Although power outages in Fox Valley, WI, aren’t a common occurrence, when they do happen, they can last for several days. If your home experiences a power outage during the peak heat of summer or the lowest temperatures of the winter, this puts your health, safety, and well-being at risk. A power outage could also put the structural integrity of your house in danger. If you’ve been thinking of installing a whole-house generator, you might wonder whether or not doing so will increase the value of your home. Here’s what you need to know about how a whole-house generator affects your property’s resale value as well as some other comfort and financial benefits of having one installed.
Return on Investment for a Properly Installed Whole-House Generator
According to Consumer Reports, a whole-house generator properly installed by licensed and certified electricians could raise your home’s value by 3% to 5%. In a survey of home remodeling experts, home appraisers found that the installation of a standby generator to power an entire house yielded a 150% return on investment. This means that if you spend $10,000 to install a whole-home generator, the sale price of your house may increase by $15,000 compared to if it didn’t have a standby generator.
How Depreciation Affects Return on Investment for a Whole-Home Generator
If you decide to install a whole-home generator, and then you immediately sell your house, you should reap the biggest return on investment. If you install the generator and sell your property 10 years later, the generator’s value will depreciate. That’s because a 10-year-old generator is close to the end of its lifespan, and it may need major repairs or a replacement soon after the buyer purchases your residence. The depreciation is similar to how a furnace, an air conditioning system, a heat pump, or a roof depreciates over time.
How to Maintain the Value of Your Whole-House Generator
A whole-house generator is a machine. Much like a car, it starts to depreciate after you buy it. To keep its value as high as possible, you’ll need to schedule regular maintenance for it. Just like the engine and other parts of a vehicle need routine maintenance, so does your generator. An annual tune-up is the best way to ensure that the generator will work when you need it. This is also the best way to keep the generator’s resale value as high as possible. A well-maintained generator will last longer, work more efficiently, and retain more of its purchase value.
Why a Whole-House Generator Adds Value to Your Home
When the power goes out, critical parts of your home are rendered inoperable. This includes key systems, such as a sump pump. If power is knocked out due to a severe thunderstorm that brings torrential rain and high wind, a loss of power to your sump pump could result in a flooded house. Similarly, a strong snowstorm that knocks out power to your property might result in frozen pipes. If those pipes burst, your home could be flooded. Being able to power the sump pump and your house’s heating system prevents your home from incurring severe damage. Your insurance company might lower your premium if you have a standby generator that can lower the risk of this type of catastrophic damage. Prospective buyers will also appreciate the fact that if the power goes out, they can safely shelter in place.
How to Choose the Right Whole-House Generator
When you’re thinking of buying a whole-house generator both for your own safety and convenience as well as to add to the resale value of your home, you’ll need to consider which systems or appliances it will need to power. For example, if you have a large home with two heat pumps, you’ll need one or two standby generators to power the HVAC system as well as your refrigerator and other key appliances. If you have a small house with a gas furnace, standard refrigerator, and flatscreen television, you won’t need as high of a capacity for a whole-home generator. Some considerations to keep in mind include the electrical demands of appliances, whether or not you will want to use all of those electrical appliances at the same time during a power outage, and how energy-efficient your appliances and home are. If you’ve recently installed Energy Star-rated appliances, you might not need as high of a capacity of standby generator as you would if your appliances were 20 years old.
When to Install a Whole-House Generator for the Best Return on Investment
Any time is a good time to install a whole-home generator and get a great return on your investment. If you’ve just purchased a house, installing a whole-house generator now will give you peace of mind knowing that if the power goes out, your residence is protected. If you’re updating your home, this is also a great time to install a whole-house generator. The generator will allow you to stay in your own comfortable space no matter what the weather conditions are like. If you’re thinking of selling your house in the next few months to one year, this is also a good time to make improvements. In a competitive home sale market, a house with more improvements will be more likely to attract plenty of bidders. Those prospective buyers might get into a bidding war on a desirable house, which could send your property’s resale value and sale price soaring higher than you might have expected.
Who Should Consider Installing a Whole-House Generator?
Any home can experience a power outage. Severe weather, an electrical grid that’s poorly maintained, and other calamities can cause the power to go out for a few hours to a few weeks. If anyone in your home depends on an oxygen tank, CPAP machine, humidifier, air conditioning, or another appliance or device that requires electricity, installing a standby generator gives you peace of mind. You may also want to consider the installation of a whole-house generator if you wouldn’t have the cash on hand to pay for a few weeks in a hotel room or to pay a large homeowner’s insurance deductible in the event of a flood caused by a burst pipe or inoperable sump pump.
Additional Financial Benefits of Installing a Whole-House Generator
Installing a whole-house generator means that if the power goes out for more than a few hours, the food in your refrigerator and freezer won’t go bad. The loss of a whole refrigerator or freezer of food could be hundreds of dollars, which is usually less than a homeowner’s insurance deductible. Preventing a flood in your home is another benefit of installing a generator. You’ll avoid paying the pricey insurance deductible on repairs, and you won’t have to deal with the loss of invaluable family heirlooms and personal mementos.
Black-Haak is a trusted provider of whole-home generators in Fox Valley. Homeowners also count on us for affordable heating, air conditioning, plumbing, and electrical maintenance, repair, and replacement services. Our indoor air quality and geothermal solutions can keep your home comfortable and healthy while lowering your monthly utility bills. To learn more about how a whole-house generator affects the resale value of your home, get in touch with us at Black-Haak today.