Real estate investment revolves around making as much profit as possible with every home sale. The best way to ensure this happens is to invest in certain home upgrades that increase a home’s value. When deciding which upgrades to get, investors should consider how much an investment will return in profits. This is referred to as Return on Investment (ROI), and in today’s market, energy efficiency has become more and more profitable. As such, investors are considered these upgrades the best choices when investing in homes. So, to help you turn a profit, we’ve put together a list of 6 high-ROI energy-efficient home upgrades to consider when upgrading a home before selling it.
Programmable Thermostats
Thermostats have always been a helpful tool in managing the temperature in your home. Nowadays, you can get programmable thermostats which make your home more efficient. You can program these thermostats to set exact temperatures at the precise time of day you tell them. Some of the more recent ones can even learn your preferences without needing to be programmed. Additionally, you can control programmable thermostats over wi-fi, even if you’re out of the house. This ability to fine-tune the thermostats allows you to be very efficient with your energy management, which is why they’re on the list of high-ROI energy-efficient home upgrades. If you’re looking for a quick and easy upgrade to add some value, you can’t go wrong with a programmable thermostat. And when it comes to real estate, consider these investment rules before starting if you’re new.
Solar Panels
You can’t beat solar panels for high-ROI energy-efficient home upgrades. In today’s world, solar panels are one of the most popular home features among buyers. After all, who doesn’t want to reduce their energy bills in the long run? This is why everyone’s been investing in solar panels in recent times, and they’re only going to become more prevalent in the future. Renewable energy is one of the most efficient ways to keep a home powered, and solar panels are the most easily accessible.
When investing in a home you want to sell, you can’t go wrong with solar panels. However, homeowners need to remember that while they don’t need much, solar panels still need maintenance. In the long run, proper maintenance is crucial to keeping your solar panels as efficient as possible.
HVAC Upgrades
HVAC systems are, by far, the most popular upgrade in investments. After all, no one wants to live in a home that can’t regulate its temperature. However, not all HVAC systems are equal, and older ones are incredibly inefficient. As such, upgrading the HVAC system in a home is one of the best decisions you can make regarding ROI. The better the HVAC system, the faster the temperature adjusts, and the less energy is wasted. As such, HVAC upgrades are always a good idea when it comes to real estate investments. Some upgrades can get expensive, so managing your budget is essential. If your budget isn’t too big, you have to consider whether it is practical to invest in real estate with a tight budget. At the very least, a tight budget makes everything more difficult overall.
Water Heater Upgrades
Water heaters are necessary for all homes, but they use a lot of energy, no matter how you look at them. This is especially noticeable with older models, which are highly inefficient. Generally speaking, tank-type water heaters are inefficient and waste a lot of energy in the long run. As such, upgrading the water heater to a newer, more efficient model is an all-around good idea. In the long run, a more efficient water heater can save you a lot of money. Because of this, buyers are willing to pay quite a bit more for homes with highly efficient water heaters. Some water heaters can even be linked with solar panel systems for more efficiency. However, experts from peakservices.com note that you must carefully maintain your solar panels if you choose one of these models.
Insulation
HVAC systems can use a lot of energy during winter and summer in order to keep your home at the right temperature. However, insulation helps quite a lot with maintaining the temperature in your home. As such, adding insulation easily makes the home significantly more energy efficient. After all, if your HVAC system doesn’t have to struggle to keep up, it uses a lot less energy to do its job. This applies to both heating and cooling, and you’ll be able to feel the difference this makes to your bills as soon as it’s installed. That said, investors should be careful when picking out the exact type of insulation they want to put in a home. And if you’re new to the business, consider a real estate investing guide to help you out with your decision-making.
Air Sealing
Another upgrade that can help out the HVAC system is air sealing. Houses leak air, which means that the air your HVAC system heats or cools is lost over time. Insulation helps, but if you want to be as efficient as possible, air-sealing the home is a must. However, keep in mind that air sealing is a very long and involved process. This is because there are possible leaks almost everywhere in a house, so keep this in mind when planning ahead.
Wrap Up
All in all, there are a ton of choices when it comes to investing in house upgrades. Almost anything in a home can be improved in some way or another. However, when it comes to real estate, you want to make sure you get as much profit as possible for every upgrade. As such, keeping in mind ROI at every step is incredibly important if you want to be successful. We hope that this list of 6 high-ROI energy-efficient home upgrades will help you out, and we wish you a good day.
Image Credits: Binyamin Mellish, Erik Mclean, ready made, Greg Rosenke
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