Property value impact associated with installing a ground source or air source heat pump
Will a heat pump increase my property value?
Although there is currently little definitive evidence to suggest either way, the low aesthetic impact and financial benefits of heat pump installations mean that their presence is likely to increase property value. Most people can appreciate the cost savings of a high efficiency heating system and will certainly consider things like heating systems when looking to buy a property.
There are many different kinds of heating systems used in homes. You’ll find that the systems are classified in a few different ways. The first way is by the type of fuel they use and the second is the way in which they actually distribute it throughout the home.
These fuel sources include oil, natural gas, electricity and even the sun. The heat generated by these fuel sources can be distributed by air, electric wiring, radiation or water.
The value put on the heat pump system by the realtor or by the future buyer will most likely be down to personal preference and a few other factors such as the temperature at the time of sale and recent seasonal variations. If there has been a very cold winter, people are more likely to put a high value on a pre-installed heating system that is cost effective and adequately heats the property.
A new roof for example doesn’t add much to your property but an old or damaged roof will certainly detract from the value of a property. So perhaps a new heat pump system might not add much value but an old inadequate gas boiler system may detract from a property’s value. Make sure your estate agent knows the value of the heat pump system and sells it to the prospective viewer in the best way possible. A real estate appraiser will most likely see your heat pump system as a contributory factor and add a small amount of value to the asking but price but generally they will see it as part of the whole and describe it as adding appeal.
[Further reading] “In October 1999, an American publication, ‘The Appraisal Journal’ released an article titled More Evidence of Rational Market Values for Home Energy Efficiency. This article describes a study that used regression analysis to find the affect that energy savings have on the value of home. Their results from several years of analysis consistently show that the value of a home increases by $20 for every $1 reduction in annual utility bills. Although this data is several years old, it can still be used to create an argument that geothermal systems increase the value of a home by significantly reducing annual utility costs.”