congrats and thanks for the heads-up re: phillips LEDs at Home Depot
... my theory is that low utility using homes are worth more and sell better than average usage homes. I guestimate that each monthly dollar saved on utilities translates into about $200 in increased home value. So if my home costs $75 less to run than my neighbors, theoretically at least, I could price it 15K higher.
your logic seems sound but I wonder if it will translate in practice. Many buyers seem to only care about things like sf, location, and fit & finish. Lower heating bills certainly should make a home worth more, but will buyers actually pay it... i'm not so certain. I hope they do.
I think in general they will see the advantage of low utility bills. My son rents a house with a very high energy usage bill due to ancient HVAC equipment. He has determined that he will move and buy a house. So in his case energy usage is the deciding factor in deciding to buy a home.
The link below demonstrates that the feds recognize the value in energy efficient homes. Basically, the loan to value ratios are increased to account for the lower monthly cost of energy.
http://www.energystar.gov/index.cfm?c=mortgages.energy_efficient_mortgagesTo be conservative I'll assume that for each dollar saved on a monthly basis on energy compared to average users in my area I will price my home $50 dollars higher. So a $50 dollars monthly savings equates to a $2,500 increase in home value/pricing. (this is in line with the feds loan to value ratios)
I believe this is important as many people use various payback models to determine if a home energy improvement is worth the investment. If they include the value of the increase in home value, I think they will find a very quick payback for many improvements.
For instance, replacing my 16 flood lights with LEDs for $160 might take up to 2 years for payback. But if I use the 1 dollar per month to $50 ratio, I can assume that my home is increasing in value by around $400 immediately. Boom, instant payback!
Now, do I believe that just the bulbs is enough to bump the price? No I do not, but I do believe that if we do several things to where our total utilities are $150 monthly below similar homes in the area that people will see the value in that. (realtors have confirmed this thinking)
Our current average monthly all electric utility cost is around $150 for a 3000 sq ft home. (we have a well for water and a septic system, so no water or sewer bill). My midterm goal will be to whittle that number down to around $80. My son's costs are closer to $300 per month on a 1400 sq ft home due to the inefficient HVAC system and having a $60 water/sewer bill.
So the question might be, given two very similar houses --- If one has a monthly utility bill of $225 and one has a monthly utility bill of $75. Is one house worth more?
With an eye to post retirement cost of living a $300 ute bill vs. a $80 ute bill equates to around 80K in additional saving required or in my case about 3 -4 years of additional work years at my current saving rate.
I'm old so 3-4 years is a lot to me! lol