Will installing eco-friendly upgrades help sell my home

Renovating or adding features are usually a good way of boosting a home’s appeal to potential buyers – but does installing eco-friendly upgrades make a difference?

Considering the amount of social pressure there is to go green these days, you’d think that everyone would be demanding all the latest and greatest environmental add-ons. But in reality, this isn’t the case. Click through to find out why.

Will installing eco-friendly upgrades help sell my home?

Environmental destruction, high energy consumption, global warming, and unpredictable droughts – they’re issues that are close to the hearts of many Aussies, and increasing numbers of new home builders are choosing to add environmentally friendly options where possible.

However, when talking about selling existing homes, the reality is that the majority of the market cares more about traditional selling points.

If you’re thinking about renovating before selling, our experience tells us that in most cases, a couple of solar panels aren’t going to make your home fetch any more than it would otherwise.

Here’s why.

• It’s all about the market

Here at Hicks Real Estate, we deal mainly in the 4053 post code – and we’ve found that the demand for eco features generally isn’t as high as some other features. This could be because the upgrades are still fairly expensive and tend not to deliver much return on investment unless you’re at the very top end of the market.

The only real situation where eco-friendly additions generate any kind of return is when a very specific type of buyer (i.e. a very environmentally conscious one) knows exactly what they want, and are happy to pay a premium for it.

Let’s look at a few examples.

• Installation cost vs. return on investment

When talking about environmentally friendly home upgrades, the first thing most of us think of are solar panels.

While installing solar panels can be a great money saver for a home, they may not add much value when it goes up for sale. While a few thousand dollars seems like a lot when you’re paying the solar installer, compared to a $500,000 house it’s not going to make a dent.

Put simply, if you’ve already got solar, then great! Make the most of your feed-in tariffs and other rebates. But don’t go rushing in and installing new panels thinking it’s going to make your house more valuable – it probably isn’t going to bring you much of a return.

Other high-cost items that might not be the most efficient profit-makers could also include rainwater tanks or new roof or wall insulation.

• Installation cost vs. first impressions

Buyers will immediately judge a property on their first impressions, so you want to add eco touches that will catch their attention. The good news is that smaller changes can often be more noticeable.

For example, spending a small amount on having a professional gardener come and trim the plants and spruce up the front yard may deliver substantial gains – so think along these lines.

Replace old, withered plants with new, water-wise natives, or cover flower beds with fresh gravel or mulch to keep weeds at bay and retain moisture.

You could also change all your shower heads, tap fittings and toilet cisterns to water-saving designs, or you can try swapping out your lighting for LEDs.

These quick installations will only cost you a few hundred dollars, but the immediately visible difference could give you much bigger gains than more expensive investments.

Most people’s lives revolve around the kitchen and living room, so look at these rooms first. A new lick of paint, along with LED lighting and updated plumbing fittings, can transform an interior and command a higher price at sale time.

• Look at the market and compare

With a lot of these eco upgrades, before diving in think about whether you’d be impressed enough to pay more – and try to work out how much more.

Look at a home in your area that has recently sold for a similar amount as you’re looking for, and ask yourself how much more you would’ve paid if it had a solar water heater or other energy-efficient additions.

If you can’t really see yourself paying much more than the installation cost, maybe think about putting that money towards something more profitable such as a kitchen or bathroom upgrade.

In conclusion, the fact is that the average house-buying member of the public is still more interested in location and growth potential than in rainwater tanks and energy efficient appliances.

However, this doesn’t mean you shouldn’t look into doing your bit to stay environmentally friendly – but do please make sure you do the maths before spending thousands. Perhaps being environmentally friendly is something that you do for yourself.

Here at Hicks Real Estate, we often consult and offer advice on worthwhile additions and modifications to make before a sale. If you have any questions on greening up your home, get in touch with us on 07 3355 6845.