Does a Generator Increase Home Value?
Any time you consider a major addition or purchase for your home, you might also consider the change it will make to the home’s value. We all know that upgrades in roofing, HVAC systems, and some cosmetic changes can increase the value of your home or make it a quicker sale should your home go on the market. But what about a generator? Will a backup generator increase your home’s value? Can you expect to recoup the initial investment cost when it comes time to sell?
Will a backup generator boost my home’s value?
Answering this question is tricky, and has to be answered in a few parts. First, let’s talk value in terms of safety, security, and protection of other assets. Installing a home generator adds a way to ensure both your family and home will be protected in the event of a power outage. For example, if your home uses a sump pump, the generator will help reduce likelihood of flooding by keeping the sump pump running during an outage. Power outages cost homeowners billions of dollars (literally!) a year nationwide, so offering potential buyers a method of preventing damage or property loss due to power outages can be very valuable to homeowners.
Secondly, let’s talk value in terms of dollars and cents. There’s a lot of conflicting information on this topic, and it seems the exact ROI (return on investment) is hard to nail down. In general, the average ROI of a home standby generator hovers around roughly 65-70 percent. To give you some grounds for comparison, the home loan website renofi puts most home improvement projects at an ROI of 70 percent.
Will a backup generator help my home sell faster?
While it’s likely not a make-it-or-break-it selling point, a generator is a very attractive feature, especially if you live in an area where power outages are common. (And, we all know how unpredictable the weather can be in Indiana!) Your realtor will likely be glad to put a backup generator on the list of advantages and attractive selling points for your home!
The biggest benefit of a backup generator
While a backup generator carries with it a nice ROI and is an attractive selling point should you decide to sell your home, there is another major benefit. The biggest benefit of a backup generator is the safety and security it will bring your home and family during a power outage. From keeping the fridge full of food fresh, to protecting those who rely on electrically-powered medical devices safe, a backup generator will be a great addition to your home.
If you need help choosing the right generator for your home, or just have questions, give us a call. We’d love to help!