Many homeowners believe that spending money on a home remodel is a sound investment that will increase the value of their home. But for something to count as an investment, you should expect to get your money back… and MORE!
But in actuality, home remodels almost never yield a return on investment.
In 2005, Remodeling Magazine reported that the typical homeowner only got back 86.6% of the amount they spent on their remodeling project… and that was only for homes that sold within a year of the project’s completion.
The value of traditional remodeling projects decreases with each passing moment.
In 2008, homeowners who invested in remodeling projects only recouped 67.3% of their costs.
If you consider traditional remodeling projects to be sound investments that will increase the value of your home for future resale… you better take another look.
Times are tough, and that home remodel you were thinking of investing in may end up really hurting you if gone about the wrong way.
Also worrisome is the fact that your home remodel could actually increase operating costs, therefore decreasing your home’s value in a market characterized by rising energy prices.
In this market, investing in inefficient upgrades is going to decrease the value of your home…because those operating costs are going to be passed on to the next owner who will suffer from the same wasted dollars you have been paying your utility company all along.
But home improvements that act as sound investments are NOT a myth!
An EPA funded study conducted by ICF Consulting surveyed over 16,000 homes across the country and found that owners who invest in home energy efficiency upgrades really do increase the value of their home.
The study concluded that the value of your home increases by $11-$25 for every dollar you save on your utility bill through energy efficiency improvements.
Also exciting is the fact that you don’t have to sell your home to get a return on investment like you would with a traditional remodeling project.
Since energy efficiency improvements will lower your utility bill, you will recoup your investment and actually start earning profit!
With low interest financing, you can save more on your utility bills than you are spending on your monthly payments…therefore reaching cash flow positivity.
So if you spend, say…$50 a month on energy efficiency upgrades, but then save $75 a month on your utility bill… isn’t that an investment that really makes some sense?
And if you ever go to sell your home, you’ll benefit from a higher selling price!
Since you learned just how much energy efficiency improvements can save you, you’ll probably want to spend a little bit more money this time by getting a home that’s energy efficient in the first place …because after all… energy efficiency is a proven investment that makes your money back and more!
Sure beats the remodeling projects of the past that can only dream about transitioning into the green!
Be sure that you choose the improvements and upgrades that will save you the most energy and money, while maximizing the value of your home.
1-877-534-4550 or Click Here to Contact Us