could-afford-this-now Solar Panels!!
Do some research on solar hot water systems, which cost less than generating electric applications of photo voltaics.
I'm not sure how resale does when it has selling points of energy efficiency, maybe a realtor is the one to ask. It's a selling feature thats under rated I think, won't give you the dramatic investment recoup that kitchens/baths get.
If I ever build, I know I want to insulate well using either spray foam insulation or something similar. That may or may not be "worth it" but the energy efficiency along with the comfort and knowledge of knowing I won't have drafts in the winter will be my payback.
Also, when using something like spray foam, for example, it not only reduces monthly costs, it also allows for a smaller HVAC system wghich will costs less to purchase. Of course the savings for the smaller systems won't cover the extra cost of the insulation, but it is a plus.
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