Home Value Question

[GreenBGOak629]

Are there any guides, websites, or other methods in helping to determine whether or not certain projects add value or devalue to your home (if you are reselling)?

For example, I know my folks would hesistate installing solar panels because other then the obvious cost factor, they feel that it would some how decrease the value in their home if they were to try and resell it in the future.

[McGizmo]

Originally Posted by GreenBGOak629

....
For example, I know my folks would hesistate installing solar panels because other then the obvious cost factor, they feel that it would some how decrease the value in their home if they were to try and resell it in the future.

I wonder what the logic is in this perception?!?!

My wife is in real estate and I know that realtors can and do advise sellers on the dos and don'ts of different upgrades but as to any guide books or online suggestions, no idea. Have you tried google?

[idleprocess]

Regardless of the aesthetics of solar panels, they're a simple economic proposition. Intead of a variable cost (electricity from the grid), they produce electricity and you either pay a lump sum or a flat monthly note in exchange. From a home value perspective for resale, they'll be rolled into the mortgage and probably save far more money in electricity costs than they add to the note.

Assuming weather patterns don't change drastically, you don't have a stand of poplar saplings due south of your panels, or noone erects a billboard that will interfere with your sunlight, solar panels should produce for 30+ years with minimal maintenance.

[Darell]

I don't have an answer to your main question. But I *must* comment on the other. PV panels *decreasing* the value of a home? I've not heard of such an animal. Just the oposite is true - at least everywhere I've heard of. If you have two similar homes, and one comes with a $300/month power bill, and the other comes with a $0 power bill, I know which one is more valuable to me! And every realestate person I've spoken to has said the same thing. PV *ADDS* value to a home in all cases that I've heard of. In some cases the increase in home value is even more than the cost of the system. That's a pretty good return!

[josey]

The U.S. Dept. of Housing and Urban Development says homes values increase an average of $20 for every $1 reduction in annual utility bills. So in my area of cheap electricity (6 cents/kWh), using current incentives, a 3,000-watt solar system would increase the value of your home about $16,000. A solar hot-water heater does even better, raising the value of the house by more than the cost of the system. In areas of higher electricity costs, solar increases home values even more.

But HUD uses national figures. In places where solar is still uncommon, installed solar systems will have less affect on home values. Appraisers have been slow to add value even for efficient geothermal heating systems, and even fewer real estate agents and builders have seen the light on solar.

There is also a political dimension. Conservatives will not like solar panels on their houses, so they will be willing to pay less for a solar-powered house, if they would even consider buying it. Liberals see solar panels as a badge of honor and are willing to pay more than sheer economics dictate.

[GreenBGOak629]

I had a real estate person come out to my parent's home yesterday (in Northwest Ohio - an area slowly becoming known for the boom in solar panel production). When I asked the real estate agent the same question I asked on here about installing solar panels? I was informed for this part of the country it adds no value and in a lot of cases it decreases the value of the home. Mainly because of aesthetics, people don't like the look of them so they don't want them on their houses or property. I have also heard for the price of installing solar panels, the cost isn't worth the benefit. If my parents only live in the house for 5 more years, they won't be able to recoup the money they spent on solar panels through the savings on their utility bills or in reselling the home.

I guess I can understand her point, but it does still boggle my mind. I do know this region of Ohio tends to be very conservative...even though the solar panel industry is booming around here.

Thoughts???

[McGizmo]

The owner/ developers of a new condo complex that is going up behind me apparently did not like the look of the solar water heater panels and they elected not to install them. I think I have mentioned this. Because they refused to install the water heaters, the county insisted they use some exotic and expensive exterior covering that would increase the R factor of the building and result in energy saving of the cooling of the building. Water heaters over here are electric and the solar solution is an obvious no brainer that pays for itself in no time in saved energy cost.

The irony to me was in considering that due to the multi level height of this complex, the future owners of these condos won't see their roofs unless they are elsewhere in the neighborhood. However, many will look out their window and see my solar panels, PV and water as well as neighbor's solar water panels.

If the area is conservative and solar panels are considered a left wing badge of honor, ala Gore, then perhaps some people use criteria based on other things than financial considerations and/or environmental initiatives. Perhaps simply put, denial runs deep in the heartland?

In fairness, perhaps energy costs are presently low enough in your area that solar alternatives do not represent a great or significant savings in energy costs.

[Darell]

I often wonder why I hear so many people complain of "ugly" solar panels while I hear so little about the beauty of our brown air.