Sips Homes ~ Sips Home Manufacturers ~ Increased Resale Value of Homes

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Structurally Insulated Panelized System (SIPs) Homes, Sips Houses, Sips Buildings & Expanded PolyStyrene Homes & Houses

  
     
 
 
     
     
 

INCREASE THE MARKET VALUE OF YOUR HOME

     
 

  The advantages of an Home are:  
 
  • Insect and Mold Resistant
  • High Energy Efficiency Components
  • Increased Resale Values
  • Decreased Building Time
  • A True Green Product
  • Decreased Mortgage & Payment Rates
  • Potential Energy Tax Credits
  • Reduced Energy Costs
  • Increased Life Expectancy of Building
  • High Wind Load Survivability
  • Reduced Thermal Loss
  • Reduced Insurance Rates
 
     
     
 
     

A  peer-reviewed study published in The Appraisal Journal shows that homebuyers are willing to pay substantially more for energy-efficient homes. This study, titled "Evidence of Rational Market Values for Home Energy Efficiency," concludes that people are willing to fully pay for the monthly fuel savings of energy efficient homes with higher monthly mortgage payments" which translate into higher home values. Thus, homebuilders and homeowners who invest in energy efficiency can expect to recover the market value of their energy efficiency investments when they sell their homes.

The ICF study reviews published research on energy efficiency and home values, and presents an extensive statistical analysis of American Housing Survey (AHS) data. The published research shows that market values for energy efficient homes appear to reflect a rational trade-off between homebuyers' fuel savings and their after-tax mortgage interest costs. The ICF statistical analysis explicitly tests this "rational market hypothesis" against National AHS data for 1991, 1993, and 1995, and metropolitan statistical area data for 1992 through 1996. Both of these distinct AHS samples provide data on home characteristics (including home value, number of rooms, square feet, lot size, and utility bills) as reported by homeowners in lengthy interviews with the Census Bureau. The study presents separate statistical results for each year, for detached and attached homes, and for detached housing with different heating fuels (gas, electric, or fuel oil).

These statistical results support the conclusion  "That home value increases by $20 for every $1 reduction in annual utility bills", consistent with after-tax mortgage interest rates of about five percent from 1991 through 1996.

This research was conducted for the U.S. Environmental Protection Agency (EPA) ENERGY STAR® Homes program. ENERGY STAR® homes use at least 30% less energy than a Model Energy Code home while maintaining or improving indoor air quality and increasing comfort in the home. EPA estimates that the cost to upgrade a new home to ENERGY STAR® levels can range from $2,000 to $4,000, and that a typical ENERGY STAR® home reduces utility bills by $420 per year. The ICF study indicates that $420 in annual utility savings will add about $8,400 to the market value of an ENERGY STAR® home (or to any equally efficient home), or two to four times the builder's upgrade costs.

The study should also encourage homeowners to consider energy efficiency upgrades for existing homes. An important conclusion from this research is that homeowners "can profit by investing in energy efficient homes even if they are uncertain about how long they might stay in the home. If their reduction in monthly fuel bills exceeds the after-tax mortgage interest paid to finance energy efficiency investments, then they will enjoy positive cash flow for as long as they live in their home and can also expect to recover their investment in energy efficiency when they sell their home." This research also has significant implications for home appraisers, mortgage lenders, and housing assistance programs at the federal, state, and local levels.

 

Written by: The Appraisal Journal by Rick Nevin and Gregory Watson :

“Evidence of Rational Market Values for Home Energy Efficiency,” Rick Nevin and Gregory Watson, Appraisal Journal, October 1999.
(Adobe Acrobat Format) This study demonstrates the increased value of energy-efficient homes, assigning estimated incremental home value.

"More Evidence of Rational Market Values for Home Energy Efficiency" Appraisal Journal, October 1999

  
  Give us a call at 1-928-710-3210 . or complete the following form to see if we can help you make an additional $26,400.00 *or more when you sell your home, and let you save several thousand dollars a year in energy cost while you own it.  
 

Contact form: Please provide the following contact information;

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Can I help you increase the resale value of your home ?


 

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Sips Home Manufacturers.. Sips Homes for sale.. SIPs Buildings for sale,

 
 
 
 
     
 

 
     
 
 
 
 

 
     
 
 
 
 
     
 

How much more would your conventional stick built home be worth if it was one of our Structurally Insulated Panelized homes.

  
     
 

Using a 2,000 square foot home constructed by us which has an average heating/cooling bill of $35.00 a month; and a similar size traditional built stick built home with an average heating/cooling bill of $145.00 a month, you save $110.00 a month in energy costs; or an overall savings of $1,320.00 a year in energy costs.

  
     
 

Using the criteria in the U.S. Environmental Protection Agency (EPA) report which was published in the Appraisal Journal, you take the $20 for every $1 reduction in annual utility bills and multiply it by $1,320.00 and you get an increased home resale value of $26,400.00.  If you saved even more in energy savings in a year, the resale value of your home will do nothing but increase.

Doesn't it make sense to maximize the value of your single largest asset, increase the resale value of your house while reducing your annual energy expenses at the same time.

  
     
     
 

For more information on SIPs Homes & Houses: Contact us at  1-928-710-3210

 
 
 
 
     
 

 
     
 
 
 
 

The following charts from the Oak ridge National Laboratory (ORNL); independent studies from the Appraisal Foundation in conjunction with the Environmental Protection Agency (EPA)  and the U.S. Department of Housing and Urban Affairs (HUD), along with a comprehensive study by Brock University in Canada show how owning one of our homes would allow you to save several hundred dollars a year in energy costs, while increasing the resale value and overall equity in your home.

  
 
     
   
     
   
     
   
     

 
 
        It's not that the builder is intentionally misleading his client or associate, but that he's just following common practice. In reality, this reasoning doesn't take into account all the other components that go into making a wall: wood or steel studs every 16" or 24", bracing, nails or screws, wiring and switch boxes - any number of things that are not insulation, and in all likelihood, have R-values that fall well short of the stated R-24.


        A new study by the Oak Ridge National Labs (ORNL) proves that a 4-inch SIP wall outperforms 2"x4" stick and batt construction, and even edges out 2"x6" construction in terms of thermal performance. Because SIPs are the structural elements, there are no studs or braces to cause breaks in the insulative action. The end result is a more comfortable, energy efficient structure that performs up to spec in real-world conditions. Unlike stick and batt construction, which can be subject to poorly installed - e